Marketing

marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

marketing concept

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

production orientation

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

relationship marketing

a strategy that focuses on keeping and improving relationships with current customers

sales orientation

the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

societal marketing orientation

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests

teamwork

collaborative efforts of people to accomplish common objectives

customer satisfaction

customers' evaluation of a good or service in terms of whether it has met their needs and expectations

customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits

empowerment

delegation of authority to solve customers' problems quickly�usually by the first person that the customer notifies regarding a problem

exchange

people giving up something to receive something they would rather have

market orientation

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase product; it is synonymous with the marketing concept

cash cow

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition

control

provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

cost competitive advantage

being the low-cost competitor in an industry while maintaining satisfactory profit margins

dog

in the portfolio matrix, a business unit that has low growth potential and a small market share

environmental scanning

collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

evaluation

gauging the extent to which the marketing objectives have been achieved during the specified time period

experience curves

curves that show costs declining at a predictable rate as experience with a product increases

diversification

a strategy of increasing sales by introducing new products into new markets

four Ps

product, place, promotion, and price, which together make up the marketing mix

implementation

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives

market development

a marketing strategy that entails attracting new customers to existing products

market opportunity analysis (MOA)

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

market penetration

a marketing strategy that tries to increase market share among existing customers

marketing audit

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

marketing mix

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

marketing myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

marketing objective

a statement of what is to be accomplished through marketing activities

marketing plan

a written document that acts as a guidebook of marketing activities for the marketing manager

marketing planning

designing activities relating to marketing objectives and the changing marketing environment

marketing strategy

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

mission statement

a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions

niche competitive advantage

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

planning

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

portfolio matrix

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

problem child (question mark)

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins

product development

a marketing strategy that entails the creation of new products for present markets

product/service differentiation competitive advantage

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competition's

star

in the portfolio matrix, a business unit that is a fast-growing market leader

strategic business unit (SBU)

a subgroup of a single business or collection of related businesses within the larger organization

strategic planning

the managerial process of creating and maintaining a fit between the
organization's objectives and resources and the evolving market opportunities

sustainable competitive advantage

an advantage that cannot be copied by the competition

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

code of ethics

a guideline to help marketing managers and other employees make better decisions

corporate social responsibility

business's concern for society's welfare

ethics

the moral principles or values that generally govern the conduct of an individual or a group

green marketing

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

morals

the rules people develop as a result of cultural values and norms

pyramid of corporate social responsibility

a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure

sustainability

the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time

applied research

an attempt to develop new or improved products

baby boomers

people born between 1946 and 1964

basic research

pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

component lifestyles

the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle

Consumer Product Safety Commission (CPSC)

a federal agency established to protect the health and safety of consumers in and around their homes

demography

the study of people's vital statistics, such as their age, race and ethnicity, and location

environmental management

when a company implements strategies that attempt to shape the external environment within which it operates

Federal Trade Commission (FTC)

a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

Food and Drug Administration (FDA)

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

Generation X

people born between 1965 and 1978

Generation Y

people born between 1979 and 1994

inflation

a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

multiculturalism

when all major ethnic groups in an area�such as a city, county, or census tract�are roughly equally represented

purchasing power

a comparison of income versus the relative cost of a set standard of goods and services in different geographic areas

recession

a period of economic activity characterized by negative growth, which reduces demand for goods and services

target market

a defined group most likely to buy a firm's product