Principles of marketing Exam 2
convenience products
items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
idea generation
the stage of the new-product development process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage's results
new-product strategy development
the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives
market testing
the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy
intangible
unable to be touched or grasped; not having physical presence (service) ex: hair salon
Aspects of Culture
values customs symbols language
Innovators
venturesome, higher educated, use multiple information sources
Customs
what is considered normal and expected about the way people do things in a specific country
Geographic Segmentation
Localizes marketing efforts to accommodate unique needs of specific geographic regions
What type of marketing strategy does a Transnational Firm use?
Global Marketing Strategy
idle product capacity
occurs when the service provider is available but there is no demand for the service
Alternative Global Market- Entry Strategies
1. Exporting 2. Licensing 3. Joint Venture 4. Direct Investment
Target Market Process
1. Identify segments (who is your target market) 2. Select the target segments (select target market) 3. Positioning Product in the customer's mind (advertise to target market)
Exporting
A global market-entry strategy in which a company produces in one country and sells them in another country.
New Product Development Process
A seven-phase process for introducing products: new-product strategy development, idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization
Protocol
A statement that, before product development begins, identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
early majority
Deliberate; many informal social contracts
What type of marketing strategy does and International Firm use?
Extension of Home Marketing Strategy
Secondary Data
Facts and figures already recorded prior to the project.
Lagards
Fear of debt; neighbors and friends are informational sources
Psychographic Segmentation
Groups customers together based on lifestyle characteristics
Types of Global Companies
International Firm Multinational Firm Transnational Firm
early adopters
Leaders in social settings, slightly above average education
Behavior/Usage Segmentation
Markets can be segmented by how often or how heavily consumers use a specific product
What type of marketing strategy does a multinational firm use?
Multidomestic Marketing Strategy
Situation Segmentation
Purchase, situation, or occlusion
Values
Represent personally or socially preferable modes of conduct or states of existence that tend to persist over time.
Five-Step Marketing Research Approach
Step 1: Define the problem. Step 2: Develop the research plan. Step 3: Collect Relevant Information Step 4: Develop Findings Step 5: Take Marketing Actions
Globalization
The focus on creating economic, cultural, political, and technological interdependencies among individual national institutions and economies.
Commercialization
The stage of the new-product development process that positions and launches a new product in full-scale production and sales.
business analysis
The stage of the new-product development process that specifies the features of the product or service and the marketing strategy needed to bring it to market and make financial projections
development
The stage of the new-product development process that turns the idea on paper into a prototype
cross-cultural Analysis
The study of similarities and differences among consumers in two or more nations or societies
Four I's of services
There are four unique elements to services—intangibility, inconsistency, inseparability, and inventory
Cultural Symbols
Things that represent ideas and concepts in a specific culture.
Licensing
When a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.
Joint Venture
When a foreign company and a local firm invest together to create a local business
80/20 rule
a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers
market-product grid
a framework to relate the market segments of potential buyers to products offered or potential marketing actions
product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value
product line
a group of products or services that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
product differentiation
a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products
perceptual map
a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm's own product or brand
quota
a restriction placed on the amount of a product allowed to enter or leave a country.
product item
a specific product that has a unique brand, size, or price
The degree of "newness"
affects the amount of learning effort consumers exert to use the product in a new product
Demographic Segmentation
age, gender, income, ethnic background, and family life cycle
tangible
capable of being touched; real, concrete (ex: car, house)
product repositioning
changes the place a product occupies in a consumer's mind relative to competitive products
product mix
consists of all of the product lines offered by an organization
specialty products
items that the consumer makes a special effort to search out and buy
dynamically continuous innovation
disrupts consumer's normal routine but does not require totally new learning
Direct Investment
entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Countertrade
exchanging goods or services for other goods or services (rather than using money).
Primary Data
facts and figures that are newly collected for the project.
shopping products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
unsought products
items that the consumer does not know about or knows about but does not initially want
open innovation
practices and processes that encourage the use of external as well as internal ideas as well as internal and external collaboration when conceiving, producing, and marketing new products and services
business products
products organizations buy that assist in providing other products for resale
consumer products
products purchased by the ultimate consumer
customer lifetime value
represents the financial worth of a customer to a company over the course of their relationship
continuous innovation
requires no new learning by consumers
Intangibility
services cannot be seen, tasted, felt, heard, or smelled before purchase
Inseparability
services cannot be separated from their providers
inconsistency
services depend on the people who provide them
product positioning
the place a product occupies in consumers' minds based on important attributes relative to competitive products
Protectionism
the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas
Marketing Research
the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
usage rate
the quantity consumed or patronage (store visits) during a specific period
inventory
the quantity of goods that a firm has on hand
