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Flashcards in Marketing Terminology Deck (149):
1

MARKETING

The process of planning, pricing, promoting, selling, and distributing products to satisfy customer’s needs and wants.

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Goods

Tangible items of monetary value that satisfy needs and wants

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Services

Intangible items of monetary value that satisfy needs and wants

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Utility

An attribute of a product or service that makes it capable of satisfying consumer’s wants and needs

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Market

People who share similar needs and wants and are capable of buying products

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Consumer market

Consumers who purchase goods and services for personal use

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Industrial Market

Businesses that buy products to use in their operations; also called the business to business market

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Business to business market

Businesses that buy products to use in their operations; also called the industrial market.

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Market share

A company’s percentage of total sales volume generated by all competition in a given market.

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Target market

A group of people identified as those most likely to become customers

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Customer profile

A list of information about a target market, such as age, income level, ethnicity, occupation, attitudes, lifestyle, and geographic residence.

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Marketing mix

The four basic marketing strategies, called the four Ps: Product, place, price, and promotion

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The four Ps

Product, place, price, and promotion

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Marketing plan

A formal written document communicating the goals, objectives, and strategies of a company

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Executive summary

A brief overview of an entire marketing plan

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Situation analysis

The study of the external and internal strategies that affect marketing practices

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Marketing strategy

Identification of target markets and determination of marketing mix choices that focus on those markets

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Sales forecasts

The projection of probable future sales in units or dollars

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Performance standards

An expectation of performance that reflects a company’s goals and marketing objectives

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Market segmentation

The process of analyzing and classifying customers in a given market to create smaller, more precise target markets

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Demographics

Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnicity, and occupation.

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Disposable income

The money left over after taxes are taken out of a consumers income

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Discretionary income

The money left over from a consumer’s income after paying for basic living necessities such as food, shelter, and clothing

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Geographical

Segmentation of the market based on where people live

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Psychographics

Studies of consumers based on social and psychological characteristics

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Mass marketing

Use of a single marketing plan to reach all customers

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Factors of production

Economic term for the four categories of resources; land, labor, capital, and entrepreneurship

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Four categories of resources

Land, labor, capital, and entrepreneurship.
Economic term- factors of production

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Infrastructure

The physical development of a country, including its roads, ports, sanitation facilities, and utilities

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Entrepreneurship

The process of starting and operating your own business

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Scarcity

The difference between what consumers want and need and what the available resources are

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Traditional economy

The answers to the basic economic question of what, how, and for whom based on traditions and rituals

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Command economy

An economic system in which the government decides what, when, and how much will be produced and distributed

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GDP (gross domestic product)

The output of goods and services produced by labor and property located within a nation

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Gross National Product (GNP)

The total dollar value of goods and services produced by a nation

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Inflation

A period of rising prices

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Consumer price index (CPI)

Measurement of the change in price over a period of time of approximately 400 retail goods and services used by the average urban household

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Producer price index (PPI)

Measurement of wholesale price levels in the economy

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Business cycle

Recurring changes in economic activity, such as the expansion and contraction of an economy; expansion, peak, recession, trough, and recovery

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Expansion

A time when the economy is flourishing; also called prosperity

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Recession

A period of economic slowdown that lasts for two quarters, or six months

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Depression

A period of prolonged recession

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Recovery

A period of renewed economic growth followed by a recession or depression

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Exports

Goods and services sold to other countries

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Balance of trade

The difference in value between a nation’s exports and its imports

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Free trade

Commercial exchange between nations that is conducted on free market principles, without tariffs, import quotas, or other restrictive regulations

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Tariff

A tax on imports; also known as a duty

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Quota

A limit on either the quantity or monetary value of a product that may be imported

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Embargo

A total ban on specific goods coming into and leaving a country

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Protectionism

A total ban on specific goods coming into and leaving a country

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World Trade Organization (WTO)

A global coalition of more than 140 governments that makes rules governing international trade

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North American Free Trade Agreement (NAFTA)

An international trade agreement among the United States, Canada, and Mexico

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European Union (EU)

European trading bloc

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Licensing

The process of letting another company (licensee) use a trademark, patent, special formula, company name, or some other intellectual property for a fee or royalty.

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Contract manufacturing

The process of hiring a foreign manufacturer to make products according to certain specifications

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Joint venture

A business enterprise that different companies set up together; often the venture involves a domestic company and a foreign company

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Foreign direct investments (FDI)

Investments in factories, offices, and other facilities in another country that are used for a business’s operations

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Multinationals

Large corporations that have operations in multiple countries

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Mini- nationals

Midsize or smaller companies that have operations in multiple countries

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Globalization

The process of selling the same product and using the same promotion method in all countries

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Adaptation

Changing an existing product and/ or promotion to better suit the characteristics of a targeted country or region

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Customization

The process of creating products or promotions for certain countries or regions

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Trademark

A brand name, brand mark, trade name, trade character, or combination of these elements that is given legal protection by the federal government

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Copyright

The exclusive right to reproduce or sell a work authored by an individual, such as writings, music, and artwork

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Competition

The struggle between companies to attract new customers, keep existing ones, and take away customers from other companies

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Price competition

The sale price of a product; the assumption is that consumers will buy the product with the lowest price

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Non- price competition

Competition based on factors that are not related to price, such as product quality, service and financing, business location, and reputation

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Monopoly

Exclusive control over a product or the means of producing it

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Nonprofit

An organization that can function like a business but uses the money it makes to fund the cause identified in its charter

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Business risk

The possibility of financial loss

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Profit

The money earned from conducting business after all costs and expenses have been paid

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Supply

The amount of goods producers are willing to make and sell

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Demand

Consumer willingness and ability to buy product

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Domestic business

A business that sells its products only in its own country

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Global business

A business that sells its products to more than one country

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For- profit business

A business that seeks to make profit from its operations

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Public sector

Local, state, and federal government agencies and services, such as public libraries and state universities

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Industry

A group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same services

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Derived demand

The demand for industrial goods based on the demand for consumer goods and services

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Wholesalers

Channel of distribution that obtains goods from manufacturers and resells them to industrial users, other wholesalers, and retailers

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Retailers

Channel of distribution that buys goods from wholesalers or directly from manufacturers and resells them to the consumer

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Production

The process of creating, expanding, manufacturing, or improving on goods and services

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Management

The business function of planning, organizing, and controlling all available resources to achieve company goals

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Finance

A business function that involves money management

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Accounting

The discipline that keeps track of a company’s financial situation

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Equal employment opportunity commission (EEOC)

Federal agency responsible for the fair and equitable treatment of employees with regard to hiring, firing, and promotions

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Occupational Safety and Health Administration (OSHA)

Federal agency that provides guidelines for workplace safety and enforces those regulations

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Securities and Exchange Commission (SEC)

Federal agency that regulates the sale of securities (stocks and bonds), licenses brokerage firms and financial advisors, and investigates dealings among corporations

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Environmental Protection Agency (EPA)

Federal agency that protects human health and our environment

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Federal Trade Commission (FTC)

Federal agency responsible for enforcing the principles of a free enterprise system and protecting consumers from unfair or deceptive business practices.

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Flextime

A program that allows workers to choose their work hours

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Telecommuting

A program that involves working at home, usually on a computer, with completed jobs transmitted by e-mail or mail-in disk

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Ad council

A nonprofit organization that helps produce public service advertising campaigns for government agencies and other qualified sponsors

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Green marketing

Producing and promoting environmentally safe products

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Ethics

Basic values and moral principles that guide the behavior of individuals and groups

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Better Business Bureau (BBB)

One of the oldest nonprofit organizations that establishes self regulation among businesses

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Price gouging

Pricing products unreasonably high when there is a high demand resulting from a monopoly or natural disaster

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Whistle-blowing

Reporting an illegal action by ones employer

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Feedback

A receivers response to a message

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Barriers

Obstacles that interfere with the understanding of a message

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Distractions

Things that compete with the massage for the listeners attention

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Emotional barriers

Biases against the senders opinions that prevent a listener from understanding

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Jargon

Specialized vocabulary used by members of a particular group

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Persuade

The process used to convince someone to change a perception in order to get them to do what you want

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Enumeration

Listing items in order

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Generalization

A general statement or concept obtained by inference from specific cases

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Spreadsheet programs

Software applications used to organize, calculate, and analyze numerical data

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Desktop publishing programs

A software application that is part word processor and part graphics application, and enables users to edit and manipulate both text and graphics in one document

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Communications programs

Software applications that enable users to electronically communicate through computers with people around the world

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Equity

The concept of equal rights and opportunities for everyone

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Negotiation

The process of working with different parties to find a resolution to their conflict

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Empathy

An understanding of another persons situation or frame of mind

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Cross- training

A process that prepares a team member to do many different activities

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Top management

Managers who make decisions that affect the whole company

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Middle management

Managers who implement the decisions of top management

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Supervisory level management

Managers who supervise the activities of employees who carry out the tasks determined by middle and top management

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Horizontal Organization

A structure where top management shares decision making with Self- managing teams of workers who set their own goals and make their own decisions

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Empowerment

Encouragement of team members to contribute and take responsibility for the management process

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Planning

The process of setting goals and determining how to reach them

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Organizing

Establishment of a time frame in which to achieve a goal, assigning employees to the project, and determining a method for approaching the work.

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Controlling

The process of setting standards and evaluating performance

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Mission Statement

A brief paragraph or two that describes the ultimate goals of a company

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Remedial action

Using preventative discipline or corrective discipline to encourage appropriate workplace behavior

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Exit interview

An interview arranged by the Human Resources department when an employee leaves the company

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Telemarketing

The process of selling over the telephone

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Consultative selling

The process of providing solutions to customer’s problems by finding products or services that need their needs

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Feature benefit selling

The process of matching the characteristics of a product to a customer’s needs and wants

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Product features

Basic, physical or extended attributes of a product or service

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Rational motive

A conscious, logical reason for a purchase

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Emotional Motive

A feeling experienced by a customer trough association with a product or service

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Extensive decision making

A decision making process a customer goes through when there is little experience with a product or service and there is a high degree of perceived perceived risk or high value

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Limited decision making

The process used when a person buys goods and services that he or she has purchased before but not regularly

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Routine decision making

The process used when a person needs little information about a product to make a decision because he or she buys it regularly

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Pre- approach

The preparation for the face to face encounter with potential customers

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Prospect

A potential customer; also known as a lead

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Referrals

The names of other people who might buy a product, given to salespeople by satisfied customers

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Endless chain method

The process of asking previous customers for names of potential customers

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Cold canvassing

The process of locating as many potential customers as possible without checking out leads beforehand

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Sales quotas

Dollar or unit sales goals set for the sales staff to achieve in a specified period of time

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Merchandise approach

A way to approach a customer that focuses on making a comment or asking questions about a product in which the customer shows interest

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Open-ended questions

The amount of money left for buying goods after all purchases received and on order have been considered

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Objection analysis sheet

A document that lists common objections and possible responses to them

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Substitution method

A selling method that involves recommending a different product that would still satisfy the customer’s needs

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Boomerang method

A selling method that converts a customer’s objection into a selling point

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Superior- point method

A selling technique that permits the salesperson to acknowledge objections as valid yet still offset them with other features and benefits

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Third- party method

A selling method that involves using a previous customer or other neutral person who can give a testimonial about the product

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Trial close

An initial effort to close the sale

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Which close

A method of closing a sale that encourages a customer to make a decision between two items

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Standing-room-only close

A method of closing a sale that is used when a product is in short supply or when the price will be going up in the near future