Marketing Exam 1

market opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

Stakeholders

A company's customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its

Oligopoly

A competitive structure in which a few sellers control the supply of a large proportion of a product

monopolistic competition

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

Monopoly

A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply

Value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product Customer Value=Customer Benefits -Customer Costs

Strategic Business Unit (SBU)

A division, product line, or other profit center within the parent company

Product

A good, a service, or an idea

MArket

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

market growth/market share matrix

A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy

Customer Lifetime Value (CLV)

A key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts

Mission Statement

A long-term view, or vision, of what the organization wants to become

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

Pure Competition

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply

Business Cycle

A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery

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

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement

organizational (corporate) culture

A set of values, beliefs, goals, norms, and rituals that members of an organization share

Target market

A specific group of customers on whom an organization focuses its marketing efforts

Prosperity

A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)

Recovery

A stage of the business cycle during which the economy moves from recession or depression toward prosperity

Depression

A stage of the business cycle during which unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy

Recession

A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending

Marketing Objectives

A statement of what is to be accomplished through marketing activities

Green Mark

A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

Corporate Strategy

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals

decentralized organization

A structure in which decision-making authority is delegated as far down the chain of command as possible

centralized organization

A structure in which top-level managers delegate little authority to lower levels

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

marketing plan

A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies

Disposable income

After-tax income

sustainable competitive advantage

An advantage that the competition cannot copy

Federal Trade Commission (FTC)

An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

Performance standard

An expected level of performance against which actual performance can be compared

ethical issue

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

willingness to spend

An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces

Social Responsibility

An organization's obligation to maximize its positive impact and minimize its negative impact on society

Market Orientation

An organization-wide commitment to researching and responding to customer needs

marketing cost analysis

Analysis of costs to determine which are associated with specific marketing efforts

sales analysis

Analysis of sales figures to evaluate a firm's performance

SWOT analysis

Assessment of an organization's strengths, weaknesses, opportunities, and threats

marketing ethics

Principles and standards that define acceptable marketing conduct as determined by various stakeholders

During the Industrial Revolution, most firms operated using a(n) ____ orientation.

Production

Define Marketing

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, a core competency exists.

consumer market

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit

Total budget competitors

Firms that compete for the limited financial resources of the same customers

Product Competitors

Firms that compete in the same product class but market products with different features, benefits, and prices

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices

Generic Competitors

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

Income

For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period

codes of conduct

Formalized rules and standards that describe what the company expects of its employees

​A marketing strategy is a written document that specifies the activities to be performed to implement and control a firm's marketing activities. T/F

False

​For an exchange to occur, at least one of the parties must be willing to give up his or her "something of value." T/F

False

Tom's of Maine's natural toothpaste is highly popular but is unlikely to experience much more market growth. As a result, Tom's of Maine is examining other forms of toothpaste with high potential for growth. However, because its natural toothpaste remains so profitable, it can use these profits to invest in newer toothpastes. Trident's natural toothpaste is an example of a

Cash cow

Walmart's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.

Competitive advantage

discretionary income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

Apple introduced the HomePod, a smart speaker/home automation device. For Apple, HomePod represents a strategy of

Diversification

Relationship Marketing

Establishing long-term, mutually satisfying buyer-seller relationships

strategic performance evaluation

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed

A bribe offered to benefit an organization is generally considered acceptable. T/F

False

Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment. T/F

False

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, a core competency exists. T/F

False

Marketing Mix

Four marketing activities—product, distribution, promotion, and pricing—that a firm can control to meet the needs of customers within its target market

Martin was given the task of conducting a research project for his firm and proceeds with the following steps: He asks questions to determine the research topic, conducts a telephone survey, writes a report describing the survey results, and gives that report to his boss. Which step of the marketing research process has Martin omitted?

Interpreting research

Consumerism

Organized efforts by individuals, groups, and organizations to protect consumers' rights

Competition

Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographic area

Environmental Scanning

The process of collecting information about forces in the marketing environment

​An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

Strengths and Weaknesses

​Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

Strengths and oppourtunities

Strategic Windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

first-mover advantage

The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

late-mover advantage

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Wealth

The accumulation of past income, natural resources, and financial resources

marketing citizenship

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Technology

The application of knowledge and tools to solve problems and perform tasks more efficiently

Marketing Environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

Socialcultural forces

The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles

Market Share

The percentage of a market that actually buys a specific product from a particular company

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

casue related marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis

Environmental analysis

The process of assessing and interpreting the information gathered through environmental scanning

Marketing

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Strategic Marketing Management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Marketing Implementation

The process of putting marketing strategies into action

Exchanges

The provision or transfer of goods, services, or ideas in return for something of value

Customers

The purchasers of organizations' products; the focal point of all marketing activities

Competitive advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

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

strategic philanthropy

The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits

core competencies

Things a company does extremely well, which sometimes give it an advantage over its competition

Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships. T/F

True

People learn values and principles through socialization by family members, social groups, religion, and formal education.T/F

True

To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or specific company policy regarding the activity. T/F

True

​Each of the marketing mix elements must work together with the others. T/F

True

​The marketing concept is a management philosophy, not a second definition of marketing. T/F

True

Customer Relationship Management (CRM)

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

In marketing research, a sample is best described as

a limited number of units chosen to represent the characteristics of a total population.

Primary data are best described as the

data that are observed, recorded, or collected directly from subjects.

Strategic Planning

he process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy

Good

​A physical product you can touch is a(n)