MKTG 301 - Exam #2 | Flashcards

Question	Answer
Chapter 3	Chapter 3
Marketing environment	The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
Microenvironment	The actors close to the company that affect its ability to engage and serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
Macroenvironment	The larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces.
Marketing intermediaries	Firms that help the company to promote, sell and distribute its products to final buyers.
Public	Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.
Demography	The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Baby boomers	The 78 million people born during the years following World War II and lasting until 1964.
Generation X	The 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.
Millennials (Generation Y)	The 83 million children of the baby boomers born between 1977 and 2000.
Generation Z	People born after 2000 (although many analysts include people born after 1995) who make up the kids, tweens, and teen markets.
Economic environment	Economic factors that affect consumer purchasing power and spending patterns.
Natural environment	The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Environmental sustainability	Developing strategies and practices that create a world economy that the planet can support indefinitely.
Technological environment	Forces that create new technologies, creating new product and market opportunities.
Political environment	Laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Cultural environment	Institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.
Chapter 6	Chapter 6
Market segmentation	Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
Market targeting (targeting)	Evaluating each market segment's attractiveness and selecting one or more segments to serve.
Differentiation	Actually differentiating the market offering to create superior customer value.
Positioning	Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Geographic segmentation	Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods.
Demographic segmentation	Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Age and life-cycle segmentation	Dividing a market into different age and life-cycle groups.
Gender segmentation	Dividing a market into different segments based on gender.
Income segmentation	Dividing a market into different income segments.
Psychographic segmentation	Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
Behavioral segmentation	Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Occasion segmentation	Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
Benefit segmentation	Dividing the market into segments according to the different benefits that consumers seek from the product.
Intermarket (cross-market) segmentation	Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
Target market	A set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated (mass) marketing	A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Differentiated (segmented) marketing	A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Concentrated (niche) marketing	A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Micromarketing	Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.
Local marketing	Tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores.
Individual marketing	Tailoring products and marketing programs to the needs and preferences of individual customers.
Product position	How a product is defined by consumers on important attributes - the place a product occupies in consumers' minds relative to competing products.
Competitive advantage	An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.
Value proposition	The full positioning of a brand - the full mix of benefits on which it is differentiated and positioned.
Positioning statement	A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
Chapter 7	Chapter 7
Product	Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Service	An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
Consumer product	A product bought by final consumers for personal consumption.
Convenience product	A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
Shopping product	A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
Specialty product	A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Unsought product	A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
Industrial product	A product bought by individuals and organization for further processing or for use in conducting a business.
Social marketing	Using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being.
Product quality	The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
Brand	A name, term, sign, symbol, or design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
Packaging	The activities of designing and producing the container or wrapper for a product.
Product line	A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
Product mix (product portfolio)	The set of all product lines and items that a particular seller offers for sale.
Service intangibility	Services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service inseparability	Services are produced and consumed at the same time and cannot be separated from their providers.
Service variability	The quality of services may vary greatly depending on who provides them and when, where, and how they are provided.
Service perishability	Services cannot be stored for later sale or use.
Service profit chain	The chain that links service firm profits with employee and customer satisfaction.
Internal marketing	Orienting and motivating customer-contact employees to work as a team to provide customer satisfaction.
Interactive marketing	Training service employees in the fine art of interacting with customers to satisfy their needs.
Brand equity	The differential effect that knowing the brand name has on customer response to the product and its marketing.
Brand value	The total financial value of a brand.
Store brand (private brand)	A brand created and owned by a reseller of a product or service.
Co-branding	The practice of using the established brand names of two different companies on the same product.
Line extension	Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Brand extension	Extending an existing brand name to new product categories.
Chapter 8	Chapter 8
New product development	The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts.
Idea generation	The systematic search for new product ideas.
Crowdsourcing	Inviting broad communities of people – customers, employees, independent scientists and researchers, and even the public at large – into the new product innovation process.
Idea screening	Screening new product ideas to spot good ones and drop poor ones as soon as possible.
Product concept	A detailed version of the new product idea stated in meaningful consumer terms.
Concept testing	Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Marketing strategy development	Designing an initial marketing strategy for a new product based on the product concept.
Business analysis	A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.
Product development	Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
Test marketing	The stage of new product development at which the product and its proposed marketing program are tested in realistic market settings.
Commercialization	Introducing a new product into the market.
Customer-centered new product development	New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
Team-based new product development	New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.
Product life cycle (PLC)	The course of a product’s sales and profits over its lifetime.
Style	A basic and distinctive mode of expression.
Fashion	A currently accepted or popular style in a given field.
Fad	A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
Introduction stage	The PLC stage in which a new product is first distributed and made available for purchase.
Growth stage	The PLC stage in which a product’s sales start climbing quickly.
Maturity stage	The PLC stage in which a product’s sales growth slows or levels off.
Decline stage	The PLC stage in which a product’s sales fade away.
Chapter 9	Chapter 9
Price	The amount charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.
Customer value-based pricing	Setting price based on buyers’ perceptions of value rather than on the seller’s cost.
Good-value pricing	Offering just the right combination of quality and good service at a fair price.
Value-added pricing	Attaching value-added features and services to differentiate a company’s offers and charging higher prices.
Cost-based pricing	Setting prices based on the costs of producing, distributing and selling the product plus a fair rate of return for effort and risk.
Fixed costs (overhead)	Costs that do not vary with production or sales level.
Variable costs	Costs that vary directly with the level of production.
Total costs	The sum of the fixed and variable costs for any given level of production.
Cost-plus pricing (markup pricing)	Adding a standard markup to the cost of the product.
Break-even pricing (target return pricing)	Setting price to break even on the costs of making and marketing a product or setting price to make a target return.
Competition-based pricing	Setting prices based on competitors’ strategies, prices, costs, and market offerings.
Target costing	Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
Demand curve	A curve that shows the number of units the market will buy in a given time period at different prices that might be charged.
Price elasticity	A measure of the sensitivity of demand to changes in price.
Market-skimming pricing (price skimming)	Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
Market-penetration pricing	Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Product line pricing	Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices.
Optional-product pricing	The pricing of optional or accessory products along with a main product.
Captive-product pricing	Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console.
By-product pricing	Setting a price for by-products in order to make the main product’s price more competitive.
Product bundle pricing	Combining several products and offering the bundle at a reduced price.
Discount	A straight reduction in price on purchases during a stated period of time or of larger quantities.
Allowance	Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.
Segmented pricing	Selling a product or service at two or more prices, where the difference in prices is not based on differences in cost.
Psychological pricing	Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
Reference prices	Prices that buyers carry in their minds and refer to when they look at a given product.
Promotional pricing	Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
Dynamic pricing	Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
Chapter 10	Chapter 10
Value delivery network	A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value.
Marketing channel (distribution channel)	A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
Channel level	A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
Direct marketing channel	A marketing channel that has no intermediary levels.
Indirect marketing channel	A marketing channel containing one or more intermediary levels.
Channel conflict	Disagreements among marketing channel members on goals, roles, and rewards – who should do what and for what rewards.
Conventional distribution channel	A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.
Vertical marketing system (VMS)	A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
Corporate VMS	A vertical marketing system that combines successive stages of production and distribution under single ownership – channel leadership is established through common ownership.
Contractual VMS	A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts.
Franchise organization	A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process.
Administered VMS	A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.
Horizontal marketing system	A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
Multichannel distribution system	A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
Disintermediation	The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.
Marketing channel design	Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.
Intensive distribution	Stocking the product in as many outlets as possible.
Exclusive distribution	Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
Selective distribution	The use of more than one but fewer than all of the intermediaries that are willing to carry the company’s products.
Marketing channel management	Selecting, managing, and motivating individual channel members and evaluating their performance over time.
Marketing logistics (physical distribution)	Planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Supply chain management	Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Distribution center	A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
Multimodal transportation	Combining two or more modes of transportation.
Integrated logistics management	The logistics concept that emphasizes teamwork – both inside the company and among all the marketing channel organizations – to maximize the performance of the entire distribution system.
Third-party logistics (3PL) provider	An independent logistics provider that performs any or all of the functions required to get a client’s product to market.
Chapter 12	Chapter 12
Promotion mix (marketing communications mix)	The specific blend of promotion tools that the company uses to engage customers, persuasively communicate customer value, and build customer relationships.
Advertising	Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales promotion	Short-term incentives to encourage the purchase or sale of a product or a service.
Personal selling	Personal customer interactions by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.
Public relations (PR)	Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Direct and digital marketing	Engaging directly with carefully targeted individual consumers and customer communities to both obtain and immediate response and build lasting customer relationships.
Content marketing	Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.
Integrated marketing communications (IMC)	Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Push strategy	A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.
Pull strategy	A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel.
Advertising objective	A specific communication task to be accomplished with a specific target audience during a specific period of time.
Advertising budget	The dollars and other resources allocated to a product or a company advertising program.
Affordable method	Setting the promotion budget at the level management thinks the company can afford.
Percentage-of-sales method	Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
Competitive-parity method	Setting the promotion budget to match competitors’ outlays.
Objective-and-task method	Developing the promotion budget by 1) defining specific promotion objectives, 2) determining the tasks needed to achieve these objectives, and 3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Advertising strategy	The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media.
Madison & Vine	A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages.
Creative concept	The compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way.
Execution style	The approach, style, tone, words, and format used for presenting an advertising message.
Advertising media	The vehicles through which advertising messages are delivered to their intended audiences.
Return on advertising investment	The net return on advertising investment divided by the cost of the advertising investment.
Advertising agency	A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.
Chapter 14	Chapter 14
Direct and digital marketing	Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Digital and social media marketing	Using digital marketing tools such as Web sites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, anytime via their digital devices.
Omni-channel retailing	Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
Online marketing	Marketing via the Internet using company Web sites, online ads and promotions, email, online video and blogs.
Marketing Web site	A Web site that engages consumers to move them closer to a direct purchase or other marketing outcome.
Branded community Web site	A Web site that presents brand content that engages consumers and creates customer community around a brand.
Online advertising	Advertising that appears while consumers are browsing online, including display ads and search-related ads.
Email marketing	Sending highly targeted, tightly personalized, relationship-building marketing messages via email.
Spam	Unsolicited, unwanted commercial email messages.
Viral marketing	The digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends.
Blogs	Online forums where people and companies post their thoughts and other content, usually related to narrowly defined topics.
Social media	Independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos, and other content.
Mobile marketing	Marketing messages, promotions, and other marketing content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices.
Direct-mail marketing	Marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address.
Catalog marketing	Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online.
Telemarketing	Using the telephone to sell directly to customers.
Direct-response television (DRTV) marketing	Direct marketing via television, including direct-response television advertising (or infomercials) and interactive television (iTV) advertising.

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	Created by Quoc Trung Le Nguyen over 6 years ago