MID YEAR KEY TERM REVIEW
Chapter 1
1.
Collaborators: firms that facilitate or provide one or more of the marketing functions other than buying or selling.
2.
E-commerce: exchanges between individuals or organizations—and activities that facilitate these exchanges—based on application of information technology.
3.
Economic system: the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society.
4.
Command economy: government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.
5.
Market-directed economy: the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.
6.
Simple trade era: a time when families traded or sold their “surplus” output to local distributors.
7.
Production era: a time when a company focuses on production of a few specific product— perhaps because few of these products are available in the market.
8.
Sales era: a time when a company emphasizes selling because of increased competition.
9.
Marketing department era: a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm’s activities.
10.
Marketing company era: a time when, in addition to short-run marketing planning, marketing people develop long-range plans—sometimes five or more years ahead—and the whole company effort is guided by the marketing concept.
11.
Marketing concept: means an organization aims all its efforts at satisfying its customers—at a profit.
12.
Production orientation: when managers make whatever products are easy to product and then try to sell them.
13.
Marketing orientation: means trying to carry out the marketing concept (try to offer customers what they need).
14.
Customer value: the difference between the benefits a customer sees from a market offering and the costs of obtaining these benefits.
15.
Micro-macro dilemma: what is “good” for some firms and consumers may not be good for society as a whole.
16.
Social responsibility: a firm’s obligation to improve its positive effects on society and reduce its negative effects.
17.
Marketing ethics: the moral standards that guide marketing decisions and actions.
Chapter 2
18.
Marketing management process: the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.

19.
Strategic (management) planning: the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
20.
Marketing strategy: specifies a target market and a related marketing mix.
21.
Target market: a fairly homogeneous (similar) group of customers to whom a company wishes to appeal.
22.
Marketing mix: the controllable variables the company puts together to satisfy this target group.
23.
Target marketing: a marketing mix that is tailored to fit some specific target customers.
24.
Mass marketing: the typical production-oriented approach vaguely aims at “everyone” with the same marketing mix.
25.
Channel of distribution: any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer.
26.
Personal selling: direct spoken communication between sellers and potential customers.
27.
Customer service: a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase.
28.
Mass selling: communicating with large numbers of customers at the same time.
29.
Advertising: any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
30.
Publicity: any unpaid form of nonpersonal presentation of ideas, goods, or services.
31.
Sales promotion: promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.
32.
Marketing plan: a written statement of a marketing strategy and the time-related details for carrying out the strategy.
33.
Implementation: putting marketing plans into operation.
34.
Operational decisions: short-run decisions to help implement strategies.
35.
Marketing program: blends all of the firm’s marketing plans into one “big” plan.
36.
Customer equity: the expected earnings stream (profitability) of a firm’s current and prospective customers over some period of time.
37.
Breakthrough opportunities: opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.
38.
Competitive advantage: when a firm has a marketing mix that the target market sees as better than a competitor’s mix.
39.
Differentiation: the marketing mix is distinct from and better than what is available from a competitor.
40.
S.W.O.T. analysis: an aid which includes and lists the firm’s strengths and weaknesses and its opportunities and threats.
41.
Market penetration: trying to increase sales of a firm’s present products in its present markets—probably through a more aggressive marketing mix.
42.
Market development: trying to increase sales by selling present products in new markets.
43.
Product development: offering new or improved products for present markets.
44.
Diversification: moving into totally different lines of business—perhaps unfamiliar products, markets or even levels in the production-marketing system.

Chapter 3
45.
Mission statement: sets out the organization's basic purpose for being.
46.
Competitive environment: the number and types of competitors the marketing manager must face, and how they may behave.
47.
Competitor analysis: an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.
48.
Competitive rivals: a firm's closest competitors.
49.
Competitive barriers: the conditions that may make it difficult, or even impossible, for a firm to compete in a market.
50.
Economic and technological environment: affects the way firms--and the whole economy-use resources.
51.
Technology: the application of science to convert an economy's resources to output.
52.
Internet: a system for linking computers around the world.
53.
Nationalism: an emphasis on a country's interests before everything else.
54.
North American Free Trade Agreement (NAFTA): lays out a plan to reshape the rules of trade among the U.S., Canada, and Mexico.
55.
Cultural and social environment: affects how and why people live and behave as they do.
56.
Gross domestic product (GDP): the total market value of all goods and services provided in a year by both residents and nonresidents of that country.
57.
Senior citizen group: people over age 65.
58.
Sustainability: the idea that it’s important to meet present needs without compromising the ability of future generations to meet their own needs.
Chapter 4
59.
Market: a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and/or services--that is, ways of satisfying those needs.
60.
Generic market: a market with broadly similar needs--and sellers offering various and often
diverse ways of satisfying those needs.
61.
Product-market: a market with very similar needs--and sellers offering various close
substitute ways of satisfying those needs.
62.
Market segmentation: a two-step process of: (1) naming broad product-markets and (2)
segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
63.
Segmenting: an aggregating process that clusters people with similar needs into a market segment.
64.
Market segment: a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.
65.
Single target market approach: segmenting the market and picking one of the homogeneous segments as the firm's target market.
66.
Multiple target market approach: segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.
67.
Combined target market approach: combining two or more submarkets into one larger target market as a basis for one strategy.

68.
Combiners: firms that try to increase the size of their target markets by combining two or more segments.
69.
Segmenters: aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.
70.
Qualifying dimensions: the dimensions that are relevant to including a customer-type in a product-market.
71.
Determining dimensions: the dimensions that actually affect the customer's purchase of a
specific product or brand in a product-market.
72.
Clustering techniques: approaches used to try to find similar patterns within sets of data.
73.
Customer relationship management (CRM): an approach in which a seller fine-tunes the marketing effort with information from a customer database.
74.
Positioning: an approach that refers to how customers think about proposed and/or present brands in a market.