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58 Cards in this Set
- Front
- Back
value
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the benefits the customer receives from buying a good or service
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marketing
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an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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stakeholders
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buyers, sellers, or investors in a company, community residents, and even citizens of the nations where goods and services are made or sold, in other words any person or organization that has a stake in the outcome
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consumer
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the ultimate user of a good or service
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marketing concept
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a management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long-term profitability
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need
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the recognition of any difference between a consumer's actual state and some ideal or desired state
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want
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the desire to satisfy needs in specific ways that are culturally or socially influenced
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benefit
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the outcome sought by a customer that motivates buying behavior, that satisfies a need or want
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utility
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the usefulness or benefit consumers receive from a product
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production orientation
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management philosophy that emphasizes the most efficient ways to produce and distribute products
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selling orientation
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managerial view of marketing as a sales function or a way to move products out of warehoueses to reduce inventory
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consumer orientation
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management philosophy that focuses on ways to satisfy consumers wants and needs
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total quality management (TQM)
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a management philosophy that involves all employees from the assembly line onward in continuous product quality improvement
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instapreneur
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a business person who only produces a product when it is ordered
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triple bottom line orientation
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business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices
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customer relationship management (CRM)
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strategy that involves systematically tracking consumers' preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs
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social marketing concept
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management philosophy that marketers must satisfy customers needs in ways that also benefit society and also deliver profit to the firm
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sustainability
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product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
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return on investment
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direct financial impact on a firms expenditure of a resource such as time or money
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value proposition
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marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
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lifetime value of a customer
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how much profit companies expect to make from a particular customer, including each and every purchase he will make from them now and in the future. To calculate the lifetime value, companies estimate the amount the person will spend and then subtract what it will cost the company to maintain the relationship
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distinctive competency
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superior capability of a firm in comparison to its direct competitors
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differential benefit
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properties of products that set them apart from competitors products by providing unique customer benefits
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consumer-generated value
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everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers
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wisdom of crowds
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under the right circumstances groups are smarter then the smartest people in them meaning that large numbers of consumers can predict successful products
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open source model
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practice used in the software industry in which companies share their software codes with anyone to assist in the development of a better product
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consumer addiction
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physiological or psychological dependency on goods or services
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marketing plan
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document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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market position
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way in which the target market perceives the product in comparison to competitors brands
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Four P's
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product
price promotion place |
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business planning
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ongoing process of marketing decisions that guides the firm both in the short term and for the long term
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business plan
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plan the indicates the decisions that guide the entire organization
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marketing plan
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document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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levels of business planning
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strategic planning
functional planning operational planning |
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strategic planning
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managerial decision process that matches an organizations resources and capabilities to its market opportunities for long-term growth and survival
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strategic business units(SBU)
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individual units within the firm that operate like separate business, with each having its own mission, business objectives, resources, managers and competitors
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functional planning
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decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organizations long-term strategic plan
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Steps to strategic planning
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1. define the mission
2. evaluate the internal and external environment 3. set organizational or SBU objectives 4. establish the business portfolio 5. develop growth strategies |
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situation analysis
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an assessment of a firms internal and external environments
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internal environment
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controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
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external environment
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uncontrollable elements outside an organization that may affect its performance either positively or negatively
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SWOT analysis
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analysis of an organizations strengths and weaknesses and the opportunities and threats in its external environment
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business portfolio
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group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
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portfolio analysis
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management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units
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BCG growth-market share matrix
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portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can use to invest in new products, includes stars, cash cows, question marks, and dogs
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stars
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SBUs with products that have a dominant market share in high growth markets
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cash cows
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SBUs with a dominant market share in a low growth potential market
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question marks
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SBUs with low market shares in a fast-growth market
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dogs
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SBUs with a small share of slow-growth market.
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market penetration strategies
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growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
existing market, existing product |
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market development strategy
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growth strategies that introduce existing products to new markets
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product growth development
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growth strategies that focus on selling new products in existing markets
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diversification strategies
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growth strategies that emphasize both new products and new markets
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Steps to marketing planning
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1. perform a situation analysis
2. set marketing objectives 3. develop marketing strategies 4. implement and control the marketing plan |
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control
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process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
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return on marketing investment (ROMI)
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quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise
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action plans
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individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. also called marketing programs
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operational plans
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plans that focus on the day-to-day executions of the marketing plan, include detailed directions for specific activities, who will be responsible and the time lines
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