MKTG 409 Exam 1

Guidelines for Questionnaire Introduction

-Allow interviewers to introduce themselves by name -State the name of the research company -Indicate that this questionnaire is a marketing research project -Explain that no sales will be involved -Note the general topic of discussion (in a "blind" study, "consumer opinion" is acceptable) -State the likely duration of the interview -Assure the anonymity of the respondent and the confidentiality of all answers -State the honorarium, if applicable -Reassure the respondent with a statement such as, "There are no right or wrong answers, so please give thoughtful and honest answers to each question"

What are the major steps or components of the marketing research process?

1. Define problem 2. Develop research questions or hypotheses 3. Collect data 4. Interpret findings 5. Report findings

Target Market Selection Process

1. Identify the appropriate targeting strategy 2. Determine which segmentation variables to use 3. Develop market segment profiles 4. Evaluate relevant market segments 5. Select specific target markets

CRM incorporates these three elements

1. Identifying and building a database of current and potential customers, including a wide range of demographic, lifestyle, and purchase information 2. Delivering differential messages according to each consumer's preferences and characteristics through established and new media channels 3. Tracking customer relationships to monitor the costs of retaining individual customers and the lifetime value of their purchases

Forces of marketing environment affect a marketer's ability to facilitate value-driven marketing exchanges in three ways

1. Influence customers by affecting lifestyles, standards of living, preferences and needs for products 2. Marketing environment forces can determine whether and how a marketing manager can perform certain marketing activities 3. Environmental forces may shape a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix

The Marketing Research Process

1. Locating and defining issues or problems 2. Designing the research project 3. Collecting data 4. Interpreting research findings 5. Reporting research findings

Business (Organizational) Buying Decision Process

1. Recognize problem 2. Develop product specifications to solve problem 3. Search for and evaluate possible products and suppliers 4. Select product and supplier and order product 5. Evaluate product and supplier performance

six values required by organizations striving to become more market oriented

1. Trust 2. Openness 3. Honoring Promises 4. Respect 5. Collaboration 6. Listening

Four Conditions for an Exchange:

1. Two or more individuals, groups, or organizations must participate, and each must possess something of value the other party desires 2. Exchange should provide a benefit or satisfaction to both parties involved 3. Each party must have confidence in the promise of the "something of value" held by the other 4. Parties to the exchange must meet expectations to build trust

Components of a Sampling Plan

1. Who is being surveyed? 2. How many people are to be surveyed? 3. How will they be selected?

Demand for business products can be characterized as:

1. derived 2. inelastic 3. joint 4. fluctuating

Cognitive Dissonance

A buyer's doubts shortly after a purchase about whether the decision was the right one

Database

A collection of information arranged for easy access and retrieval

Market Opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

What could happen if marketing is not included in an organization's top-level management?

A company could fail to address actual and evolving customer needs and desires

Oligopoly

A competitive structure in which a few sellers control the supply of a large proportion of a product

Monopolistic Competition

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

Monopoly

A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply

Validity

A condition that exists when a research method measures wheat it is supposed to measure

Reliability

A condition that exists when a research technique produces almost identical results in repeated trials

Extended Decision Making

A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products

Routinized Response Behavior

A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort

Limited Decision Making

A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category

Value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product

Strategic Business Unit (SBU)

A division, product line, or other profit center within the parent company

Consumer Buying Decision Process

A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation

Time Series Analysis

A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses

Random Sampling

A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place

Vendor Analysis

A formal, systematic evaluation of current and potential vendors

Marketing Information System (MIS)

A framework for managing and structuring information gathered regularly from sources inside and outside the organization

Product

A good, a service, or an idea

Consideration Set

A group of brands within a product category that a buyer views as alternatives for possible purchase

Market

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products; an aggregate of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to purchase such products

Subculture

A group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture

Reference Group

A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members

Market Growth/Market Share Matrix

A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy

Customer Lifetime Value (CLV)

A key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts

Sample

A limited number of units chosen to represent the characteristics of a total population

Mission Statement

A long-term view, or vision, of what the organization wants to become

Marketing Concept

A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

Homogeneous Market

A market in which a large proportion of customers have similar needs for a product

Heterogeneous Market

A market made up of individuals or organizations with diverse needs for products in a specific product class

Concentrated Targeting Strategy

A market segmentation strategy in which an organization targets a single market segment using one marketing mix

Pure Competition

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply

Distribution Variable of the marketing mix

A marketing manager makes products available in the quantities desired to as many target-market customers as possible, keeping total inventory, transportation, and storage costs as efficient as possible; select and motivate intermediaries (wholesalers and retailers); establish and maintain inventory control procedures, develop and manage transportation and storage systems

Attitude Scale

A means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object

Opinion Leader

A member of an informal group who provides information about a specific topic to other group members

Regression Analysis

A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or per capita income

Modified Rebuy Purchase

A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified

Quota Sampling

A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

Business Cycle

A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery

Self-Concept

A perception or view of oneself

enduring involvement

A person's interest in a product or product category that is ongoing and long-term

In-Home (Door-to-Door) Interview

A personal interview that takes place in the respondent's home

Marketing Strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market; the selection and analysis of a target market and the creation and maintenance of an appropriate marketing mix that will satisfy those people

Delphi Technique

A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts

Personal Interview Survey

A research method in which participants respond to survey questions face-to-face

Mail Survey

A research method in which respondents answer a questionnaire sent through the mail

Online Survey

A research method in which respondents answer a questionnaire via email or on a website

Telephone Survey

A research method in which respondents' answers to a questionnaire are recorded by an interviewer on the phone

Shopping Mall Intercept Interview

A research method that involves interviewing a percentage of individuals passing by "intercept" points in a mall

Straight Rebuy Purchase

A routine purchase by a business buyer of the same products under approximately the same terms of sale

Executive Judgment

A sales forecasting method based on the intuition of one or more executives

Nonprobability Sampling

A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement

Personality

A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations

Organizational (Corporate) Culture

A set of values, beliefs, goals, norms, and rituals that members of an organization share

Focus Group

A small group of 8 to 12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept

Target Market

A specific group of customers on whom an organization focuses its marketing efforts

Prosperity

A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)

Recovery

A stage of the business cycle during which the economy moves from recession or depression toward prosperity

Depression

A stage of the business cycle during which unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy

Recession

A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending

Marketing Objective

A statement of what is to be accomplished through marketing activities

Green Marketing

A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

Undifferentiated Targeting Strategy

A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product; organization --> single marketing mix --> target market

Differentiated Targeting Strategy

A strategy in which an organization targets two or more segments by developing a marketing mix for each segment

Corporate Strategy

A strategy that determines the means of utilizing resources in the various functional areas to reach the organization's goals

Decentralized Organization

A structure in which decision-making authority is delegated as far down the chain of command as possible

Centralized Organization

A structure in which top-level managers delegate little authority to lower levels

Sales Force Forecasting Survey

A survey of a firm's sales force regarding anticipated sales in their territories for a specified period

Customer Forecasting Survey

A survey of customers regarding the types and quantities of products they intend to buy during a specific period

Better Business Bureau (BBB)

A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms

Stratified Sampling

A type of probability sampling in which the population is divided into groups with a common attribute, and a random sample is chosen within each group

Probability Sampling

A type of sampling in which every element in the population being studied has a known chance of being selected for study

Sampling

A type of sampling in which every element in the population being studied has a known chance of being selected for study

On-Site Computer Interview

A variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor

Micromarketing

A way of segmenting a market that focuses precise marketing efforts on very small geographic markets, such as communities or neighborhoods

Geodemographic Segmentation

A way of segmenting the market that clusters people by zip codes or neighborhood units based on lifestyle and demographic information

Marketing Plan

A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies

Profits can be obtained through relationships in the following ways:

Acquiring new customers, enhancing the profitability of existing customers, extending the duration of customer relationships

Roles

Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding people

Disposable Income

After-tax income

Population

All the elements, units, or individuals of interest to researchers for a specific study

What is the chief advantage of the concentrated targeting strategy?

Allows a firm to specialize

Sustainable Competitive Advantage

An advantage that the competition cannot copy

Federal Trade Commission (FTC)

An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

Random Factor Analysis

An analysis attempting to attribute erratic sales variations to random, non-recurring events

Seasonal Analysis

An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales

Cycle Analysis

An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner

Trend Analysis

An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales

Reciprocity

An arrangement unique to business marketing in which two organizations agree to buy from each other

Value Analysis

An evaluation of each component of a potential purchase

Performance Standard

An expected level of performance against which actual performance can be compared

Ethical Issue

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

Willingness to Spend

An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces

Selective Distortion

An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs

Level of Involvement

An individual's degree of interest in a product and the importance of the product for that person

Attitude

An individual's enduring evaluation of feelings about, and behavioral tendencies toward, an object or idea

Lifestyle

An individual's pattern of living expressed through activities, interests, and opinions

North American Industry Classification System (NAICS)

An industry classification system that generates comparable statistics among the United States, Canada, and Mexico

Internal Search

An information search in which buyers search their memories for information about products that might solve their problem

External Search

An information search in which buyers seek information from sources other than their memories

Hypothesis

An informed guess or assumption about a certain problem or a set of circumstances

Telephone Depth Interview

An interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys

Social Class

An open group of individuals with similar social rank

Sole Sourcing

An organization's decision to use only one supplier

Multiple Sourcing

An organization's decision to use several suppliers

New-Task Purchase

An organization's initial purchase of an item to be used to perform a new job or solve a new problem

Social Responsibility

An organization's obligation to maximize its positive impact and minimize its negative impact on society

Market Orientation

An organization-wide commitment to researching and responding to customer needs; requires the "organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across department, and organization-wide responsiveness to it"

Research Design

An overall plan for obtaining the information needed to address a research problem or issue

Impulse Buying

An unplanned buying behavior, involving no conscious planning, resulting from a powerful urge to buy something immediately

Marketing Cost Analysis

Analysis of costs to determine which are associated with specific marketing efforts

Sales Analysis

Analysis of sales figures to evaluate a firm's performance

Statistical Interpretation

Analysis of what is typical and what deviates from the average

SWOT Analysis

Assessment of an organization's strengths, weaknesses, opportunities, and threats

Consumer Misbehavior

Behavior that violates generally accepted norms of a particular society

Questionnaire Construction

Carefully consider wording Avoid loaded questions Consider timing and context Avoid the politically correct answer Give a range of possible answers Use scaled answer sets

Learning

Changes in an individual's thought processes and behavior caused by information and experience

Segmentation Variables

Characteristics of individuals, groups, or organizations used to divide a market into segments

Spiritual Acquaintance

Charities to support, political ideas, lifestyle choices

Types of questions for questionnaire construction

Close-ended questions and open-ended questions

What are the major components of a total information system?

Collecting information, internal processing, providing information

Crowdsourcing

Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call

How can a company reduce customer cost of risk?

Company can offer good basic warranties or extended warranties for additional charge, offer 100% satisfaction guarantee

Marketing Mix is shaped by...

Competitive forces, economic conditions, political forces, laws and regulations, technology, sociocultural forces

What types of targeting strategies can marketers use *through market segmentation*?

Concentrated, differentiated

Stakeholders

Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

Who are considered core stakeholders in developing a marketing strategy?

Customers and competitors

Marketing Decision Support System (MDSS)

Customized computer software that aids marketing managers in decision making

Secondary Data

Data compiled both inside and outside the organization for some purpose other than the current investigation

Primary Data

Data observed and recorded or collected directly from respondents

How to start a questionnaire construction? (2)

Decide what info you want to know and develop ideal model

Why do firms fail to attract customers?

Define their business as "making a product" rather than "helping potential customers satisfy their needs and wants"

Derived Demand

Demand for business products that stems from demand for consumer products

Joint Demand

Demand involving the use of two or more items in combination to produce a product

Inelastic Demand

Demand that is not significantly altered by a price increase or decrease

Demand

Derived, inelastic, joint demand, fluctuating

Marketers may influence consumers' evaluations by framing the alternatives

Describing the alternatives and their attributes in a certain manner

Most business buyers use one or more of the following purchasing methods:

Description, inspection, sampling, negotiation

What must a marketer do to maintain an assortment of products that help an organization achieve its goals?

Develop new products, modify existing ones, eliminate those that no longer satisfy enough buyers or yield unacceptable profits

Discretionary Income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

What may prevent adjusting of prices frequently/significantly?

Economic conditions, competitive structure, government regulations

Autonomic

Equally likely to be made by the husband or wife, but not by both (e.g., Men's clothing, luggage, toys and games, sporting equipment, cameras)

How can higher prices be used competitively?

Establishes a product's premium image (e.g., Rolex)

First step in implementing the marketing concept

Establishing an information system to deliver customers' real needs and use the information to create satisfying products

Relationship Marketing

Establishing long-term, mutually satisfying buyer-seller relationships

Strategic Performance Evaluation

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed

Psychological Influences

Factors that in part determine people's general behavior, thus influencing their behavior as consumers; perception, motives, learning, attitudes, personality and self-concept, lifestyles

Government Markets

Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies

Wife dominant

Female head of household (e.g., children's clothing, women's clothing, groceries, household furnishings)

Total Budget Competitors

Firms that compete for the limited financial resources of the same customers

Product Competitors

Firms that compete in the same product class but market products with different features, benefits, and prices

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices

Generic Competitors

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

Sales Orientation

First half of 20th century - the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

What's involved in the problem definition stage?

Focus on building a perspective, broad definition - exploratory research, narrow definition - decision-oriental research

Income

For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period

Codes of Conduct

Formalized rules and standards that describe what the company expects of its employees

When firms are proactive and responsive to stakeholder concerns...

Found to increase financial performance, crucial to long-term growth of an organization and its products

Marketing Mix

Four marketing activities - product, distribution, promotion, and pricing - that a firm can control to meet the needs of customers within its target market

Market changes easily influence

How stakeholders perceive certain products

Promotional activities can help create...

Image and prestige characteristics

What do you need to collect before developing a marketing mix?

In-depth, up-to-date information about customer needs

How can a company reduce customer costs of time and effort?

Increase product availability

Producer Markets

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations

Market Segment

Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs

Business Market

Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations

Demand for Business Products

Industrial Demand

Situational Influences

Influences that result from circumstances, time, and location that affect the consumer buying decision process; physical surroundings, social surroundings, time, purchase reason, buyer's mood and condition

Single-Source Data

Information provided by a single marketing research firm

Reseller Markets

Intermediaries that buy finished goods and resell them for a profit

What is the key in implementing the marketing strategy?

Listening and responding to consumers' frustrations and appreciation

What is the greatest perceived value offered by the marketing mix?

Lowest price, most efficient, most convenient

Syncratic

Made jointly by husband and wife (e.g., vacations, TVs, living room furniture, carpets, financial planning services, family cars)

Market Test

Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts

Husband dominant

Male head of household (e.g., lawnmowers, hardware and tools, stereos, automobile parts)

Big Data

Massive data files that can be obtained from both structured and unstructured databases

Breakdown Approach

Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it

Buildup Approach

Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered

"Movie Buff" Friend

Movies to see in theaters, rent, stream or buy

Most business purchases are one of three types:

New-task, straight rebuy, modified rebuy

Evaluate Criteria

Objective and subjective product characteristics that are important to a buyer

B2B E-Commerce Sites

Online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments

Institutional Markets

Organizations with charitable, educational, community, or other nonbusiness goals

Consumerism

Organized efforts by individuals, groups, and organizations to protect consumers' rights

Competition

Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographic area

It is accepted by others

People think they are smarter than others

Medical Friend

Prescription drugs, vitamins, health products,

What is the most flexible variable in the marketing mix?

Price variable

Intense price competition leads to...

Price wars

Marketing Ethics

Principles and standards that define acceptable marketing conduct as determined by various stakeholders

Types of Business Markets

Producer Markets Reseller Markets Government Markets Institutional Markets

Consumer Market

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit

Promotion Variable of Marketing Mix

Relates to activities used to inform and persuade to create a desired response; focuses integrated marketing communication to inform and persuade consumers to purchase a product

Price Variable of Marketing Mix

Relates to decisions and actions associated with pricing objectives and policies and actual product prices

Requirements for effective use of market segmentation

Relevancy, measurability, accessibility, sustainability

Selective Retention

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

Descriptive Research

Research conducted to clarify the characteristics of certain phenomena to solve a particular problem

Exploratory Research

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific

Conclusive Research

Research designed to verify insights through objective procedures and to help marketers in making decisions

Experimental Research

Research that allows marketers to make casual inferences about relationships between variables

Product variable of the marketing mix deals with...

Researching customers' needs and wants and designing a product that satisfies them

Expert Forecasting Survey

Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors

Dissatisfied Customers who lacks trust in exchange relationship...

Search for alternative organizations and products

Information Inputs

Sensations received through sight, taste, hearing, smell, and touch

Factors considered in selecting a segmentation variable

Should relate to customers' needs for, uses of, or behavior toward the product

Customer Advisory Boards

Small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy

Exchange Seller --> Buyer

Something of value (e.g., goods, services, ideas)

Exchange Buyer --> Seller

Something of value (e.g., money, credit, labor, goods)

Strategic Windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

First-Mover Advantage

The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

Late-Mover Advantage

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Wealth

The accumulation of past income, natural resources, and financial resources

Culture

The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations

Marketing Citizenship

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Sales Forecast

The amount of a product a company expects to sell during a specific period at a specified level of marketing activity

Technology

The application of knowledge and tools to solve problems and perform tasks more efficiently

Marketing Environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

Buying Behavior

The decision processes and actions of people involved in buying and using products

Buyer Behavior

The decision processes and acts of individuals involved in buying and using products

Consumer Buying Behavior

The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes

Benefit Segmentation

The division of a market according to benefits that consumers want from the product

Problem Recognition

The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.; occurs when a buyer becomes aware of a difference between a desired state and an actual condition

Maslow's Hierarchy of Needs

The five levels of needs that humans seek to satisfy, form most to least important (Below is bottom to top of pyramid) o Basic Needs: Physiological Needs: Food, water, warmth, rest Safety Needs: Security, safety o Psychological Needs: Belongingness and Love Needs: Intimate relationships, friends Esteem Needs: Prestige and feeling of accomplishment o Self-Fulfillment Needs: Self-Actualization: Achieving one's full potential, including creative activities

Social Influences

The forces other people exert on one's buying behavior; roles, family, reference groups, opinion leaders, social classes, culture and subculture

Sociocultural Forces

The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles

Motivation

The inner driving forces or reasons behind an individual's actions and behaviors

Company Sales Potential

The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product

Market Density

The number of potential customers within a unit of land area

Buying Center

The people within an organization who make business purchase decisions

Market Share

The percentage of a market that actually buys a specific product from a particular company

Sustainability

The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

Cause-Related Marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis

Selective Exposure

The process by which some inputs are selected to reach awareness and others are not

Environmental Analysis

The process of assessing and interpreting the information gathered through environmental scanning

Environmental Scanning

The process of collecting information about forces in the marketing environment

Marketing

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Market Segmentation

The process of dividing a total market into groups consisting of people or organizations with relatively similar product needs in order to design a marketing mix that matches those needs

Strategic Planning

The process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy

Strategic Marketing Management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Marketing Implementation

The process of putting marketing strategies into action

Perception

The process of selecting, organizing, and interpreting information inputs to produce meaning

Consumer Socialization

The process through which a person acquires the knowledge and skills to function as a consumer

Exchanges

The provision or transfer of goods, services, or ideas in return for something of value

Business (Organizational) Buying Behavior

The purchase behavior of producers, government units, institutions, and resellers

Customers

The purchasers of organizations' products; the focal point of all marketing activities

Competitive Advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

Buying Power

The size of the resources, such as money, goods, and services that can be traded in an exchange, that enable the individual to make purchases

Strategic Philanthropy

The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits

Marketing Research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Justification/rationalization

The thrill of getting away with it

Market Potential

The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity

Marketing Analytics

The use of tools and methods to measure and interpret the effectiveness of a firm's marketing activities

Economic Reasons

There is little risk of getting caught

Core Competencies

Things a company does extremely well, which sometimes gives it an advantage over its competition

How do consumers develop a concept of value?

Through integration of their perceptions of product quality and financial sacrifice

What types of targeting strategies can marketers use?

Undifferentiated, concentrated, differentiated

Questionnaire Construction Wording of Questions

Use simple, direct language; question structure

Customer Relationship Management (CRM)

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

Product Specifications

Written statements describing a product's necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product

Deciders

actually make the buying decision, whether or not they have the formal authority to do so

Demographic Variables

age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class

Customer costs include

anything a buyer must give up to obtain the benefits the product provides including cost, time, effort, and risk

Customer benefits include

anything a buyer receives in an exchange (e.g., good/service, amenities, customer service, etc.)

Gatekeepers

control the flow of information and may limit the alternatives considered

Customer Value = _______ - _________

customer benefits - customer costs

What is the major focus of marketing concept?

customer satisfaction

What characteristics are used to segment markets?

demographic, geographic, psychographic, behavioristic

Methods of Buying

description, inspection, sampling, negotiation

Customer Attributes

detailed information, technical specifications, partnerships

PRIZM

geo-demographic classification system that merges Census data with product consumption and media usage patterns; Potential Ratings Index by ZIP Market

Production Orientation

industrial revolution - make it and people will buy it

Transaction Characteristics

large orders, expensive items, extended negotiations, reciprocity

Types of Purchases

new task, straight rebuy, modified rebuy

Influencers

often technical personnel, such as engineers, who help develop product specifications and evaluate alternatives

Users

organizational members who will actually use the product

Psychographic Variables

personality attributes, motives, lifestyles

customers' primary concerns

price, quality, service, supplier relationships

Geographic Variables

region, urban, suburban, rural, city size, county size, state size, market density, climate, terrain

Three types of consumer decision making

routinized response behavior limited decision making extended decision making

Buyers

select suppliers and negotiate terms of purchase

Partnerships

suppliers and their customers build and maintain mutually beneficial relationships

situational involvement

temporary and dynamic and results from a particular set of circumstances (emergency)

Behavioristic Variables

volume usage, end use, benefit expectations, brand loyalty, price sensitivity

Dimensions of Marketing to Business Customers

• Characteristics of Transactions with Business Customers • Attributes of Business Customers • Primary Concerns of Business Customers • Methods of Business Buying • Types of Business Purchases • Demand for Business Products

Requirements to be a Market

• Needs for a product in a product category • Ability to buy • Willingness to buy • Authority to buy

Major Components of the Perceptual Process

• Perceptual Selection • Perceptual Organization • Perceptual Interpretation