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Marketing Definitions.docx

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University of British Columbia
COMM 296
Elaine Sprague

COMM 296: Introduction to Marketing DEFINITIONS Chapter 1: Overview of Marketing 1. Marketing: an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders 2. Marketing Plan: a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected of pro forma income (and other financial) statements 3. Exchange: the trade of things of value between the buyer and the seller so that each is better off as a result 4. Marketing Mix: product, price, place, and promotion – the controllable set of activities that a firm uses to respond to the wants of its target markets 5. Goods: items that can be physically touched 6. Service: any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer 7. Ideas: intellectual concepts—thoughts, opinions, and philosophies 8. B2C Marketing: (Business-to-Consumers) the process in which businesses sell to consumers 9. B2B Marketing: (Business-to-Business) the process of selling merchandise or services from one business to another 10. C2C Marketing: the process in which consumers sell to other consumers 11. Employment Marketing: marketing programs to attract applicants to the hiring firm 12. Value: reflects the relationship of benefits to cost, or what the consumer gets for what he or she gives 13. Value Cocreation: customers act as collaborators with a manufacturer or retailer to create the product or service 14. Transactional Orientation: regards the buyer-seller relationship as a series of individual transactions, so anything that happened before or after the transaction is of little importance 15. Relational Orientation: a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship 16. Customer Relationship Management (CRM): a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most value customers 17. Supply Chain: the group of firms that make and deliver a given set of goods and services 18. Entrepreneurs: a person who organizes, operates, and assumes the risk of a new business venture Chapter 2: Developing Marketing Strategies and a Marketing Plan 1. Marketing Strategy: a firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage 2. Sustainable CompetitiveAdvantage: something the firm can persistently do better than its competitors 3. Customer Excellence: involves a focus on retaining loyal customers and excellent customer service 4. Operational Excellence: involves a firm’s focus on efficient operations and excellent supply chain management 5. Product Excellence: involves a focus on achieving high-quality products; effective branding and positioning is key 6. Locational Excellence: a method of achieving excellence by having a strong physical location and/or Internet presence 7. Planning Phase: the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers 1) define the mission or vision of the business and 2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success 8. Implementation Phase: the part of the strategic marketing planning process when marketing managers 1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and 2) implement the marketing mix using the four Ps 9. Control Phase: the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions 10. Mission Statement: a broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives 11. Situation Analysis: second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Straights and Weakness and the external environment in terms of its Opportunities and Threats 12. STP: the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits 13. Market Segment: a group of consumers who respond similarly to a firms marketing efforts 14. Market Segmentation: the process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them 15. Target Marketing: (or targeting) the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market 16. Market Positioning: involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products 17. Products: anything of value to a customer and can be offered through a voluntary marketing exchange 18. Metric: a measuring system that quantifies a trend, dynamic, or characteristic 19. Strategic Business Unit (SBU): a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objective 20. Product Line: groups of associated items, such as those that consumers use together, or think of as part of a group of similar products 21. Market Share: percentage of a market accounted for by a specific entity 22. Relative Market Share: a measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry 23. Market Growth Rate: the annual rate of growth of the specific market in which the product competes 24. Market Penetration Strategy: a growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers 25. Market Development Strategy: a growth of strategy that employs the existing marketing offering to reach new market segments, whether domestic or international 26. Product Development Strategy: a growth strategy that offers a new product or service to a firm’s current target market 27. Diversification Strategy: a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve 28. Related Diversification: a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity 29. Unrelated Diversification: a growth strategy whereby a new business lacks any common elements with the present business Chapter 4:Analyzing the Marketing Environment 1. Macroenvironmental Factors: aspects of the external environment that affect a company’s business, such as the culture, demographics, social issues, economic situation, technological advances, and political/regulatory environment 2. Culture: the set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (e.g. behavior, dress symbols, physical settings, ceremonies), underlying values (though processes, beliefs, and assumptions) 3. Country Culture: entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences and more subtle aspects, which are trickier to identify 4. Demographics: Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education 5. Generational Cohort: a group of people of the same generation—typically have similar purchase behaviors because they have shared experiences and are in the same stage of life 6. Seniors:America’s fastest-growing generational cohort; people age 55-64 7. Baby Boomers: generational cohort of people born after WWII between 1946-1964 8. Generation X: generational cohort of people born between 1965-1976 9. Generation Y: born between 1977-1995; biggest cohort since the original postwar baby boom 10. Millennials: consumers born between 1977-2000 and the children of the baby boomers 11. Green Marketing: involves strategic effort by firms to supply customers with environmentally friendly merchandise 12. Technological Advances: macroenvironmental factor that has greatly contributed to the improvement of the value of both products and services in the past few decade 13. Economic Situation: macro-factor that affects the way consumers buy merchandise and spend money, both in marketer’s home country and abroad 14. Inflation: refers to the persistent increase in the prices of G/S 15. Foreign Currency Fluctuations: changes in the value of country’s currency relative to the currency of another country; can influence customer spending 16. Interest Rates: these represent the cost of borrowing money 17. Political/Regulatory Environment: comprises political parties, government organizations, and legislations and laws Chapter 5: Consumer Behaviour 1. Need Recognition: the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual needy state to a different desired state 2. Functional Needs: pertain to the performance of a product or service 3. Psychological Needs: pertain to the personal gratification consumers associate with a product or service 4. Internal Search for Information: occurs when buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences 5. External Search for Information: occurs when the buyer seeks info. outside his or her personal knowledge base to help make buying decisions 6. Internal Locus of Control: refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities 7. External Locus of Control: refers to when consumers believe that fate or other externals factors control all outcomes 8. Performance Risk: involves the perceived danger inherent in a poorly performing product or service 9. Financial Risk: risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service 10. Social Risk: the fears that consumers suffer when they worry others might not regard their purchases positively 11. Physiological Risk: the fear of an actual harm should a product not perform properly 12. Safety Risk: see physiological risk 13. Psychological Risk: associated with the way people will feel if the product or service does not convey the right image 14. Universal Set: includes all possible choices for a product category 15. Retrieval Sets: includes those brands or stores that the consumer can readily bring forth from memory 16. Evoked Set: comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision 17. Evaluation Criteria: consist of a set of salient (important) attributes about a particular product 18. DeterminantAttributes: product or service features that are important to the buyer and on which competing brands or stores are perceived to differ 19. Consumer Decision Rules: the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives 20. Compensatory Decision Rule: at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones 21. Multi-Attribute Model: a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the important of various attributes and performance on those issues 22. Noncompensatory Decision Rule: at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its attributes 23. Decision Heuristics: mental shortcuts that help consumers narrow down choices; examples include price, brand, product presentation 24. Conversion Rate: percentage of consumer who buy a product after viewing it; for example, looking at abandoned shopping carts 25. Postpurchase Cognitive Dissonance: the psychologically uncomfortable state produced by an inc
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