UGBA Ch. 13

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  1. Marketing
    the process of creating value for customers and building relationships with those customers in order to capture value back from them
  2. place marketing
    marketing efforts to attract people and organizations to a particular geographic area
  3. cause-related marketing
    identification and marketing of a social issue, cause, or idea to selected target markets
  4. needs
    differences between a person's actual state and his ideal state; they provide the basic motivation to make a purchase
  5. wants
    specific goods, services, experiences, or other entities that are desirable in light of a person's experiences, culture and personality
  6. exchange process
    the act of obtaining a desired object or service from another party by offering something of value in return
  7. transaction
    an exchange of value between parties
  8. utility
    the power of a good or service to satisfy a human need
  9. form utility
    • when organizations change raw materials into finished goods, they are creating form utiltity
    • ex: fruit snacks bars provide the nutritional value of real fruit in a form that is more convenient
  10. time utilty
    making products available when consumers want to buy them. ex: lenscrafters with their on-the-spot, one hour service
  11. place utility
    ex: by offering convenient home delivery of the latest fasion apparel, delias are a favorite among teen girls
  12. possession utility
    • the satisfaction that buyers get when they actually possess a product, both legally and physically.
    • ex: rhapsody let customers buy individual songs
  13. marketing concept
    an approach to business management that stresses customer needs and wants,  seeks long-term profitability, and integrates marketing with other functional units withing the organization
  14. product concept
    focus on the production of goods and count on customer to figure out which products they needs and take the steps to find and purchase them. essentially means it's all about making stuff, not satisfying customers.
  15. sales concept
    emphasizes building a business by generating as make sales transactions as possible. the customers is in the sales concept, but it is not a partner of mutual benefit, just the target.
  16. marketing concept
    the idea that companies should respond to customer's needs and wants while seeking long-term profitability and coordinating their own marketing to achieve the company's long term goals
  17. relationship marketing
    a focus on developing and maintaining long-term relationships with customers, suppliers, and distribution partners for mutual benefit
  18. customer loyalty
    the degree to which customers continue to buy from a particular retailer or buy the products of a particular manufacturer or service provider.
  19. customer relationship management CRM
    a type of information system that captures, organizes, and capitalizes on all the interactions that a company has with its customers
  20. social commerce
    the creation and sharing of product-related information among customers and potential customers
  21. marketing research
    the collection and analysis of information for making marketing decisions
  22. marketing research techniques
    • 1. observation - anything that monitors and records behavior
    • 2. surveys - data collection that measure responses
    • 3. interviews and focus groups - one-on-one or group discussions that probe deeper into issues that a survey. their real value is in uncovering issues that require further investigation
    • 4. process data collection - any method of collecting data such as loyalty and customer service interactions
    • 5. experiments - controlled scenarios to measure changes in products with customer behavior
    • 6. ethnographic research - a branch of anthro that studies people in their daily lives to learn about their needs, wants and behaviors
    • 7. neuromarketing studies - measures brain activity while customer are viewing or interacting with products, websites or other elements
  23. permission based marketing
    a marketing approach in which firms first ask permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest
  24. stealth marketing
    the delivery of marketing messages to people who are not aware that they are being marketing to: these messages can be delivered by either acquaintances or strangers, depending on the technique
  25. consumer market
    • 1. must be recognized in order to understand consumers
    • 2. it is made up of individuals and families who buy for personal or household use
  26. organizational market
    composed of companies and a variety of noncommercial institutions, from local school districts to the federal government
  27. behavioral economics
    offers insights into consumer behavior by incorporating a broader view of the way people really make decisions.
  28. cognitive dissonance
    occurs when one's beliefs and behaviors dont match. a common form of this is buyer's remorse, in which one makes a purchase and then regrets it, sometimes immediately after the purchase.
  29. things that affect buyers
    • 1. culture
    • shapes how people respond to the world
    • 2. socioeconomic level
    • people buy different¬† goods, listen to different entertainment, respond differently to ads
    • 3. reference groups
    • can be membership or aspirational. memeberships = consumers that belong to a family, a network, a work group.
    • in contrast, aspirational reference groups are used as role models for style, speech, opinions, etc. ex: buying giants gear.
    • 4. situational factors
    • "retail therapy" is caused by certain situational factors
    • 5. self-image
    • people feel the need to express themselves through their clothing.
  30. network effect
    the value of a product increases with the number of consumers using it
  31. strategic marketing planning
    The process of examining an organization's current markering situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives
  32. market penetration
    involves selling more of your existing products into the markets you already serve
  33. product development
    creating new products for those current markets
  34. market development
    selling your existing product to new markets
  35. diversification
    involves creating new products for new markets
  36. marketing strategy
    • overall plan; includes
    • 1. idenitfication of target market segments
    • 2. positioning strategy
    • 3. marketing mix
  37. market
    all the customers that are interested in a product and can pay for it
  38. market segmentation
    most markets have subgroups, which are grouped by similar characteristics, behaviors and needs.

    the point of segmentation: to understand why and how certain customer buy what they buy so that you can use your finite resources to create and market products in the most efficient manner possible
  39. identifying market segments:
    1. demographics
    dividing your market based on things like race, ethnicity, income level
  40. identifying market segments:
    2. psychographics
    • study of people from the inside, not the outside.
    • it's learning about why people do what they do.
  41. identifying market segments:
    3. geography
    customizing and selling products based on geographic regions.
  42. identifying market segments:
    4. behavior
    selling things to appeal to a person's behavior, perhaps relating to a particular season. like marketing holiday flavored coffee
  43. target markets and how to reach those markets (1:2)
    • there is
    • 1. undifferentiated marketing (mass marketing that is simple and takes advantage of economies of scale)
    • 2. differentiated marketing (pinpointed to more specific segments (incomes, etc))
  44. target markets and how to reach those markets (2:2)
    • there is also
    • 3. concentrated marketing: focuses on only a single market segment. Advantageous because you can focus all efforts on one segment, but also risky because it could be an unfruitful segment

    4. micromarketing/individualized marketing: the narrowest strategy of all in which firms target one location or just one customer.
  45. customer lifetime value
    the total potential revenue from each customer over a certain time span minus the cost of attracting and keeping the,.
  46. positioning
    managing a business in a way designed to occupy a particular place in the minds of target audiences
  47. marketing mix
    • the four key elements of marketing strategy
    • 1. product
    • 2. price
    • 3. distribution
    • 4. customer communication
  48. product
    the bundle of value offered for the purpose of satisfying a want or a need
  49. wholesalers vs. retailers
    • wholesale-sells to other companies
    • retail- sells to individuals
  50. goals of promotion
    informing, persuading, reminding
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UGBA Ch. 13
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