the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing
people giving up something in order to receive something else they would rather have
exchange
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
product orientation
the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
sales orientation
the idea that the social and economic justification for an organization’s existence is the satisfaction of the customer wants and needs while meeting organizational objectives
marketing concept
a philosophy that assumes that a sale does not depends on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept
market orientation
delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
on-demand marketing
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests
societal marketing orientation
the relationship between benefits and sacrifice necessary to obtain those benefits
customer value
customers’ evaluation of a good or service in terms of whether it has met their needs and expectations
customer satisfaction
a strategy that focuses on keeping and improving relationships with current customers
relationship marketing
delegation of authority to solve customers’ problems quickly-usually by the first person the customer notifies regarding a problem
empowerment
collaborative efforts of people to accomplish common objectives
teamwork
a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
customer relationship management (CRM)
the managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities
strategic planning
a subgroup of a single business or collection of related businesses within the larger organization
strategic business unit (SBU)
a marketing strategy that ties to increase market share among existing customers
market penetration
a marketing strategy that that entails attracting new customers to existing products
market development
aa marketing strategy that entails the creation of new products for present markets
product development
a strategy of increasing sales by introducing new products into new markets
diversification
a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
portfolio matrix
in the portfolio matrix, a business unit that is a fast-growing market leader
star
in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
cash cow
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
problem child (question mark)
in the portfolio matrix, a business unit that has low growth potential and a small market share
dog
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
planning
designing activities relating to marketing objectives and the changing marketing environment
marketing planning
a written document that acts as a guidebook or marketing activities for the marketing manager
marketing plan
a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
mission statement
defining a business in terms of goods and services rather than in terms of the benefits customers seek
marketing myopia
identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
SWOT analysis
collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
environmental scanning
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
competitive advantage
being the low-cost competitor in an industry while maintaining satisfactory profit margins
cost competitive advantage
curves that show costs declining at a predictable rate as experience with a product increases
experience curves
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
product/service differentiation competitive advantage
the advantage achieved when a firm seeks to target and effectively serve a small segment fo the market
niche competitive advantage
an advantage that cannot be copied by the compeition
sustainable competitive advantage
a statement of what is to be accomplish through marketing activities
marketing objective
the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
marketing strategy
the description and estimation of the size and sales potential of market segments that are of interest to the firm and assessment of key competitors in these market segments
market opportunity analysis (MOA)
a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
marketing mix (four P’s)
the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives
implementation
gauging the extent to which the marketing objectives have been achieved during the specified time period
evaluation
provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within the budget guidelines
control
a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
marketing audit
the moral principles or values that generally govern the conduct of an individual or a group
ethics
the rules people develop as a result of cultural values and norms
morals
a guideline to help marketing managers and other employees make better decisions
codes of ethics
a law that prohibits U.S corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries
foreign corrupt practices act (FCPA)
a business’s concern for society’s welfare
corporate social responsibility (CSR)
ethical theory stating that social responsibility if paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation
stakeholder theory
a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure
pyramid of corporate social responsibility
the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time
sustainability
the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
green marketing
the cooperative marketing efforts between a for-profit firm and a nonprofit organization
cause-related marketing
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
target market
when a company implements strategies that attempt to shape the external environment within which it operates
environment management
the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle
component lifestyles
the study of people’s vital statistics, such as age, race and ethnicity, and location
demography
people born between 1979 and 199
millennials
people born between 1965 and 1978
generation x
people born between 1946 and 1964
baby boomers
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
purchasing power
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
inflation
a period of economic activity characterized by negative growth, which reduces demand for goods
recession
pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
basic research
research that attempts to develop new or improved products
applied research
marketing that targets markets throughout the world
global marketing
recognizing and reacting to international marketing opportunities using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
global vision
the total market value of all final goods and services produced in a country for a given time period
gross domestic product (GDP)
sending U.S jobs abroad
outsourcing
returning production jobs to the United States
inshoring
a company that is heavily engaged in international trade, beyond exporting and importing
multinational corporation
using more capital than labor in the production process
capital intensive
production of uniform products that can be sold the same way all over the world
global marketing standardization
when multinational firms enable individual subsidiaries to compete independently in domestic markets
multi domestic strategy
a trade agreement to dramatically lower trade barriers worldwide; created the world trade organization
uruguay round
an agreement between canada, U.S, and mexico that created the world’s then largest free trade zone
north american free trade agreement (NAFTA)
a trade agreement instituted in 2005 that includes costa rica, the dominican republic, el salvador, guatemala, honduras, nicaragua, and U.S
dominican republic-central america free trade agreement (CAFTA_DR)
an international bank that offers low-interest loans, advice, and information to developing nations
world bank
an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
internation monetary fund (IMF)
a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
group of twenty (G-20)
selling domestically produced products to buyers in other countries
exporting
an intermediary in the global market assumes all ownership risks and sells globally for its own account
buyer for export
an intermediary who plays the traditional broker’s role by bringing buyer and seller together
export broker
an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market
export agent
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary
licensing
private label manufacturing by a foreign company
contract manufacturing
when a domestic firm buys part of a foreign company or join with a foreign company to create a new entity
joint venture
active ownership of a foreign company or of overseas manufacturing or marketing facilities
direct foreign investment
the price of one country’s currency in terms of another country’s currency
exchange rate
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
floating exchange rates
the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter
dumping
a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
countertrade
a publicly accessible web page that functions as an interactive journal, where readers can post comments on the author’s entries
blog
