Marketing Exam 2 (CH 7-12)
Universal Product Codes
(UPC's) - a series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products
Business Product (Class of Product)
(industrial product) - a product used to manufacture other foods or services, to facilitate an organization's operations, or to resell to other customers (intended use)
Need for more and better info
- Transition from local to national marketing -Shift from buyer needs to wants -Move from price to non price competition
Shopping Goods
- compare items -Homogeneous: price -Heterogeneous: Quality, style, and suitability ex: cars, cloths
Product Life Cycle - Decline Conditions
-Declining sales -Declining Competition -Declining Investment -Declining Profits (may still be good for a few)
Income segmentation
-Determines consumers' wants and buying power -High income = high buying power
Company characteristics
-Geographic location, type of company, company size, product use -Companies buy locally -Size affects purchasing procedures, types and quantities of products, and responses to different marketing mixes
What does segmentation do?
-Helps define people/organization's needs and preferences more precisely -Helps marketers more accurately define marketing objectives and better allocate resources
Ethnic segmentation
-Hispanics, African, and Asian Americans comprise big target market
Product Life Cycle - Introduction Conditions
-Low level sales -Few Competitors -Very High Investment -Losses or very low profit
Age segmentation
-Newborns -Young children: account for a good deal of consumption -Gen Y: huge purchasing power, want technology, do 'haul' videos, etc. -Gen X: disloyal to brands and make decisions on families -Baby boomers: half of all spending, want attention and service, spend a lot on cars, electronics, and travel -War generation: retirement is an active time to explore but may need product adaptation
Product Life Cycle - Growth Conditions
-Rapid growth in sales -New competitors -Investment high, but better return -Typically reach peal profit margins
Unsought Goods
-Requires aggressive and skillful selling -ex: Life insurance
Buying process
-Satisficers: business customers who place an order with the first familiar supplier to satisfy requirements -Optimizers: consider numerous suppliers, solicit bids, and study all proposals carefully before choosing one
Organizational Buying and Selling
-Size: Fewer, larger buyers -Complexity: professional, extensive process -Demand
Product Life Cycle - Maturity Conditions
-Slowed growth in sales -Intensified Competition -Only moderate investment -Moderate profit (because of price promotion and competition) -Demand becomes more elastic
Convenience goods
-Staples, impulse, and emergency items -Brand and Price secondary ex: soap, fast food
Specialty Goods
-Unique -Brand -Selectiveness, status
Gender segmentation
-Women make over 70% of all purchases -Some companies can do well going after men in non-traditional areas
Most important functions of Packaging
1) Contain and protect the product 2) Promote the product 3) Facilitate the storage, use, and convenience of the product 4) Facilitate recycling (green packaging)
Why is market segmentation important?
1) Identify groups of customers with similar needs and analyze their characteristics and buying behavior 2) Provides marketers with information to help them design marketing mixes 3) Segmentation is consistent with marketing concept of satisfying customer wants and needs while meeting organization's objectives
What are the benefits of one to one marketing?
1) Personalization (target one customer's needs and wants) 2) Time savings (customers don't have time to shop) 3) Loyalty (customers will be loyal to brands that have reinforced loyalty in past) 4) Technology (can collect information about customers)
What are the steps in segmenting a market?
1) Select a defined market or product category for study 2) Choose basis for segmenting market 3) Select segmentation descriptors 4) Profile and analyze segment (size, growth, frequency of purchases, brand loyalty) 5) Select target markets 6) Design, implement, and maintain appropriate marketing mixes 7) Monitor the mix
What are the criteria for successful segmentation?
1) Sustainability (large enough to warrant developing and maintaining a special marketing mix) 2) Identifiability and measurability (data about population and number in it should be easily obtained) 3) Accessibility (reach members with mark mix) 4) Responsiveness (don't have to change mix for people in segment)
E Marketing Domains
1. Business to consumer 2.Business to Business 3. Consumer to consumer 4. Consumer to Business
Forms of Communication
1. Face to face selling 2. Direct Mail marketing 3. Catalog Marketing 4. Telemarketing 5. Direct Response Television Marketing 6. Kiosk Marketing
Internet and Growth Barriers
1. Limited Market space - limited exposure and buying 2. Skewed User Demographics - Upscale Technical orientation 3. Chaos and Clutter- Site must capture used within 8 sec 4. Security - Espionage, unauthorized purchase, identity theft, sabotage 5. Privacy - Collected, analyzed and sold
Major Types of Business Buying Situations
1. New Task Buy 2.Modified Re-buy 3.Straight Rebuy
Types of User Customers
1. Producer 2. Re-sellers 3.Government Agencies 4. Institutions
Buying Process
1.Recognize Need or problem 2.General Need Description 3.Developing product specifications 4. Searching for qualified suppliers 5. Acquiring and analyzing proposals 6.Supplier selection 7.Order Routine 8. Evalutating product performance
Nonprofit organizations account for more than _____ % of the economic activity in the US.
20
The digit in the six digit of the NACIS which stipulates country specific industry is ?
5
A 2010 survey found that service industries accounted for _________ % of US GDP.
55
Experience quality
A characteristic that can be assessed only after use
Search quality
A characteristic that can be easily assessed before purchase
Credence quality
A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience
Supplementary service
A group of services that support or enhance the core service
Experiment
A method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable
Gap model
A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
New Task Buy
A new business-to-business purchase that is complex or risky and that requires extensive decision making. The buyer has to start from scratch to gather information on purchase specifications that may be highly technical and complex and require detailed input from others. Marketers know that to get the order in this situation, they must develop a close working relationship with the business buyer. Ex: Think about all the goods and services used to make up the higher education industry, like you buying the textbook that the professor has carefully chosen.
Mass customization
A strategy that uses technology to deliver customized services on a mass basis
Market segment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
Infomediary Model
A virtual market, typically earning commission or transaction fee for its service.
Advertising support model
Advertisers pay the site operator to gain access to demographic group that visits the operators site.
Product Line Benefits
Advertising Economics, Package Uniformity, Standardized Components, Efficient Sales and Distribution, Equivalent Quality.
Product Mix
All products a company sells
Public service advertisement
An announcement that promotes a program of a federal, state, or local government or of a nonprofit org
Nonprofit organization
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
What are positioning bases?
Attribute, price and quality, use or application, product user, product class, competitor, and emotion
Industrial goods
Business Product - Capital items -Materials and parts -Supplies and service
Idea Generation: Employees
Can create new product ideas due to their involvement in the marketplace. they are personally in the space of the consumer environment and have a better idea of what is wanted and what changes could be made.
Empathy
Caring, individualized attention to customers
Repositioning
Changing consumers' perceptions of a brand in relation to competing brands
Repositioning
Changing the consumers perceptions of a brand.
Segmentation bases (variables)
Characteristics of individuals, groups, or organizations -Need ones to produce substantial, measurable, and accessible segments -Can use single variable, but multiple variable segmentation is more precise than single
Multisegment targeting strategy
Chooses two or more well defined market segments and develops a distinct marketing mix for each -May need more money to target them -Cannibalization: sales of a new product cut into sales of a firm's existing products (may keep competitors out)
Product line
Closely related product items
What are the bases for segmenting business markets?
Company characteristics or buying process
Idea Generation: Consumers
Conceptually, consumers wants and needs should be the springboard for new products and ideas. Blogs often indicate early trends.
Straight Rebuy
Continuing or Reoccurring
_______ services are more flexible and cost more.
Customized
Secondary Data
Data previously collected for any purpose other than the one at hand
Perceptual Ladder
Describing product position based on competitive rank using various value sets.
Positioning
Developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
Direct Marketing
Direct communication with carefully targeted individual consumers an immediate response
Usage rate segmentation
Dividing a market by the amount of product bought or consumed -80/20 principle: 20% of the consumers generate 80% of the demand
Types of Business Products
Equipment / Installations, Accessory Equipment, Raw Materials, Components Parts, Processed Materials, Supplies, & Services.
Product Life Cycle - Introduction Marketing Mix
Expand the market strategy -Basic Product -High Prices -Irregular Distribution -Extensive Promotion for product awareness
In buying center concept, which role is best describes the entity which controls in-low and outflow of info?
Gatekeepers
What are the types of segmentation?
Geographic, demographic (age, gender, income, ethnic, family life cycle), psychographic, benefit, or usage rate
Target market
Group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
Homogeneous products
Homogeneous shopping goods are those that are similar in quality but different enough in other attributes (such as price, brand image, or style) to justify a search process
One to one marketing
Individualized marketing method that utilizes customer information to build long term personalized and profitable relationships with each customer, replacing the notion of mass marketing
Buying Behavior Roles
Initiator, Influencers/Evaluators, Gatekeepers, Decider, Purchaser, & Users.
Harvest
Keep product as niche product
Product Life Cycle - Maturity Marketing Mix
Maintain Market Share Strategy -Differentiated Product -Low Prices -Intensive Distribution -Moderate Promotion, seeking brand loyalty
Product Life Cycle - Growth Marketing Mix
Market Penetration Strategy -Improve Product -Moderate Prices -Intensive Distribution -Extensive Promotion, seeking brand preference
Perceptual mapping
Means of displaying, in two or more dimensions, location of products, brands, or groups of products in consumers' minds
Idea Generation: Competitors
Monitoring performance of competition can give insight into what they are doing well and where they have shortfalls
Subscription Support model
Monthly or annual subscription revenue based on the value of content or service provided
Commercialization
National rollout of product, advertising, and sales
Buying Situations
New Buy, Modified Rebuy, & Rebuy
Market
People (consumer markets) or organizations (business markets) with needs or wants and the ability and willingness to buy
Position
Place a product, brand, or group of product occupies in consumers' minds relative to competing offerings -Need to look at competing products, decide the important dimensions behind these, and choose a position
Product differentiation
Position strategy that some firms use to distinguish their products from those of competitors
Market segmentation
Process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
Targeting
Process of evaluating each market segment's attractiveness and selecting one or more segments to enter
End User
Producer - Make things directly; directly works with buyer
OEM
Producer - a manufacturer who creates a product that will be used in other things
Categories of Business Customers
Producers, Resellers, Governments, & Institutions
Evaluation Criteria
Quality, Service, & Price
Product Life Cycle - Decline Marketing Mix
Reduce Costs Strategy -Limit Production -Raise Prices -Selective Distribution -Low promotion directed at purchase rationalization and basic awareness
Evolution of E-Business Present Initiatives
Reduce Costs, Build channel partnerships and trust, Customer-focused technology and systems, Brand building and development & Integrate online and traditional media.
Which of the 5 components of service quality is deemed most important?
Reliability
Customers evaluate service quality by the following 5 components:
Reliability Responsiveness Assurance Empathy Tangibles
North American Industry Classification System (NAICS)
Replaced SIC Codes -Six Digits 1. Sector of economy 2. Sub-sector 3.industry group 4. Industry 5.Country specific industry 6. Product Class
Evolution of E-Business Past Initiatives
Revenue Generation, Aggressive Disintermediation Initiatives, & Basic marketing communication strategies.
Maturity Stage
Sales begin to flatten, sales increase at a decreasing rate. a) prices and profits begin to drop b) emergence of nice marketers that target narrow, well/defined, underserved segments of a market.
Demographic segmentation
Segmenting markets based on age, gender, income, ethnic background, and family life cycle
Geographic segmentation
Segmenting markets by region of a country or the world, market size, market density, or climate Can take a regional approach because... -Many firms need new ways to generate sales -Checkout scanners give retailers accurate assessment of best selling goods in the region -Packaged goods manufacturers are introducing new regional brands -More regional approach allows consumer goods companies to react quicker to competition
Psychographic segmentation
Segmenting markets on the basis of personality, motives, lifestyles, an geodemographics (can combine with other things) 1) Personality (traits, attitudes, and habits) 2) Motives (status, economy, reliability, and dependability) 3) Lifestyles (way you spend your time, importance of things around you, etc.) 4) Geodemographic (segmenting potential customers into neighborhood lifestyle categories)
Divest
Sell, delete
Family life cycle segmentation
Series of stages determined by a combination of age, marital status, and the presence or absence of children in the house -Single adults are the majority
What four characteristics distinguish services from goods?
Services are: Intangible Inseparable Heterogeneous Perishable
Product item
Specific version of a product
________ services are more efficient and cost less.
Standardized
Derived Demand explained with
Step or wave model
Concentrated targeting strategy
Strategy used to select one segment of a market for marketing strategies -Niche: one segment of a market -Concentrate on needs, motives, and satisfactions of that segment's members and develop and maintain a highly specialized marketing mix
What four promotion strategies can marketers try in promoting intangible goods?
Stressing tangible cues Using personal information sources Creating a strong organizational image Engaging in post-purchase communication
Reliability
The ability to perform a service dependably, accurately, and consistently
Responsiveness
The ability to provide prompt service
Nonprofit organization marketing
The effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets
Brand Mark
The elements of a brand that cannot be spoken
Perishability
The inability of services to be stored, warehoused, or inventoried
Intangibility
The inability of services to be touched, seen, tasted, heard or felt in the same manner that goods can be sensed
Inseparability
The inability of the production and consumption of a service to be separated; consumers must be present during the production
Assurance
The knowledge and courtesy of employees and their ability to convey trust
Core service
The most basic benefit the consumer is buying
Tangibles
The physical evidence of a service, including the physical facilities, tool, and equipment used to provide the service
Benefit segmentation
The process of grouping customers into market segmetns according to the benefits they seek from products
Information Trading model
The profit opportunity model in the marketplace which is best described as the gathering and selling of consumer interests or purchase intentions.
Service
The result of applying human or mechanical efforts to people or objects
buying-center concept
The typical business buying center will include a variety of participants: - initiators: people who start the purchase process by defining a need - decision makers: people who make the final decision - gatekeepers: people who control the flow of information and access to individuals in an organization - influencers: people who have input into the purchase decision - purchasing agent: the person who actually makes the purchase order - controller: the person who oversees the budget for the purchase - users: people who use the product or service
Heterogeneity
The variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
Internal marketing
Treating employees as customers and developing systems and benefits that satisfy their needs
During the recession, 10 of 11 service sectors had increased revenues.
True (this one) False
Product strategies for service offerings include decisions onN
Type of process involved Core and supplementary services Standardization or customization of the service product Service mix.
What are the target marketing strategies?
Undifferentiated, concentrated, multisegment
______ is world's largest exporter of services
United States
Brand name
Utterable brand
Private Brand
a brand name owned by a wholesaler or a retailer
Captive Brand
a brand that carries no evidence of a retailer's affiliation, is manufactured by a third party, and is sold exclusively at the retailer
Global Brand
a brand where at least one-third of the product is sold outside it's home country or region
Management Decision Problem
a broad-based problem that uses marketing research in order for managers to take proper actions
experience quality
a characteristic that can be assessed only after use
search quality
a characteristic that can be easily assessed before purchase
credence quality
a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience
Scaled-Response Question
a closed-ended question designed to measure the intensity of a respondent's answer
Marketing Research Aggregator
a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms
Warranty
a confirmation of the quality or performance of a good or service
Brand Loyalty
a consistent preference for one brand over all others
Strategic Alliance / Partnership
a cooperative agreement between business firms.
North American Industry Classification System
a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes.
Neuromarketing
a field of marketing that studies the body's responses to marketing stimuli
Field Service Firm
a firm that specializes in interviewing respondents on a subcontracted basis
Relationship Commitment
a firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely.
Convenience Sample
a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives
Behavioral Targeting
a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases
Product Line
a group of closely related product items (i.e. Pepsi Line)
target market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
supplementary services
a group of services that support or enhance the core service
undifferentiated targeting strategy
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
Stickiness
a measure of a Web site's effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit (site research). Stickiness = Frequency x Duration x Site Reach
Cross-Tabulation
a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions
gap model
a model indentifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
Brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitor's products
Specialty Product
a particular item for which consumers search extensively and are very reluctant to accept substitutes
product differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
Reciprocity
a practice where business purchasers choose to buy from their own customers.
80/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
Consumer Product (Class of Product)
a product bought to satisfy an individuals personal wants (intended use)
Shopping Product
a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
Unsought Product
a product unknown to the potential buyer, or a known product that the buyer does not actively seek
Convenience Product
a relatively inexpensive item that merits little shopping effort
Observation Research
a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity
Random Sample
a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample
Probability Sample
a sample in which every element in the population has a known statistical likelihood of being selected
BehaviorScan
a scanner-based research program that tracks the purchases of 3,000 households through store scanners in each research market
InfoScan
a scanner-based sales-tracking service for the consumer packaged-goods industry
family life cycle (FLC)
a series of stages determined by a combination of age, marital status, and the presence or absence of children
Straight Rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.
Modified Rebuy
a situation in which the purchaser wants some change in the original good or service.
New Buy
a situation requiring the purchase of a product for the first time.
cannibalization
a situation that occurs when sales of a new product cut into sales of a firm's existing products
Central-Location Telephone Facility
a specially designed phone room used to conduct telephone interviewing (CLT)
Product Item
a specific version of a product that can be designated as a distinct offering among an organizations products (i.e. coke zero)
Identifying and formulate a problem
a step in the marketing research process that addresses what information is needed and how information is obtained
specify the sampling process
a step in the marketing research process where a population of everyone is too large so marketers sample a subset form a larger population
prepare and present marketing research
a step in the marketing research process where one communicates their findings of data to managment
follow up
a step in the marketing research process where one determines why or why not management accepted the suggestions
plan research design
a step in the marketing research process where one of more variables are compared and manipulated against one another
analyze the data
a step in the marketing research process where you draw confusions form the data
collect the data
a step in the marketing research process where you personally or a company you hire collects the data
multisegment targeting strategy
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
mass customization
a strategy that uses technology to deliver customized services on a mass basis
concentrated targeting strategy
a strategy used to select one segment of a market for targeting marketing efforts
market segment
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
Sample
a subset from a larger population
Mall Intercept Interview
a survey research method that involves interviewing people in the common areas of shopping malls
Scanner-Based Research
a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy
Service Mark
a trademark for service
Information Labeling
a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase
Persuasive Labeling
a type of package labeling that focuses on a promotional theme or logo with consumer information being secondary
virtual shopping
a type of primary research where a simulation of a store environment is used on the computer to analyze consumer behaviour
survey research
a type of primary research where in home interviews, mail surveys, and focus groups are used
observation research
a type of primary research where one ays mirrors, mystery shoppers and behavioural targeting is used
experiments
a type of primary research where product packaging such as weight versus sales in analyzed
ethographic research
a type of primary research where the study of human behaviour in a natural setting is used
Probability samples
a type of sample where everyone has a chance of being selected in the survey
non-probabiity sample
a type of sample where it is convent for a comapny and they do not attempt to target a specific subgroup
Executive Interview
a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services
Express Warranty
a written guarantee
Early Adopters
a) 13.5% b) share experiences with product, similar traits to innovators, younger, opinion leaders
Laggards
a) 16% b) deeply rooted in tradition, laggards who finally adopt a product have probably already been left behind by the next new development c) low income, remote, rural areas
Late Majority
a) 34% b) choose to adopt because most of their friends have it
Early Majority
a) 34% b) weighs the pros and cons of buying a product or not c) not opinion leaders, conservative
Intro (conception)
a) New product to market, novel, and never before seen. b) Price is high c) Sales normally increase slowly in this stage and profits usually negative
Primary Demand
a) demand for product in general
Idea Screening
a) evaluation of new ideas to most realistic or opportune prospects b) also must be consistent with companies marketing strategy and direction.
Innovators
a) first buyers of a product b) not price sensitive, intelligent, tech savvy, higher than average income c) 2.5% of the market
Compatibility
a) is new product compatible with users lifestyle? b) is it compatible with current products a user has?
Keep Product in selective distribution
a) main job as a marketer at this point is consumer education b) demonstrations, benefits, explanations c) why it is something you want to buy
Decline stage
a) products begin to exit the market b) demand for product sharply drops
Growth Stage
a) sales grow increasingly, profits rise rapidly reaches its peak and start to decline as competition intensifies b) innovators and early adopters are buying product c) competitors begin to enter market d) distribution begins to broaden
Which of the following is an example of a nonprofit organization?
a. The University of Chicago (this one) b. General Electric c. Amazon.com d. Ford Motor Company
The ________ pricing method offers varying prices that depend on the market segment's ability to pay.
a. customer-oriented b. revenue-oriented c. patronage-oriented (this one) d. operations-oriented
Which of the following is NOT an example of a service?
a. desktop publishing software (this one) b. consulting c. customer service d. legal advice
Employees who recognize customers and learn their specific requirements are practicing:
a. empathy. (this one) b. assurance. c. reliability. d. responsiveness.
The ________ strategy uses technology to deliver customized services to each consumer
a. executive service b. personal marketing c. mass customization (this one) d. individual oriented
The ________ model helps managers identify the source of quality problems and understand how service quality can be improved.
a. gap (this one) b. expectations c. transaction d. perception
The ________ of a service include physical facilities, tool, and equipment used to provide the service.
a. gaps b. tangibles (this one) c. provider d. perishability
The term ________ refers to the inherent variability of services and service providers
a. homeostasis b. heterogeneity (this one) c. equilibrium d. homogeneity
The term ________ refers to services in which the consumer is actually involved in the production of the service.
a. immateriality b. intangibility c. incredulity d. inseparability (this one)
Skilled employees who treat customers with respect and make customers feel that they can trust them exemplify:
a. responsiveness. b. empathy. c. reliability. d. assurance. (this one)
Factors to consider in the distribution strategy of service organizations include all of the following EXCEPT:
a. scheduling. b. convenience. c. number of outlets. d. customization. (this one)
In the hotel industry, the overnight rental of a bedroom constitutes the:
a. service mix. b. core service. (this one) c. service process. d. supplementary service.
Providing a service for the lowest price is an example of
a. total quality. b. search quality. (this one) c. credence quality. d. experience quality
A consumer's level of satisfaction with the assistance that a sales representative provides is an example of:
a. total quality. b. search quality. c. credence quality. d. experience quality (this one)
An effective way to ensure the happiness of service employees is:
a. viral marketing. b. internal marketing (this one) c. relationship marketing. d. external marketing.
Product Line Extension
adding additional products to an existing product line in order to compete more broadly in the industry
Product Mix
all products that an organization sells ( i.e. Kraft)
public service advertisement (PSA)
an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization
Frame Error
an error that occurs when a sample drawn from a population differs from the target population
Sampling Error
an error that occurs when a sample somehow does not represent the target population
Random Error
an error that occurs when the selected sample is an imperfect representation of the overall population
Measurement Error
an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process
one-to-one marketing
an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer
Competitive Intelligence
an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors (CI)
Decision Support System
an interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions (DSS)
Close-Ended Question
an interview question that asks the respondent to make a selection from a limited list of responses
Open-Ended Question
an interview question that encourages an answer phrased in the respondent's own words
Computer-Assisted-Self-Interviewing
an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where the respondent reads questions off a computer screen and directly keys his or her answers into a computer
Computer-Assisted Personal Interviewing
an interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent's data directly into the computer
nonprofit organization
an organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
Implied Warranty
an unwritten guarantee that they good or service is fit for the purpose for which it was sold
Nonprobability Sample
any sample in which little or no attempt is made to get a representative cross section of the population
optimizers
business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one
satisficers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
Major Equipment (Installations)
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings.
empathy
caring, individualized attention to customers
repositioning
changing consumers' perceptions of a brand in relation to competing brands
Product Modification
changing one or more of a product's characteristics: Quality Modification, Function Modification, Style Modification
segmentation bases (variables)
characteristics of individuals, groups, or organizations
Supplies
consumable items that do not become part of the final product.
Primary data
data collected for the first time by a company for the company to solve an issues under investigation
secondary data
data collected from another source to solve a problem at hand
Complexity
degree of difficulty involved in understanding and using a product. *more complex the product, slower its diffusion
Secondary Demand
demand for product from specific manufacturer/ brand within a product category a) only wants shoes from Nike
Market Research Problem
determining what information is needed and how that information can be obtained efficiently and effectively
positioning
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
usage-rate segmentation
dividing a market by the amount of product bought or consumed
Component Parts
either finished items ready for assembly or products that need very little processing before becoming part of some other product.
Lanham act 1946
enable consumer to identify source of product, companies pay to defend marks (trademark and service marks)
Concept Test
evaluates a product before any prototypes are created
Marketing Information
everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans
Product
everything, both favorable and unfavorable, that a person receives in an exhange. Tangible, Services, Ideas
Business Services
expense items that do not become part of a final product.
New Product Lines
firm has not previously offered these products ex: Moleskine previously was only journals but now offers covers for iPod, iPads, etc.
Accessory Equipment
goods such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment.
Generic Product Name
identifies a product by class or type and cannot be trademarked
Original Equipment manufacturers
individuals and organizations that buy business goods, and incorporate them into the products they produce for eventual sale to other producers or to consumers.
Primary Data
information that is collected for the first time; used for solving the particular problem under investigation
Observability
is products usefulness easily observed
Development of prototype
least expensive is the CGC b) test the public reception of the product -use feedback to guide development
psychographic segmentation
market segmentation on the basis of personality, motives, lifestyles, and geodemographics
Undifferentiated targeting strategy
marketing approach that vies the market as one big market with no segment and one marketing mix -save on production costs -Usually has no appeal and does bad
Family Brand
marketing several different products under the same brand name
Consumer-Generated Media
media that consumers generate and share among themselves (CGM)
Additions to existing product lines
new products that supplement an existing line ex: fritos creates new flavors
predictive
one of the 3 roles of marketing addressing the what if questions
diagnostic
one of the 3 roles of marketing that explains the data
descriptive
one of the 3 roles of marketing that gathers and presents factual statements
niche
one segment of a market
Relative Advantage
over current/competing products ex: ipod > CD player
market
people or organizations with needs or wants and the ability and willingness to buy
Marketing Information System (MIS)
people, equipment, procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. 1. Accesses information needs 2. Develops needed info 3. Distributes info
Multiplier Effect (Accelerator Principle)
phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.
Cobranding
placing two or more brand names on a product or its package
New Product Mentality
plan that links the new product development process with the objectives of the marketing department, the business unit, and the corporation ex: P&G, energizer had a slow year and committed to new product activity increases in 2010
Marketing research
planning, collecting, and analyzing for the purpose of solving marketing issues or marketing decisions
Heterogeneous
product features become more important to the consumer than price. Such is often the case with the purchase of major appliances, clothing, furniture, and high-tech equipment.
Processed Materials
products used directly in manufacturing other products.
advantages of online research
reduced costs , real time reporting
Developing strong loyalty by creating satisfied customers who will buy additional services from the firm and are unlikely to switch to a competitor is the idea behind:
relationship marketing
Mystery Shoppers
researchers posing as customers who gather observational data about a store
Sales Revenue Model
revenue model where companies derive revenue by selling goods, information, or services to customers. E.g., Amazon
Business Analysis
second stage of screening process a) preliminary figures for sales, cost, profitability are calculated
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
geodemographic segmentation
segmenting potential customers into neighborhood lifestyle categories
Focus Group
seven to ten people who participate in a group discussion led by a moderator
Research Design
specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed
Test Marketing
test product pricing, promotion, and distribution strategies b) test market must be representative of ideal market, but should also be out of the eyes of competition *can be extremely expensive *alternatives to test marketing are being explored due to the costs
Brand Name
that part of a brand that can be spoken, including letters, words and numbers
reliability
the ability to perform a service dependably, accurately, and consistently
responsiveness
the ability to provide prompt service
Manufacturer's Brand
the brand name of a manufacturer
Trust
the condition that exists when one party has confidence in an exchange partner's reliability and integrity.
Database Marketing
the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns
Fluctuating Demand
the demand for business products - particularly new plants and equipment - tends to be less stable than the demand for consumer products.
Derived Demand
the demand for business products.
Joint Demand
the demand for two or more items used together in a final product.
nonprofit organization marketing
the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets
Disintermediation
the elimination of intermediaries such as wholesalers or distributers from a marketing channel.
Trademark
the exclusive right to use a brand or part of the brand
perishability
the inability of services to be stored, warehoused, or inventoried
intangibility
the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
inseparability
the inability of the production and consumption of a service to be separated; consumers must be present during the production
assurance
the knowledge and courtesy of employees and their ability to convey trust
Business Marketing
the marketing of goods and services to individuals and organizations for purposes other than personal consumption.
Business Ethics
the moral principles or values that generally govern the conduct of an individual or group. The standard of behavior by which conduct is judged.
core service
the most basic benefit the consumer is buying
Survey Research
the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes
Product Mix Width
the number of product lines an organization offers (i.e. Kraft owns Cadburry, Nabisco, etc)
Product Line Depth
the number or product items in a product line (all the different varieties of Coke)
tangibles
the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service
position
the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
Universe
the population from which a sample will be drawn
Planned Obsolescence
the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
Diffusion
the process by which the adoption of innovation spreads
market segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
benefit segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
Marketing Research
the process of planning, collecting, and analyzing data relevant to a marketing decision
Reintermediation
the reintroduction of an intermediary between producers and users.
service
the result of applying human or mechanical efforts to people or objects
Marketing Research Objective
the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information
Ethnographic Research
the study of human behavior in its natural context; involves observation of behavior and physical setting
Business-to-business Electronic Commerce
the use of the internet to facilitate the exchange of goods, services, and information between organizations.
Brand Equity
the value of a company and brand names
heterogeneity
the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
New to world products
these products create an entirely new market. ex: sonic canes, google glass, ipod
internal marketing
treating employees as customers and developing systems and benefits that satisfy their needs
Raw Materials
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish.
Brand Mark
unutterbale
Individual Branding
using different brand names for different products
Trialability
whether the product can be tried free or easily. ex: cereal, toothpaste, etc.
