Marketing 3301 - Exam 2 - Chapters 5-10 - DBU

Marketing research

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

Reason for purchase

involves what exactly the product purchase should accomplish and for whom.

What is the main focus of a marketing information system?

is on data storage and retrieval, as well as on computer capabilities and management's information requirements.

Research

it is a process for gathering information that is not currently available to decision makers.

stratified sampling

the population of interest is divided into groups according to a common attribute, and a random sample is then chosen within each group

. Market segmentation

the process of dividing a total market into groups, or segments, that consist of people or organizations with relatively similar product needs

Perception

the process of selecting, organizaing, and interpreting information inputs to produce meaning.

Validity

the research method must measure what it is supposed to measure, not something else.

What is "dumping?"

the selling of products at unfairly low prices.

. Interpretation

the third step in the perceptual process, the assignment of meaning to what has been organized.

What are the three purposes behind business purchases?

1. Resale 2. direct use in producing other products 3. use in general daily operations.

What are the four business buying methods?

1. description 2. inspection 3. Sampling 4. negotiation

What is the meaning of "Joiner?"

A Technographics segment that is growing rapidly. Anyone who becomes a member of Twitter, Facebook, Pinterest, Google plus, or other social networking sites

What is a heterogeneous market?

A market comprised of individuals or organizations with diverse product needs

What are the five categories of situational influences?

1. Physical surroundings 2. Social surroundings 3. Time perspective 4. Reason for purchase 5. Buyer's momentary mood and condition

What are the five stages of the consumer buying decision process?

1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase 5. Postpurchase evaluation

What are the five stages of the business buying decision process?

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

What is a market?

a group of individuals and/or organizations that have a desire or need for products in a product class and have the ability, willingness, and authority to purchase those products.

Modified rebuy purchase

a new-task purchase is altered after two or three orders, or requirements associated with a straight rebuy purchase are modified. A business buyer might seek faster delivery, lower prices, or a different quality level of product specifications.

What is the meaning of "inelastic demand

a price increase or decrease does not significantly alter demand for a business product.

What is "Online fraud?"

includes any attempt to conduct dishonest activities online.

perceptual organization

. The second step in the process of perception

Marketing research process steps

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

What are the three types of business purchases?

1. New-task purchase 2. A straight rebuy purchase 3. Modified rebuy purchase

What are the three steps of perception?

1. Selection 2. perceptual organization 3. Interpretation

Evaluation of alternatives

A successful information search within a product category yields a group of brands that a buyer views as possible alternatives. This group of brands is sometimes alled a consideration set (or an evoked set). Consumers assign a greater value to a brand they have heard of than to one they have not - even when they do not know anything else about the brand other than the name.

Postpurchase evaluation

After the purchase, the buyer evaluates the product to ascertain if its actual performance meets expected levels. In cognitive dissonance, which involves doubts in the buyer's mind about whether purchasing the product was the right decision.

What group makes-up the family life cycle market?

Among the factors that influence household income and product needs are marital status and the presence and age of children. These characteristics affect needs for housing, appliances, food and beverages, automobiles, and recreational equipment. Single-parent families are on the rise, meaning that the "typical" family no longer necessarily consists of a married couple with children.

What is attitude?

An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea. These objects may be tangible or intangible, living or nonlinving. They tend to remain stable and do not vary. Consists of three major components: cognitive, affective, and behavioral.

What is an undifferentiated marketing strategy?

An organization sometimes defines an entire market for a product as its target market. When a company designs a single marketing mix and directs it at the entire market for a particular product, the strategy assumes that all customers in the target market have similar needs, and thus the organization can satisfy most customers with a single marketing mix with little or no variation

What are "Podcasts?"

Audio or video files that can be downloaded from the Internet with a subscription that automatically delivers new content o listening devices or personal computers.

How is business product demand derived

Because business customers, especially producers, buy products for direct or indirect use in the production of goods and services to satisfy consumers' needs, the demand for business products derives from the demand for consumer products

Reporting research findings

Before preparing the report, the marketer must take a clear, objective look at the findings to see how well the gathered facts answer the research question or support or negate the initial hypotheses.

What is meant by "bricks-and-clicks?"

Brick-and-mortar stores that make online shopping possible through their website, but do not abandon physical stores. This model is now standard for businesses.

negotiation

In certain instances, buyers describe exactly what they need and ask sellers to submit bids. they then negotiate with the suppliers that submit the most attractive bids

Hypothesis

It is an informed guess or assumption about a certain problem or set of circumstances. It is based on all the insight and knowledge available about the problem or circumstances from previous research studies and other sources.

What are "cultural forces?"

Marketing activities are primarily social in purpose, and are influenced by beliefs and values regarding family, religion, education, health, and recreation. Local preferences, tastes, and idioms can prove complicated for international marketers

What are the advantages and disadvantages of reciprocity?

One practice unique to business markets; an arrangement in which two organizations agree to buy from each other. Because it influences purchasing agents to deal only with certain suppliers, it can lead to less-than-optimal purchases.

What are institutional markets?

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

What are the characteristics most looked at in psychographic segmentation?

Personality attributes, motives, and lifestyles

What is buying power?

Resources, such as money, goods, and services that can be traded in an exchange

What is extended problem solving?

The most complex type of decision making occurs with high involvement, unfamiliar, expensive, or infrequently purchased items- for instance, a computer, car, or the services of a doctor or lawyer.

What is used in determining social classes?

The role of income

What is concentrated marketing?

an organization directs its marketing efforts toward a single market segment using one marketing mix

New-task purchase

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

Random sampling

all the units in a population have an equal chance of appearing in the sample.

Selective exposure

an individual selects mostly unconsciously which inputs will reach awareness

inspection

business buyers of products such as industrial equipment, used vehicles, and buildings, should base purchase decisions

internal search

buyers search their memories for information about products that might solve their problem.

Selective distortion

changing or twisting received information

Secondary data

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

What is a reseller?

consist of intermediaries, such as wholesalers and retailers, which buy finished goods and resell them for profit. do not change the physical characteristics of the products they handle. They also exist for services and intangible products

business market

consists of individuals or groups that purchase a specific kind of product for one of three purposes: resale, direct use in producing other products, or use in general daily operations

consumer market

consists of purchased products and do not buy products to make a profit

- North American Free trade Agreement (NAFTA)

effectively merged Canada, Mexico, and the US into one market of nearly 454 million consumers.

Sampling

entails evaluating a portion of the product on the assumption that its characteristics represent the entire lot. Appropriate when the product is homogeneous (grain

probability sampling

every element in the population being studied has a known chance of being selected for study.

Locating and defining issues or problems

focus on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation

Trend analysis

focuses on aggregate sales data, such as the company's annual sales figures, covering period of many hyears to determine whether annual sales are general rising, falling, or staying about the same.

What is "environmental analysis" in marketing?

forces that affect foreign markets may differ dramatically from those that affect domestic markets, and failure to understand them can result in significant costs. Conducting research to understand the needs and desires of international customers is crucial to global marketing success.

Information search

has two aspects. In an internal search, buyers search their memories for information about products that might solve their problem. They then seek additional information from outside sources in an external search.

Collecting data

helps prove or disprove the research hypothesis. There are two types of data to use; primary data and secondary data.

Social surroundings

include characteristics and interactions of others who are present during a purchase decision, such as friends, relatives, salespeople, and other customers.

Physical surroundings

include location, store atmosphere, scents, sounds, lighting, weather, and other factors in the physical environment in which the decision process occurs

Primary data

observed and recorded or collected directly from respondents. This type of data must be gathered by observing phenomena or surveying people of interest.

Problem recognition

occurs when a buyer becomes aware of a difference between a desired state and an actual condition.

A straight rebuy purchase

occurs when buyers purchase the same products routinely under approximately the same terms of sale. Buyers require little information for routine purchase decisions and tend to use familiar suppliers that have provided satisfactory service and products in the past.

What is the meaning of "Inactives?"

online users who do not participate in any digital online media, but as more people begin to use computers as a resource, this number is dwindling.

What is sole sourcing?

only one supplier is selected

What is the meaning of "multinational enterprises?"

refers to a firm that has operations or subsidiaries in many countries. Often, the parent company is based in one country and carries on production, management, and marketing activities in other countries.

E-marketing

refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing. An important benefit is the ability to share information.

- European Union (EU),

sometimes referred to as the European Community or Common Market, consists of 28 separate countries with varying political landscapes.

seasonal analysis

the analyst studies daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors, such as climate and holiday activities, influence sales.

What are "blogs?"

web-based journals in which writers can editorialize and interact with other Internet users.

Closure

when a person fills in missing information in a way that conforms to pattern or statement.

Selective retention

when a person remembers information inputs that support personal feleings, and beliefs and forgets inputs that do not

What is the meaning of "born globals?"

Some firms are founded with the knowledge and resources to accelerate their participation and investment in the global marketplace. These are typically small technology-based firms earning as much as 70% of their sales outside the domestic home market. They export their products almost immediately after being established in market niches in which they compete with larger, more established firms.

external search

They then seek additional information from outside sources

Interpreting research findings

This is easier if marketers carefully plan their data analysis methods early in the research process. Statistical interpretation focuses on what is typical and what deviates from the average.

cycle analysis

a forecaster analyzes sales figures (often monthly sales data) for a three to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner.

marketing information system (MIS)

a framework for the day-to-day management and structuring of information gathered regularly from sources both inside and outside the organization.

What does "gross domestic products" measure?

an overall measure of a nation's economic standing; it is the market value of a nation's total output of goods and services for a given period.

Designing the research project

an overall plan for obtaining the information needed to address the problem or issue. The objective statement of a marketing research project should include a hypothesis based on both previous research and expected research findings.

Information inputs

are sensations received through sight, taste, hearing, smell, and touch

Time perspective

influences the buying decision process in several ways. It takes varying amounts of time to progress through the steps of the buying decision process, including learning about, searching for, purchasing and using a product.

Reliability

it produces almost identical results in repeated trials

In the business market what is the meaning of partnerships?

many suppliers and their customers build and maintain mutually beneficial relationships

Buyer's momentary mood and condition

may also affect the consumer buying decision process. Moods - anger, anxiety, or contentment. Conditions - fatigue, illness, or having cash on hand.

Purchase

the consumer chooses to buy the product or brand yielded by the evaluation of alternatives. During this stage, buyers also pick the seller from which they will buy the product - it could be a specific retail shop, chain, or online retailer.

What is "balance of trade?"

the difference in value between a nation's exports and its imports.

Selection

the first step in the perceptual process

random factor analysis

the forecaster attempts to attribute erratic sales variations to random, nonrecurring events, such as a regional power failure, a natural disaster, or political unrest in a foreign market

What is time series analysis?

the forecaster uses the firm's historical sales data to discover a pattern or patterns in sales over time. If a pattern is found, it can be used to forecast sales. This forecasting method assumes that past sales patterns will continue into the future.

What is the buying center

the group of people within the organization who made business buying decisions. they include users, influencers, buyers, deciders, and gatekeepers.

Nonprobability sampling

there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

Ultimate consumers

those who purchase products for personal or household use and not for business purposes.

Purpose of marketing research

to inform an organization about customers' needs and desires, marketing opportunities, for products, and changing attitudes and purchase patterns of customers.

In a time series analysis, a forecaster usually performs four types of analyses

trend, cycle, seasonal, and random factor.

What is "digital marketing?"

uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers.

Figure-ground

when a portion of the information inputs that reach awareness stands out as the figure and others become the background

What is routinized response behavior?

when buying frequently purchased, low-cost items that require very little search-and-decision effort. A consumer may have a brand preference, but will be satisfied with several brands in the product class.

description

when products are standardized and graded according to certain characteristics such as size, shape, weight, and color, a business buyer may be able to purchase simply by describing or specifying quantity, grade, and other attributes

Quota sampling

when researchers divide the population into groups and then arbitrarily choose participants from each group

What is cognitive dissonance?

which involves doubts in the buyer's mind about whether purchasing the product was the right decision. This is most likely to arise when a person recently bought an expensive, high-involvement product that is found to be lacking some of the desirable features of competing brands.