MARK3000 Exam 2-Grantham

Big Data

data sets that are too large and complex to analyze with conventional data management and data mining software -

Inbound Transportation

dispatcher coordinates deliveries - manufacturer may pay transportation expenses or retailers may negotiate directly with trucking companies and pay expenses

Lanham Act

don't want brand name to be used to describe all the products in a company

Diffusion of Innovation

process by which the use of an innovation spreads throughout a market group over time and over various categories of adopters - rate at which consumers are likely to adopts a new product or service

Core Customer Value

the basic problem-solving benefits that customers are seeking - marketers convert core customer value into an actual product

Disintermediation

using less intermediates and going directly to the consumer - producers have to perform the same thing as middleman - trend is to move to direct

Cross-docking

vendors ship merchandise prepackaged and ready for sale - merchandise goes to a staging area instead of into storage - when all merchandise going to a particular store has arrived in the staging area, it is loaded onto a truck and away it goes - merchandise goes from the receiving dock to the shipping dock

Copycat

want you to do the comparison between the name brand - lower price point - Ex=> "Great Value" brand

Brand Dilution

when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold - evaluate the fit between the product class of the core brand and the extension (starbucks introduced a line of instant coffee) - evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes - refrain from extending the bran name to too many products - whether the brand extension will be distanced from the core brand

Brand Loyalty (brand equity)

when a consumer buys the same brand's products or service repeatedly over time rather than buying from multiple suppliers in the same category - consumers are often less sensitive to price - Ex=> firms like airlines, hotels, or credit card companies may reward customers with loyalty customer relationship management (CRM) programs, such as points that can be redeemed - marketing costs are much lower - firm insulated from competition

Indirect Marketing Channel

when one or more intermediaries work with manufacturers to provide goods and services to customers

Secondary Package

wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners - can contain additional product info that may not be available on primary

Brand Licensing

contractual agreement between firms where one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee

Step 4: Analyzing the Data and Developing Insights (marketing research process)

converting data into information to explain, predict, and/or evaluate a particular situation - data, on its own, has limited value to marketers - when data is interpreted, it becomes info that is useful to marketing decision makers

Alpha Testing

determine whether a product will perform according to its design and whether it satisfies the need for which it was intended -INTERNAL - use employees to test product - occurs in firm's R&D department

Intensive

convenience goods - many intermediaries

Premium

high end

Retailer

sells mainly to final consumers

Laggards

consumers who like to avoid change and rely on traditional products until they are no longer available - tradition

Generic

"no name" - just says napkins, ketchup (name of product)

Why do firms create new products?

- changing customer needs - market saturation (without new products or services, the value of the firm will ultimately decline) - managing risk through diversity (innovation creates a broader portfolio of products which helps them diversify their risk and enhance firm value better than a single product can) - Fashion cycles (produce entirely new product selections throughout the year) - improving business relationships

Functions of Packaging

- contain and protect - promote - facilitate storage, use and convenience - facilitate recycling - provide info

Idea Generation

- customer input - R&D Consortia (groups of other firms and institutions that explore new ideas or obtain solutions for developing new products) - Licensing (firms buy the rights to use the technology or ideas from other research intensive firms) - Brainstorming - Outsourcing - Competitors' products

Mechanical Observation (qualitative)

- eye movement recorders - voice pitch analysis - scanners

Why is research important to marketers?

- helps reduce some uncertainty - provides a crucial link between firms and their environments (enables them to be more customer oriented) - can constantly be monitoring their competitors (firms can anticipate and respond quickly to competitive moves)

Questions to Avoid (quantitative) (questionnaire)

- leading ("BMW is the fastest car on the road, right?") - double barreled ("do you like to shop for clothing and food?") - jargon or inappropriate terminology - consumer unable to answer easily ("how much money did you spend on groceries last month?")

Evaluation of Results

- satisfaction of technical requirements - customer acceptance - satisfaction of the firm's financial requirements

Value of Branding for the Customer

1) Brands facilitate purchases - brands are easily recognized by customers and because they signify a certain quality level and familiar attributes, brands help consumers make quick decisions 2) Brands establish loyalty 3) Brands protect from competition and price competition - strong brands are more established in the market and have a more loyal customer base 4) Brands are assets - brands can be legally protected through trademarks and copyrights 5) Brands affect market value

How Firms Develop New Products

1) Idea Generation 2) concept testing 3) product development 4) market testing 5) product launch 6) evaluation of results

Product Life Cycle

1) Intro stage 2) Growth stage 3) Maturity stage 4) Decline stage

Changes in the Field of Marketing Research

1) increase in the amounts of data to which retailers, service providers, and manufacturers have access 2) ability to collect these data from transactions, customer relationship management systems, websites, and social media platforms that firms increasingly use to engage with their customers 3) ease of collecting and storing these data 4) computing ability readily available to manipulate data in real time 5) access to in-house or available software to convert the data into valuable decision-making insights using analytic dashboards

The Marketing Research Process

Step 1: Defining the Objectives and Research Needs Step 2: Designing the Research Step 3: Collecting the Data Step 4: Analyzing the Data and Developing Insights Step 5: Developing and Implementing an Action Plan

Market Testing

Pre-Market Tests - customers exposed - customers surveyed - firm makes decisions - you or I could opt in to be apart of the research - research panel Test Marketing - mini product launch - more expensive than premarket tests - market demand is estimated - introduces to a limited geographical area prior to a national launch - uses all elements of the marketing mix

Observation (qualitative)

an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny - when consumers are unable to articulate their responses, this research becomes very useful

Step 5: Developing and Implementing an Action Plan (marketing research process)

analyst prepares results and presents them to decision makers - marketing research presentation consists of an executive summary, body of the report (discusses research, objectives, methodology used, and detailed findings), the conclusions, the limitations, and appropriate supplemental tables, figures and appendixes

Product

anything that is of value to a consumer and can be offered through a voluntary marketing exchange - includes goods, services, places, ideas, organizations, people, and communities

Fads (non-traditional PLC)

becomes unpopular just as quickly - very unpredictable products - marketers can make and lose a lot of money => HIGH RISK - want to get out at the peak

Private-Label Brands (store brands)

brands developed and marketed by a retailer and available only from that retailer

Manufacturer Brands (national brands)

brands owned and managed by the manufacturer - Ex=> Nike, Coca Cola, KitchenAid, Sony - manufacturer develops the merchandise, produces it to ensure consistent quality, and invests in a marketing program to establish an appealing brand image - have control over their marketing strategy - create their own brand equity

Innovators

buyers who want to be the first to have the new product or service - venture - obsessive about trying new products - open to risk

Step 3: Collecting the Data (marketing research process)

can be collected from secondary or primary data sources

Structured Questions (quantitative)

close-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

Primary Data

collected to address specific research needs - creating new info - some common collection methods= focus groups, surveys, and in-depth interviews - can employ a qualitative or quantitative research method

Internal Secondary Data

companies generate a tremendous amount of data from their day to day operations and they have access to their rich cache of customer info and purchase history - can find this stuff in data warehouses - includes data mining

Product Mix

complete set of all products offered by a firm

Electronic Data Interchange

computer-to-computer exchange of business documents from a retailer to a vendor and back - vendors can transmit info about on-hand inventory status, vendor promotions, and cost changes to the retailer - quick communication

Concept Testing

concept= brief written description of the product - customers reactions to this concept determine whether or not it goes forward - triggers the marketing research process

Syndicated External Secondary Data

data available for a fee from commercial research firms such as Information Resources Inc (IRI), National Purchase Diary Panel, and Nielsen - scanner data and panel data

Sentiment Mining (social media research)

data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter - data is analyzed to distill customer attitudes toward and preferences for products and advertising campaigns

In-Depth Interviews (qualitative)

exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue - can communicate how people really feel about a product or service at the individual level - relatively expensive and time-consuming - somewhat unstructured - limited number

Agent/Broker

facilitates sales between manufacturing and others - does not take title

Wholesalers

firm engaged in buying, taking title to, often storing and physically handling goods in large quantities then reselling the goods (usually in smaller quantities) to retailers - assumes risk

Family Brands

firm's own corporate name used to brand its product lines and products - when all products are sold under one of this, the individual brands benefit from the overall brand awareness associated with the family name - Ex=> Kellogg's Special K, Kellogg's Froot Loops

Questionnaire (quantitative)

form that features a set of questions designed to gather info from respondents and thereby accomplish the researchers' objectives - questions cannot be misleading - must be worded with vocabulary that will be familiar and comfortable to those being surveyed - general questions first, more specific questions next, and demographic questions at the end

Sample

group of customers who represent the customers of interest in a research study - generalize their opinions to describe all customers with the same characteristics - may choose them at random - may choose them on the basis of some characteristic (age)

Product Lines

groups of associated items such as those that consumers use together or think of as part of a group of similar products

Beta Testing

having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues - EXTERNAL

Seasonal (non-traditional PLC)

high and low periods of demand depending on season

Extending Time in the PLC

increase frequency of use - by same consumers increase number of users - expand into different target market with same product find new uses - identify new applications of the product

Maturity Stage

industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them - late majority are typical consumers - high number of competitors - want to stay here as long as possible - saturated markets - development of new products

Qualitative Research

informal research methods, including observation, following social media sites, in-depth interviews, focus groups, and projective techniques - broad, open-ended responses - provides initial info that helps the researcher more clearly formulate the research objectives

Panel Data (Syndicated External Secondary Data)

information collected from a group of consumers - records of what consumers have purchased - responses to survey questions that the client gives to the panel - focuses on the total weekly consumption by a particular person or household

Just in Time Systems

inventory management system designed to deliver less merchandise on a more frequent basis than traditional inventory systems - reduce lead time - increase product availability - lower inventory resentment

Data Warehouses (internal secondary data)

large computer files that store millions and even billions of pieces of individual data

Late Majority

last group of buyers to enter a new product market - product has achieved its full market potential - skepticism - want to see things being used by social media

Niche (non-traditional PLC)

long-lasting maturity stage - never hit the high sales volume - catering to very small target market - come-up product that is very unique for a particular group

Distribution Center

manages inbound transportation, receiving and checking using UPC and RFID, storing and cross-docking, getting merchandise floor ready, ticketing and marking, preparing to ship merchandise to stores, shipping to store

Direct Marketing Channel

manufacturer sells directly to the buyer - disintermediation

Factors in Deciding Number of Levels

market characteristics - size, geographic dispersion, buying patterns product factors - complexity, cost, ease of movement company factors - size, desire for control, diversity in consumers/retailers **shorter more direct channels for complex, expensive or customized items **longer more indirect channel for low cost, standard items (most consumer products)

Trends (non-traditional PLC)

mass movements

Brand Awareness (brand equity)

measures how many consumers in a market are familiar with the band and what it stands for and have an opinion about it - created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, slogan) in the firm's communications to consumers through advertising or publicity - some brands gain so much popularity over time that they become synonymous with the product itself (brand name starts being used as the generic product category)

Early Majority

members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular service - deliberation (wait until more choices) - collect and evaluate more brands - weigh more pros and cons - few new products and services can be profitable until this group buys them

Brand Associations (brand equity)

mental and emotional links that consumers make between a brand and its key product attributes - slogan, logo, or famous personality

Push Supply Chain

merchandise allocated based on forecast - does not need sophisticated IS system - good for steady demand items - what I have today is based on what happened around this time in the past

Pioneers (breakthroughs)

new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market - Ex=> Apple iPod (changed the way people listened to music and created a new industry devoted to cases, ear buds, speakers)

Associated Services (aka Augmented Product)

nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service - these are added to round out the offering

Churn

number of consumers who stop using a product or service, divided by the average number of consumers of that product or service

Product Mix Breadth

number of product lines offered by a firm (variety) - too much of this becomes costly to maintain - Increase= add new product lines to capture new or evolving markets and increase sales - Decrease= delete entire product lines to address changing market conditions or meet internal strategic priorities

Product Line Depth

number of products or categories within a product line - Increase= might add items to address changing consumer preferences or to preempt competitor while boosting sales - Decrease= necessary to delete products within a product line to realign the firm's resources (eliminate unprofitable or low margin items and refocus marketing efforts on their more profitable items)

Actual Product

physical attributes of a product including the bran name, features/design, quality level, and packaging

Unstructured Questions (quantitative)

open-ended questions that allow respondents to answer in their own words - Ex=> "what are the most important characteristics for choosing a brand of shampoo?" - Fill in the blank and projective technique ("if a wendy's hamburger could talk what would it say?")

Pull Supply Chain

orders based on sales data - more accurate inventory - better when demand is uncertain

Primary Package

packaging the consumer uses from which he or she typically seeks convenience in terms of storage, use or consumption - Ex=> toothpaste tube

Secondary Data

pieces of info that have been collected prior to the start of the focal research project (usually is data that is readily available) - both internal (company's sales invoices, customer lists, and other reports generated by the company itself) and external (census data, info from trade associations, and reports published in magazines) data sources - "looking things up"

Co-Branding

practice of marketing two or more brands together, on the same package or promotion - designed to appeal to diverse market segments - can have risks especially if the customers of each brand turn out to be vastly different

Growth Stage

product gains acceptance, demand and sales increase, and competitors emerge in the product category - selective demand - early adopter and early majority are typical consumers - initial healthy profits - wider distribution

Unsought Products/Services

products or services consumers either do not normally think of buying or do not know about - SELLER HAS THE JOB OF PUSHING THEIR PRODUCE ON CONSUMERS - fire extinguishers, dictionary, medical supplies

Shopping Products/Services

products or services for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances - OPEN TO CONSIDER ALL BRANDS - shoes, cellphones

Convenience Products/Services

products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase - HABIT - most consumers are this - canned goods, shampoo, candy

Specialty Products/Services

products or services toward which the customers shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers - NOT OPEN TO ALL OPTIONS - SPECIFIC BRANDS - wedding gowns, college apparel, antiques

Branding

provides a way for a firm to differentiate its product offerings from those of its competitors - logos, symbols, name, characters, slogans, jingles, and distinctive packages, URLs

Perceived Value (brand equity)

relationship between a product's or service's benefits and its cost - customers usually determine its value in relation to that of its close competitor - if an inexpensive brand is about the same quality as premium brand, the perceived value of the cheaper choice is high

Step 1: Defining the Objectives and Research Needs (marketing research process)

research is both expensive and time-consuming - any question a company wants answered could initiate a research project - the complexity of the project depends on how much time and resources the company has available - compare the benefits and costs

Brand Equity

set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service - marketing expenditures that are allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty

Focus Groups (qualitative)

research technique in which a small group of persons (usually 8-12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry - unstructured - initial reactions to a new of existing product or service, opinions about competitors, or reactions

Step 2: Designing the Research (marketing research process)

researchers identify the type of data needed and determine the research necessary to collect them - secondary v primary - qualitative v quantitative

Decline Stage

sales decline and the product eventually exits the market - "organized abandonment" - long-run drop in sales - laggards are typical consumer - elimination of all nonessential marketing expenses

Early Adopters

second group of consumers who generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review - opinion leaders - respect of others is important - connection to social norms

Marketing Research

set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas

Selective

shopping and some specialty goods - several intermediaries

Exclusive

specialty goods and industrial equipment - one intermediary

Introduction Stage

stage of the product life cycle when innovators start buying the product - sales and profits are low (makes sense because investments are high) - primary demand - innovators are typical consumers - little competition - frequent product modification - promotion focuses on awareness and info

Brand Re-positioning

strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences

Quantitative Research

structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data

Ethnographic Observation (qualitative)

study of human behavior in its natural context, involving observation of behavior and physical setting - see what people actually do (not just what they say they do) - can't measure attitudes, beliefs, intentions - not always a good representation of the general population

Survey Research (quantitative)

systematic means of collecting information from people that generally uses a questionnaire - questionnaire questions can be structured or unstructured questions - telephone interviews, mail surveys, internet surveys, mall intercept interviews, in-person interviews - Issues: interviewer bias, consumer willingness to participate

Social Media Research (qualitative)

these contributors are rarely shy about providing their opinions about the firm's own products or its competitors' offerings - can cross-reference this commentary with consumers' past purchases to derive a better sense of what they want - blogs and online review monitoring - sentiment mining

Inexpensive External Secondary Data

these sources are not always adequate to meet researchers' needs - was initially acquired for some other purpose than the research question at hand so it may not be completely relevant or timely - census is good because it gives demographic data about a particular market area and for a low cost but it is collected at the beginning of every decade so it quickly becomes outdated

Lovemark (brand core)

transcend brands (reach heart and mind) - it's a relationship, not a mere transaction - Kevin Roberts coined this term

Experimental Research (quantitative)

type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable

Data Mining (internal secondary data)

use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables - mines and analyzes specific data to identify three income groups (upscale, middle income, and less affluent) - stores can find out what people buy together and put them beside each other in the store - data mining can reduce the company's churn levels

Individual Brands

use of individual brand names for each of a firm's products - Ex=> Kellogg's allows other products such as Keebler cookies, Famous Amos and Cheez-Its to keep individual identities

Brand Extension

use of the same brand name for new products being introduced to the same or new markets - increase in the product mix's breadth - Colgate sells toothpaste, toothbrushes, and other dental hygiene products even though their original product was just toothpaste

Line Extension

use of the same brand name within the same product line - increase in a product line's depth

Scanner Data (Syndicated External Secondary Data)

used in quantitative research obtained from scanner readings of Universal Product Code labels at checkout counters - data from purchases are likely to be acquired by leading marketing research firms (IRI or Nielsen) which use this info to help leading consumer packaged-goods firms assess what is happening in the marketplace - focuses on weekly consumption of a particular product at a given unit of analysis (individual store, chain, region)