MKT 300 Exam 2!
__________ focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
Customer-centered new product development
__________ are part of the environment that enter the consumer's black box and produce certain responses.
Economic, technological, social, and cultural stimuli
evaluation of alternatives stage
The individual compares various purchasing possibilities
cluster (area) sample
The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.
judgment sample
The researcher uses his or her judgment to select population members who are good prospects for accurate information
Style is __________.
a basic and distinctive mode of expression
store brand (private brand)
a brand created and owned by a reseller of a product or service
new task
a business buying situation in which the buyer purchases a product or service for the first time
specialty products
a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
fashion
a currently accepted or popular style in a given field
belief
a descriptive thought that a person holds about something
product concept
a detailed version of the new product idea stated in meaningful consumer terms
ethnographic research
a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"
new product
a good, service, or idea that is perceived by some potential customers as new
__________ is two or more people who interact to accomplish individual or mutual goals.
a group
A product line is __________.
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
product line
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
reference group
a group that serves as direct or indirect point of comparison or reference in forming a person's attitudes or behavior
brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
motive or drive
a need that is sufficiently pressing to direct the person to seek satisfaction of the need
The introduction stage is the PLC stage in which __________.
a new product is first distributed and made available for purchase
opinion leaders
a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others
consumer products
a product bought by final consumers for personal consumption
Industrial Products
a product bought by individuals and organizations for further processing or for use in conducting a business
fad
a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
product line filling
adding more items within the present range of the line
early mainstream adopters
adopt new ideas before the average person, rarely leaders, deliberate
Consumer Market
all the individuals and households that buy or acquire goods and services for personal consumption
buying center
all the individuals and units that play a role in the purchase decision-making process
__________ is the stage of the buyer decision process in which the consumer uses information to review different brands in the choice set.
alternative evaluation
services
an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Total Quality Management (TQM)
an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes
MIS begins and ends with users
assessing their information needs and then delivering info and insights that meet those needs
__________ is a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
attitude
In the adoption process, __________ is when the consumer becomes familiar with the new product but lacks information about it.
awareness
An industrial product is a product __________.
bought by individuals and organizations for further processing or for use in conducting a business
________ is the differential effect that knowing the brand name has on customer response to the product or its marketing.
brand equity
cognitive dissonance
buyer discomfort caused by post purchase conflict
Systems selling (or solutions selling)
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
within the organization, buying activity consists of two major parts
buying center: composed of all people invloved in the buying decision. buying decsison process
In a __________ sample, the population is divided into mutually exclusive groups and the researcher draws a sample of the groups to interview.
cluster
online market research
collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior
internal databases
collections of consumer and market information obtained from data sources within the company network
product development
company growth by offering modified or new products to current market segments
place marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places
group interviewing
consists of inviting small groups of people to meet with a trained moderator to talk about a product, service, or organization. paid in small sum
Selective Retention (perception)
consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands
A(n) __________ is a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
convenience product
consumer purchases are influenced strongly by
cultural, social, personal, and psychological characteristics
__________ is the fresh understanding of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships.
customer insight
marketing research insights to
customer motives, purchase behavior, satisfaction
The __________ is the PLC stage in which a product's sales fade away.
decline stage
marketing strategy development
designing an initial marketing strategy for a new product based on the product concept
brand strength:
differentiation, relevance, knowledge, esteem
__________ is a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments."
ethnographic research
In the __________ stage, the consumer considers whether trying the new product makes sense.
evaluation
In a simple random sample,
every member of the population has a known and equal chance of selection
simple random sample
every member of the population has a known and equal chance of selection
brand extension
extending an existing brand name to new product categories
__________ is a currently accepted or popular style in a given field.
fashion
conformance quality
freedom from defects and consistency in delivering a targeted level of performance
Customer insights
fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships
online focus group
gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
survey research
gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
observational research
gathering primary data by observing relevant people, actions, and situations
experimental research
gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
telephone interviewing
gathers information quickly, while providing flexibility
Offering product extensions, service, and warranty is a product strategy in the __________ phase.
growth
The __________ is the PLC stage in which a product's sales start climbing quickly.
growth stage
consistency of product
how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
__________ is the systematic search for new product ideas.
idea generation
capital items
industrial products that aid in the buyer's production or operations
many business markets have
inelastic and more fluctuating demand
primary data
information collected for the specific purpose at hand
__________ is the stage of the buyer decision process in which the consumer is motivated to locate more information.
information search
Secondary data are __________.
information that already exists somewhere, having been collected for another purpose
secondary data
information that already exists somewhere, having been collected for another purpose
A company must consider four special service characteristics when designing marketing programs:
intangibility, inseparability, variability, perishability
total market strategy
integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences
Crowdsourcing
inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process
Abraham Maslow's Hierarchy of Needs
most pressing to least physiological safety social esteem self-actualization
A person's buying choices are influenced by four major psychological factors
motivation, perception, learning, beliefs and attidtudes
________ is the first stage of the buyer decision process, in which the consumer notices a problem.
need recognition
__________ is the designing of original products, product improvements, product modifications, and new brands through the firm's own efforts.
new product development
Team-based new product development
new product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
Customer-centered new product development
new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences
controlled test market
new products and tactics are tested among controlled panels of shoppers and stores
research approaches for gathering primary data include
observation, surveys, and experiments
__________ is gathering primary data by observing relevant people, actions, and situations.
observational research
buyer's decisions also influenced by personal characteristics
occupations, age and stage, economic situations, lifestyle, and personality and self-concept
product line stretching
occurs when a company lengthens its product line beyond its current range
co-branding
occurs when two established brand names of different companies are used on the same product
internal marketing
orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction. MUST precede external marketing
Marketing Information System (MIS)
people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights
__________ is a detailed version of a new product idea stated in meaningful consumer terms.
product concept
__________ is developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
product development
PLC stages
product development, introduction, growth, maturity, decline
__________ refers to a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
product line
__________ is the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
product quality
__________ is the buyer's decision about which brand to select.
purchase decision
E-procurement
purchasing through electronic connections between buyers and sellers - usually online
in collecting primary data market researchers have a choice of two main research instruments
questionnaires and mechanical devices
__________ refers to a prescribed number of people in each of several categories who are identified and interviewed by the researcher.
quota sample
product mix length
refers to the total number of items a company carries within its product lines
social classes
relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
designing a plan for primary data collection calls for decisions on
research approaches, contact methods, sampling plan, research instruments
convenience sampling
researcher selects the easiest population members from which to obtain information
simulated test markets
researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated online shopping environments
satisfied and loyal customers
satisfied customers who remain loyal, make repeat purchases, and refer other customers
Idea Screening
screening new product ideas to spot good ones and drop poor ones as soon as possible
__________ are information that already exists somewhere, having been collected for another purpose.
secondary data
service companies face 3 major marketing tasks:
service differentiation, service quality, service productivity
__________ means that services are produced and consumed at the same time and cannot be separated from their providers.
service inseparability
__________ means that services cannot be stored for later sale or use.
service perishability
__________ means that the quality of services may vary greatly depending on who provides them and when, where, and how they are provided.
service variability
Service inseparability means that __________.
services are produced and consumed at the same time and cannot be separated from their providers
service inseparability
services are produced and consumed at the same time and cannot be separated from their providers
service intangibility
services cannot be seen, tasted, felt, heard, or smelled before they are bought
service perishability
services cannot be stored for later sale or use
A(n) __________ is a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
shopping product
In a __________ sample, every member of the population has a known and equal chance of selection.
simple random
probability samples
simple random sample, stratified sample, cluster sample, systematic sample
late mainstream adopters
skeptical, they adopt an innovation only after a majority of people have tried it
__________ is a brand created and owned by a reseller of a product or service.
store brand
In a __________ sample, the population is divided into mutually exclusive groups and random samples are drawn from each group.
stratified random
__________ is a group of people with shared value systems based on common life experiences and situations.
subculture
internal service quality
superior employee selection and training, a quality work environment, and strong support for those dealing with customers
healthy service profits and growth
superior service firm performance
__________ is gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.
survey research
supplier development
systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
personal interviewing
takes two forms: individual interviewing and group interviewing
artificial intelligence
technology by which machines think and learn in a way that looks and feels human but with a lot more analytical capacity
Concept testing is __________.
testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
A convenience product is a consumer product __________.
that customers usually buy frequently, immediately, and with minimal comparison and buying effort
introduction stage
the PLC stage in which a new product is first distributed and made available for purchase
decline stage
the PLC stage in which a product's sales fade away
maturity stage
the PLC stage in which a product's sales growth slows or levels off
packaging
the activities of designing and producing the container or wrapper for a product
marketing analytics
the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance
awareness
the buyer becomes aware of the product but lacks info about it
Consumer buyer behavior
the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption
business buyer behavior
the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
service profit chain
the chain that links service firm profits with employee and customer satisfaction
product quality
the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
evaluation
the consumer considers whether trying the new product makes sense
interest
the consumer seeks information about the new product
trail
the consumer tries the new product on a small scale to improve the estimate of its value
Product Life Cycle (PLC)
the course of a product's sales and profits over its lifetime. 5 stages.
adoption
the decision by an individual to become a regular user of the product
business buyer process
the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands
relative advantage
the degree to which the innovation appears superior to existing products
compatibility
the degree to which the innovation fits the values and experiences of potential consumers
complexity
the degree to which the innovation is difficult to understand or use
divisibility
the degree to which the innovation may be tried on a limited basis
communicability
the degree to which the results of using the innovation can be observed or described to others
New Product Development
the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts
Brand equity is __________.
the differential effect that knowing the brand name has on customer response to the product or its marketing
brand equity
the differential effect that knowing the brand name has on customer response to the product or its marketing
need recognition is ______
the first stage of the buyer decision process, in which the consumer notices a problem
Big Data
the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies
Word-of-mouth influence
the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior
adoption process
the mental process through which an individual passes from first hearing about an innovation to final adoption
product line length
the number of items in the product line
stratified random sampling
the population is divided into mutually exclusive groups and random samples are drawn from each group
perception
the process by which people select, organize, and interpret information to form a meaningful picture of the world
perception is __________
the process by which people select, organize, and interpret information to form a meaningful picture of the world
service variability
the quality of services may vary greatly depending on who provides them and when, where, and how they are provided
quota sample
the researcher finds and interviews a prescribed number of people in each of several categories
Product Mix or Portfolio
the set of all product lines and items that a particular seller offers for sale
Culture is __________.
the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
culture
the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
brand personality
the specific mix of human traits that may be attributed to a particular brand -sincerity -excitement -competence -sophistication -ruggedness
test marketing
the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings
Marketing Research
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
selective attention (perception)
the tendency for people to screen out most of the information to which they are exposed
brand value
the total financial value of a brand
A(n) __________ is a consumer product that the consumer either does not know about or knows about but does not normally consider buying.
unsought product
behavior targeting
using online consumer tracking data to target advertisements and marketing offers to specific consumers
return on quality approach
viewing quality as an investment and holding quality efforts accountable for bottom-line results
In the adoption process, awareness is __________.
when the consumer becomes familiar with a new product but lacks information about it
customer insights teams
whose job it is to develop actionable insights from marketing information and work strategically with marketing decision makers to apply those insights
The research plan should be presented in a
written proposal
subculture
A group of people with shared value systems based on common life experiences and situations
attitude
A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
Information Search Stage
After recognizing the problem, consumers seek to satisfy their need Consumers seek out product information
product value analysis
An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production
product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
__________ are a type of buyer response.
Buying attitudes and preferences
The __________ outlines researcher responsibilities to respondents, including confidentiality, privacy, and avoidance of harassment.
Code of Standards and Ethics for Survey Research
marketing research process steps
Define the problem and research objectives Developing research plan implementing research plan interpreting and reporting the findings
questionnaires
Most common Administered in person, by phone, or online Flexible Research must be careful with wording and ordering of questions
focus group interviewing
Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues.
__________ consist of information collected for the specific purpose at hand.
Primary data
__________ involves various company departments working closely together, overlapping the steps in the product development process to save time and increase effectiveness.
Team-based new product development
purchase decision stage
The buyer makes a decision about which brand to purchase. 1st factor attitudes of others 2nd factor unexpected situational factors
innovators
The first segment (roughly 2.5 percent) of a population to adopt a new product. Venturesome
need recognition stage
The first stage of the buyer decision process, in which the consumer recognizes a problem or need
postpurchase behavior stage
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
Marketing information by itself has little value.
True! The value is in the customer insights gained from the info and how marketers use these insights to make better decsions.
drive
a strong stimulus that encourages action to reduce a need
________ is a descriptive thought that a person holds about something.
belief
__________ is expanding an existing brand name of new product categories.
brand extension
Finding the best name is part of __________, and it begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies.
brand name selection
_______ can be done at three levels: product attributes, benefits, and beliefs and values.
brand positioning
Major Brand Strategy Decisions
brand positioning, brand name selection, brand sponsorship, brand development
__________ includes private branding, licensing, and co-branding.
brand sponsorship
__________ is marketing research to test hypotheses about cause-and-effect relationships.
casual research
learning
changes in an individual's behavior arising from experience
marketing strategy statement pt 1
consists of: Target market description Value proposition planned Sales, market-share, and goals
__________ is marketing research to better describe marketing problems, situations, or markets such as the market potential for a product or the demographics and attitudes of consumers.
descriptive research
influencer marketing
enlisting established influencers or creating new influencers to spread the word about a company's brands
__________ is gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
experimental research
__________ is marketing research to gather preliminary information that will help define problems and suggest hypotheses.
exploratory research
line extension
extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
response
his or her interest in buying the product
__________ is scanning new product ideas to spot good ideas and drop poor ones as soon as possible.
idea screening
materials and parts
include raw materials and manufactured materials and parts usually sold directly to industrial users
A(n) __________ is a product bought by individuals and organizations for further processing or for use in conducting a business.
industrial product
In the __________ stage, the consumer seeks information about the new product.
interest
Marketers can obtain the needed information from
internal data, marketing intelligence, marketing research
A(n) __________ refers to electronic collections of customer and marketing information obtained from data sources within the company network.
internal database
Commercialization
introducing a new product into the market
A company can expand its product line in two ways:
line filling or line stretching
Customer Relationship Management (CRM)
managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
Modifying the market, product offering, or marketing mix is a product strategy in the ________ phase.
maturity
The __________ is the PLC stage in which a product's sales growth slows or levels off.
maturity stage
cues
minor stimuli that determine when, where, and how the person responds
greater service value
more effective and efficient customer value creation and service delivery
satisfied and productive service employees
more satisfied, loyal, and hardworking employees
product line depth
number of versions offered of each product in the line
concept testing
testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
competitive marketing intelligence
the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
idea generation
the systematic search for new product ideas
mail questionnaires
used to collect large amounts of information at a low cost per respondent
style
A basic and distinctive mode of expression.
Central question for marketers
How do consumers respond to various marketing efforts the company might use?
ideas
Intellectual concepts—thoughts, opinions, and philosophies.
LATTE method- service recovery
Listen, acknowledge, take action, thank them, and explain
online social networks
Online social communities - blogs, social networking Web sites, and other online communities - where people socialize or exchange information and opinions
supplies and services
Operating supplies, maintenance items, services
mechanical instruments
People meters, checkout scanners, neuromarketing
__________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
competitive marketing intelligence
person marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people
organizational marketing
consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization
__________ is the set of all products and items that a particular seller offers for sale.
product mix
nonprobability sampling
-convenience sampling -quota sampling -judgement sample
5 stages of adopting a new product
1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption
Buyer Decision Process
1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior
early adopters
13.5% between one and two standard deviations. guided by respect, opinion leaders
straight rebuy
a business buying situation in which the buyer routinely reorders something without any modifications
modified rebuy
a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
convenience products
a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort
unsought products
a consumer product that the consumer either does not know about or knows about but does not normally consider buying
shopping products
a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
business analysis
a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
sample
a segment of the population selected for marketing research to represent the population as a whole
__________ links service firm profits with employee and customer satisfaction.
a service profit chain
individual interview
involves a single researcher asking questions of one respondent
A drive becomes a motive when
it is directed toward a particular stimulus object
__________ is the changes in an individual's behavior arising from experience.
learning
product quality has two dimensions
level and consistency
A(n) __________ is people and processes dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
marketing information system
__________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
marketing research
descriptive research
marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
Exploratory Research
marketing research to gather preliminary information that will help define problems and suggest hypotheses
__________ are such things as product, price, place, and promotion and are considered part of the environment that influences the buyer's black box.
marketing stimuli
__________ is designing an initial marketing strategy for a new product based on the product concept.
marketing strategy development
__________ are segments of the population selected for marketing research to represent the population as a whole.
samples
Personality
the unique psychological characteristics that distinguish a person or group
social marketing
the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being
product image
the way consumers perceive an actual or potential product
Lagging Adopters/Laggards
traditional bound, suspicious of changes and adopt innovation only when it has become something of tradition itself
interactive marketing
training service employees in the fine art of interacting with customers to satisfy their needs
casual research
Marketing research to test hypotheses about cause-and-effect relationships
__________ is inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process.
crowdsourcing
marketing strategy statement pt 2
planned price, distribution, marketing budget
researchers usually start by gathering
secondary data
Selective Distortion (perception)
the tendency of people to interpret information in a way that will support what they already believe
lifestyle
A person's pattern of living as expressed in his or her activities, interests, and opinions
__________ is a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
a fad
__________ are part of the buyer's black box and produce certain responses.
buyer characteristics
__________ is the practice of using the established brand names of two different companies on the same product.
co-branding
quality level
how well a product performs its core functions
3 groups of industrial products and services
materials and parts, capital items, supplies and services
__________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
perception
marketing strategy statement pt 3
planned long run sales, profit goals, marketing mix strategy
The first step of the business buying process is __________.
problem recognition
A __________ is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
product
__________ is relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
social class
A(n) __________ is a consumer product with unique characteristics of brand identification for which a significant group of buyers is willing to make a special purchase effort.
speciality product