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Marketing Chapters 1 - 4
Chapter 1  
Marketing The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Consumer The ultimate user of a good or service
Marketing concept A marketing orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability objectives
Need Recognition of any difference between a consumer's actual state and some ideal or desired state
Want The desire to satisfy needs in specific ways that are culturally and socially influenced "culturally tuned" taught and learned
Benefit The outcome sought by a customer that motivates buying behavior
Demand Customers' desire for products coupled with the resources to obtain them
Market All of the customers and potential customers who share a common need that a specific product can satisfy, who have the resources to exchange for it, who are willing to make the exchange, and who have authority to make the exchange
Marketplace Any location or medium used to conduct an exchange
Social marketing concept An orientation that focuses on satisfying consumer needs while also addressing the needs of the larger society
Exchange The process by which some transfer of value occurs between a buyer and a seller
Product A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses
Consumer goods The goods individual consumers purchase for personal or family use
Services Intangible products that are exchanged directly from the producer to the customer
Industrial Goods Goods bought by individuals or organizations for further processing or for use in doing business
Marketing mix A Combination of the product itself, the price of the product, the place where it is available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers
Price The assignment of value to a product
Place The availability of the product to the customer at the desired time and location
Promotion The coordination of marketers' efforts to inform or persuade consumers or organizations about products
Relationship marketing A marketing philosophy that focuses on building long-term relationships with customers to satisfy mutual needs
Mass Market All possible customers in a market, regardless, of the differences in their specific needs and wants
Market segment A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market
Target market The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
Market Position The way in which the target market perceives the product in comparison to competitors' brands
Product orientation Management philosophy that emphasizes the most efficient ways to produce and distribute products
Selling orientation A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
Consumer orientation A management philosophy that focuses on ways to satisfy customers' needs and wants
Total quality A management orientation that focuses on satisfying customers by involving all employees from the assembly line onward in continuous product quality improvement
New Era Orientation A management philosophy in which marketing decision making means a devotion to excellence in designing and producing products and creating products that benefit the customer plus the firm's employees, shareholders, and fellow citizens (relationship market
Utility The usefulness or benefit that consumers receive from a product. There are four utility benefits: Form, place, time, and possession. (the ability to satisfy needs and wants
Popular culture The music, movies, sports, books, celebrities, and other forms of entertainment that the mass market consumes
Chapter 2  
Strategic planning A managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival
Tactical planning A decision process that concentrates on developing detailed plans for strategies and tactics for the short term that support an organization's long-term strategic plan
Operational Planning A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization's tactical plans
Cross-functional planning An approach to tactical planning in which managers work together in developing tactical plans for each functional area in the firm, so that each plan considers the objectives of the other areas
Mission statement A formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
SWOT analysis An analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment
Internal environment The controllable elements inside an organization including its people, its facilities, and how it does things that influence the operations of the organizations
External environment The uncontrollable elements outside of an organization that may affect its performance either positively or negatively
Objectives Specific goals, accomplishments, or outcomes that an organization hopes to achieve by a specific time
Strategic business units (SBUs) Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
business portfolio The group of different products or brands of an organization characterized by different income-generating and growth capabilities
Portfolio analysis A management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units
Market penetration Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
Market Development Growth strategies that introduce existing products to new markets
Product development Growth strategies that focus on selling new products in served markets
Diversification Growth strategies that emphasize both new products and new markets
Competitive advantage the ability of a firm to outperform the competition, providing customers with a benefit the competition can't
Distinctive Competency A superior capability of a firm in comparison to its direct competitors
Differential benefits Properties of products that set them apart from competitors' products by providing unique customer benefits
Marketing plan A document that describes the marketing environment, outlines that marketing objectives and strategy, and identifies who will be responsible for carrying out each part
Situation analysis The first part of marketing plan that provides a thorough description of the firm's current situation including its internal and external environments (business review)
Implementation The stage of the strategic management process in which strategies are put into action on a day-to-day basis
Marketing budget A statement of the total amount a firm spends on marketing and the allocation of money for each activity under the marketer's control
Control Measuring actual performance, comparing it to planned performance, and making necessary changes in plans and implementation
Trend analysis An analysis of past industry or company sales data to determine patterns of change that may continue into the future
Marketing audit A comprehensive review of a firm's marketing function
Chapter 3  
Social Profit The benefit an organization and society receive from the organization's ethical practices, community service, efforts to promote cultural diversity, and concern for the natural environment
Business Ethics Rules of conduct for an organization
Codes of ethics Written standards of behavior to which everyone in the organization must subscribe
Consumerism A social movement that attempts to protect consumers from harmful business practices
Consumer Bill of Rights The rights of consumers to be protected by the federal government
Puffery Claims made in advertising of product superiority that cannot be proven true or untrue
Corrective advertising Advertising that clarifies or qualifies previous deceptive advertising claims
Slotting allowance A fee that a manufacturer pays to a retailer in exchange for agreement to place products on the retailer's shelves
Social responsibility A management practice in which organizations seek to engage in activities that have a positive effect on society and promote the public good
Environmental stewardship A position that an organization takes to protect or enhance the natural environment as it conducts its business activities
Green Marketing A marketing strategy that supports environmental stewardship by creating an environmentally founded differential benefit in the minds of consumers
Cause marketing A marketing strategy in which an organization served its community by promoting and supporting a worthy cause or by allying itself with not-for-profit organizations to tackle a social problem
Cultural diversity A management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization's employees, customers, suppliers, and distribution channel partners
Quality The level of performance, reliability, features, safety, cost, or other product characteristics that consumers expect to satisfy their needs and wants
Total quality management (TQM) A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
ISO 9000 Criteria developed by the International Standards Organizations to regulate product quality in Europe
Corporate Culture The set of values, norms, and beliefs that influence the behavior of everyone's in the organization
Publics Groups of people - including customers, employees, suppliers, intermediaries, shareholders, business partners, public agencies, the media, the general public, and competitors - that have an interest in an organization
Business Cycle The overall patterns of change in the economy -- including periods of prosperity, recession, depression, and recovery -- that affect consumer and business purchasing power
Consumer Confidence An indicator of future spending patterns, or the extent to which people are optimistic or pessimistic about the state of the economy
Competitive intelligence (CI) The process of gathering and analyzing publicly available information about rivals.
Discretionary income The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing
Product competition When firms offering different products compete to satisfy the same consumer needs and wants
Brand competition When firms offering similar goods or services compete based on their brand's reputation or perceived benefits
Monopoly A market structure in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of the product
Oligopoly A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers
Monopolistic Competition A market structure in which many firms, each having slightly different products, offer unique consumer benefits
Perfect competition A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product
Patent Legal documentation granting an individual or firm exclusive right to produce and sell a particular invention
Demographics Statistics that measure observable aspects of a population, including size, age, gender, ethnic, group, income, education, occupation, and family structure
Chapter 4  
Countertrade Type of trade in which goods are paid for with other items instead of with case
Trade flow The pattern of economic interdependence among countries or regions
Protectionism Government policy that gives domestic companies an advantage
Import quotas Imitations set by a government on the amount of a product allowed to enter or leave a country
Embargo A quota completely prohibiting specified goods from entering or leaving a country
Tariffs Taxes on imported goods
General Agreement on Tariffs and Trade (GATT) International treaty to reduce import tax levels and trade restrictions
World Trade organization (WTO) Formed to mediate trade disputes between nations and to deal with cases in which a country claims unfair protectionism by another
Economic communities Groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere
European Union (EU) Economic community that now includes most of Western Europe
North American Free Trade Agreement (NAFTA) The world's largest economic community composed of the United States, Canada, and Mexico
Standard of Living An indicator of the average quality and quantity of goods and services consumed in a country
Gross domestic product The total dollar value of goods and services that a nation produces in a year
Economic infrastructure The quality of a country's distribution, financial, and communications systems
Less developed country (LDC) A country at the lowest stage of economic development
Developing countries Countries in which the economy is shifting its emphasis from agriculture to industry
Developed country A country that boast sophisticated marketing systems, strong private enterprise, and bountiful marketing potential for many goods and services
Economic sanctions Trade prohibitions imposed by one country against another
Nationalization A domestic government's takeover of a foreign company for its asserts with some reimbursement, though often not for the full value
Expropriation A domestic government's seizure of a foreign company's assets without any compensation
Local content rules A form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country
Cultural Values A society's deeply held beliefs about right and wrong ways to live
Collectivist cultures Culture in which people subordinate their personal goals to those of a stable community
Individualist culture Culture in which people tend to attach more importance to personal goals than to those of the larger community
Norms Specific rules dictating what is right or wrong, acceptable or unacceptable
Custom A norm handed down from the past that controls basic behaviors
More´ A custom with a strong moral overtone
Conventions Norms regarding the conduct of everyday life
Semiotics Field of study that examines how meanings are assigned to symbols
Ethnocentrism The tendency to prefer products or people of one's own culture
Export merchant An intermediary that a firm uses to represent it in another country
Licensing Agreement in which one firm gives another firm the right to produce and market its product in a specified location in return for royalties
Franchising A form of licensing involving the right to adapt an entire system of doing business
Strategic alliance Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country
Joint venture Strategic alliance in which two or more firms form a new entity, allowing, the partners to pool their resources for common goals
Grey market An unauthorized party imports products and then sells them for a fraction of the price
Dumping A company tries to get a toehold in a foreign market by pricing its products lower than they are offered at home

By Maria Ribaulo