marketing exam 1 terms
CF structure: monopoly
no competition, high barriers to entry, almost no substitutes. EX: water utilities
clayton act
price discrimination
proactive vs reactive
pro: finding a new/different product to stay in business. EX: making tire treads when tire demand is low re/passive: accepting economic situations
CF type: product competitors
products with different benefits to the same market (coke vs minute maid)
pull promotion
promoting to end customer (advertising +consumer sales promotion). customer asks for product from retailer who asks from wholesaler who asks from manufacturer
push promotion
promoting to the next channel member (personal selling and trade sales promotion). manufacturer pushes to wholesaler who pushes to retailer who pushes to customer
embargo
restriction/suspension of trade
CF type: brand competitors
similar features + benefits to the same customers at similar prices (coke vs pepsi)
SWOT analysis
strengths, weaknesses, opportunities, threats
niche
subset of a larger market that has its own unique needs, preferences, and identity
trading company
takes title to goods making profit on difference in selling and purchase price; links buyers and sellers in different countries
import tariff
tax on imported goods
leapfrogging
technology/culture of more developed countries quickly make their way into less developed countries
strategic window
temporary periods of optimal fit between key requirements and capabilities of a firm
technology
the application of knowledge and tools to solve problems and perform tasks more efficiently
globalization
the development of marketing strategies that treat the entire world (or its major regions) as a single entity
discretionary income
the money left over after paying for taxes and "essentials"
income
the money received through wages, rents, investments, pensions, and subsidy payments for a given period
consumerism
the organized efforts of individuals, groups, and organizations to protect the rights of consumers
foreign direct ownership
the parent company is based in one country and carries on production, management, and marketing activities in other countries
market share
the percentage of a market that actually buys a specific product from a particular company
environmental scanning
the process of collecting information about forces in the market environment -observation, secondary sources, market research
strategic planning
the process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and market strategies
exchange
the provision or transfer of goods, services, or ideas in return for something of value
competitive advantage
the result of a company matching a core competency to a market opportunity
buying power
the size of the resources, such as money, goods, and services that can be traded in an exchange, that enable the individual to make purchases
core competencies
things a firm does extremely well (strengths) which sometimes give it an advantage over its competition
define marketing
to create, communicate, and deliver value to the target market at a profit
CF structure: pure competition
unlimited competitors, no barriers, homogenous products. EX: agricultural corn market
CF type: generic competitors
very different products that solve the same problem or satisfy the same basic customer need (coke vs water)
quota
limit on number of products allowed into country
market growth and BCG matrix
-cash cow: low mkt growth, high share. brings in more money than using. reinvests money in brand to maintain share of mkt. EX: tide -star: high mkt growth, high share. fast growing mkt leaders, large investment. want to protect share, reinvest earnings to obtain new users. EX: tesla -?/problem child: high mkt growth, low share. rapid grow, poor profit margins. invests to build share and buys existing shares. EX: cricket -dog: low mkt growth, low share. few growth opportunities at reasonable cost, mkt not growing. focus on specialized, harvest, divest, or abandon. EX: lamborghini
licensing and franchising
-licensing: a company allows a foreign company to pay it a fee to make or distribute the first company's product -franchising: form of licensing which allows a foreign company to pay it a fee and also share profits
marketing mix (4 p's)
1) Product (goods, services, ideas) 2) Price (margins, pricing, credit, discounts, allowances, value) 3) Place (inventory, distribution, warehousing, order processing, materials, handling, transportation) 4) Promotion (advertising, personal selling, public relations, sales promotions, word of mouth) firms control these to meet needs of customers within target market
business cycle
1) prosperity: high unemployment and high total income 2) recession: high unemployment, low total buying power, consumer and business spending decline 3) depression: extremely high unemployment, wages and total income extremely low, lack of consumer confidence 4) recovery: economy is moving out of a recession/depression towards prosperity
Federal Trade Commission (FTC)
1914 federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
wheeler lea act
1936 federal law that controls false advertising and prohibits unfair/deceptive acts and practices
robinson patman act
1938 federal law that regulates pricing practices and prohibits money discrepencies
value
A customer's subjective assessment of benefits relative to costs in determining the worth of a product
marketing concept
A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals (product, then sales, then marketing orientation)
green marketing
A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
better business bureau (BBB)
A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
social responsibility
An organization's obligation to maximize its positive impact and minimize its negative impact on society
stakeholders
Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes
market opportunity
a combination of circumstance and timing that permits an organization to reach a target market
CF structure: monopolistic competition
many competitors, few barriers, many substitutes. EX: wrangler and levi jeans
joint venture and strategic alliances
JV: partnership between a domestic firm and a foreign firm. share profit/risk/investment SA:
sustainable competitive advantage
a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
marketing ethics
Principles and standards that define acceptable marketing conduct as determined by various stakeholders
marketing citizenship
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
sustainability
The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies
contract manufacturing
The practice of hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification; the final product carries the domestic firm's name
strategic business units (SBUs)
a division, product line, or other profit center within the parent company that is self supporting
market
a group of individuals and/or organizations that have need for products in a product class and have the ability, willingness, and authority to purchase those products
mission statement
a long term view/vision of what the organization wants to become
marketing strategy
a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market -4P's -accessible, measurable/profitable, sustainable, meaningful
target market
a specific group of customers on whom an organization focuses its marketing efforts
marketing objective
a statement of what is to be accomplished through marketing activities
marketing plan
a written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies
first mover advantage
long term competetive advantage by being the first product. build reputation, no competition, establish brand loyalty RISKS: high cost associate with creating a new product, high risk of failure
wealth
accumulation of past income
sherman anti trust act
an 1890 law that banned the formation of trusts and monopolies in the United States; restrained trade
ethical issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
export agent
brings buyers and sellers together, does not take title, earns commission on sale
sociocultural forces
changes in a population's demographic characteristics that lead to changes in how people live and consume products
CF type: total budget competitors
compete for the limited financial resources of the same customers (coke vs gum)
outsourcing
contracting noncore operations with an organization
late mover advantage
later market entrants that can still achieve competitive advantage by being a follower. able t learn from first movers mistakes, lower initial costs, more certainty about success RISKS: customers are loyal to FM product, timing can determine amount of LM advantage
Positioning
designing differentiating perceived benefits of a brand relative to the perception of competing brands -ex: luxury vs economy
international marketing
developing and performing marketing activities across international boundaries
market segmentation
dividing the total population into groups with similar means
CF structure: oligopoly
few competition, some barriers, homogenous/differentiated products. EX: ups, fedex
foreign corrupt practices act
illegal to make large payments or bribes to influenced policy decisions of foreign government
disposable income
income after taxes that is available to you for saving or spending
north american free trade agreement (NAFTA) now USMCA (as of 2020)
intellectual property protections and provisions for digital trademark differences from original NAFTA