Marketing Exam 2 (CH 7-12)

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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.


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