Marketing

Chapter 1
Marketing: The activity, set of institutions and processes of creating, delivering and exchanging offerings that
have value for customers, clients, partners and society at large.
Exchange: People giving up something in order to receive something they would rather have.
Mktg philosophies: Production, sales, societal mktg and market.
Product orientation: A philosophy that focuses on the internal of the firm rather than on the desires and need of
the marketplace.
Sales orientation: the ideas that people will buy more goods and services if aggressive sales techniques are
used and that high sales result in high profits.
Marketing concept: the idea that the social and economic justification for an organizations existence is the
satisfaction of customer wants and needs while meeting organizational objectives.
Market orientation: A philosophy that assumes that a sale doesnt depend on an aggressive sales force but
rather on a customers decision to purchase a product; it is synonymous with the marketing concept.
Social marketing orientation: 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 societys long-term
interests.
Customer value: the relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer satisfaction: Customers evaluation of a good or service in terms of whether it has met their needs
and expectations.
Relationship marketing: A strategy that focuses on keeping and improving relationships with current customers.
Empowerment: delegation of authority to solve customers problems quickly-usually by the first person the
customer notifies regarding a problem.
Teamwork: Collaborative efforts of people to accomplish common objectives.

Chapter 2
Strategic planning: the managerial process of creating and maintaining a fit between the organizations
objectives and resources and the evolving market opportunities.
Planning: the process of anticipating future events and determining strategies to achieve organizational
objectives in the future.
Marketing planning: designing activities relating to marketing objectives and the changing marketing
environment.
Marketing plan: a written document that acts as a guidebook of marketing activities for the marketing manager.
Marketing myopia: defining a business in term of goods and services rather than in terms of the benefits
customers seek.
SWOT analysis: Identifying internal strengths and weaknesses and also examining external opportunities and
threats.
Environmental scanning: Collection of information about forces, events and relationships in the external
environment that may affect the future of the company.
Mktg objective: a statement of what is to be accomplished throught marketing activities.

Competitive advantage: a set of unique features of a company and its products that are perceived by the target
market as significant and superior to the competition.
Cost competitive advantage: being the low cost competitor in an industry while maintaining satisfactory profit
margins.
Experience curves: curves that show costs declining at a predictable rate as experience with a product
increases.
Niche competitive advantage: when a firm tries to target and serve a small part of the market.
Sustainable competitive advantage: an advantage that cannot be copied by the competition.
Market penetration: a strategy that tries to increase market share among existing customers.
Market development: a strategy that consists in attracting a new customer to existing products.
Product development: a mktg strategy that consists in the creation of new products for present markets.
Diversification: a strategy of increasing new products into new markets.
Cash cow: a business that generates more cash than it needs to maintain its market share.
Mktg strategy: the activities of selecting and describing one or more target markets.
Market opportunity analysis (MOA): the description and estimation of the size and sales potential of market
segments that are of interest to the firm and the assessment of key competitors in these market segments.
Mktg mix: a blend of product, Place, promotion and price in order to satisfy the market.
Four Ps: product, place, promotion and price which together make up the mktg mix.
Implementation: the process that turns a mktg plan into action assignments and ensures that these
assignments are executed in a way that accomplishes the plans objective.
Evaluation: Gauging the extent to which the mktg objectives have been achieved during the specified time
period.
Control: Provides the mechanisms for evaluating marketing results.
Mktg audit: A systematic periodic evaluation of the objectives, strategies, structure and performance of the
marketing organization.

Chapter 3

Ethics: the moral principles or values that generally govern the conduct of an individual or a group.
Morals: the rules people develop as a result of cultural values and norms.
Code of ethics: Guide line to help mktg managers and other employees to make better decisions.
Sustainability: the idea that socially responsible companies will outperform their peer by focusin on the worlds
social problems and viewing them as opportunities to build profits and help the world at the same time.
Green marketing: The development and marketing of products designed to minimize negative effects on the
physical environment or to improbe the environment.

Chapter 4
Target market: a group most likely to buy a firms product.
Demography: the study of peoples vitals statistics such as age, race and ethnicity, and location.
Generation y: also called the millennials are the generation born between 1979 and 1994.
Generation x: people born between 1965 and 1978, consists of 40million consumers mktg id difficult for them.
Baby boomers: born between 1946 and 1964, the y are major adults and prox 75 million.
Inflation: a measure of the decrease in the value of money, expressed as the percentage reduction in value
since the previous year.
Recession: a period of economic activity characterized by negative growth which reduces demand for goods
and services.
Basic research: basic research that aims to confirm an existing theory.
Applied research: an attempt to develop new or improved products.
Consumer product safety commission: a federal agency stablish to protect the health and safety of consumers
in and around their homes.
Food and drug administration: a federal agency charged with enforcing regulations against selling and
distributing adulterated or hazardous food and drug products.
Federal trade commission: a federal agency empowered to prevent persons or corporations from using unfair
methods of competition in commerce.

Chapter 5
Global marketing: Marketing that target markets through the world.

Global vision: recognizing and reacting to international mktg opportunities, using effective global marketing
strategies and being aware of threats from foreign competitors in all markets.
Multinational Corporation: a company engaged in international trade, beyond exporting and importing.
Capital intensive: using more capital than labor in the production process.
Global marketing standardization: production of the same products that can be sold in all the world.
Mercosur: largest American trade agreement, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Uruguay
and Peru.
World trade organization (WTO): trade organization that replaced the old general agreement on tariffs and
trades.
General agreements on tariffs and trades: a trade agreement that contained loopholes enabling countries to
avoid trade barrier reduction agreements.
NAFTA: Canada, US and Mexico, the worlds largest free trade zone.
European Union: A free trade zone build by 27 European countries.
World Bank: an international bank that offers low interest loans, advice and information to developing nations.
Group of twenty: a group of internationally economic development.
Exporting: selling domestically produced products to buyers in other countries.
Buyer for export: an intermediary in the global market who assumes all ownership risks and sells globally for its
own account.
Export broker: a role that bring buyer and seller together.
Export agent: an intermediary who acts like manufacturers agent for the exporter; the export agent lives in the
foreign market.
Licensing: the process where a company allows another one to use its manufacturing process, trademarks,
patents etc etc
Contract manufacturing: private label manufacturing by a foreign company.
Joint venture: when a domestic firm buys part of a foreign company or joins with a foreign company to create a
new entity.
Direct foreign investment: active ownership of a foreign company or of overseas manufacturing or marketing
facilities.
Dumping: the sale of an exported product at a price lower than that charged for the same or alike product in
the home market of the exporter.

Chapter 6
Internal information search: recalling past information stored in memory.

External information search: the process of seeking information in the outside

environment.
Evoked set: a group of brands resulting from search, from which a buyer can choose.
Cognitive dissonance: inner tension that a consumer experiences after recognizing an
inconsistency between behavior and values or opinions.
Involvement: the amount of time and effort a buyer invests in the search, evaluation, and
decision processes of consumer behavior.
Limited decision making: the type of decision making that requires a moderate amount of
time for gathering information and deliberating about an unfamiliar brand a familiar product
category.
Culture: The set of values, norms,attitudes,and other meaningful symbols that shape
human behavior and artifacts, or products of the behavior as they are transmited from one
generation to the next.
Subculture: Homogeneous group of people who share elements of the overall culture as
well as unique elements of their own group.
Social classs: a group of people in the society that are considered nearly equal.
Reference group: a group in society that influences an individuals purchasing behavior.
Norm: a value or attitude deemed acceptable by a group.
Opinion leader: an individual who influences the opinions of others.
Socialization process: how cultural values and norms are passed down children.
Personality: a way of an individual reactions to situations.
Self-concept: how consumers perceive themselves.
Ideal self-image: the way an individual would like to be.
Real self-image: the way an individual actually perceives himself or herself.
Perception: the process by which people select, organize, into a meaningful and coherent
picture.
Motive: a driving force that causes a person to take action to satisfy specific needs.
Learning: a process that creates changes in behavior, immediate or expected through
experience and practice.