Koofers

Exam 1 - Flashcards

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Class:MKT 320F - FOUNDATIONS OF MARKETING
Subject:Marketing
University:University of Texas - Austin
Term:Spring 2012
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production actually making goods or performing services
customer satisfaction the extent to which a firm fulfills a customer's needs, desires, and expectations
innovation the development and spread of new ideas, goods, and services
marketing the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client

dynamic activity
Generated by Koofers.com
pure subsistence economy each family unit produces everything it consumes
macro-marketing social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society

  1. emphasis is on whole system
  2. every economy needs it
  3. matches producers and consumers
economies of scale as a company produces larger numbers of a particular product, the cost of each unit of the product goes down
universal functions of marketing buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

help narrow the gap between producer and consumer
Generated by Koofers.com
buying function looking for and evaluating goods and services
selling function promoting the product
transporting function movement of goods from one place to another
storing function holding goods until customer need them
Generated by Koofers.com
standardization and grading sorting products according to size and quality
financing provides necessary cash and credit to produce, transport, store, promote, sell and buy products
risk taking bearing the uncertainties that are part of the marketing process
market information function collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities
Generated by Koofers.com
intermediary someone who specialized in trade rather than production
collaborators firms that facilitate or provide one or more of the marketing functions other than buying or selling
e-commerce exchanges between individuals or organizations and activities that facilitate these exchanges based on applications of information technology

a new specialist that has developed to fill market needs
economic system the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society
Generated by Koofers.com
command economy government officials decide what and how much is to be produces and distributed by whom, when, to whom and why

"planned economies"
market-directed economy individual decisions of the many producers and consumers make the macro-level decisions for the whole economy
simple trade era a time when families traded or sold their "surplus" output to local distributors

early role of marketing
production era time when company focuses on production of a few specific products

replaced simple trade era
Generated by Koofers.com
sales era time when a company emphasizes selling because of increased competition

replaced production era
marketing department era time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities

replaced sales era
marketing company era time when, in addition to short-run marketing planning, marketing people develop long-range plans and the whole company effort is guided by the marketing concept

where we are today
marketing concept an organization aims all its efforts at satisfying its customers at a profit

1. customer satisfaction
2. total company effort
3. profit
Generated by Koofers.com
production orientation making whatever products are easy to produce and then trying to sell them
marketing orientation trying to carry out the marketing concept
customer value difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
micro-macro dilemma what is good for some producers and consumers may not be good for society as a whole
Generated by Koofers.com
social responsibility firm's obligation to improve its positive effects on society and reduce its negative effects
marketing ethics moral standards that guide marketing decisions and actions
market-management process process of 1) planning marketing activities 2) direction the implementation of the plans 3) controlling these plans (2-1)
strategic (management) planning managerial process of developing and maintaining a match between an organization's resources and its market opportunities 
Generated by Koofers.com
marketing strategy specifies a target market and a related marketing mix; big picture of what a firm will do in some market (2-4)

develop and maintain a match between an organization's resources and its opportunities
target market fairly homogenous group of customers to whom a company wishes to appeal
marketing mix controllable variables the company puts together to satisfy this target group

product, place, promotion, price
target marketing a marketing mix is tailored to fit some specific target customers
Generated by Koofers.com
mass marketing typical production-oriented approach

everyone seen as similar
channel of distribution any series of firms that participate in the flow of products from producer to final user or consumer

place
personal selling direct spoken communication between sellers and potential customers

promotion
customer service personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase
Generated by Koofers.com
mass selling communicating with large numbers of customers at the same time

may involve wide variety of media (TV to billboards to internet)
advertising main form of mass selling; any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
publicity any unpaid form of nonpersonal presentation of ideas, goods, or services
sales promotion refers to promotion activities (other than advertising, publicity, and personal selling) that stimulate interest, trial, or purchase by final customers or others in the channel

coupons, samples, contests, signs
Generated by Koofers.com
marketing plan written statement of a marketing strategy and the time-related details for carrying out the strategy
implementation putting marketing plans into operation
operational decisions short-run decisions to help implement strategies
marketing program blends all of the firms marketing plans into one big plan (2-8)
Generated by Koofers.com
customer equity expected earnings stream (profitability) of a firm's current and prospective customers over some period of time
breakthrough opportunities opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time
competitive advantage a firm has a marketing mix that the target market sees as better than a competitor's mix
differentiation marketing mix is distinct from and better than what is available from a competitor
Generated by Koofers.com
S.W.O.T. analysis identifies and lists the firm's strengths and weaknesses and its opportunities and threats
market penetration trying to increase sales of a firm's present products in its present markets (probably through a more aggressive marketing mix)
market development trying to increase sales by selling resent products in a new market
product development offering new or improved products for present markets
Generated by Koofers.com
diversification moving into totally different lines of business
mission statement sets out the organization's basic purpose for being

resolves problem of managers having differing objectives
competitive environment affects the number and types of competitors the marketing manager must face and how they may behave
competitor analysis organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies
Generated by Koofers.com
competitive rivals firms that will be the closest competitors
competitive barriers the conditions that may make it difficult, or even impossible, for a firm to compete in a market
economic environment macro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending
technology application of science to convert an economy's resources to output
Generated by Koofers.com
internet system for linking computers around the world
nationalism emphasis on a country's interests before everything else
NAFTA lays out a plan to reshape the rules of trade among US, Canada and Mexico
cultural and social environment affects how and why people live and behave as they do
Generated by Koofers.com
sustainability idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs
strategic business unit (SBU) organizational unit that focuses on some product-markets and is treated as a separate profit center
portfolio management treats alternative products, divisions, or SBUs as though they are stock investments to be bought and sold using financial criteria
market group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services
Generated by Koofers.com
generic market market with broadly similar needs, and sellers offering various, often diverse ways of satisfying those needs

  1. customer user needs
  2. customer types
  3. geographic area
product market market with very similar needs and sellers offering various close substitute ways of satisfying those needs

everything from generic market plus product type
market segmentation two step process of 1) naming broad product-markets and 2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
segmenting aggregating process-clustering people with similar needs into a 'market segment'
Generated by Koofers.com
market segment relatively homogenous group of customers who will respond to a marketing mix in a similar way
single target market approach segmenting the market and picking one of the homogenous segments as the firm's target market
multiple target market approach segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix
combined target market approach combining two or more submarkets into one larger target market as a basis for one strategy
Generated by Koofers.com
combiners try to increase the size of their target market by combining two or more segments
segmenters aim at one or more homogenous segments and try to develop a different marketing mix for each segment
qualifying dimensions those relevant to including a customer type in a product-market
help identify core benefits
determining dimensions those that actually affect the customer's purchase of a product or brand
can be further segmented
Generated by Koofers.com
clustering techniques try to find similar patterns within sets of data
customer relationship management (CRM) seller fine-tunes the marketing effort with information from a detailed customer database
positioning refers to how customers think about proposed or present brands in a market
GDP total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents

GNI+income earned by foreigners
Generated by Koofers.com
birthrate number of babies born per 1000 people
baby boomers people born between 1946 and 1964
Generation X born 1965-1977
Generation Y (Millenials) born 1978-1994
Generated by Koofers.com
real income income that is adjusted to take out the effects of inflation on purchasing power
disposable income what is left after taxes

discretionary income + necessities
discretionary income what is left of disposable income after paying for necessities
empty nesters people whose children are grown and who are able to spend their money in other ways
Generated by Koofers.com
senior citizens people over 65
Place objective is getting the right product to the right customer in the right place at the right time in the right quantity in the right conditon
promotion need to promote product in front of them: face time
  1. personal selling
  2. mass selling
  3. sales promotion
price revenue generating function of marketing mix
  1. objectives
  2. flexibility
  3. discounts
  4. competition
Generated by Koofers.com
basic objectives
  1. socially and economically useful function
  2. develop an organization
  3. earn profit
market situation
  1. monopoly-one company serving the entire customer base in a particular industry
  2. monopolistic competition-number of different firms offering marketing mixes that some consumers see as different (automotive market)
  3. oligopoly-small number of firms controlling or dominating the market
  4. pure competition-large number of firms compete with essentially similar products, key factor is price
Generated by Koofers.com

List View: Terms & Definitions

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 productionactually making goods or performing services
 customer satisfactionthe extent to which a firm fulfills a customer's needs, desires, and expectations
 innovationthe development and spread of new ideas, goods, and services
 marketingthe performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client

dynamic activity
 pure subsistence economyeach family unit produces everything it consumes
 macro-marketingsocial process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society

  1. emphasis is on whole system
  2. every economy needs it
  3. matches producers and consumers
 economies of scaleas a company produces larger numbers of a particular product, the cost of each unit of the product goes down
 universal functions of marketingbuying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information

help narrow the gap between producer and consumer
 buying functionlooking for and evaluating goods and services
 selling functionpromoting the product
 transporting functionmovement of goods from one place to another
 storing functionholding goods until customer need them
 standardization and gradingsorting products according to size and quality
 financingprovides necessary cash and credit to produce, transport, store, promote, sell and buy products
 risk takingbearing the uncertainties that are part of the marketing process
 market information functioncollection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities
 intermediarysomeone who specialized in trade rather than production
 collaboratorsfirms that facilitate or provide one or more of the marketing functions other than buying or selling
 e-commerceexchanges between individuals or organizations and activities that facilitate these exchanges based on applications of information technology

a new specialist that has developed to fill market needs
 economic systemthe way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society
 command economygovernment officials decide what and how much is to be produces and distributed by whom, when, to whom and why

"planned economies"
 market-directed economyindividual decisions of the many producers and consumers make the macro-level decisions for the whole economy
 simple trade eraa time when families traded or sold their "surplus" output to local distributors

early role of marketing
 production eratime when company focuses on production of a few specific products

replaced simple trade era
 sales eratime when a company emphasizes selling because of increased competition

replaced production era
 marketing department eratime when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities

replaced sales era
 marketing company eratime when, in addition to short-run marketing planning, marketing people develop long-range plans and the whole company effort is guided by the marketing concept

where we are today
 marketing conceptan organization aims all its efforts at satisfying its customers at a profit

1. customer satisfaction
2. total company effort
3. profit
 production orientationmaking whatever products are easy to produce and then trying to sell them
 marketing orientationtrying to carry out the marketing concept
 customer valuedifference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
 micro-macro dilemmawhat is good for some producers and consumers may not be good for society as a whole
 social responsibilityfirm's obligation to improve its positive effects on society and reduce its negative effects
 marketing ethicsmoral standards that guide marketing decisions and actions
 market-management processprocess of 1) planning marketing activities 2) direction the implementation of the plans 3) controlling these plans (2-1)
 strategic (management) planningmanagerial process of developing and maintaining a match between an organization's resources and its market opportunities 
 marketing strategyspecifies a target market and a related marketing mix; big picture of what a firm will do in some market (2-4)

develop and maintain a match between an organization's resources and its opportunities
 target marketfairly homogenous group of customers to whom a company wishes to appeal
 marketing mixcontrollable variables the company puts together to satisfy this target group

product, place, promotion, price
 target marketinga marketing mix is tailored to fit some specific target customers
 mass marketingtypical production-oriented approach

everyone seen as similar
 channel of distributionany series of firms that participate in the flow of products from producer to final user or consumer

place
 personal sellingdirect spoken communication between sellers and potential customers

promotion
 customer servicepersonal communication between a seller and a customer who wants the seller to resolve a problem with a purchase
 mass sellingcommunicating with large numbers of customers at the same time

may involve wide variety of media (TV to billboards to internet)
 advertisingmain form of mass selling; any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
 publicityany unpaid form of nonpersonal presentation of ideas, goods, or services
 sales promotionrefers to promotion activities (other than advertising, publicity, and personal selling) that stimulate interest, trial, or purchase by final customers or others in the channel

coupons, samples, contests, signs
 marketing planwritten statement of a marketing strategy and the time-related details for carrying out the strategy
 implementationputting marketing plans into operation
 operational decisionsshort-run decisions to help implement strategies
 marketing programblends all of the firms marketing plans into one big plan (2-8)
 customer equityexpected earnings stream (profitability) of a firm's current and prospective customers over some period of time
 breakthrough opportunitiesopportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time
 competitive advantagea firm has a marketing mix that the target market sees as better than a competitor's mix
 differentiationmarketing mix is distinct from and better than what is available from a competitor
 S.W.O.T. analysisidentifies and lists the firm's strengths and weaknesses and its opportunities and threats
 market penetrationtrying to increase sales of a firm's present products in its present markets (probably through a more aggressive marketing mix)
 market developmenttrying to increase sales by selling resent products in a new market
 product developmentoffering new or improved products for present markets
 diversificationmoving into totally different lines of business
 mission statementsets out the organization's basic purpose for being

resolves problem of managers having differing objectives
 competitive environmentaffects the number and types of competitors the marketing manager must face and how they may behave
 competitor analysisorganized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies
 competitive rivalsfirms that will be the closest competitors
 competitive barriersthe conditions that may make it difficult, or even impossible, for a firm to compete in a market
 economic environmentmacro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending
 technologyapplication of science to convert an economy's resources to output
 internetsystem for linking computers around the world
 nationalismemphasis on a country's interests before everything else
 NAFTAlays out a plan to reshape the rules of trade among US, Canada and Mexico
 cultural and social environmentaffects how and why people live and behave as they do
 sustainabilityidea that it's important to meet present needs without compromising the ability of future generations to meet their own needs
 strategic business unit (SBU)organizational unit that focuses on some product-markets and is treated as a separate profit center
 portfolio managementtreats alternative products, divisions, or SBUs as though they are stock investments to be bought and sold using financial criteria
 marketgroup of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services
 generic marketmarket with broadly similar needs, and sellers offering various, often diverse ways of satisfying those needs

  1. customer user needs
  2. customer types
  3. geographic area
 product marketmarket with very similar needs and sellers offering various close substitute ways of satisfying those needs

everything from generic market plus product type
 market segmentationtwo step process of 1) naming broad product-markets and 2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
 segmentingaggregating process-clustering people with similar needs into a 'market segment'
 market segmentrelatively homogenous group of customers who will respond to a marketing mix in a similar way
 single target market approachsegmenting the market and picking one of the homogenous segments as the firm's target market
 multiple target market approachsegmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix
 combined target market approachcombining two or more submarkets into one larger target market as a basis for one strategy
 combinerstry to increase the size of their target market by combining two or more segments
 segmentersaim at one or more homogenous segments and try to develop a different marketing mix for each segment
 qualifying dimensionsthose relevant to including a customer type in a product-market
help identify core benefits
 determining dimensionsthose that actually affect the customer's purchase of a product or brand
can be further segmented
 clustering techniquestry to find similar patterns within sets of data
 customer relationship management (CRM)seller fine-tunes the marketing effort with information from a detailed customer database
 positioningrefers to how customers think about proposed or present brands in a market
 GDPtotal market value of all goods and services provided in a country's economy in a year by both residents and nonresidents

GNI+income earned by foreigners
 birthratenumber of babies born per 1000 people
 baby boomerspeople born between 1946 and 1964
 Generation Xborn 1965-1977
 Generation Y(Millenials) born 1978-1994
 real incomeincome that is adjusted to take out the effects of inflation on purchasing power
 disposable incomewhat is left after taxes

discretionary income + necessities
 discretionary incomewhat is left of disposable income after paying for necessities
 empty nesterspeople whose children are grown and who are able to spend their money in other ways
 senior citizenspeople over 65
 Placeobjective is getting the right product to the right customer in the right place at the right time in the right quantity in the right conditon
 promotionneed to promote product in front of them: face time
  1. personal selling
  2. mass selling
  3. sales promotion
 pricerevenue generating function of marketing mix
  1. objectives
  2. flexibility
  3. discounts
  4. competition
 basic objectives
  1. socially and economically useful function
  2. develop an organization
  3. earn profit
 market situation
  1. monopoly-one company serving the entire customer base in a particular industry
  2. monopolistic competition-number of different firms offering marketing mixes that some consumers see as different (automotive market)
  3. oligopoly-small number of firms controlling or dominating the market
  4. pure competition-large number of firms compete with essentially similar products, key factor is price
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