markman chapter 3

• 1. Marketing Information System consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
• 2. Internal records - Marketing managers rely on internal reports of orders, sales, prices, costs, inventory levels, receivables, and payables to spot important opportunities and potential problems
• 3. The heart of the internal records system is the Order-to-Payment Cycle, where sales representatives, dealers, and customers send orders to the firm
• 4. Sales information systems - Marketing managers need timely and accurate reports on current sales, provided by Sales Information Systems
• 5. Marketing Intelligence System is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment
• 6. Fad is unpredictable, short-lived, and without social, economic, and political significance
• 7. Trend is a direction or sequence of events with momentum and durability, more predictable and durable than a fad, revealing the shape of the future and providing strategic direction
• 8. Megatrend is a large social, economic, political, and technological change that is slow to form and influences us for some time between seven and ten years, or longer
• 9. Demographic Environment often moves at a fairly predictable pace
• 10. Cohorts are groups of individuals born during the same time period who travel through life together
• 11. Sociocultural Environment is where we absorb, almost unconsciously, a world view that defines our relationships to ourselves, others, organizations, society, nature, and the universe
• 12. Core beliefs and values are passed from parents to children and reinforced by social institutions—schools, churches, businesses, and governments
• 13. Secondary beliefs and values are more open to change
• 14. Existence of Subcultures: each society contains groups with shared values, beliefs, preferences, and behaviors emerging from their special life experiences or circumstances
• 15. Natural Environment: In Western Europe, “green” parties have pressed for public action to reduce industrial pollution
• 16. Corporate environmentalism recognizes the need to integrate environmental issues into the firm’s strategic plans
• 17. Technological Environment: It is the essence of market capitalism to be dynamic and tolerate the creative destructiveness of technology as the price of progress
• 18. Political and Legal Environment consists of laws, government agencies, and pressure groups that influence various organizations and individuals
• 19. Business legislation is intended to protect companies from unfair competition, protect consumers from unfair business practices, protect society from unbridled business behavior, and charge businesses with the social costs of their products or production processes
• 20. Consumerist movement organized citizens and government to strengthen the rights and powers of buyers in relationship to sellers
• 21. Potential market is the set of consumers with a sufficient level of interest in a market offer
• 22. Available market is the set of consumers who have interest, income, and access to a particular offer
• 23. Target market is the part of the qualified available market the company decides to pursue
• 24. Penetrated market is the set of consumers who are buying the company’s product
• 25. Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program
• 26. Market demand function is not a fixed number, but rather a function of the stated conditions
• 27. Market forecast is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment
• 28. Market potential is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment
• 29. Product-penetration percentage is the percentage of ownership or use of a product or service in a population
• 30. Company demand is the company’s estimated share of market demand at alternative levels of company marketing effort in a given time period
• 31. Company sales forecast is the sales goal set for a product line, company division, or sales representative
• 32. Sales quota is a conservative estimate of the expected volume of sales, primarily for making current purchasing, production, and cash flow decisions
• 33. Sales budget is the sales limit approached by company demand as company marketing effort increases relative to that of competitors
• 34. Company sales potential is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions
• 36. Chain-ratio method multiplies a base number by several adjusting percentages
• 37. Market-buildup method calls for identifying all the potential buyers in each market and estimating their potential purchases
• 38. Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions
• 39. Time-series analysis breaks past time series into four components (trend, cycle, seasonal, and erratic) and projects them into the future
• 40. Exponential smoothing projects the next period’s sales by combining an average of past sales and the most recent sales, giving more weight to the latter
• 41. Statistical demand analysis measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level