English for marketing

Chapter 1 Marketing Concepts and Process Key terms Definition Customer needs States of felt deprivation Marketing Channel Basics Wants The form human needs take as they are shaped by culture and indiv.

Chapter 1 Marketing Concepts and Process

Customer needs States of felt deprivation

Marketing

Channel Basics

Wants The form human needs take as they are shaped by culture and individual personalityDemand Human wants that are backed by buying power

Market offerings Some combination of products, services, information, or experiences offered to a

market to satify a need or wantCustomer perceived value

The customer's evaluation of the difference between all the benefits and all the costs of marketing offer relative to those of

competing offers

Customer satisfaction The extent to which a products's perceived performance matches a buyer's

expectitationsExchange The act of obtaining a desired object from someone by offering something in returnMarket The set of all actual arid potential buyers of a products or service

Production concept

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

Product concept

The idea that consumers will favor products that offer the most quality, performance, andfeatures; therefore, the organization should devote its energy to making continuous product improvements

Selling concept

The idea that consumers will not buy enough

of the firm's products unless the firm undertakes a large-scale selling and promotion effort

Marketing concept A philosophy in which achieving

organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better

than competitors do

Societal marketing concept

The idea that a company's marketing decisions should consider consumers' wants,the company's requirements, consumers' long-run interests, and society's long-run interests

Customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer lifetime value The value of the entire stream of purchases acustomer makes over a lifetime of

Marketing control

The process of measuring and evaluating theresults of marketing strategies and plans and taking corrective action to ensure that objectives are achieved

Marketing audit

A comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company's marketing performance

Consumerism

An organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers

Sustainable marketing Socially and environmentally responsible

marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations r to meet their needs

Digital marketing

involves using digital marketing tools such

as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere, anytime via their computers, smartphones, tablets, internet ready TVs, and other digital devices

Customer-engagement marketing

Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations,experiences, and community

Consumer-generated marketing

Brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

True/False

Price is total expenses to get the

Many sellers make the mistake of paying more attention to the specific product they offer than to the benefits and experiences produced by these products These sellers suffer from selling concept

TRUE

In Customer-generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others

TRUE

Wants are needs that are shaped by personal preferences, culture, or

Marketing concept is the idea that a company’s marketing decisions should consider consumer’s wants, the

company’s requirements, consumers’

run interests, and society’s run interests

long-FALSE

Match

Marketing consists of actions taken to create, maintain, and grow desirable profitable with target audiences involving a product, service, idea, or other object

engage, keep, and grow target customers

by creating, delivering, and communicating superior

Customer value

Explainations

Marketing Implementation Turning marketing strategies and plans into marketing actions to accomplish strategic

marketing objectivesMarketing mix

The set of tactical marketing tools—

product, price, place, and promotion— that the firm blends to produce the response it wants in the target market

Production concept

The idea that consumers will favor products that offer the most quality, performance, andfeatures; therefore, the organization should devote its energy to making continuous product improvements

Marketing control The process of measuring and evaluating the

results of marketing strategies and plans and

taking corrective action to ensure that objectives are achieved

Customer equity The total combined customer lifetime valuesof all of the company’s customers

Marketing Audit

A comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance

Custumer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Marketing Strategy The marketing logic by which the company hopes to create customer value and achieve

profitable customer relationshipsMarkeitng concept

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Product concept

The idea that consumers will favor products that offer the most quality, performance, andfeatures; therefore, the organization should devote its energy to making continuous product improvements

MCQ The societal marketing concept seeks to

establish a balance between consumer

short-run wants and consumer long-run welfare

According to the production concept,

consumers will favor products that are

A firm that uses the selling concept

The art and science of choosing target

markets and building profitable

relationships with them is called

marketing management

Which of the following involves

adapting a firm to take advantage of

opportunities in its constantly changing

environment?

strategic planning

Marketing information system (MIS) is really an information bank where data relevant to the marketing decision makers

Marketing research

is a systematic process of searching, collecting, analysing and interpreting information to helps marketing manager making effective marketing decision, to solving a marketing problem that they are facing to

observational reasearch Gathering primary data by observing relevent people, actions and situation

Ethnographic research

A form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"

Survey research Gathering primary data by asking people questions about their knowledge, attitudes,

preferences, and buying behavior Experimental research

Gathering primary data by selecting matchedgroups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

Focus group interviewing

Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about

a product, service, or organization The interviewer "focuses" the group discussion

on important issues

Online marketing research

Collecting primary data through internet andmobile surveys, online focus groups,

consumer tracking, experiments, and online panels and brand communities

Online focus groups

Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudesand behavior

Sample A segment of the population selected for

marketing research to represent the population as a whole Questionnaire A research instrument consisting of a series of questions for the purpose of gathering

information from respondents It can be thought of as a kind of written interview.Sampling unit A typically thought of as an object that has been sampled from a statistical population.

Population Any complete group of people or entities sharing some common set of characteristics

the group from which a sample is taken

Coding The process whereby raw data are transformed into standardized form suitable

for machine processing and analysisHypothesis An unproven proposition that can be supported or refused by market research.Data analysis Statistical and/or qualitative consideration ofdata gathered by research.

Codebook The document used in data processing and analysis that tells the location of different

data items in a data file

Mean An average computed by summing the values of several observations and dividing

by the number of observationsMode An average representing the most frequentlyobserved value or attributeStandard deviation A measure of dispersion around the mean

Median An average representing the value of the "middle" case in a rank-ordered set of

observations

The real value of marketing information

lies in how it is used—in the customer

insights that it provides TRUE

The customer service department keeps

records of customer satisfaction or

service problems It is a source of

marketing research information

TRUE

Starbucks wants to know how

customers would react to a new

breakfast menu item, they should use

marketing intelligence

FALSE

The marketing world is filled to the

brim with information from

innumerable sources TRUE

Nowadays, marketers don’t need more

information; they need better FALSE

information And they need to make

better use of the information they

already have

To create value for customers and build

meaningful relationships with them,

marketers must first gain fresh,

deep into what customers need

and want

insights

The research is to describe

things, such as the market potential for

a product or the attitudes of consumers

who buy the product

Descriptive

A is a research instrument

consisting of a series of questions for

the purpose of gathering information

from respondents

Questionnaire

must be conducted to have good

information for making marketing

is the method in which the researcher

selects the easiest population members

from which to obtain information Convenience sample

To test hypotheses about

cause-and-effect relationships, the research can be

classified as a Answer

Causal research

Causal

Normally, the hardest step in the

research process is defining the problem

and research (b) Objectives

Online Marketing Reasearch

Collecting primary data through internet andmobile surveys, online focus groups,

consumer tracking, experiments, and online panels and brand communities

Observational research Gathering primary data by observing relevant people, actions, and situationsClosed-ended Questions provide answers that are easier to interpret and analyze.

Mean An average computed by summing the values of several observations and dividing

by the number of observations Focus group interviewing Personal interviewing that involves inviting

small groups of people to gather for a few hours with a trained interviewer to talk about

a product, service, or organization

Simple random sample .Every member of the population has a known and equal chance of selection.Methodology

explains why the research design is appropriate for achieving the research objectives and answering the research questions

Findings It is where the results of the study are reported in detailprovide answers that are

easier to interpret and analyze

Sample

.A segment of the population selected for marketing research to represent the population as a wholeIt is where the results

of the study are reported in detailprovide answers that are easier to interpret and analyze

Data analysis

tatistical and/or qualitative consideration of data gathered by research.An average computed by summing the values of several observations and dividing by the number of observations

Which of the following is NOT a

potential source for marketing

intelligence? collecting primary data

This involves the process and methods

used to gather information, analyze it,

and report findings related to marketing

of goods and services

Markeitng Research

Which is not the method of primary

data collection? Publication

Three basic or main components of

marketing information system are

_ internal data, marketing research, marketing intelligence

What is one of the benefits of a

marketing information system?

It helps you know more about your competitors' actions

It helps you understand what motivates people to buy a product

It provides you with information about your customers' buying habits and wants

is the systematic collection

and analysis of publicly available

information about consumers,

competitors, and developments in the

marketing environment

Marketing intelligence

_ data refers to the data which is

readily available Secondary

The first step in Marketing Research is

to Identify and Define the Problem

Your colleague is confused about using

the marketing research process, as he

knows that something is wrong but is

not sure of the specific causes to

investigate He seems to be having

problems with , which is often

the hardest step to take

defining the problem and research objectives

Which of the following is not a reason

businesses use marketing research? deciding how many staff to hire to manufacture the goods.

Chapter 3 Marketing Environment

Suppliers Form an important link in the company's overall customer value delivery network Marketing intermediaries Firms that help the company to promote, selland distribute its goods to final buyersCompetitor A company or individual that competes for trade with one's own

Publics Any groups that has an actual or potential interest in or impact on an organization's

ability to achieve its objectives The micro-environment

The actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediearies, customer markets, competitors and publics

Financial publics

This group influences the company's ability

to obtain funds Banks, investment analysts, and stockholders are the major financial publics

Media publics

This group carries news, features, editorial opinions, and other content It includes television stations, newspapers, magazine, and blogs and other social media

Goverment publics

Those with the ability to affect the company

or its products/ services through legislation and laws that could regulate or restrict product manufacturing or marketing effortsCitizen-action publics Organized groups with special interests who

would question the actions of a company, potentially placing it in the public spotlight

Internal publics This group includes workers, managers, volunteers, and the board of directors

General publics A commpany needs to be cocerned about thegeneral public's attitude toward its profucts

and activitesLocal publics This group includes local community residents and organizations

Consumer market A market that consist of individuals and households that buy goods and services for

International market A market that consists of all kinds of buyers in other countries, including consumers,

producers, resellers, and governments.Physical distribution firms

These are the companies that help to warehouse (store and protect goods) and move goods from their points of origin to their destinations

Marketing service agency

Advertising' promotional agencies, media agencies, marketing research firms are companies that supply the help that is needed to promote products by targeting reaching/communicating the best prospects for products and services

Reseller

This group includes wholesalers and retailers Some reseller firms are powerful and demanding, so much so that it can be difficult for companies to work with them.Financial intermediaries

This group includes banks, insurance companies, and credit-related agencies that supply the financing needed for the conduct

of business, and insurance against risks connected with the conduct of business.The macro-environment: Broader forces that affect the actors in the microenvironment.The demographic environmeat: Human population characteristics that

surround a firm or nation and greatly affect

markets: size, density, location, age, gender, race, occupation, and other statistics.

The natural environment:

Forces that involve the physical environmentand the natural resources that are needed as inputs by marketers or that are affected marketing activities

The technological environment: forces that create new technologies, creating new product and market opportunities.

The economic environment:

Forces that consist of economic factors that affec consumer purchasing power and spendin patterns Economic factors can havedramatic effect on consumer spendinn buying behavior

Generation 1X People who were born between 1965 and 1979.Millennials (Generation Y) People who were born between 1981 and 1995.Generation Z People who were born between 1997 and 2012.Generational marketing: Creating separate products and marketing programs for each generation.

Environmental sustainability Developing strategies and practices that create a world economy that the planet can

support indefinitely

Socially responsible behavior Companies seek out ways to protect the long-run interests of their consumers and the

environment

Cause-related marketing

A mutually beneficial collaboration between

a corporation and a nonprofit designed to promote the former's sales and the latter'scause

Core belief Basic beliefs about ourselves, other people, and the world we live in.

Choose the concept for the following

definition:

The internal environment is conformed

by departments or areas such as finance,

human resources, accounting,

purchasing, and the top management,

which share the responsibility for

understanding customer needs and

creating customer value

the company

Financial publics are banks

Which factor that does NOT affect the

Microenvironment? The economic environment

The publics does not include

As the director of marketing for Little

Hanoi Hospital, you must conduct a

market research into the marketing

environment to help create a five-year

marketing plan for the hospital Which

of the following environmental trends

should you consider to be the most

important?

The number of people in the geographic areawho are 65 years or older will increase by 23percent during the next five years

Firms that provide the resources needed

by the company to produce goods or

offer services are _ the supplier

Choose the concept to the following

definition:

It consists of the actors and forces

outside marketing that affect marketing

management's ability to build and

maintain successful relationships with

target customers

Marketing environment

More magazine is a publication

designed to appeal to women aged 40

and over Demand for such magazines

is an example of how changing

characteristics impact the

declined significantly in recent years

Not only are traditional newspapers

losing subscribers, they are also losing

advertisers To combat these trends,

many newspaper publishers now offer

online versions of their printed

newspapers This is most likely a

response to which environmental

factor?

social, resulting from changing consumer preferences for information delivered online

Any group that has an actual or

potential interest in or impact on an

organization's ability to achieve its

objectives is called _

publics

The macro environment are the larger

societal forces that affect the micro

environment - demographic, economic,

ecological, technological, _, and

cultural forces

political

is the study of the human

population in terms of size, density,

locations, gender, race, occupation and

other statistics

demography

Individuals and households who buy

goods or services for personal

consumption are _ consumer market

help to warehouse (store and

protect goods) and move goods from

their points of origin to their

destinations

physical distribution

consists of the actors and forces

outside marketing that affect marketing

management's ability to build and

maintain successful relationships with

target customers

the marketing environment

In terms of its effect on marketers, the

increased in petrol price, mostly

effected the environment economic

Larger societal forces such as

demographic, economic, natural,

political, and others that affect

marketing management's decisions are

part of _

the macro-environment

Firms that help the company to

promote, sell and distribute its goods to

final buyers are _ marketing intermediaries buys goods and services for

further processing or use in their

production processes business market

Changes in the price or quality of raw

materials – for example wood, or metals Macro

– will affect the marketing mix.

You must differentiate your brand from

your competitors Micro

Good relations between a supplier and a

company mean that goods are always

delivered on time Micro

Legislation in European countries is

restricting the right to smoke in public

During the FIFA World Cup, more

snack food is consumed in front of the

Employing the right people and keeping

them motivated is essential Micro

High unemployment in a region reduces

spending on leisure activities Macro

Positive reports in the national press

The staff for the telephone hotline of an

internet bank are trained to be polite

The Internet has opened up new

distribution and marketing channels Macro

Consumer market

The consumer market includes both individual and household buyers who buy products or services for their own

consumption

Consumer buyer behavior

Consumer buyer behavior refers to the actions taken (both online and offline) by final consumers before they buy goods and services for their personal consumption.For example, they will consider whether or not to buy a product, or where to buy it

Motive

When a need is sufficiently roused, it becomes a motive, which will direct thie person to seek satisfaction of the need Motives can include product motives (different attributes of the product that induce the consumer to buy it) and patronage motive (reasons to buy the goods from a particular shop)

Culture The set of basic values, perceptions, wants,

and behaviors learned by a member of society from family and other important institutions.

Subculture A group of people with shared value systemsbased on common life experiences and

situations

Social class Relatively permanent and ordered divisions in a society whose members- share similar

values, interests and behaviors

Life stages

The stages of the family life cycle, through which families might pass as they mature over time Life-stage changes usually result from life-changing events such as marriage, having children, purchasing a home,

divorce, children going to college, changes

in personal income, moving out of the house, and retirement

Marketing stimuli

Marketing stimuli may include an additionalinnovative feature of an existing product, a low price of a product penetrating a new market, a discount or gift provided with the purchase of a product, or even an

outstanding atmosphere of the store

Perception

Consumer perception is their awareness, impression and opinions about products or brands For example, when a retail clothing store has displayed clothes in crowded racks using low quality plastic hangers, customers get a perception that it is a low-quality brand

Word-of-mouth influence

The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior

Opinion leader

Opinion leaders often have a strong social status and a significant number of followers

in their social networks

Their recommendations an opinions are listened to when consumers make important decisions: Opinions leaders should be suitable for brand or product characteristics

Low-involvement products Consumers do not need to think too much before purchasing the product and may

simply select a familiar brand out of habit.High-involvement product Consumers need extensive thought and

consider a lot of variables before making a

purchase decision.

Complex buying behavior

This buying behavior occurs when consumers are highly involved in the purchase of products which are expensive, risky or purchased infrequently

Dissonance-reducing buying behavior

This buying behavior occurs when consumers are involved in the purchase products which are expensive, infrequently bought but see little difference amongbrands

Habitual buying behavior

This buying behavior occurs when consumers have low involvement with the purchase and there are little significant perceived differences among brands

Variety-seeking buying behaviour

Consumer buying bchavior in situations characterized by

low consumer involvement but significant perceived brand differences

Need recognition This is the first step of the buyer decision process when the buyer I recognizes a

problem or need

Information search The consumer is motivated to-search for more information related to the need.Evaluation of alternative The consumer uses the information to evaluate alternative brands in the choice set.Purchase decision The buyer's decision about which brand to purchasePostpurchase behavior Consumers take further action after purchasebased on their satisfaction or dissatisfaction.

Situational factors

Unexpected events may happen and change the purchase intention For example, the economy might take a turn for the worse, a close competitor might drop its price, or a friend might report being disappointed in your preferred car

Adoption process The mental process through which an individual passes from first hearing about an

innovation to final adoption

Awareness The consumer become aware of the new product but lacks information about it.Interest The consumer seeks information about the new product,.Trial The consumer tries out the innovative

Coffering, but there is not yet any further purchase conitment

Evaluation The consumer considers whether trying the new product makes sense.Adoption The consumer decides to make full and regular use of the new product.Innovators Adopters who try new ideas at some risks.Early adopters Opinion Icaders in their communities and adopt new ideas early but carefully.Early mainstream Adopt new ideas before the average personLate mainstream Adopt an innovation only after a majority of people have tried it

Lagging adopters Suspicious of changes and adopt the innovation only when it has become

something of a tradition itselfBuying center All the individuals and units that play a role in the purchase decision-making process.

Users Members of the buying organization who will actually use the purchased product or

service

Influencers

People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.Buyers People in an organization's buying center who make an actual purchase.

Deciders People in an organization's buying center who have formal or informal power to select

or approve the final suppliers

Gatekeepers People in an organization's buying center who control the flow of information to

others

Problem recognition

The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service Gencral need description

The stage in the business buying process in which a buyer describes the general

characteristics and quantity of a needed item

Product specification

The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for needed item

Supplier search The stage of the business buying process in

which the buyer tries to find the best

vendors

Proposal solicitation The stage of the business buying process in which the buyer invites qualified suppliers

to submit proposals

Supplier selecton The stage of the business buying process in which the buyer reviews proposals and

selects a supplier or suppliers

Order-routine specification

The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties

Performance review

The stage of the business buying process in which the buyer assesses the performance ofthe supplier and decides to continue, modify,

or drop the arrangement

Targeting the company's effort to evaluate each marketsedment's attractiveness and then, select one

or more segments to enter intoDifferentiation involves differentiating the firm's market offering to create superior customer valuePositioning

consists of arranging for a market offering tooccupy a clear, distinctive, and desirable place ralative to competing products in the minds of target customers

Revenue Income generated from business operationprofit the difference between the amount earned and the amount spenrBrand image is the customer perception of a brand

Publicity the activity of making certain that someone or something attracts a lot of interest or

attention for many peopleAwareness knowledge about something or understanding of a situation or subjectsPrice consciousness knowing how much things cost and avoiding

buying expensive things

no-Geographic segmentation

divides the market into different geographical units such as nations, regions, territories, cities, neighborhood and

population densityThe dividing of an overall market into homogeneous groups on the basis of population location it is the oldest segmentation approach

Demographic segmentation: age,

gender, nationality, ethnic origin

The dividing of an overall market into a homogeneous groups based on

characteristics such as age sex and income level it is the most frequently used approach

Psychographic segmentation divides buyers into different segments basedon social class lifestyles values and

psychological/personality traitsThe dividing of an overall market into homogeneous groups through the use of behavioral profiles developed from analyzes

of the activities, opinions, interests, and lifestyles of consumers

Behavioral segmentation divides the market into segments based on their knowledge, attitudes, uses or responses

concerning a productThe dividing of an overall market into homogeneous groups on the basis of benefitsthe consumer exposed to derive from a product or service and the related usage rates

of a product or serviceUsage rate

comprises of three levels heavy users are small in number but could account for a highpercentage of consumption Medium and light users

Benefit segmentation: product

performance, knowledge/ awareness of

a product

requires finding major benefits people look for in a product class, the kinds of people who look for each benefits and brands that deliver each benefit

Multiple segmentation is popular since marketers rarely use only

one or a few variables It is widely used because marketers want to identify smaller better-defined target groups of customersMeasurable the potential size and purchasing power can be measuredAssessable segments can be effectively reached and servedSubstantial segments are large and profitable enough to bring profit for the organization

Differentiable segments are conceptually distinguishable and respond differently to different

marketing mix elements and programs

Actionable segments identified must be in consistent with the organizational resources and

strategyThreat of segment rivalry the danger derived from competitors

Threat of new entrants the danger derived from new firms entering the marketThreat of substitute products the danger derived from potential products used as replacementThreat of buyer bargaining power the danger derived from customers who possess sustainable negotiation powerThreat of supplier bargaining power the danger derived from supplier who possess sustainable negotiation powerSegment-by-segment invasion

the approach that an organization uses to successfully enter into and dominate only a segment at a time gradually, more and all segments in the market will be dominated

Target market consists of a set of buyers who share a common needs or characteristics that the

company decides to serveUndifferentiated marketing occurs when firms ignore differences and focus on the market

Differentiated marketing uses different marketing tools for different segmentsConcentrated marketing emphasize on one or a few niche markets only

Micro marketing is the practice of tailoring products and marketing programs to suit the taste of

specific individuals and locationLocal marketing involves tailoring brands and promotions to

the needs and wants of local customer groups

Single-segment selection the firm markets to only one particular segment

Selective specialization a firm selects a subset of all possible segments, each objectively attractive and

appropriateProduct specialization the firm sells a certain product to several different market segmentsMarket specialization the firm concentrates on serving many needsof a particular customer group

Full market coverage the way a firm attempts to serve all customergroups with the same marketing strategy and

tools

Positioning is the act of designing a company's offering and image to occupy a distinctive place in

the mind of the target market Points-of-parity (pops) are benefits that may be shared with other friendsPrice-of-difference (pods)

are benefits that consumers strongly associate with a brand and believe they could not find to the same extend with a competitive brand

Positioning maps

are representations of consumer perceptions and preferences they provide an overall picture of market situation and the way consumers view of product, services, and brands

Competitive advantage is the company's ability to perform in a way that competitors cannot matchChapter 6 MARKETING PLANNING AND STRATEGY

Strategic planning

is the process of developing and maintaining

a strategic fit between the organization’s goals and capabilities and its changing marketing opportunity

Mission statement is the statement of the organization‘s purpose-what is wants to accomplish in the

larger environmentCorporate objective

defines specific goals for the organization and may be expressed in terms of

profitability, returns on investment, growth

of asset base, earnings per share and so onCorporate strategy Deals with the overall development of an

organization' business activities

Marketing strategy is the marketing logic by which the companyhopes to create customer value and achieve

profitable customer relationshipsDeliberate strategy

is the strategy that arises from conscious, thoughtful, and organized action on the part

of a business and its leadership, based on analysis of data

Emerging strategy

is the strategy that spontaneously arises fromunplanned actions and initiatives from within an organization which is more flexible for goal adjustment or pursuing other opportunities or priorities as they emerge

Competitive advantage

is an advantage over competitiver gained by offering greater customer value either by having lower prices or providing more benefits that justify higher pricesCost leadership is the attempt to control the market through being the low-cost producerDifferentiation is differentiating the market offering to create superior customer value

Focus is aiming to serve particularly attractive or suitable segments or niches, either by

offering low-cost or differentiation

Core competencies is the harmonized combination of multiple resources and skills that distinguish a firm in

the marketplaceBusiness portfolio

is the collection of businesses and products that make up the company and best fits the company’s strengths and weaknesses to opportunities in the environments

Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned

separately from other company businesses

Growth share matrix is a portfolio planning method that evaluatesa companies SBU in terms of market growth

rate and relative market share

Star is the high-growth, high-share SBU that need heavy investments to finance their

rapid growthCashcow

is the low-growth high share successful SBUthat produce a lot of the cash that the

company use to pay its bills and support other SBUs that need investment

Question mark is the low-share SBU in high-growth

markets that require a lot of cash to hold their share but has the potential to be built into stars

Portfolio analysis is the process by which management of all the ways the products and businesses that

make up the companyProduct/market expansion grid

is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Market penetration is growing the company by increasing sales of current products to current market

segments without changing the product

Market development is growing the company by identifying and developing new market segments for current

company products

Product development is growing the company by offering modified or new products to current market

segments

Diversification is growing the company through starting up or acquiring businesses outside the

company’s current products and marketsDownsizing

is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy

Value chain

is the series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products

Value delivery network

is 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 valueMarketing plan

documents how a business’s strategic objectives can be achieved through specific marketing activities with the customer beingthe focal point

Marketing planning is developing the objectives strategies and

marketing mixes that best exploit the

opportunities available to the organization the marketing plan is the result of marketing planning

Competitor analysis

is identifying key competitors; assessing their objectives, strategies, strengths and weaknesses; and reaction patterns; and selecting which competitors to attack or avoid

Swot analysis is an overall evaluation of the company’s strengths, weaknesses, opportunities, and

threats

Market targeting is the act of evaluating each market segment's attractiveness and selecting one or

more segments to serveMarketing control

is measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved

Marketing audit

is a comprehensive, systematic, independent,and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company‘s marketing performance

Marketing budget is a forecast of all the money a business intends to spend on marketing-related

projectsMarketing return on investment

(marketing ROI)

is the net return from a marketing investment divided by the costs of the marketing investment

Competitive marketing strategies are strategies that strongly position the company against competitors and give it the

greatest possible competitive advantageBenchmarking

is comparing the companies products and processes to those of competitors or leading firms in all the industries to identify best practices and find ways to improve quality and performance

Customer value analysis

is an analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors’ offers

Competitor-centered company is company whose moves are mainly based

On competitors’ actions and reactions

Customer-centered company

is company that focuses on customer developments in designing its marketing strategy and delivering superior value to its target customers

Market-centered company is company that pays balanced attention to both customers and competitors in designing

its marketing strategiesMarket leader is the firm with the largest market share in the industryMarket follower is runner-up firm that wants to hold its share in an industry without rocking the boatMarket challenger is runner-up firm that is fighting hard to increase its market share in an industryMarket nicher is a firm that serve small segments that are the firms in an industry overlook or ignore

Consumer products are products and services bought by final consumers for personal consumptionConvenience products

are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying efforts

Shopping products

are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style

Unsought products are consumer products that a consumer either does not know about or knows about

but does not normally consider buying.Specialty products

are consumer products and services with unique characteristics or brand

identifications for which a significant group

of buyers is willing to make a special purchase effort

Industrial products are those products purchased for further

processing or for use in conducting a business

Services

are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and donot result in the ownership of anything

Product attributes these benefits are communicated and delivered by product attributes such as

quality, features, and style and design

Product quality The characteristics of a product or service that bear on its ability to satisfy stated or

implied customer needs

Product features are a competitive tool for differentiating the company's product from competitors'

products

Brand

A name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one seller or group ofsellers 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 A company's product mix has four important dimensions: width, length, depth, and consistency

New product development

the development of original products, product improvements, product modifications and new brands through the firm's own product development effortIdea generation The systematic search for new product ideasCrowdsourcing

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 termsConcept testing Testing new product concepts with a group

of target consumers to find out if the

concepts have strong consumer appealMarketing 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

Test marketing

The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

Commercialization Introducing a new product into the market.Product life cycle (PLC) The course of a product's sales and profits over its lifetime.

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 Attracted by the opportunities for profit, new competitors will enter the market

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.

Brand equity

It's a measure of the brand's ability to capture consumer preference and loyalty Brand equity is 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

Brand image The set of beliefs, ideas I and impression that a person holds regarding an objectManufacturer's brand The brand name of a manufacturer

Brand loyalty

the extent of consumer faithfulness towards

a specific brand and this faithfulness is faithfulness is expressed through repeat purchases and other positive behaviours such as word of mouth advocacy, irrespective of the marketing pressures generated by the other competing brandsStore brand (or private brand) A brand created and owned by a reseller of aproduct 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

Price

The amount of money charged for a product

or service; the sum of the I values that customers exchange for the benefits of having or using the product or service

Pricing Pricing is the process whereby a business sets the price at which it will sell its products

Total costs The sum of the fixed and variable costs for any given level of production

Break-even price The amount of money for which a product or service must be sold to cover the costs of

manufacturing or providing itCost-based pricing

Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk

Competition-based pricing A pricing method that involves setting a company's prices in relation to the prices of

its competitors

Value-based pricing A strategy of setting prices primarily based on a consumer's perceived value of a product

or service

Target costing A system under which a company plans in

advance for the price points, product costs,

and margins that it wants to achieve for a new product.

Market penetration Setting a low price for a new product in order to attract a large number of buyers and

a large market share

Market skimming

Setting a high price for a new product to skim maximum revenues layer by layer fromthe segments willing to pay the high price; the company makes fewer but more profitable sales

Product line pricing

Setting the price steps between various products in a product line based onSEP cost differences between the products, customer evaluations of different features, and competitors' prices

By-product pricing

Setting a price for by-products to help offset the costs of disposing of them and help make the main product's price more competitive

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

Segmented pricing Selling a product or service at two or more prices, where the difference in prices is not

based on differences in costs

Discounted pricing Sell low-priced products in short time or in high volumes.Psychological pricing

Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product

Chapter 6 MARKETING PLANNING AND STRATEGY

Strategic planning

is the process of developing and maintaining

a strategic fit between the organization’s goals and capabilities and its changing marketing opportunity

Mission statement is the statement of the organization‘s purpose-what is wants to accomplish in the

larger environmentCorporate objective defines specific goals for the organization

and may be expressed in terms of profitability, returns on investment, growth

of asset base, earnings per share and so onCorporate strategy Deals with the overall development of an organization' business activities

Marketing strategy is the marketing logic by which the companyhopes to create customer value and achieve

profitable customer relationshipsDeliberate strategy

is the strategy that arises from conscious, thoughtful, and organized action on the part

of a business and its leadership, based on analysis of data

Emerging strategy

is the strategy that spontaneously arises fromunplanned actions and initiatives from within an organization which is more flexible for goal adjustment or pursuing other opportunities or priorities as they emerge

Competitive advantage

is an advantage over competitiver gained by offering greater customer value either by having lower prices or providing more benefits that justify higher pricesCost leadership is the attempt to control the market through being the low-cost producerDifferentiation is differentiating the market offering to create superior customer value

Focus is aiming to serve particularly attractive or suitable segments or niches, either by

offering low-cost or differentiation

Core competencies is the harmonized combination of multiple resources and skills that distinguish a firm in

the marketplaceBusiness portfolio

is the collection of businesses and products that make up the company and best fits the company’s strengths and weaknesses to opportunities in the environments

Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned

separately from other company businesses

Growth share matrix is a portfolio planning method that evaluatesa companies SBU in terms of market growth

rate and relative market shareStar is the high-growth, high-share SBU that

need heavy investments to finance their rapid growth

Portfolio analysis is the process by which management of all the ways the products and businesses that

make up the companyProduct/market expansion grid

is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Market penetration is growing the company by increasing sales of current products to current market

segments without changing the product

Market development is growing the company by identifying and developing new market segments for current

company products

Product development is growing the company by offering modified or new products to current market

segments

Diversification is growing the company through starting up or acquiring businesses outside the

company’s current products and marketsDownsizing

is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy

Value chain

is the series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products

Value delivery network

is 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 valueMarketing plan documents how a business’s strategic

objectives can be achieved through specific marketing activities with the customer beingthe focal point

Marketing planning

is developing the objectives strategies and marketing mixes that best exploit the opportunities available to the organization the marketing plan is the result of marketing planning

Competitor analysis

is identifying key competitors; assessing their objectives, strategies, strengths and weaknesses; and reaction patterns; and selecting which competitors to attack or avoid

Swot analysis is an overall evaluation of the company’s strengths, weaknesses, opportunities, and

threats

Market targeting is the act of evaluating each market segment's attractiveness and selecting one or

more segments to serveMarketing control

is measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved

Marketing audit

is a comprehensive, systematic, independent,and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company‘s marketing performance

Marketing budget is a forecast of all the money a business intends to spend on marketing-related

projectsMarketing return on investment

(marketing ROI)

is the net return from a marketing investment divided by the costs of the marketing investment

Competitive marketing strategies are strategies that strongly position the company against competitors and give it the

greatest possible competitive advantageBenchmarking

is comparing the companies products and processes to those of competitors or leading firms in all the industries to identify best practices and find ways to improve quality and performance

Customer value analysis is an analysis conducted to determine what

benefits target customers value and how they rate the relative value of various competitors’ offers

Competitor-centered company is company whose moves are mainly based On competitors’ actions and reactionsCustomer-centered company

is company that focuses on customer developments in designing its marketing strategy and delivering superior value to its target customers

Market-centered company is company that pays balanced attention to both customers and competitors in designing

its marketing strategiesMarket leader is the firm with the largest market share in the industryMarket follower is runner-up firm that wants to hold its share in an industry without rocking the boatMarket challenger is runner-up firm that is fighting hard to increase its market share in an industryMarket nicher is a firm that serve small segments that are the firms in an industry overlook or ignore

Consumer products are products and services bought by final consumers for personal consumptionConvenience products

are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying efforts

Shopping products

are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style

Unsought products are consumer products that a consumer either does not know about or knows about

but does not normally consider buying.Specialty products are consumer products and services with

unique characteristics or brand identifications for which a significant group

of buyers is willing to make a special purchase effort.

Industrial products are those products purchased for further processing or for use in conducting a

business

Services

are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and donot result in the ownership of anything

Product attributes these benefits are communicated and delivered by product attributes such as

quality, features, and style and design

Product quality The characteristics of a product or service that bear on its ability to satisfy stated or

implied customer needs

Product features are a competitive tool for differentiating the company's product from competitors'

products

Brand

A name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one seller or group ofsellers 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 A company's product mix has four important dimensions: width, length, depth, and consistency

New product development

the development of original products, product improvements, product modifications and new brands through the firm's own product development effortIdea generation The systematic search for new product ideasCrowdsourcing

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 appealMarketing 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

Test marketing

The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

Commercialization Introducing a new product into the market.Product life cycle (PLC) The course of a product's sales and profits over its lifetime.

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 Attracted by the opportunities for profit, new competitors will enter the market

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.

Brand equity

It's a measure of the brand's ability to capture consumer preference and loyalty Brand equity is 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

Brand image The set of beliefs, ideas I and impression that a person holds regarding an objectManufacturer's brand The brand name of a manufacturer

Brand loyalty the extent of consumer faithfulness towards

a specific brand and this faithfulness is faithfulness is expressed through repeat purchases and other positive behaviours such as word of mouth advocacy,

irrespective of the marketing pressures generated by the other competing brandsStore brand (or private brand) A brand created and owned by a reseller of aproduct 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

Price

The amount of money charged for a product

or service; the sum of the I values that customers exchange for the benefits of having or using the product or service

Pricing Pricing is the process whereby a business sets the price at which it will sell its products

Total costs The sum of the fixed and variable costs for any given level of production

Break-even price The amount of money for which a product or service must be sold to cover the costs of

manufacturing or providing itCost-based pricing

Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk

Competition-based pricing A pricing method that involves setting a

company's prices in relation to the prices of its competitors

Value-based pricing A strategy of setting prices primarily based on a consumer's perceived value of a product

or service

Target costing

A system under which a company plans in advance for the price points, product costs, and margins that it wants to achieve for a new product

Market penetration Setting a low price for a new product in order to attract a large number of buyers and

a large market share

Market skimming

Setting a high price for a new product to skim maximum revenues layer by layer fromthe segments willing to pay the high price; the company makes fewer but more profitable sales

Product line pricing

Setting the price steps between various products in a product line based onSEP cost differences between the products, customer evaluations of different features, and competitors' prices

By-product pricing

Setting a price for by-products to help offset the costs of disposing of them and help make the main product's price more competitive

Optional product pricing The pricing of optional or accessory products along with a main productCaptive 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

Segmented pricing Selling a product or service at two or more prices, where the difference in prices is not

based on differences in costs

Discounted pricing Sell low-priced products in short time or in high volumes.Psychological pricing

Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product

Chapter 9 Marketing Channel

Marketing

Channel Basics Value delivering network A network composed of the company, suppliers, distributors, and ultimately, customers who partner with