Marketing Exam 1 Chapters 1-3, 5-9

positioning statement

-used both internally and externally of company -convert their positioning ideas for the offering into written statement

Social media

Facebook measures the amount of likes twitter instagram

Influencer

affect buying decision usually by helping define the specifications for what is bought EX: info technology manager influences purchase in computers

market segmentation

aggregating prospective buyers into groups or segments 1. have common needs 2. will respond similarly to a marking action

for-profit organization

aka business firm privately owned that services its customers to earn a profit EX: Target, NIKE

Joint venture

foreign company and a local firm invest together to create local business -share ownership, control, profits of new company

Buyers

formal authority and responsibility to select the supplier and negotiate the terms of the contract

Deciders

formal or informal power to select or approve the supplier that receives the contract

production era

goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them

What is marketed

goods, services, ideas

offerings

goods, services, ideas that satisfy customers needs/wants and add value to the organization

Tariffs

govt tax on products or services entering a country, primarily serve to raise prices on imports -average is 4%

consideration set

group of brands a consumer would consider acceptable from among all the brands in the product of brands in the product class of which he or she is aware

customer experience

internal response that customers have to all aspects of an organization and its offering *both indirect and direct contacts of customers

Commercialization

last stage of New product development process - positions and launches a new product in full scale production and sales -most expensive stage

Robinson-Pathan act

makes it unlawful to discriminate in prices charged to differentiate purchases of the same products where effect may lesson competition= money

consumer spending

makes up 2/3 of US economic activity *based on expectations of the future *monitored by companies to make decisions

salesforce survey forecast

making the firms salespeople to estimate sales during a forthcoming period -salespeople can be unreliable forecasts but there is logic to this approach becuz they are in direct contact with customers

Exclusive territorial distribution

manufacturer grants a distributor sole rights to sell a product in a specific geographical location

sales era

manufacturers found they could produce more goods than buyers could consume, competition grew, firms hired more salespeople to find new buyers

organizational buyers

manufacturers, wholesalers, retailers, service companies, not-for-profit orgs, and govt agencies that buy products and services for their own use or for resale -all buyers in nation except ultimate buyers -total annual purchases are greater than that of ultimate buyers -3 types: industrial, reseller and govt

Build to order (BTO)

manufacturing a products only when there is an order from a customer -after this came mass customization

extended problem solving

many brands examines, many sellers considered, many number of product attributes evaluated, many number of external info sources used, considerable of time spent searching EX: audio systems and cars

monopolistic competition

many sellers compete with substitutable products within a price range

pure competition

many sellers with similar product

Joint decision making

most decisions are made by both the husband and wife *increases with the education of spouses * most common with car, vacation, hours, electronics and family financial purchases

consumerism

movement to increase the influence, power and rights of consumers in dealing with institutions

*variation by level

moving down levels in an organization means creating increasingly specific, detailed strategies and plans

Group potential buyers into segments

must ask "would segmentation be worth doing?" or "is it possible" - meaningful segments involve meeting specific criteria

Research objectives

must be clear on the purpose of the research 1. explanatory research: provides ideas about a vague problem 2. descriptive research: trying to find the frequency with which something occurs or the extent of a relationship between 2 factors 3. casual research:tries to determine the extent to which the change in one factor changes another one

Personal needs

need for achievement, status, self-respect and prestige

Customer want

need that is shaped by a person knowledge, culture and personality

Internet of Things (loT)

network of products embedded with connectivity-enabled electronics

Market development

new market, current products

diversification

new markets, new products

Users in buying center

people in the org who actually use the product or service EX: secretary

Reference groups

people to whom an individual looks as a basis for self-appraisal or as a source of personal standards *influence info, attitudes, and aspiration levels that help set a consumers standards *three types: associative, aspiration, dissociative

Ultimate consumers

people who use the products and services purchased for a household

market

people with both the desire and ability to buy a specific offering

Macroeconomic conditions

performance of economy based on GDP, unemployment, price changes (inflation) *in prices increase faster than consumer income= less spending

bad timing

product is introduced too soon, too late or when consumer tastes are shifting dramatically

Public sources

product rating programs, govt agencies, Consumer reports

Form utility

production of the product/service

Business products

products orgs buy that assist in providing other products for resale EX: components and support products

Consumer products

products purchases by the ultimate consumer EX: connivence products, shopping products, specially products

types of goals

profit sales market share quality customer satisfaction employee welfare social responsibility

trademarks

protect both firm and trademarked product and the consumer buying it

NAICS

provides common industry definitions for Canada, Mexico and the US making it easier to measure economic activity in the 3 members of NAFTA

Lanham Act

provides registration of a company trademarks *company can lose trademark if it becomes too generic

situational influences

purchase task, social surrounds, physical surroundings, temporal effects and antecedent states all affect purchase decision

business portfolio analysis

quantify performance measures and growth rates to analyze their firms SBU's as though they were a collection of separate investments *which SBU generates cash and which requires cash

Usage rate

quantity consumed or patronage-store visits-during a specific period -used with airlines a lot (frequent-flyer program) -some measure,eat pf usage by, or sales obtained from, various segments is central to the analysis

price discounting

quantity discounts are legal when the more you buy=cheaper or price matching competitors *price fixing is illegal

market share

ratio of sales revenue of form to total sales revenue of all firms in industry *this includes the firm itself

purchase task

reason for engaging in the decision

Cannibalization

reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer

market segments

relatively homogeneous groups of prospective buyers 1. have common needs 2. will respond similarly to marketing action

social class

relatively permanent, homogenous divisions in society into which people sharing similar values, interests and behavior can be grouped *determined by occupation, source of income, and education *upper, middle, lower class *firms recognize differences in media preferences between classes like lower classes prefer tabloid magazines vs middle classes like reality magazines (PEOPLE) and upper liking travel and news magazines

Personal sources

relatives, friends whom the consumer trusts

Clayton act

replaced sherman antitrust act to forbid certain actions that are likely to lesson competition although no actual harm had yet occured

Evaluation criteria

represent both the objective attributes of a brand and the bijective ones you use to compare different products and brands EX: for cellphones the criteria is retail price, phone display, audio quality, text messaging, web capability, camera quality, battery life

Values

represent personally or socially preferable modes of conduct or states of existence that tend to persist over time **become apparent in the personal values of individuals that affect their attitudes and beliefs and the importance assigned to specific behaviors and attributes of products and services

telephone consumer protection act

requirements for telemarketing promotions

discontinuous innovation

requires new learning and consumption patterns by consumers -Marketing strategy: educate consumers through product trial and personal selling -EX:wireless router, digital video recorder, electric car

competencies

special capabilities-skills, technologies, resources-that distinguish it from other orgs and provide customer value *must provide competitive advantage

Brand community

specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use -think about brand names, product category, other customers who use the brand, and the marketer that makes and promotes the brand

product item

specific product that had a unique brand, size or price

purchase decision process

stages buyer foes thru to make decisions 1. problem recognition 2. info search

Mission

statement of the organizations functions in society that often identifies its customers, markets, products and technologies *clear, concise, meaningful, inspirational, long-term *exist for all 3 types of orgs

Cultural symbols

things that represent ideas and concepts in specific culture *evoke deep feelings

Screening and evaluation

third stage in New product development process -internally and externally evaluate new product ideas to eliminate those that warrant no further effort

buying committee

this is essentially the same thing as a buying center but for large miltstore chain resellers, the group must be highly formalized EX: this is for target, 7-eleven, connivence stores

temporal effects

time of day or amount of time available

Gross income

total amount of money made in one year by a person, household or family *before taxes

sales forecast

total sales of a product that a firm expects to sell during a specified time period under specific environmental conditions and its own marketing efforts 1. judgements of the decision maker 2. surveys of knowledgeable groups 3. statistical methods

exchange

trade of things of value between a buyer and a seller that each is better off after the trade *key to marketing

Back translation

translated word or phrase is retranslated into the original language by a different interpreter to catch errors

statistical methods

trend extrapolation: best known statistical method which involves extending a pattern observed in past data into the future Linear trend extrapolation: trend with straight line to fit past sales data in order to project sales in future

Disadvantages of joint venture

two companies may disagree about policies or course of action or govt bureaucracy bugs down the effort

Govt markets

type of organization market -federal, statem and local agencies that buy goods and services for the constituents they serve -includes things like NASA

Industrial market

type of organization market -reprocess a product or service they buy before selling it again to the next buyer -manufacterurs (companies that primarily sell psychical goods)=25% of all industrial firms -service companies and real estate makes up 75%

reseller markets

type of organization market -wholesalers and retailers that buy physical products and resell them again without any reprocessing

Environment forces

uncontrollable factors that affect a marketing decision 1.social 2.economic 3. technological 4. competitive 5. regulatory forces

Customer value

unique combination of benefits received by targeted buyers that includes quality, connivence, on-time delivery and both before sale and after sale service @ a specific price

Stock keeping unit (SKU)

unique number that defines an item for ordering or inventory purposes -each product has this

Test-Market cities

use be demographically representative of markets target for new product, have cable TV systems that can deliver different ads to different homes, and have retailers with checkout counter scanners to measure sales

External approach to Screening and evaluation

use concept maps: external evaluations with consumers that consist of preliminary testing of a are product idea rather than an actual finished product -rely on written descriptions of the product

Roles in buying center

users, influencers, buyers, deciders, gatekeepers

modified rebuy

users, influencers, old deciders in the buying center want to change the product specifications, price, delivery schedule or supplier

4 P's of marketing

(product, price, promotion, place)

High and Low resource consumers

***High resource INNOVATORS: successful, sophisticated, take-change people, image is important, early adopters and change leaders, richness and variety ****Low Resource SURVIVORS: focus on meeting basic needs rather than fulfilling desires, modest market, loyal to fav brands

Population shifts

*US population shifting to southern and western states *Vermont decreased in size * North Dakota, Texas, Utah, Wyoming increasing most rapidly *within states, population shifts rural to cities

judgments of the decision maker

- 99 percent of all sales forecast -direct forecast: estimating the value to be forecast without any intervening steps -lost-horse forecast: starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, making the final forecast

racial/ethnic diversity

-1 in 3 US residents are African American, Native American, Alaska Native, Asian American, or Native Hawaiian/ Pacific Islander -Asian Americans, Hispanics and African Americans are supposed to greatly increase

African American buying patterns

-2nd largest spending power in US -african american women spend 3x more on health and beauty products than white women -price conscious but still strongly motivated by quality and choice -respond more to products and advertising that appeal to the African American cultural image -likely to tell friends about products/services they like than the general public

Develop research plan

-2nd step of marketing research -specify constraints: restrictions placed on potential solutions to a problem -identify data needed for marketing actions -determine how to collect data (concepts and methods)

external sources of secondary data

-US Census reports, trade association studies, business periodicals, internet-based reports

independent e-markets

-act as a third party and provide an Internet technology trading platform and a centralized market that enable exchanges between buyers and sellers -charge a fee for service -exist wheres thousands of geographically dispersed buyers and sellers are, volatile prices caused by demand and supply fluctuations, time sensitivity due to perishable offerings and changing technologies, easily comparable offering between a variety of sellers

Demographical segmentation

-based on objective physical (gender, race) measurable (age, income) or other classification attribute (birth era, occupation) of prospective buyers -house hold size

Psychographic segmentation

-based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers -lifestyle

Cultural ethnocentricity

-belief that aspects of ones culture are superior to another -this has spread to some people disfavor imported products purely because they are foreign

how to respond to value consciousness

-open stores in convient locations -offer more deals

Direct investment

-biggest company a company can make when entering the global market -domestic firm actually investing in and owning a foreign subsidiary or division -this may follow one of the other 3 market strategies

Alternative evaluation

-clarifies the problem for the consumer by suggesting criteria to use for the purchase, yielding brand names that might meet the criteria, and developing consumer value perceptions -assessing value

evaluation phase

-compare results with plans to identify deviations -exploit positive deviations; correct negative ones

large organization

-complex -levels of business: Board of directions corporate level strategic business unit level functional level

Economic infrastructure

-country's communications, transportation, financial, and distribution systems -communication infrastructure in developing countries is limited compares with those of developed countries -formal operating procedures among financial institutions and the notion of private property are still limited

Develop a market product grid and estimate the size of markets

-each cell can show estimated market since of a given product sold to a specific market segment -horizontal row: identifying and labeling markets -vertical columns: product groupings -estimating market sizes help determine which target market segments to select and which product groupings to offer

organizational inertia in new product failures

-encountering "groupthink" in task force and committee meetings -avoiding the "NIH problem"

Questionnaire data

-facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors -idea generation methods of idea evaluation method

Asian American Buying Patterns

-fasest growing subculture in US -Assimilated asian americans:conserving in English, highly educated, high ranking jobs, buying patterns like Americans -Nonasssimilated Asian Americans: recent immigrants who still cling to their native languages and customs -as a whole characterized by hard working, strong family ties, appreciation for education, median family incomes exceeding those of other ethnic groups -most entrepreneurial in US

Define the problem

-first step of marketing research -set research objective: specific, measurable goals the decision maker seeks to achieve -identify possible marketing actions

private e-markets

-for large companies focusing on streaming the companies purchase transactions with its suppliers and customers -not third party but represent interests of their owners

keys to successful organization

-forward looking -anticipate future events+respond quickly/efficiently -thrive in uncertain, chaotic, changing environment

ways of segment organizational (business) Markets

-geographical: statistical area such as metropolitan area versus micropolitan -demographic: NAICS code, number of employees, annual sales -behavioral: usage rate, number of locations, purchase location

4 bases of segmentation

-geogrpahic -demographic -psychgraphic -behavioral

Ideals motivated consumers

-guided by knowledge and principles ****high resource THINKERS are mature, reflective, and information seeking people who value order, knowledge and responsibility -value durability and functionality over styling and newness -not brand loyal ****Low resource BELIEVERS are conservative, conventions people with concrete beliefs based on family, religion, community and the nation -chose familiar products and brands=brand loyal

Radical invention

-highest level of risk -revolutionary new product

Challenged of marketing research

-how to determine if consumers will buy a product they have never seen nor thought about? -How to obtain answers that people know but are reluctant to reveal" -How to help people accurately remember and report their interests, intentions and purchases

Concepts

-ideas about products or services -to find out about consumer reactions for a potential new product, a picture of verbal description of a product/service may be offered for sale called the new-product concept

SWOT analysis

-identify industry -analyze competitors -assess own org -research customers

Select Target Market

-if company picks too narrow a set of segments, it may fail to reach the volume of sales and profits it needs -if company selects too broad it may spread its marketing efforts so thin that the extra expense exceeds the increased sales and profits

organizational synergy

-increased customer value achieved through performing orgs functions such as marketing or manufacturing more efficiently -customer should be better off because of increased synergies

Opinion Leadership

-individuals who exert direct or indirect social influence over others -knowledgeable about or users of particular products and services so their opinions influence other choices -10 percent of US adults -identifying, reaching and influencing these people are a challenge of companies

Group product to be sold into categories

-indivudual products -grouping products into meaningful categories so that buyers can relate to them -supermarkets and department stores are organized into product groups

Test marketing

-offering product for sale on a limited basis in a defined area for a specific amount go time -only done if room in the budget -3 types: standard, controlled, simulated

Word of mouth

-influencing people during conversation -most powerful and authentic info source for consumers because it typically involves friends viewed as trustworthy -67% of sales are due to this -magnified by internet and companies can receive feedback by tracing people thoughts on internet -can be a source of negative info or positive

Marketing reasons for new product failures

-insignificant point difference -incomplete market and product protocol before product development starts -not satisfying customer needs on critical factors -bad timing -no economical access to buyers -poor product quality -poor execution of the marketing miss: brand name, package, price, promotion, distribution -too little market attractiveness

Shopping products

-items for which the consumer compares several alternatives on criteria such as price, quality or style -fairly expensive -large number of selective outlets -differentiation from competitors stressed -consumers prefer specific brands but will accept substitutes -infrequent purchases, lots of shopping time EX: cameras, TVs, briefcases, airline tickets

Specialty products

-items that the consumer makes a special effort to search out and buy -usually very expensive -very limited distribution -uniqueness of brand and status is stressed in promotion -consumers are very brand loyal and won't accept substitutes -infrequent purchases -extensive search and decision time EX: poles watches, heart surgery, Rolls-Royce cars

Connivence Products

-items that the consumer purchases frequently, conveniently and with minimum of shopping efforts -relatively inexpensive -widespread, many outlets -promotion: price, availability, awareness stressed -consumers are aware of brand but will accept substitutes EX: hand soap, cake mix, toothpaste

Unsought products

-items the consumer does not know about or knows about but does not initially want -price varies -limited distribution -awareness is essential and promotion -consumers will accept substitutes -some comparison shopping EX: burial insurance, thesaurus

US population

-larger, older, more diverse -321 million people but by 2030 will be 359 million

Regulatory

-laws protecting competition, laws affecting marketing mix actions, self-regulation

US imports and Exports

-leader in exports but over past 30 years their imports have exceeded exports-deficient -imports and exports have dramatically increased

disadvantages to licensing

-licensor forgoes control of its product and reduces the potential profits gained from it -licensor mat be creating its own competition by licensee modifying the product and entering market so licenser tries to stay innovative to keep the licensee dependent on them

Advantage to licensing

-low risk and a capital free entry into foreign country -licensee gains info to start with a competitive advantage and foreign country gain employment by having the product manufactured locally

cognitive learning

-making connections between 2+ ideas or simply observing the outcomes of others behaviors and adjusting your own accordingly -learning through thinking, reasoning, and mental problem solving without direct experience

Criteria for selecting target segments

-market size -expected growth: even though the market may be small, it may grow significantly in the future -competitive position: less competition=more attractive the segment is -cost of reaching the segment: if inaccessible to firms marketing action should not be pursued -compatibility with the orgs objectives and resources

internal sources of secondary data

-marketing inputs (budgets, financial statements, sales call reports) -marketing outcomes (actual sales and customer communications)

traditional family

-married couple with children younger than 18 years old -makes up 21% of all US households

Disadvantages of secondary data

-may be out of date -definitions or categories might not be quite right for researchers projects -may not be specific enough for the project so may be necessary to collect primary data too

cross tabulation

-method of presenting and analyzing data involving 2+ variables to discover relationships in the data -most widely used technique for organizing and presenting marketing data -offers great flexibility -permits direct interpretation and an easy means of communicating data to management -used to summarize questionnaire, observational and experimental data

disadvantage of cross tabulation

-misleading if percentages are based on too few observations -can hide some relationships becuz each cross tab typically shows only 2 or 3 variables

insignificant point difference

-most important fact for a new product to defeat competing ones-having superior characteristics that deliver unique benefits to the user

Achievement-motivated consumers

-motivated by achievement and look for products/services that demonstrate success to their peers or to a group they aspire to ***High resource Achievers: buy, goal-directed lifestyles and a deep commitment to career and family, image is important, time-saving devices, establish prestige products ***Loe resource STRIVERS: trend followers, lack education, skills and tenacity to change their circumstances, money=success to them

Purchase decision

-must ask yourself, from whom do I buy from and when do I buy -Choice of which seller to buy from will depend on such considerations as terms of sales, your past experience, and return policy -deciding when to buy is determine by discounts, store atmosphere, pleasantness or ease of the shopping experience, salesperson assistance, time pressure and financial state

nonprofit organization

-nongovt organization that services it customers but doesn't have profit as the goal -provides services to some clients -goal: operational efficiency or client satisfaction -funds>expenses=success EX: hospitals, colleges, museums, Teach for America

implementation phase

-obtain resource -design marking organization -develop schedules -execute marketing program -define precise tasks, responsibilities, deadlines

One product and multiple market segments

-org produces only a single product or service and attempts to sell it to 2 or more market segments -avoids extra costs of developing and producing additional versions of the product -only additional costs would be for advertising and promotion which is a lot less than producing more goods

Multiple products and multiple market segments

-org products multiple products aimed at separate target markets -popular in car makers -more expensive but very effective if it meets customer's needs better, doesn't reduce with the costs of producing a different version of the offerings for each segment -in auto industry this can reduce quality and raise prices (downsides)

size of the order or purchase

-organization buying is much larger than consumer buying -knowing how order size affects buying practices is important in determining who will participate in the purchase decision, who will make the final decision, and the length of time that will require to arrive at a purchase agreement

Drive variable

-part of behavioral learning -a need that moves an individual to action EX: hunger-> might be represented by motives

Cue variable

-part of behavioral learning -stimulus or symbol perceived by customers

Reinforcement

-part of behavioral learning -the reward

marketing program

-plan that integrates the marketing mix to provide a good, service or idea to prospective buyer -develop budget by estimating revenues, expenses, profits

cognitive dissonance

-post purchase psychological tension or anxiety -to deal with this, consumers try to applaud themselves for making the right choice -sellers sometimes use ads or follow-ups to comfort buys that they made the right decision

protectionism

-practice of shielding one or more industries with a country economy from foreign competition through the use of tariffs or quotas -argument is it limits the outsourcing of jobs, protects a nations political security, discourages economic dependency on other countries and promote development of domestic industries

Observational data

-primary data -facts and figures obtained by watching hoe proper actually behave -collected by mechanical, personal or neuromarketing methods

Motivation

-psychological concept -energizing force that stimulate behavior to satisfy a need

Post purchase behavior

-realizing the value of your purchase by comparing it with his or her expectations and is either satisfied or dissatisfied -if dissatisfied it could be due to either consumer expectations being too high or product deficiency and the seller but be sensitive to customers use

Hispanics buying patterns

-represent largest racial/ethnic subculture in US in terms of population and opening power -36% are immigrants -quality and brand conscious -prefer buying American products -buying preferences are influenced by family and peers -consider advertising a credible product info source -convenience is not important product attribute, nor is low fat products

Buying Function in organizations

-responsible for facilitating the selection and purchase of products and services for the org's own use or resale to consumers -gathering and screening info about products and services, prices and suppliers called vendors -formal solicitation of bids from vendors and making awards of purchasing contracts -purchasing managers, procurement managers, sourcing managers

marketing synergies

-running horizontally in market product grid, each row represents an opportunity for efficiency in terms of a market segments showing what products would be needed -single customers segment will likely require a variety of products so the company saves money on marketing but spends more on production

Product synergies

-running vertically done the market-product grid, each column represents an opportunity for efficiency in research and development and production -which product is attractive by the most number of market segments? -must address the concerns of a wide variety of consumers, which costs more time and money

Derived demand

-sales of business products frequently result from the sale of consumer products -characteristic of business product EX: as consumer demand for cars increase, the company demand for paint for the car will increase

market product focus and goal setting

-set market and product setting -select target market -find points of difference -position

Attitude formation

-shaped by our values and beliefs, which are learned -learned predisposition to respond to an object or class of objectives in a consistency favorable or unfavorable way -2 types of values: Cultural values and personal values

Criteria in forming segments

-simplicity and cost-effectiveness of assigning potential buyers to segments -potential for increased profit -similarity of needs of potential buyers within a segment - difference of needs of buyers among segments -potential of a marketing action to reach a segments

Segments of one: Mass Customization

-tailoring products or services to the tastes of individual customers on a high-volume scale made possible by internet ordering and flexible manufacturing/marketing processes -economics of scale made mass produces products so affordable that most customers are willing to compromise their individual tastes and settle for standardized products

Collecting relevant info

-third step of marketing research -obtain secondary data -obtain primary data

world population

-today: 7.3 billion -2050: 9.6 billion -shifting are structure: # of people 65+ is projected to triple by 2050 *trending are important to look at to find new target markets

Political Stability

-trade depends on this -affected by govt orientation toward foreign companies and trade with other countries -political strife terrorism, war -marketers measure and track country risk rating to monitor political stability

planning phase

1) SNOT Analysis: 2) market product focus and goal setting 3)marketing program

Middle level of newness in org perspective

1) can be significant jump in innovation or tech such as new smart phones or digital cameras OR -brand extension: putting established brand name on a new product in an unfamiliar market

advantages of secondary data

1)tremendous time saving because the data have already been collected and published or exist internally 2) low cost such as free or inexpensive Census reports 3) greater level of info available thru secondary data

4 relevant factors for marketing

1. 2+ parties with unsatisfied needs 2. desire and ability to satisfy these needs 3. a way for the parties to communicate 4. something to exchange

Census Bureau classification system

1. Metropolitan statistical area: at least 1 urban area of 50,000+ people with social and economic integration 2. micropolitan statistical area: at least 1 urban cluster of 10,000-50,000 people with social and economic integration near

5 step marketing research approach

1. define problem 2. develop research plan 3. collect relevant info 4. develop findings 5. take marketing actions

General process of marketing

1. discover needs and wants of prospective customers 2. satisfy them

5 trends influencing global marketing

1. gradual decline of economic protectionism by individual countries 2. formal economic integration and free trade among nations 3. global competition among global companies for global customers 4. emergence of networked global marketspace 5. growing prevalence of economic espionage

Steps in segmenting and targeting markets

1. group potential buyers into segments 2. Group products to be sold into categories 3. develop a market-product grid and estimate site of markets 4. select target markets 5. take marketing actions to reach target markets

Steps of perceptual map

1. identify important attributes for a product or brand class 2. discover how target customers rate competing products or brands with respect to these attributes 3. discover where the company's product or brand is on these attributes in the minds of potential customers 4. reposition the company's product or brand in the minds of potential customers

3 types of organizations

1. non profit org 2. for profit 3. govt agencies

Advantages of joint venture

1. one company may nor have financial, physical, or managerial resources to enter foreign market alone but this allows them to 2. govt may require or encourage this before it allows a foreign company to enter its market

3 segmentation strategies

1. one product and multiple market segments 2. multiple products and multiple market segments 3. segments of one or mass customization

four stages of manufacturers life

1. production era 2. sales era 3. marketing concept era 4. customer relationship era

Challenges of Hispanics

1. very diverse so cultural differences affect buying preferences 2. large language barrier

4 questions of buying center

1. which people are in the buying center for the product or service 2. what is the relative influence of each member of the group 3. what are the buying criteria of each member 4. how does each member of the group perceive our firm, our product and services and our salespeople

Sherman antitrust act

1890 forbids contracts, combinations or conspiracies in restraint of trade AND actual monopolies or attempts to monopolize any part of trade or commerce

Attitude change

3 approaches to change consumer attitudes 1. changing beliefs about the extent to which a brand has certain attributes 2. Changing the perceived importance of attributes 3. adding new attributes to the product

newness from organizational perspective

3 levels of newness and innovation lowest level: product line extension middle level: brand extension highest level: radical invention

controllable factors

4 P's that make up the marketing mix which can be used by the marketing manager to solve a marketing program

semantic differential scale

5 point scale in which the opposite ends have one or 2 word adjectives that have opposite meanings

Development

5th stage of New product development process -turns the idea on paper into a prototype -results in demonstrable, producible product that invites not only manufacturing the product efficiently but also performing lab+consumer tests to ensure product meets the standards established in prototype

Market testing

6th stage of New product development process -exposing actual produces to prospective consumers under realistic purchase conditions to see if they will buy

80/20 rule

80% of a firms sales are obtained from 20% of its customers -another name for usage rate

Ethnic spending

Asian Americans: $770 billion/year Hispanics: $1.3 trillion/year African Americans: $1.1 trillion/year

4 largest importers of the US

China, Canada, Mexico, Japan in order purchased 2/3 of US exports

Low involvement purchases

EX: toothpaste, soap purchases consumer barely any research into the decision a

Newness in legal term

Federal trade commission (FTC) says "new" be limited to use with a product up to 6 months after it enters regular distribution

NIH problem

Not invented here problem: ideas from the outside are rejected simply because they come from the outside=BAD

leaders in global merchandise trade

US, China and Germany

decision making

act of consciously choosing from alternatives

Electronic commerce

activities that use electronic communication in the inventory, promotion, distributions , purchase and exchange products and services

entry

additional producers=lower prices so barriers to entry are implemented to make it difficult for new firms to enter the market

World Trade Organization (WTO)

addresses an array of world trade issues with 160 countries accounting for 90% of world trade -permeant institution that sets rules governing trade between its member through panels of trade experts who decide on trade disputes between members anise binding decisions

Gray market

aka parallel importing -situation where products are sold thru unauthorized channels of distribution -individuals buy products in a lower prices country from a manufacturers authorized retailer, ship them to high prices countries and then sell them below the manufacturers suggested retail price through unauthorized retailers

information technology

all of the computing resources that collect, store, and analyze the data -managers struggle most with how to efficiently transform the huge amount of data into useful info

Strategic marketing process

allocates its marketing mix resources to reach its target markets *3 phases: planning, implementation, evaluation

Internet Technology

allow companies to create internents and extranets

telephone survey

allow flexibility, unhappy respondents may hang up on the interviewer even with the efficiency of computer-assisted telephone interviewing (CATI)

Trademark law revision act

allows company to secure rights to a name before actual use by declaring an intent to use name

open-ended question

allows respondents to express opinions, ideas, or behaviors in they own words without being forced to choose among alternatives that have been predetermined by a marketing researcher

Competitive forces

alternative firms that could provide a product to satisfy a specific markets needs 1 . pure competition 2. monopolistic competition 3. oligopoly 4. pure monopoly

competitive

alternative forms of competition, small business

Foreign Corrupt Practices Act

am dement that makes it a crime for US corporations to bribe an official of a foreign govt or political party to obtain or retain business in a foreign country *bribery of foreign govt officials is a crime *dumping is a crime

Psychographics

analysis of consumer lifestyles -provides insights into consumer wants and needs -proven useful in segmenting and targeting consumers for new and existing products and services -catchall label used to describe a variety of segmentation such as those based on behaviors, attitudes, activities, interests, opinions and social values

Methods

approached that can be used to collect data to solve all or part of a problem 1) observing behavior of users 2)asking users questions about their opinions and experience 3) sampling 4) statistical inference

Exclusive dealing

arrangement a manufacturer makes with a reseller to handle only its products and not those of competitiors

survey of buyers intentions forecast

asking prospective customers if they are likely to buy the product during some future time period -effective for industrial products with few prospective buyers

Marketing strategy for low involvement

attention is places on maintaining quality, avoiding stockout situations so that buyers don't substitute a competing brand, using repetitive advertising messages that reinforce a consumers knowledge or assure buyers they made the right choice

ability

authority, time and money

generation cohorts

baby bloomers, generation X, Generation Y, millennial

Geographical segmentation

base don where prospective customers live or work (region, city size)

Behavioral segmentation

based on some observable actions or attitudes by prospective customers - important to know what product features are important to customers and the usage rate -EX: where they buy, what benefits they seek and how frequently they buy and why

physiological needs

basic to survival and must be satisfied first

consumer learning

behaviors that result from repeated experience and reasoning -behavioral learning, cognitive learning and brand loyalty

Identify market needs

benefits in terms of parodic features, expense, quality, saving in time and convenience

utility

benefits or consumer value received by users of the product *4 types: form, place, time, pocession

effective marketing

benefits society=enhanced competition, improves quality of products/services and lowers prices

mail surveys

biased because those most likely to respond have had especially positive or negative experiences with the product or brand

Baby bloomers

born between 1946-1964 -graying of America -76 million -wealthiest generation: 50% of all consumer spending

generation X

born between 1965-1976 -50 million people -aka baby bust (# people born declined) -self-reliant, supportive of racial/ethnic diversity and better educated -not prone to extravagance, like a blend of caution, pragmatism and traditionalism

Generation Y

born between 1977-1994 -72 million - aka echo-boom/baby blooms (increasing) -interested indistinctive, memorable, personal experiences -good with work-life balance -strongwilled, passionate, optimistic -attracted to purposeful work where the have control -influence on music, sports, computers, video games, networking, communication

global brand

brande marketed under the same name in multiple countries with similar and centrally coordinated marketing programs -same product formulation or service concept, deliver the same benefits to consumers, and use consistent advertising across multiple counties and cultures

E-marketplaces

bring together buyers and supplier organizations for online trading communities to make real-time exchange of info, money, products and services possible

millennial

burn since 1994 -idealistic, energetic, transparent, page to get started

growth strategies

business portfolio analysis and diversification analysis

Organization buying objectives

buy products and services to help achieve their objectives

supply partnership

buyer and its supplier adopt mutually beneficial objectives, places, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer

reverse auction

buyer communicates a need for a product or service and would-be suppliers are invited to bud in competition with each other *more would-be suppliers=prices decrease -suppliers favor this because it allows them to capture more business and develop relationships with buyers

Requirement contracts

buyer must purchase all or part of its needs for a product from 1 seller for a time period

straight rebuy

buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with suers or influencers from the engineering, production or quality control departments

Direct contact of customer

buying, using and obtaining service

Barriers of entry

capital requirements, advertising expenditures, product identity, distribution access, cost of customers of switching suppliers

Product adaptation

changing a product in some way to make it more appropriate for consumers preferences to a country climate but use the same promotion

technological

changing in tech, tech impact on consumer value, tech enabled data analytics

product repositioning

changing the place a product occupies in a consumers mind relative to competitive products

points of difference

characteristics of a product that make 1+ superior to competitive substitutes

economic espionage

clandestine collection of trade secrets or propriety info about a companys competitors -common in high technology industries -to counteract this, the Economic Espionage Act makes the theft of trade secrets by foreign entities a federal crime in the US

Classifying services

classified according to whether they are delivered by 1. people or equipment 2. business firms or nonprofit orgs 3. govt agencies

customer value proposition

cluster of benefits that an organization promises customers to satisfy their needs

Multinational marketing

combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences and lifestyles of different races

extranets

communication with suppliers, distributors, and advertising agencies

Internents

communication within org

Standard test marks

company develops a products and then attempts to sell it they normal distribution channels in a number of test-market cities -time consuming, expensive and can expose company's plans to competitors -producer sells product to distributors, wholesalers, and retailers

licensing

company offers the right to trademark, patent, trade secret or other similar valued item of intellectual property in return for a royalty or a fee

Head to Head positioning

competing directly with competitors on similar product attributes in the same target markets

Ideas

concepts, actions or causes that are usually marketed by nonprofit orgs or GOVT

Value consciousness

concern for obtaining the best quality, features, and performance of a product or service for a given price EX: recession caused customers to cut back on brand-name products and distance they are willing to drive to shop

FTC

concerned with deceptive or misleading advertising and unfair business practices and has the power to 1.issue cease and desist orders 2. order corrective advertising

Social needs

concerned with love and friendship

decision

conscious choice from among 2 or more alternatives

global consumer

consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services

product mix

consists of all of the product lines offered by an org

Customer value assessment of tech

cost of tech is decreasing so customers value it based on quality, service, and relationship *tech provides value by developing new products

open innovation

consists of practices and processes that encourage the use of external as well as internal ideas and collaboration when conceiving, producing, and marketing new products and services

Microeconomic conditions

consumer income *gross income, disposable income, discretionary income

selective retention

consumers do not remember all the info they see, read, or hear, even minutes after the exposure *affects internal and external search stages

Continuous innovation

consumers don't need to learn new behaviors -Marketing strategy: ain consumer awareness and widen distribution EX: toothpaste->manufacturers add new features like "whitens teeth" "removes plaque" but consumers don't need to relearn how to use toothpaste

antecedent state

consumers mood or amount of cash on hand -consumers with credit cards buy more than those with cash or debit cards

Beliefs

consumers subjective perception of how a product or brand performs on different attributes -based on personal experience, advertising, and discussions with other people -help shape the favorable or unfavorable attitude the consumer has toward certain products, services and brands

Controlled test markets

contracting the entire test program to an outside service. Service pays retailers of shelf space and guarantees a specified % of the test products potential distribution volume

Gatekeepers

control the flow of info in the buying center

Idea evaluation methods

conventional questionnaires using personal, mail, telephone, fax, and online surveys of a large sample of past, present, or prospective customers

Product-Related Legislation

copyright law, digital millennium act, consumer product safety act,

Advantages of direct investment

cost saving, better understanding of local market conditions, fewer local restrictions

Pricing strategy

countries may impose competitive, political, and legal constraints on the pricing latitude of global companies -pricing too low= charged with dumping -pricing too high=gray market problem

Measure of success

criteria or standards used in evaluating proposed solutions to the problem Objectives too broad= problem may nor be researchable Objectives too narrow= value of research results may be seriously lessened

Market penetration

current market, current products

Product development

current market, new products

organizational buying behavior

decision making process that orgs use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers

recession

declining economic activity *less production, unemployment increases and less spending

physical surroundings

decor, music, and crowding in retail stores may alter how purchase decisions are made

New product in eyes of Consumer

defines new products according to the degree of learning required by the consumer

supplier development

deliberate effort by organizational buyers to build relationships that shape suppliers products, services, and capabilities to fit buyers needs and those its customers

social forces

demographic characteristics of the population and its culture

social

demographic shifts, cultural changes

Family life cycle

describes the distinct phases that a family progresses through from formation to retirement, each phase brining with it identifiable purchasing behaviors

demographics

describing population according to selected characteristics EX: age, gender, ethnicity, income, occupation

Self expression-motivated consumers

desire social or physical activity, variety, and risk ***high resource EXPERIENCERS: young, enthusiastic and impulsive consumers who become excited about new possibilities but are equally quick to cool, want to make an impact, energy from activity, form over function ***Low resources MAKERS: practical people who have constructive skills, value self sufficient and independence, and are impressed by material possession, love working

marketing tactics

detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies

Balance of trade

difference between the monetary value of a nations exports and imports *surplus: imports exceed exports *deficit: exports exceed imports

variation by product

different for product versus service versus idea

deceptive mail prevention and enforcement act

direct mail sweepstake EX: "no purchase necessary to enter"

Corporate level

directs overall strategy *CMO's have increasing power in org

first object to marketing

discovering the needs of prospective buyers/customers which is done thru customer surveys, concept tests and other forms of marketing research

Dynamically continuous innovation

disrupts consumers normal routine but doesn't require totally new learning -Marketing strategy: advertise points of difference and benefits to consumers -EX: electric toothbrush,smartphones

Intermediary

distributor that has the marketing know-how and resources necessary for the effort to succeed

spouse dominant decision making

either husband or wife is mostly responsible for making decisions *wives have more say in groceries, toys, clothing, medicines *husbands have more say in home or car maintenance

European Union (EU)

eliminated most barriers to the free flow of products, services, capital and labor across their borders -adopted euro

online surveys

email and internet surveys to collect primary data -send out to target consumers -this method is usually used for consumers to assess products and services evaluate the design and usability of their websites -advantage: low cost and fast feedback -disadvantage: may go to junk or spam mail or pop-up blocks, people can take survey more than once creating significant bias in results

Stakeholders

employees, shareholders, BOD, suppliers, distributors, creditors, unions, govt, local communities, customers

Personal interview surveys

enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials but are very costly

networked global marketspace

enables the exchange of products, services and info from sellers anywhere to buyer anywhere at any time and at a lower cost

key traits

enduring characteristics within person or in his or her relationships with others EX: assertiveness, extroversion, compliance, dominance, aggression -inherited or formed at an early age and change little over the years

international firms

engage in trade and marketing in different countries as an extension of the marketing strategy in its home strategy -market products in other countries the same as they do in the original country

Components of competition

entry, power buyers and sellers, existing competitors and substitutes,

not satisfying customer needs on critical factors

even if quality is high, is consumers are not satisfied, they will not buy product

who markets?

every organization and nonprofit organization *even individuals such as political candidates

Semiotics

examines the correspondence between symbols and their role in the assignment of meaning for people ***global markets can tie cultural symbols into their products, services and brands to attract certain people

product differentiation

existence of different market segments had caused firms to use a marketing strategy -firm uses different marketing mix actions such as product features and advertising to help consumers perceive the product as being different and better than competing products

Global comeptition

exists when firms originate, produce and market their products and services worldwide -broadens competitive landscape for marketers

Four general market entry options

exporting, licensing, joint venture, direct investment

order of financial commitment, risk and marketing control for market entry strategies

exporting, licensing, joint venture, direct investment ***with increased risk comes increased profit potential***

data mining

extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions

Data

facts and figures related to the project -2 types: secondary and primary

Primary data

facts and figures that are newly collected for the project **3 types observational data, questionnaire data and other sources of data

secondary dara

facts and figures that have already been recorded prior to the project at hand -2 types internal data and external data

Values of customers outside US

fate, tradition, rank/status, group welfares, birthright

Brand loyalty

favorable attitude toward and consistent purchase of a single brand over time *results from the positive reinforcement of previous actions *this trend is declining in North America, Western Europe, and Japan

Govt Agencies

federal, state, country, or city unit that provides a specific service to its constituents EX: census Bureau-provides population and economic data

oligopoly competition

few companies control the majority of industry da;es EX: verizon AT&T, Spring< T-mobile

Power of buyers

few in number, low switching costs, product represents significant share of the buyers total cost

take marketing actions

fifth step of marketing research approach -identify marketing actions, put them into effect and monitor how the decisions turn out 0convert marketing research findings into specific marketing recommendations with a clear objective -implement action recommendation: creating ads -evaluate results

selective perception

filtering of exposure, comprehension, and retention

Disadvantages of direct investment

financial commitment and high risk

Internal approach to Screening and evaluation

firm employees evaluate the technical feasibility of a proposed new product idea to determine whether it meets the objectives defined in the new product strategy development stage

Dumping

firm sells a product in a foreign country below its domestic price or below its actual cost -dont to build a company share of the market pricing at a competitive level -done to rid of surplus products that aren't being sold domestically

Direct exporting

firm sells its domestically produced products in a foreign country without intermediaries -countries with large sales volumes and easy to obtain (don't need intermediary) -involves little more risk the indirect but involves more profit

Indirect exporting

firm sells its domestically produced products in foreign country thru an intermediary -least amount of commitment and risk but returns least profit -ideal for company w/ no overseas market but wants to market abroad

customer and suppliers suggestions

firms ask salespeople to talk to customers and ask their purchasing personal to talk to suppliers to discover new product ideas

customer relationship era

firms continuously seek to satisfy the high expectations of customers *often thru internet

number of potential buyers

firms marketing to consumers, try to reach thousands or millions of people whereas firms marketing to organizations are restricted to fewer buyers

New product strategy development

first stage in New product development process -defines rile for a new product in terms of the firms overall objectives -firm uses SWOT analysis and environmental scanning to assess strengths and weaknesses relative to the trends it identifies as opportunities or threats -protocol and strategic roles are determined

market orientation

focusing on continuously collecting info about customer needs and sharing info across departments and using it to create customer value

organizational strategies formula

foundation+ direction

Business analysis

fourth stage of New product development process -specifies feature of the product or service and the marketing strategy needed to bring it to market and make financial projections -assess total "business fit" with company's mission and objectives -last checkpoint before significant resources invested to create prototype

develop findings

fourth step of marketing research approach -analyze data -present findings: clear pictures and concise

market-product grid

framework to relate the market segments of potential buyers to products offered or potential marketing actions -purpose is to trigger marketing actions to increase sales and profits -shows where synergies can be found

core values

fundamental, passionate, enduring principles that guide its conduct over time * motivate stakeholders *must be communicated to entire org

Statistical inference

generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions

cash cows

generate more money than they can use *dominant share of slow-growth markets *provide cash to overhead and invest in other SBU's

Segmentation bases in order of used by companies

geographic bases, behavioral bases, demographic bases, psychographic bases -many companies usually use more than one at a time

copyright law

gives authors of literary, dramatic, musical or artistic work the exclusive right to print, perform or otherwise cope that work

employee welfare

good employee opportunities/conditions

product

good, service or idea consisting of a bundle of intangible and tangible attributed that satisfies consumers needs and is received in exchange for money or something else of value

Product

good, service, idea to satisfy consumer needs

Product line

group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range

Functional Level

groups of specialists (departments) that create value for organization *strategic direct is most specific @ this level

good

has tangible attributes that a consumers five sense can perceive or untangle attributes consisting of its delivery or warranties -can be either nondurable or durable

Multi domestic marketing strategy

have many different product variations, brand names and advertising programs as countries in which they do business

Time utility

having offering available when needed

place utility

having the offering available where consumers need it

Diversification analysis

helps firm search for growth opportunities from among current and new markets as well as current and new products

Stars

high share of high-growth markets *extra cash to finance own rapid future growth

board of directors (BOD)

highest ranking officer in org *must process leadership skills like overseeing daily operation and makes decisions for survival EX: president or CEO

organizational strategies

how will it do it? *variation by level or product

social responsibility

idea that an organization are accountable to a larger society and should help with societal problems

too little market attractiveness

ideal is a large target market with high growth and real buyer need but often the target market is too small or competitive to warrant the huge expenses necessary to reach out

Political-Regulatory Climate

identifying the current climate/ health of the govt, and determining how long that unfavorable or favorable climate will last EX: political stability, trade regulations,

Digital Millennium Copyright act

improve protection of copyrighted digital products

No economical access to buyers

in supermarkets, there is only enough shelf space and the product with the highest demand will be sold there so some products fail because they are not accessible to buyers

Economy

income, expenditures, and resources that affect the cost of running a business and household

Product line extension

incremental improvement of an existing product line the company already sells -potential benefit of adding new customers but the twin dangers of increasing expenses and cannibalizing products in the existing line -least risk associated

idea generation method

individual interviews, focus groups

buying center

individuals in this group share common goals, risks, and knowledge important to a purchase decision

reciprocity

industrial buying practice in which 2 organizations agree to purchase each others products and services -restricts free market trade -exists and can limit flexibility of orgs in choosing alternative suppliers

self regulation

industry attempts to police itself *disadvantages: non compliant by member and employees or too strong regulation can violate Robinson-Patman Act

Market space

info and communication based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings

5 family member roles

info gatherer, influencer, decision maker, purchaser and user *common trend is preteens and teens being info gatherer, influencers, and decision makers due to working parents

Focus groups

info sessions of 6-10 past, present, or prospective customers in which a discussion leader, or moderator asks for opinions about the firms products and those of its competitors including how they use these products and special needs that these products don't adress -help uncover things that interviews don't

Marketer-dominated sources

information from sellers including advertising, company websites, salespeople, and point-of -purchase displays in stores

problem recognition stage

initial step in purchase decision perceiving a difference between a persons ideal and actual situations big enough to trigger a decision

services

intangible activities or benefits that na org provides to satisfy consumers needs in exchange for money or something else of value

Information search

internal search: scan memory for previous experiences with products or brands external search: going to personal sources, public sources or marketer-dominated sources for info because your past knowledge and experience is insufficient, the risk of making the wrong decision is high and the cost of gathering information is low

Types of global companies

international firms, multinational forms and transnational firms

selective comprehension

interpreting info so that it is consistent with your attitudes and beliefs

Product invention

invent new products designed to satisfy common needs across countries

Technology

inventions or innovations from applied science or engineering research *connectivity growing *computers develop all five senses *green technologies *3D technologies

Cross-cultural analysis

involved the study of similarities and differences among consumers in two or more nations or societies -get understanding of and an appreciation for the values, customs, symbols, and language of other societies -involves study of values, customs, cultural symbol, language, cultural ethnocentricity

nondurable goods

item consumers in one or few uses EX: food, fuel

Components

items that become part of the final product EX: raw materials, assemblies

Support Products

items used to assist in producing other products and services EX: installations (buildings and fixed equipment), accessory equipment, supplies, industrial services

organization

legal entity that consists of people who share a common mission of achieving a specific goal

North American Free Trade Agreement (NAFTA)

lifted many trade barriers between Canada, Mexica and the US and created marketplace of more than 475 million consumers -simulated trade flows among member nations as well as crowd border retailing, manufacturing, and investment -coasta rica, Dominican republic, El Salvador, Guatemala, Honduras, Nicaragua are all part of this

segmentation

link between various buyers needs and the or marketing program -leads to tangible marketing actions that can increase sales and profitability -stresses importance of grouping people or org in a market according to the similarity of their needs and the benefits they are looking for in making a purchase -needs and benefits must be related to specific marketing actions that the org can take such as a new product or special promotion

relationship marketing

links the organization to its individual customers, employees, suppliers and other partners for the mutual long-term benefit *personal ongoing relationship with individual customers that begins before and continues after sale

Market department job

listen to customers, develop offerings, implementing marketing program actions, evaluating if actions are achieving goals

competitors

lots of competitors to distinguish from

Question marks

low share of high growth markets *need large investments *which to invest in is the questions

Dogs

low shares of slow growth markets

economic

macroecon conditions, consumer income

Existing competitors and substitutes

makes for slow growth: competition is heated for any possible gains in market share and high fixed costs: pressure for firms to fill production capacity

Consumer income and purchasing power

marketer must consider average per capita or household income for countries consumers and how the income is distributed to determine a nations purchasing power -as proportion of middle-income households increase, nations purchasing capability increases -estimated 1/2 of world has achieve middle class status -marketers must consider that people in developing countries receive got subsidies such as food, housing and health care that supplement their income. Their income might look bad on paper when in reality they are promising consumers

execute marketing program actions

marketing mix of product, price, promotion, place (distribution)

Business to business marketing

marketing of products and services to companies, goats, or not-for-profit organizations for use in creation of products and services that they can produce and market to others

marketing strategy

means by which a girl is to be achieved, usually characterized by a specified target market and a marketing program to reach it

promotion

means of communication between buyer and seller

perceptual map

means of displaying in two dimensions the location of products or brands in the minds of consumers -allows managers to see how consumers perceive competing products or brands, as well as the firms own products/brand

place

means of getting the product to the consumer

Marketing metric

measure of the quantitive value or trend of a marketing action or result *data visualization uses graphs to spot deviation from plans during evaluation phase and take action

Robert M McMath

meetings the needs of customers is hard than it seems. 40% of new products fail so her suggests: 1.focus on what the customer benefit is 2. learn from past mistakes customers needs frequently change making it hard to keep up with

blended family

merging 2 previously separated units into a single household -1/3 Americans is a step parent, stepchild or apart of blended family -young people are postponing marriage and parenthood

best way to reach multinational audience

mobile devices and social media

Consumer lifestyle

mode of living that is identifies by how people spend their time and resources, what they consider important in their environments and what they think of themselves and the world around them

Dual adaptation strategy

modifying both their products and promotional messages

disposable income

money consumers have left after paying taxes to use for necessities such as food, housing and transportation *gross income- income taxes *tax changes after this

Profit

money left after a for-profit org subtracts (revenues-expenses) reward for the risk it undertakes in marketing its offerings

Discretionary income

money that remains after paying for taxes and necessities that is used for luxuries *increased by reducing savings

consumer product safety act

monitor product safety and establish uniform product safety standards

Evaluating the decision itself

monitoring the marketplace to determine if action is necessary in the future

disadvantage of secondary data

more costly and time consuming to collect

advantage of primary data

more flexible and more specific to the problem being studied than secondary data

increased Customer value

more products, improved quality of existing products, lower prices, easier access to products thru improved distribution,

organizational buying criteria

objective attributes of the suppliers products and services and the capabilities of the supplier itself 1. price 2. ability to meet the quality specifications required for the item 3. ability to meet required delivery schedules 4. technical capability 5. warranties and claim policies in the event of poor performance 6. past performance on previous contracts 7. production facilities and capability those who meet or exceed this criteria create customer value

experiment

obtaining data bu manipulating factors under tightly controlled conditions to test cause and effect -independent variable is called driver: usually one or more of marketing mix elements -dependent variable is change in purchases of individuals, households, or orgs -disadvantage: outside factors can distort result and affect dependent variables

Strategies of lowering perceived risk

obtaining seals of approval, securing endorsements from influential people, providing free trials of the product, giving extensive usage instructions, providing warranties and guarantees

Stimulus generalization

occurs when a response elicited by one stimulus (cue) is generalized to another stimulus EX: using the same brand name for different products

selective exposure

occurs when people pat attention to messages that consistent with their attitudes and beliefs and ignore messages that inconsistent with them *popular in post purchase stage or when a need exists

Associative group

oen to which a person actually belongs, including frats and stats and alumni groups easily identifiable and targeted by firms selling insurance, insignia products and charter vacations

trade feedback affect

one agreement for free trade among nations explaining that imports affect exports and vice versa

routine problem solving

one brand examined, few sellers considered, one product attribute evaluated, no external info sources used, minimal time spent searching EX: grocery shopping, frequently bought supplies

Target market

one or more specific groups of potential consumers toward which an organization directs its marketing program

dissociative groups

one that a person wished to maintain a distance from because of difference in values or behaviors -firms avoid these in their marketing

Aspiration group

one that a person wishes to be a member of or wishes to be identified with such as professional society or sports team

durbal goods

one that usually lasts over many uses EX: appliances, cars, and smartphones

pure monoply

only one firm sells the product *common for necessary products life water, electricity, cable service *controlled by govt because of price protections for customers

new buy

org is a first-time buyer of the product or service -involves greater potential risks in the purchase so buying center is enlarged to include all those who have a stake

buyer-seller relationships

organizational buying is more likely to involve complex negotiations concerning delivery schedules, price, technical specifications, warranties and claim policies

strategy

organizations long-term course of action designed to deliver a unique customer experience while achieving its goals -help focus and direct its efforts to accomplish goals -all orgs set a strategic direction

societal marketing concept

organizations should satisfy the needs of consumers in a way that provides for society well-being aka satisfy consumer needs but are also beneficial to society too

Industry

organizations that develop similar offerings -create competition to have compelling and sustainable advantage for superior level -marketing strategy=having a clear understanding of industry within it competes

social surroundings

other people present when making a purchase, customers with children buy about 40% more items than those shopping alone

Customer Need

person feels deprived of basic necessities such as food, clothing and shelter

Current values in US

personal control, efficiency, work, continuous change, equality, individualism, self-help, competition, future orientation, action

Self-actualization

personal fulfillment

mall intercept interviews

personal interviews of consumers visiting shopping centers which reduces cost of personal interview and allows flexibility to show respondents visual cues such as ads or actual product samples -disadvantage:respondents may not be representative of target consumers=biased result

Consumer involvement

personal. social and economical significance of the purchase by the consumer that affects how many steps a consumer follows in the purchase decision process

Stimulus discrimination

persons ability to perceive differences in stimuli

Personality

persons consistent behaviors or responses to reoccurring situations *guides and directs consumer behavior

Product position

place a product occupies in consumers needs based on important attributes relative to competitive products -2 types: head to head positioning, differentiation positioning

Marketing strategy of high involvement

ply consumers with product info through advertising and personal selling and use social media to italics on this behavior through comparative advertising that focuses on existing product attributes and often introduce novel evaluative criteria for judging competing brands

Global marketing strategy

practice of standardizing marketing activities when there re cultural similarities and adapting them when cultures differ\ -allow marketers to realize economies of scale from their production and marketing activities

Countertrade

practice of using barter rather than money for making global sales *10-15% of world trade involves this

countertrade

practice of using barter rather than money for making global sales -10-15% of work trade -popular in Eastern Europe, Russia, Asia

data visualization

presentation of the results of the analysis is a new field of marketing research

New product compared to existing product

product is functionally different from existing products EX: features added to existing product to try to appeal to more customers, may be revolutionary and create new industry

Purchase decision process

problem recognition, info search, alternative evaluation, purchase decision, post purchase behavior

consumer socialization

process by which acquire the skills, knowledge, and attitudes necessary to function as consumers -children learn how to purchase by interacting with adults in purchase situations and through their own purchasing and product usage experiences

Consumer perception

process by which an individual selects, organizes and interprets info to create a meaningful picture of the world

environmental scanning

process of continually acquiring info on events occurring outside the org to identify and interpret potential trends

Environmental scanning

process of continually acquiring info on events occurring outside the organization to identify and interpret potential trends

Marketing research

process of defining a marketing problem and opportunity, systematically collecting and analyzing info, and recommending actions

behavior learning

process of developing automatic responses to a situation built ip through repeated exposure to it *Four variables: drive, cue, response, and reinforcement

Customer relationship management (CRM)

process of identifying prospective buyer, understanding them intimately and developing favorable longterm perceptions of the organization and its offering so that buyers will choose them in the marketplace

Customer experience management (CEM)

process of managing the entire customer experience within the company

exporting

producing products in one country and selling them in another country -allows country to make the least number of changes in terms of its products, org, and corporate girls -host countries don't like this becuz it provides less local employment than under alternative means of entry

power of sellers

product is critical and when switching cost is high

depth interview

researchers ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings

likert scale

respondent indicated the extent to which he or she agrees or disagrees with a statement

close-ended or fixed alternative questions

respondents select one or more response options from a set of predetermined choices

quota

restriction placed on the amount of a product allowed to enter or leave a country -can be mandated or voluntary by govt -import quotas seeks to guarantee domestic industries access to a certain percentage of their domestic market

regulatory forces

restrictions state and federal place on businesses with regard to the conduct of its activities *protect customers from unfair trade practices and ensure their safety

poor product quality

results from product not being thoroughly tested -can come from materials, labor and other expenses

marketing plan

road map for the marketing actions of an organization for a specified future time period

Day commuters

run ads inside commuter buses and put flyers under the windshield wipers of cars in parking lots used by day commuters

Communication adaptation strategy

same product sold across countries but the advertising is different to match differences in cultural and buying motives

panels

sample of consumers to stores from which researchers take a series of measurements -disadvantage: researcher team needs to recruit new members continually to replace those who drop out who must match the former -used to see if consumers change their behavior over time

Economic considerations

scan of marketplace should include an assessment of the economic infrastructure in countries, measurement of consumer income in different countries, and recognition of a country's currency exchange rates

idea generation

second stage of New product development process -develop pool of concepts to serve as candidates for new products, building upon the previous stages results -internal approach: train employees in the art and science of asking specific probing questions -suggestions from employees, customer and suppliers, research and development laboratories, analyzing competition, smaller firms/universities/inventors

Differentiation positioning

seeking a less-competitive, smaller market niche in which to locate a brand

Sampling

selecting a group of distributors, customer, or prospects, asking them questions and treating their answers as typical of all whom they are interested

Safety needs

self-preservation as well as physical and financial well-being freedom from harm

traditional auction

seller puts an item up for sale and would-be buyers are invited ro bid in competition with each other *more would-be buyers=prices go up -used to dispose of excess merchandise

typing arrangment

seller requires purchase of 1 product to also buy another item in line

Channel of product from A->B country

seller, sellers international marketing headquarters, channels between nations, channels within foreign nation, final consumer

Production extension

selling same product in other countries with same promotion -works best when consumer market target is alike across countries and cultures: same desires, needs, and uses of product

sustainable procurement

sensitivity to how buying decisions affect the environment with the goal of reducing the negative impact on human health and the physical environment

dichotomous questions

simplest form of a fixed alternative question that allows only a "yes" or "no"

Culture

set of values, ideas and attitudes that are learned and shared among the members of a group *shift toward more equality of men and women in the market place *industries are trying to avoid creating separate products for man and women

culture

set values, ideas, attitudes and norms of behavior that is learned and shared among the members of an organization

New product development process

seven stages an org goes thru to identify opportunities and convert them into salable products or services

Limited problem solving

several number of brands examined, serval sellers considered, moderate product attributes evaluated, few external info sources used, little time spent searching EX: crossings a toaster or restaurant to eat at

protection competition

sherman antitrust act, clayton act, robinson-pitman act

customers

show that customer satisfaction is crucial *responding to customers is the first law of business

individual interview

single researcher asking questions of one respondent -advantages: bring able to probe for additional ideas using follow up questions to a respondents initial answers -disadvantage: very expensive

Green technologies

smart grid electricity, online energy management, consumer generated energy

Primary data sources

social media, panels and experiments, info technology, and data mining

Environmental forces

social, economic, technological, competitive, regulatory

poor execution of the marketing mix

some factor in the marketing mix creates a barrier for consumers

Groupthink

someone in the new product planning meeting knows or suspects the product concept is a dumb idea but is too afraid to speak up for fear of being cast as a "negative thinker" -can be minimized when group leaders encourage group members to challenge assumptions, express constructive dissent and offer alternatives

Protocol

statement that, before product development begins, identifies a well defined target market, specific customer needs, wants and preferences and what the product will be and do to satisfy consumers -used to aid products towards success rather than failure before company begins producing

goals

statements of an accomplishment of a task to be achieved often by a specific time *converts mission and business into long/short term performance targets *many types of goals

buy class

straight rebut, new buy, modified rebuy

Business Model

strategies an organization developed to provide values to the customer sites serves *triggered by technological innovation

marketing concept era

strive to satisfy customer needs, achieve organizations goals, market orientation

subcultures

subgroups within the larger or national culture with unique values, ideas, and attitudes *three major in US: Hispanics, African Americans, Asian Americans

Strategic Business Unit (SBU)

subsidiary, divison, unit of organization that markets a set of related offerings to a clearly defined target market *managers set a more specific strategic direction ofr their businesses to exploit value creating opportunities

General values of customers worldwide

sustainability and preservation

VALs

system run by Strategic Business Insights (SBI) measures the enduring differences between people that explain and predict lifestyles meaningfully -examines intersection og psychology, demographics, and lifestyles -SBI says consumers are motivated to buy products and services and seek life experiences that give shape, substance and satisfaction to their lives -consumers are driven by wither ideals, achievement or self expression

Link needs to actions

take steps in segment and target markets

Research and development lab suggestions

talking to those within the company labs to do research and experiments with products and services

Simulates test markets

technique that somewhat replicates a full-scale test market run in shopping malls to find consumer who use the product class being tested. Next qualified participants are chosen and asked product related questions then asked which product they would purchase based off of ads -less costly, time efficient

Consumer ethnocentrism

tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products -believe its wrong becuz such purchases are unpatriotic, harm domestic industries, and cause domestic unemployment -makes job of global markets hard

Marketing

the activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value to customers, clients, partners, and society at large

perceived risk

the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences (financial costs, risk of physical harm, performance of product) *greater the risk=more extensive search

Language

the wide variety of languages worldwide and even with in countries make it hard for markets to communicate with consumers and can lead to problems like unintended messages -best language to communicate to consumers is their own -English, French and Spanish are principal languages

derived demand

the demand for industrial products and services is driven by or derived from, the demand for consumer products and services -based on expectations of future consumer demand

Currency exchange rate

the price of one countries currency expressed in terms of another countries currency -exchange fluctuations affect sales and profits made by global companies

data analytics

the solutions to transforming huge amounts of data into useful information by managers

self concept

the way people see themselves and the way they believe others see them *actual self concept: how people actually see themselves *ideal self concept: how people would like to see themselves

high involvement purchases

usually consists of one of the three 1. item is expensive 2. can have serious personal consequences 3. could reflect on ones social image this means that the consumer engages in extensive info searches, consider many product attributes, brands. form attitudes and participate in word of mouth communication EX: audio and video systems, cars, boats, houses

Procession utility

value of making an item easy to purchase through the provision of credit cards or financial arrangements

Franchising

variation of licensing -one of fastest-growing market-entry strategies -included soft-drink, motel, retailing, fast-food, and car rental operation and variety of business services -MCdonalds=biggest

Trade regulations

variety of rules that govern business practices within their borders and often serve as trade barriers

Transnational firm

views the world as one market and emphasizes cultural similarities cross countries and universal consumer needs and wants rather than differences -use global marketing strategy

Multinational Firm

views the world of consisting of unique parts and markets to each part differently -use Multi domestic marketing strategy

marketing dashboard

visual display of the essential info related to achieving a marketing objective *based on graphs and tables, we know when to take action

evaluating the decision process used

was it effective? was it flawed? could it be improve for future?

crowdfunding

way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources such as banks or venture capital firms

customs

what is considered normal and expected about the way people do things in a specific country

price

what is exchanged for the product

organization direction

what will we do? *must determine what industry or market sector

setting strategic direction

where are we now? where do we want to go?

organizational foundation

why does it exist? -core values -mission -culture

Incomplete market and product protocol before product development starts

without protocol, firms try to design a vague product for a phantom market and consumer often question the validity

indirect contact of customer

word of mouth comments from other customers reviewers new reports

subliminal perception

you see or hear messages without being aware of them such as in advertisements *evidence shows these messages have limited effects on behavior *no legal in the US but marketers still incorporate them