MKTG STUDY
CHAPTER 1 -
- Market research is needed to back up a claim
- Marketing can ask customers “what would you like from us” and/or offer something
completely new
- Find what the customer needs and want and there will be demand
- Four Ps
- Product
- Price
- Place (Distribution)
- Promotion
- Exceed their expectations
- Sustainable marketing- CRS- Corporate social responsibility
- Rapid Globalization - Local competes with global now (Global issues become local)
Terms and Definitions
1. Marketing: companies create value for customers and build strong customer relationships to
capture value in return.
a. Goals to attract new, keep and grow old customers
2. Wants: The form human needs take as shaped by culture and individual personality.
3. Demands: Human wants that are backed by buying power.
4. Market offerings: Offers to a market to satisfy a need or want.
5. Marketing myopia: The mistake of paying more attention to the products than customer’s
benefits and experiences
6. Market: The set of all actual and potential buyers.
7. Market segmentation: Choosing a group of customers to target
8. Marketing management: choosing target markets and building profitable relationships
9. Market share: How big we are compared to competitors
10. Production concept: consumers will favour existing cheap products so it should be efficiently
produced and distributed.
11. Product concept: Companies should continuously improve favourable product’s quality.
12. Selling concept: Consumers will only buy enough products is it’s largely selled and promoted
13. Marketing concept: delivering desired satisfactions better than competitors do.
14. Societal marketing concept: a company’s marketing decisions should consider consumers’
wants, the company’s requirements, consumers’ and society’s long run interests
15. CRM- Customer relationship management: building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction.
16. Customer-perceived value: The customer’s evaluation of the benefits and costs of competing
offers.
17. Customer satisfaction: Matching performance and buyer’s expectations.
18. Customer-engagement marketing : consumers involved in shaping the brand experience
19. Consumer- generated marketing: consumers playing an increasing role in shaping the brand
experience
20. Partner relationship management: Working closely with partners to bring greater value
21. CLV- Customer lifetime value: The value of a loyal customer’s lifetime stream of purchases
(Do they keep coming back?)
22. Share of customer: The portion of a customer’s purchase that a company gets in its product
categories. (How much each of them buys from us)
23. Customer equity: The total customer lifetime values of all the company’s customers. (Who
are our customers now, will they last?)
24. Digital and social media marketing: use of digital tools to reach customers at any time
Chapter 2:
Terms and Definitions
1. Strategic planning: developing and maintaining a strategic fit between the organization’s
goals and capabilities and its changing marketing opportunities.
2. Mission Statement: A statement of the organization’s purpose
3. Business portfolio: The collection of businesses and products that make up the company.
4. Portfolio analysis: Managers evaluation of business portfolio
5. Growth-Share matrix: evaluating a company's strategic business units (SBUs) in terms of its
market growth rate and relative market share.
6. Product/market expansion grid: identifying company growth opportunities through
market penetration, market development, product development or diversification.
a. Market penetration: current products to current market segments.
b. Market development: current company to new market segments
c. Product development: new products to current market segments.
d. Diversification: New products for new market segments
7. Downsizing: eliminating products or business units that are not profitable or fit company’s
strategy.
8. Value chain: internal departments that carry out value-creating activities to a firm’s products.
9. Value delivery network: The network made up of the company and partners to better
10. Positioning: Arranging for a product to occupy a better place than competing products in the
minds of consumers.
11. Differentiation: Differentiating the market by creating superior customer value.
12. Marketing mix: The set of controllable, tactical marketing tools
13. SWOT analysis: A company’s strengths, (S), weaknesses (W), opportunities (O) and threats
(T).
14. Marketing implementation: turn marketing strategies and plans into actions
15. Marketing control: Measuring and evaluating the results of marketing strategies and plans
and taking corrective action (Key Performance Indicators (KPIs))
a. Operating control: people aren’t doing what they are supposed to do
b. Strategic Control: Wrong strategy, customers don’t want it
16. Return on marketing investment (or marketing ROI): The net return from a marketing
investment divided by the costs of the marketing investment.
17. Cross-functional team: marketing team pulling up someone from higher teams when making
a plan
18. SMART goals/objectives:
a. Specific
b. Measurable
c. Attainable
d. Relevant
e. Time-based (Timeline)
Chapter 3
Terms and Definitions
1. Marketing environment: Outside actors and forces affect ability to build and maintain
successful relationships.
a. Microenvironment: The actors close to the company - the company, suppliers,
marketing intermediaries, customer markets, competitors, and publics.
i. Five types of customer markets (Consumer Business, Reseller, Government,
international)
b. Macroenvironment: The larger societal forces - demographic, economic, natural,
technological, political, and cultural forces.
2. Marketing intermediaries: Firms that help the company
3. Demography: The study of human populations statistics
4. Economic environment: Factors that affect consumer buying power and spending patterns.
5. Natural environment: The physical environment and the natural resources that are needed or
affected
6. Environmental sustainability: Developing strategies and practices that create a world
economy that the planet can support indefinitely.
7. Technological environment: Forces that create new technologies, creating new product and
market opportunities.
8. Political environment: Law, government agencies, and pressure groups that influence and
limit organizations and individuals.
9. Cultural environment: Institutions and other forces that affect society’s basic values,
perceptions, preferences, and behaviors.
Chapter 4
terms and Definitions
1. Big Data: The huge and complex data sets generated by sophisticated technologies.
2. Customer insights: Fresh marketing information based on understandings of customers
3. Marketing information system (MIS): People and procedures for assessing information
needs, developing the needed information, and helping decision makers to use the information
to generate and validate actionable customer and market insights.
4. Internal databases: Electronic collections of consumer and market information obtained
from data sources within the company network.
5. Competitive marketing intelligence: collection and analysis of public information about
consumers, competitors, and developments.
6. Marketing research: design, collection, analysis, and reporting of data relevant to a specific
marketing situation
a. Exploratory research: to gather preliminary information that define the problem and
suggest hypotheses.
b. Descriptive research: to better describe marketing problems situations or markets
c. Causal research: to test hypotheses about cause and effect relationships.
7. Secondary Data: Information that already exists somewhere
8. Primary Data: Information collected for the specific purpose at hand.
a. Observational research: by observing
b. Ethnographic research: sending trained observers to watch and interact with
consumers in their “natural environments.”
c. Survey research: by asking people questions
d. Experimental research: by testing groups of subjects
e. Focus group interviewing: Personal interviewing that involves inviting six to ten
people to gather for a few hours with a trained interviewer to talk about a product,
service, or organization. The interviewer “focuses” the group discussion on important
issues.
f. Online marketing research: online through internet and mobile surveys, online
focus groups, consumer tracking, experiments and online panels, and brand
communications.
g. Online focus groups: Gathering a small group of people online with a trained
moderator to chat about a product, service, or organization and to gain qualitative
insights about consumer attitudes and behavior.
9. Behavioral targeting: Using online consumer tracking data to target advertisements and
marketing offers to specific consumers.
10. Sample: A segment of the population selected for marketing research to represent the
population as a whole.
11. Marketing analytics: The analysis tools, technologies and processes by which marketers dig
out meaningful patterns in a big data
International market research has the problem of
- Dealing with diverse markets
- Finding good secondary data
- Reaching respondents
- Differences in culture, language,etc
The cost of research is high, but the cost of not doing it is higher.
Chapter 5
Terms and Definitions
1. Total market strategy (also know as cross-cultural marketing): Integrating ethnic themes
and cross-cultural perspectives within a brand’s mainstream marketing, appealing to consumer
similarities
2. Social class: divisions in a society whose members share similar values, interests, and behaviors.
3. Opinion leader: Person with a reference group who, exerts social influence on others.
4. Influencer marketing: Enlisting established influencers or creating new influencers
5. Cognitive dissonance: Buyer discomfort caused by post-purchase conflict.
6. Adoption process: The mental process through which an individual passes from first hearing
about an innovation to final adoption. (Awareness, interest, evaluation, trial, adoption)
7. Business buyer behavior: The buying behavior of the organization that buys for use in the
production of other products or to resell/rent
8. Business buying process: The decision process of which products and services their
organizations need to purchase and then find, evaluate, and choose
9. Derived demand: Business demand that ultimately comes from (derives from) the demand
from consumer goods.
10. Supplier development: Systematic development of networks of supplier partners to ensure an
appropriate and dependable supply of products and materials
11. Straight rebuy: A business buying situation in which a buyer routinely reorders something
without any modifications.
12. Modified rebuy: in which the buyer wants to modify product specifications, prices, terms, or
suppliers.
13. New task: A business buying situation in which the buyer purchases a product or service for
the first time.
14. Systems selling (solutions selling): Buying a packaged solution to a problem from a single
seller, avoiding all the separate decisions involved in a complex buying situation.
15. Buying centre: All the individuals and units that play a role in the purchase decision-making
process.
16. E-procurement: Purchasing through electronic connections between buyers and sellers-
usually online
Chapter 6:
Terms and Definitions
1. Targeting: evaluating and selecting one or more segments to enter.
a. Segmentations: Geographic, Demographic, Age, Gender, Income, Psychographic,
Behavioral (towards the product) -> Occasion and Benefit, Intramarket (cross market)
(Similar needs from different countries)
2. Undifferentiated (mass) marketing: a firm ignores market segment differences and goes after
the whole market with one offer.
3. Differentiated (segmented) marketing: a firm decides to target several market segments and
design separate offers for each.
4. Concentrated (niche) marketing: a firm goes after a large share of one or a few segments
5. Micromarketing: Tailoring products and marketing programs to the needs and wants of
specific individuals and segments
a. Local marketing: A small group of people who live in the same city, or neighborhood,
or who shop at the same store.
b. Individual marketing (mass customization): Tailoring to the needs and preferences
of individual customers.
6. Competitive advantage: An advantage over competitors gained by offering greater customer
value.
7. Value proposition: the full mix of benefits upon which it is positioned.
8. Positioning statement: A statement that summarizes company or brand positioning- it takes
this form: To (target segment and need) our (brand) is (concept) that (point of difference)
- 80/20 rule - 80% of your revenue comes from 20% of your customers
- Requirements for Effective Segmentation
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
Chapter 14:
Terms and Definitions
1. Global firm: A firm that, by operating in more than one country, gains advantages in its costs
and reputation that are not available to purely domestic competitors.
a. Joint venturing: by joining with foreign companies to produce or market a product
or service.
i. Contract manufacturing: a company contracts with manufacturers in a
foreign market to produce its product or provide its service.
ii. Management contracting: the domestic firm exports management services
rather than products.
iii. Joint ownership: a company creates a local business with investors in a
foreign market, who share ownership and control.
b. Licensing: through developing an agreement with a licensee in the foreign market.
c. Direct investment: by developing foreign-based assembly or manufacturing facilities.
2. Economic community: A group of nations organized to work towards a common goal in the
regulation of international trade.
3. Standardized global marketing: uses the same marketing strategy mix in all of the company’s
international markets.
4. Adapted global marketing: adjusts the marketing strategy and mix elements to each
international target market (more costs)
5. Straight product extension: Marketing a product in a foreign market without making any
changes to the product.
6. Product adaptation: Adapting a product to meet local conditions or wants in foreign
markets.
7. Product invention: Creating new products or services for foreign markets.
8. Communication adaptation: fully adapting advertising messages to local markets.
9. Whole-channel view: Designing international channels that take into account the entire
global supply chain and marketing channel, forging an effective global value delivery network
10.World trade organization: Promotes world trade by reducing tariffs and reassessing trade
barriers, mediates disputes
11.Price: 1. Uniform, 2. bearable rate, 3. markup on the cost
Chapter 15:
1. Sustainable marketing: Socially and environmentally responsible marketing, preserving or
enhancing the ability of future generations to meet their needs.
a. Consumer-oriented marketing: the company should view and organize its
marketing activities from the consumer’s point of view.
b. Customer-value marketing: a company should put most of its resources into
customer value building marketing investments.
c. Innovative marketing: companies seek real product and marketing improvements.
d. Sense-of- mission marketing: a company should define its mission in broad social
terms rather than narrow product terms.
e. Societal marketing: a company should make marketing decisions by considering
consumers’ wants, the company’s requirements, consumers’ long-run interests and
society’s long run Interests.
2. Consumerism: An organized movement of citizens and government agencies to improve the
rights and powers of buyers in relation to sellers.
3. Environmentalism: An organized movement of concerned citizens, businesses and
government agencies to protect and improve people’s current and future living environment.
4. Environmental sustainability: developing strategies that both sustain the environment and
produce profits for the company.
5. Deficient products: Products that have neither immediate appeal nor long-run benefits.
6. Pleasing products: Products that give high immediate satisfaction but may hurt consumers in
the long run.
7. Salutary products: Products that have low appeal but may benefit consumers in the long run.
8. Desirable products: Products that give both high immediate satisfaction and high long-run
benefits.
9. corporate marketing ethics policies: Firms develop policies to guide their staff
