Glossary BA: Marketing

 

Key Term

Definition

marketing

The process of determining customer wants and needs and then providing customers with goods and services that meet or exceed their expectations.

goods market

The place where buyers and sellers meet to exchange goods for money.

exchange relationship

The links between buyers and sellers on a market.

buyer

An individual that acquires a good against payment for it.

seller

An individual that transfers a good against getting paid for it.

utility

An economic term that refers to the value or want-satisfying ability that's added to goods or services by organisations when the products are made more useful or accessible to consumers than before.

place utility

Utility created by making a product available where the buyer wishes to buy it.

time utility

Utility created by making a product available when customers wish to purchase it.

ownership utility

Utility created by transferring ownership of a product to the buyer.

form utility

Utility created through the production process rather than through marketing activities.

buying

The process of acquiring goods against payment.

selling

The process of transferring goods against payment.

transporting

The shipment of products to buyers.

storing

Warehousing goods.

grading

Standardising and labelling goods.

financing

The function in a business that acquires funds for the firm and manages funds within the firm.

marketing research

Collecting and analysing information about the market or potential market for a product or service.

risk taking

The willingness to undertake action without knowing what the result will be.

marketing strategy

A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers.

target market

A defined group of consumers or organisations toward which a firm directs its marketing program.

total-market approach

An approach whereby a firm tries to appeal to everyone and assumes that all buyers have similar needs.

market segmentation

The process of dividing the total market into several groups whose members have similar characteristics.

concentration approach

A market segmentation approach whereby a company develops one marketing strategy for a single market segment.

multisegment approach

A market segmentation approach whereby the marketer aims its efforts at two or more segments, developing a market strategy for each.

marketing mix

The four marketing activities--product, price, promotion, and distribution--that the firm can control to achieve specific goals within a dynamic marketing environment.

product

The marketing activity regarding any physical good, service, or idea that satisfies a want or need.

price

The marketing activity regarding a value placed on an object that is exchanged between a buyer and a seller.

promotion

A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups, and organisations to accept goods, services, and ideas.

place

The marketing activity regarding making products available to customers in the quantities desired.

distribution

Making products available to customers in the quantities desired.

field research

Gathering marketing information directly from respondents.

desk research

Gathering marketing information not directly from respondents, but from already existing sources.

primary data

Marketing information that is observed, recorded, or collected directly from respondents.

secondary data

Information that is compiled inside or outside an organisation for some purpose other than changing the current situation.

buying behaviour

The decision processes and actions of people who purchase and use products.

perception

The process by which a person selects, organises, and interprets information received from his or her senses.

motivation

An inner drive that directs a person's behaviour toward goals.

learning

Changes in a person's behaviour based on information and experience.

attitude

Knowledge and positive or negative feelings about something.

personality

The organisation of an individual's distinguishing character traits, attitudes, or habits.

reference groups

Groups with whom buyers identify and whose values or attitudes they adopt.

social classes

A ranking of people into higher or lower positions of respect.

culture

The integrated, accepted pattern of human behaviour, including thought, speech, beliefs, actions, and artifacts.

marketing environment

Different external and internal forces influencing marketing strategies.

political forces

Taking into account the situation of the government (legislative and executive branch).

legal forces

Taking into account new and existing laws.

regulatory forces

Taking into account regulations issued by different bodies.

social forces

Taking into account the public's opinions and attitudes.

technological forces

Taking into account technical progress.

competitive forces

Taking into account the development of the market.

economic forces

Taking into account the business cycle.