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Central markets

convenient place where buyers and sellers can meet one-on-one to exchange goods and services.

Pure subsistence economy

each family unit produces everything it consumes.

Customer satisfaction

the extent to which a firm fulfills a consumer's needs, desires, and expectations.

Economies of scale

as a company produces larger numbers of a particular product, the cost for each of these products goes down

Marketing ethics

the moral standards that guide marketing decisions and actions

Universal functions of marketing

buying, selling, transporting, storing, standardizing and grading, financing, risk taking, and market information.

Competitive environment

the number and types of competitors the marketing manager must face, and how they may behave

Discretionary income

what is left of disposable income after paying for necessities

Disposable income

income that is left after taxes.

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Gross national product (GNP)

the total market value of goods and services produced in an economy in a

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Task utility

provided when someone performs a task for someone elsefor instance when a bank handles financial transactions.

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Form utility

provided when someone produces something tangible.

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Time utility

having the product available when the customer wants it.

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Place utility

having the product available where the customer wants it.

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Possession (Ownership) utility

obtaining a good or service and having the right to use or consume it.

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Simple trade era

a time when families traded or sold their surplus output to local middlemen who resold these goods to other consumers or distant middlemen.

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Production era

a time when a company focuses on production of a few specific products perhaps because few of these products are available in the market.

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Production orientation

making whatever products are easy to produce and then trying to sell them.

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Sales era

a time when a company emphasizes selling because of increased competition.

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Marketing orientation

trying to carry out the marketing concept.

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Marketing concept

the idea that an organization should aim all its efforts at satisfying its customers at a profit.

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Relationship era

the current marketing era tht emphasizes developing loyal customers.

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Social responsibility

a firm's obligation to improve its positive effects on society and reduce its negative effects.

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Competitive advantage

a firm has a marketing mix that the target market sees as better than a competitor's mix.

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Marketing mix

the controllable variables that the company puts together to satisfy a target group.(product,place, promotion, price)

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Marketing strategy

specifies a target market and a related marketing mix.

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Target market

a fairly homogeneous (similar) group of customers to whom a company wishes to appeal.

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Target marketing

a marketing mix is tailored to fit some specific target customers.

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Mass marketing

the typical production oriented approach that vaguely aims at everyone with the same marketing mix.

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Mass selling

communicating with large numbers of potential customers at the same time.

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Market penetration

trying to increase sales of a firm's present products in its present markets probably through a more aggressive marketing mix.

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Market development

trying to increase sales by selling present products in new markets.

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Product development

offering new or improved products for present markets.

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Diversification

moving into totally different lines of business perhaps entirely unfamiliar products, markets, or even levels in the production marketing system.

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S.W.O.T. analysis

identifies and lists the firm's strengths and weaknesses and its opportunities and threats.

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Positioning

an approach that refers to how customers think about proposed and/or present brands in a market.

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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.
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Market segment

a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.

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Market segmentation

a two step process of

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Segmenting

an aggregating process that clusters people with similar needs into a market segment.

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Segmenters

aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.

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Single target market approach

segmenting the market and picking one of the homogeneous segments as the firm's target market.

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Combined target market approach

combining two or more submarkets into one larger target market as a basis for one strategy.

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Differentiation

the marketing mix is distinct from (unique from) and better than what's available from a competitor.

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Customer value

the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.

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Economic buyers

people who know all the facts and logically compare choices in terms of cost and value received to get the greatest satisfaction from spending their time and money.
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Low-involvement purchases

purchases that have little importance or relevance for the customer.

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High-Involvement Purchases

purchases that are more conspicuous and have greater social and ego value from their consumption.

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Routinized response behavior

when consumers regularly select a particular way of satisfying a need when it occurs.

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Limited problem solving

when a consumer is willing to put some effort into deciding the best way to satisfy a need.

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Extensive problem solving

the type of problem solving consumers use for a completely new or important need when they put much effort into deciding how to satisfy it.

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Dissonance

tension caused by uncertainty about the rightness of a decision.

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Needs

the basic forces that motivate a person to do something.

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Wants

needs that are learned during a person's life.

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Expectation

an outcome or event that a person anticipates or looks forward to.

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Learning

a change in a person's thought processes caused by prior experience.

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Drive

a strong stimulus that encourages action to reduce a need.

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Cues

products, signs, ads, and other stimuli in the environment.

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Reinforcement

occurs in the learning process when the consumer's response is followed by satisfaction that is, reduction in the drive.

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Consumer products

products meant for the final consumer

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Convenience products

products a consumer needs but isn't willing to spend much time or effort shopping for.

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Staples

products that are bought often, routinely, and without much thought.

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Impulse products

products that are bought quickly as unplanned purchases because of a strongly felt need.

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Emergency products

products that are purchased immediately when the need is great.

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Shopping products

products that a customer feels are worth the time and effort to compare with competing products.

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Heterogeneous shopping products

shopping products the customer sees as different and wants to inspect for quality and suitability.

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Homogeneous shopping products

shopping products the customer sees as basically the same and wants at the lowest price.

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Specialty products

consumer products that the customer really wants and makes a special effort to find.

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Unsought products

products that potential customers don't yet want or know they can buy.

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New unsought products

products offering really new ideas that potential customers don't know about yet.

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Opinion leader

a person who influences others

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Reference group

the people to whom an individual looks when forming attitudes about a particular topic

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Social class

a group of people who have approximately equal social position as viewed by others in the society.

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Social needs

needs concerned with love, friendship, status, and esteem things that involve a person's interaction with others.

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Empty nesters

people whose children are grown and who are now able to spend their money in other ways.

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Senior citizens

people over 65.

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Perception

how we gather and interpret information from the world around us.

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Selective perception

people screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.

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Physiological needs

biological needs such as the need for food, drink, rest, and sex.

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Attitude

a person's point of view toward something.

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Belief

a person's opinion about something.

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Business products

products meant for use in producing other products.

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Derived demand

demand for business products derives from the demand for final consumer products.

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Installations

important capital items such as buildings, land rights, and major equipment.

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Capital item

a long lasting product that can be used and depreciated for many years.

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Components

processed expense items that become part of a finished product

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Raw materials

unprocessed expense items such as logs, iron ore, wheat, and cotton that are moved to the next production process with little handling.

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Expense item

a product whose total cost is treated as a business expense in the period it's purchased.

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Supplies

expense items that do not become part of a finished product.

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Straight rebuy

a routine repurchase that may have been made many times before

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Modified rebuy

the in between process where some review of the buying situation is done though not as much as in new task buying or as little as in straight rebuys.

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New-task buying

when an organization has a new need and the buyer wants a great deal of information.

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Competitive bids

terms of sale offered by different suppliers in response to the buyer purchase specifications.

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Negotiated contract buying

agreeing to a contract that allows for changes in the purchase arrangements.

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Product assortment

the set of all product lines and individual products that a firm sells.

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Warranty

what the seller promises about its product.

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Product Liability

responsibility of a seller to market products free of threat or harm.

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Brand familiarity

how well customers recognize and accept a company's brand

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Brand nonrecognition

final customers don't recognize a brand at all even though middlemen may use the brand name for identification and inventory control.

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Brand recognition

customers remember the brand.

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Brand preference

target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience.

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Brand insistence

customers insist on a firm's branded product and are willing to search for it.

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Brand rejection

potential customers won't buy a brand unless its image is changed.

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Generic products

products that have no brand at all other than identification of their contents and the manufacturer or middleman.

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Manufacturer brands

brands created by producers.

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Dealer brands

brands created by middlemen sometimes referred to as private brands.

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Private brands

brands created by middlemen sometimes referred to as dealer brands.

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Individual brands

separate brand names used for each product.

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Family brand

a brand name that is used for several products.