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