Marketing Test 2
age
-older Americans spend more because they have time and money -older consumers want to stay active in retirement and seek out ways to feel younger
behavioral targeting
A data collection method that utilizes a variety of technologies to anonymously track and compile individual consumer behaviors. -ex: website and e-commerce providers place cookies on visitors browsers to trace which websites they visited, what they searched for, how long they lingered for. -Quesystem for in store shoppers
depth interview
A data collection tool in which the researcher, working with one participant at a time, asks open-ended questions about how the individual perceives and uses various products or brands. -very time consuming -can be done online
observation research
A data collection tool that involves watching how people behave and recording anything about that behavior that might be relevant to the research objective. -participants may subconsciously try to please the researchers by doing what they want them to do
machine learning
A discipline combining science, statistics, and computer coding to make predictions based on patterns discovered in data.
aided recall tests
A performance metric in which respondents are asked to recall advertisements based on clues they receive to help stimulate their memory.
recognition test
A performance metric that involves showing consumers an advertisement and asking if they recognize it.
revenue per ad dollar
A performance metric that is calculated by comparing total revenue to the amount of money spent on advertising. cultivating high frequency advertising at a low cost can improve this
concept test
A procedure in which marketing professionals ask consumers for their reactions to verbal descriptions and rough visual models of a potential product.
revamped products
A product that has new packaging, different features, and updated designs and functions. "new and improved" "functionally significant or substantial respect"
objective-and-task method
A promotion mix budgeting strategy in which a firm defines specific objectives, determines the tasks required to achieve those objectives, and then estimates how much each task will cost. -bottom up approach -best of the budgeting methods -incorporates the strengths of other budgeting methods without incorporating their weaknesses
percentage-of-sales method
A promotion mix budgeting strategy in which firms allocate a specific percentage of a period's total sales to the promotional budget for that period. -advantage of being simple disadvantage: is when a firms sales decline -most widely used budgeting approach
Affordable method
A promotion mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford. -top down approach -disadvantage: not tied to specific organizational objectives
integrated marketing communications (IMC)
A promotional strategy that involves coordinating the various promotion mix elements to provide consumers with a clear and consistent message about a firm's products.
participant blogs
A research technique that involves recruiting subjects to blog about a specific topic on a regular basis over the course of a relatively short period of time.
blog mining
A research technique that uses automated tools to find and extract information on the web about a brand and then uses specialized software to analyze these large amounts of text-based data.
sales promotion
A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product. -account for the bulk of most firms' promotion budgets -use it to support the other elemtns of thei rpormotion mix
field experiment
A study that examines the impact of an intervention in the real world. -seek to randomize subjects or other sampling units into treatment and control groups
promotion mix
A subset of the marketing mix that includes four main elements of marketing communication: advertising, sales promotion, personal selling, and public relations. advertising: non-personal communication about g&s sales promotion: a set of non-personal communication tools personal selling: the two-way flow public relations: communications focused on promoting positive
niche marketing
A targeting strategy that involves pursuing a large share of a small market segment. -offer a unique product that is desirable to their targeted customers. -consumers of niche marketing typically have very specialized needs and will pay higher prices to meet those needs
differentiated targeting
A targeting strategy that simultaneously pursues several different market segments, usually with a different strategy for each.
disruptive technology
A technology that displaces an established technology and shakes up the industry, or a ground-breaking product that creates a completely new industry.
80/20 rule
A theory that suggests that 20 percent of heavy users account for 80 percent of the total demand.
informative advertising
A type of advertising that attempts to develop initial demand for a product. -important in introductory stage if the product life cycle
reminder advertising
A type of advertising that seeks to keep the product before the public in an effort to reinforce previous promotional activity. -most common in the maturity and decline stages of PLC
Exploratory Research
A type of marketing research that seeks to discover new insights that will help the firm better understand the problem or consumer thoughts, needs, and behavior. -face-to-face interaction -interviewing -suggest testable hypothesis
Casual Research
A type of marketing research used to understand the cause-and-effect relationships among variables. -test hypothesis involves manipulating independent variables (cause or source) and how they affect the dependent variable (the effect or outcome)
sales tracking
A type of research that follows changes in sales during and after promotional programs to see how the marketing efforts affected the company's sales. -marketing professionals use the results of this research to adjust where and how they apply promotional effects
demand analysis
A type of research used to estimate how much customer demand there is for a particular product and understand the factors driving that demand.
quota sampling
A type of sampling in which a certain number of participants is picked based on selection criteria such as demographics.
snowball sampling
A type of sampling in which a set of participants is selected based on the referral of other participants who know they have some knowledge of the subject in question.
probability sampling
A type of sampling in which every person in the target population has a chance of being selected, and the probability of each person being selected is known. -generalize findings from a portion of a target population
simple random sampling
A type of sampling in which everyone in the target population has an equal chance of being selected. -generating a table of random numbers and assigning one number to each potential participant -drawing names from a hat
nonprobability sampling
A type of sampling that does not attempt to ensure that every member of the target population has a chance of being selected. -contains an element of judgement -generate findings that may be more appropriate to the research question
open innovation
A way of generating new-product ideas by gathering both external ideas and internal ideas.
product placement
An advertising technique in which a company promotes its products through appearances on television shows, movies, or other media.
posttest
An evaluation of advertisements after the ad campaign is launched by a sample of targeted consumers.
predictive modeling
Analysis that uses statistical techniques and algorithms based on patterns of past behavior to predict the future unknown events, such as future buying behavior. -can be constructed based on historical records to calculate the impact of planned price changes. -they consider various individual factors in order to derive a single predictive score for that individual -president obama 2012 campaign
focus groups
Data collection tool in which a moderator engages a small group of people as they discuss a particular topic or concept with each other in a spontaneous way. -can be expensive -can be done online
scanner data
Data obtained from scanner readings of UPC codes at check-out counters. -IRI -NPD Group -POS -valuable of clients in the consumer packaged goods industry; company's often lack the resources to obtain data directly from end-users
concurrent new product development
New-product development that uses cross-functional teams made up of representatives from various departments to develop goods and services. -can be difficult to control
Sequential new-product development
New-product development that utilizes a progressive sequence in which functional areas consecutively complete their development tasks. -makes sure firm performs only one set of activities at a time -easily tracked
public relations
Nonpersonal communication focused on promoting positive relations between a firm and its stakeholders. -annual reports -speeches -blogs -brochures -media kits -sponsorship -event marketing
allowances
Trade promotions that typically involve paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product.
mystery shoppers
Trained researchers hired to pose as customers in order to gather information about the physical appearance or customer-service attributes of a store. -might report on the neatness of shelves, or cleanliness of the bathroom, and amount of time it takes for service
advertising campaign
a collection of coordinated advertisements that share a single theme -to inform, persuade and remind
surveys
a data collection tool that poses a sequence of questions to respondents -to collect a wide variety of data -help determine consumer attitudes, intended behavior, and motivations behind behavior
nueromarketing (consumer neuroscience)
a field of marketing that studies the body's responses to marketing stimuli
Sales Forecasting
a form of research that estimates how much of a product will sell over a given period of time -firms will know how much product to hold in inventory at various points in the distribution network or where to locate new retail locations
product line
a group of related products under a single brand sold by the same company
reach
a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Ex: super bowl
prototype
a mock-up of a good, often created individually with the materials the firm expects to use in the final product
unaided recall test
a performance metric that requires consumers to recall advertisements from memory, without any clues
planned obsolescence
a practice in which companies frequently come out with new models of a product that make existing models obsolete
simulated test markets
a procedure in which the firm builds a mock shopping experience for participants, in order to observe their response to marketing stimuli
fashion product
a product that comes in and out of favor with consumers
fad product
a product that is very popular for a relatively short amount of time -pokemon cards
premium
a promotional item that is given as an incentive for performing a particular act, typically buying a product -can come in a variety of forms including toys, collectibles and souviners
sample
a representative subset of the larger population
relationship selling
a sales approach that involves building and maintaining customer trust over a long period of time
positioning statement
a succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product. -it should clearly reflect the steps of the positioning process, including the competitive advantages of the product. -should be short
undifferentiated targeting
a targeting strategy that approaches the marketplace as one large segment -advantage: the potential savings in developing and marketing the products -works best with uniform products
Big Data
a term that describe both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights -each day, the human race create 2.5 quintillion bytes of data -the volume, velocity, and variety of structured and unstructured information is growing exponentially
persuasive advertising
a type of advertising that attempts to increase demand for an existing product -common during growth stage of PLC -firms compete directly and attempt to take market share from one another
descriptive research
a type of marketing research that seeks to understand consumer behavior by answering the questions who, what, when, where and how ex: estimating market potential for a good or service; evaluating consumers' attitudes toward a product or company; identifying individual steps; uncovering specific ways
advertising effectiveness studies
a type of research that measures how well an advertising campaign meets marketing objectives -such as increasing market share, generating consumer awareness of a product, or creating a favorable impression of the company's products
direct marketing
advertising that communicates directly with consumers and organizations in an effort to provoke a response
mobile advertising
advertising that is communicated to consumers via a handheld device -over 65% of u.s. adults use smartphones -spend 30 billion a year on mobile adveritising
promotion
all the activities that communicate the value of a product and persuade customers to buy it
Reverse Mortgage
allows older homeowners to tap into the equity of their home and receive payments against its value
pretest
an evaluation of advertisements by a sample of targeted consumers before an ad campaign begins -help to set a baseline measure for marketers
offshore
an organization that is located or based in a foreign country
infographics
are graphic visual representations of information, data or knowledge intended to present information quickly and clearly.
ideas
are intangible and represent formulated thoughts and opinions
segmentation bases
characteristics of the consumers that influence the buying behavior. they help firms develop customer profiles that highlight the similarities within segments and the dissimilarities across segments
crowd sourcing
companies ask for opinions from a large and relatively undefined group of people outside the company
syndicated data providers
compile secondary data and provide access to other businesses on a paid basis -ACNielson
product launch
completing all the final preparations for making the fully tested product available to the market -most expensive stage can be delayed for: -suppliers could not deliver on time -consumer demand was unexpectedly high -goods couldn't be released due to quality problems
first movers
consumers who take the lead in adopting new products and are often dedicated to the product.
panel data
information collected from a group of consumers -may be asked to keep a diary of recent purchases or rate the level of their satisfaction with various retail and service providers
services
intangible products cannot be touched weighed or measured
new-to-the-market products
inventions that have never been seen before and create a new market -smallest percentage of new products -carry the most potential -carry the most risk
netnography
involves observing the behavior of online communities that have been organized around a particular consumer interest
paid search advertising
involves offering customers advertising links to brand content based on what they're searching for
trade show
is an event at which organizations in a specific industry promote their offerings to firms they hope will buy them. marketers use them in order to identify potential customers, inform current customers and demonstrate products and materials
new product
is new to a company in any way -new-to-market products -new-category entries -product-line extensions -revamped products
VALS network
it classifies U.S. and Canadian adults (age 18 and older) into 8 psychographic groups, on the basis of responses to 34 attitudinal and 4 demographic questions -the groups are innovators, thinkers, believers, achievers, strivers, experiencers, makers and survivors -measures primary motivation and resources -measures ideals, achievements, and self-expression
Passive Data Collection
quantitative research in which participants allow applications on their mobile devices to gather information about them or their environment
define the problem
specify the research objectives (what questions), define the consumer population of interest (what characteristics), identify relevant contextual factors(what features)
target market
the group of consumers toward which an organization has decided to direct its marketing efforts -consider: growth (higher growth rate, the better), level of competition (the more intense the competition, the worse), and strategic fit
market segments
the groups of consumers who have shared characteristics and similar product needs
Sustainable design
the philosophy of building products and services in a way that eliminates negative environmental impacts -use less energy -less packaging -be able to be recycled -be able to be reused
Data Visualization
the presentation of data in a pictorial or graphical format -need: clarity, visual appeal, and meaning
diffusion
the process by which a product is adopted and spreads across various types of adopters
consumer-adoption process
the process by which customers formally accept and purchase products -awareness -interest -evaluation -trial -adoption
business analysis
the process of analyzing a new product to determine its profitability -estimating costs -identifying at what price the product will likely be sold -estimating demand for the product
fMRI
most advanced brain scanning technique -the more active an area is in the brain the more energy it consumes
advertising
non personal communication about goods, services, or ideas that is paid for by an identified sponsor
marketing research process
1. Define the problem 2. Develop the research plan 3. Collect data 4. Analyze the data 5. present results and take action
Innovators
A category of consumer that adopts a product almost immediately after it is launched. -2.5% of people adopt a product immediately after its launched -tend to be younger, more mobile -unafraid to take risks -obsessed with the new -high confidence, high income, very knowledeable
laggards
A category of consumer that does not like change and may remain loyal to a product until it is no longer available for sale. -16% -older, less educated -choose not to use internet tied to tradition -not easily motivated
early majority
A category of consumer that gathers more information and spends more time deciding to make a purchase than innovators and early adopters. -34% -have a choice because other competitors products will be out -not opinion leaders -bridge to the late majority
early adopters
A category of consumer that purchases and uses a product soon after it has been introduced, but not as quickly as innovators. -13.5% -conform to group norms -have closer ties to social groups and their communities -well respected -opinion leaders
late majority
A category of consumer that relies on others for information, buying a good or service because others have already done so. -34% -cautious about new things -older -below average in income and education -buy things after hearing information and seeing friends have it
perceptual map
A competitive analysis tool that creates a visual picture of where products are located in consumers' minds. -provides guidance on potential market positions that might be underserved
Decision Support System (DSS)
A computer program that enables access and use of the information stored in the data warehouse. -enables marketers to: manipulate and organize data in a useful way. Look for trends in sales. Identify problems with elements of the marketing mix. Provide quick feedback to managers concerning proposed marketing plans
ethnographic research
A data collection method that sends trained observers to watch and interact with a subject population in their natural environment. -netnography -first movers
heat maps
Colored regions overlaid on an image; the most frequently offered eye-tracking output. -color coded -warmer the color the higher the levels of attention is to that area
internal company data
Information generated from within the company. Includes: a company's sales records, customer support records, accounting and finance information, sales force reports, operation and supply chain management information
test marketing
Introducing a new product in its final form to a geographically limited market to see how well the product sells and get reactions from potential users. limitations: -expensive -time-consuming -imitation of competitors
high-learning products
Products that take longer for consumers to see the benefits of or that do not have a good infrastructure in place to support them.
Sweepstakes
Sales promotions based on chance such that entry is the only requirement to win. -firms spend $2 billion per year on contests and sweepstakes -can arise legal issues
trade sales promotion
Sales promotions directed to B2B firms, including wholesalers, retailers, and distributors - rather than individual consumers. -trade shows, allowances, training
contests
Sales promotions in which consumers compete against one another and must demonstrate skill to win. -firms spend $2 billion per year on contests and sweepstakes -can be expensive
rebates
Sales promotions that allow consumers to recoup a specified amount of money after making a single purchase; most rebates require consumers to mail their receipt and proof of purchase to manufacturers. -marketing professionals offer over 400 million rebates each year -40-60% of rebates are not redeemed
behavioral segmentation
Segmentation that divides consumers according to how they behave with or act toward products. -loyalty, price sensitivity, occasions, usage rate -most difficult base to use
geographic segmentation
Segmentation that divides markets into groups such as nations, regions, states, and neighborhoods. -size of the market is most important -customer convenience -population shifts: new york, michigan, ohio grow at a slower rate
facial coding
The categorization of facial expressions to reveal the emotional response of an individual while processing content.
narrowcasting
The dissemination of information to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes.
Marketing Information System (MIS)
The people, technologies, and procedures aimed at supplying an organization's marketing information needs. Such a system assesses those needs, develops the needed information, and helps decision makers use information to create and validate actionable customer insights. -web 2.0 -only 8 percent of CEO's believe that their organizations are effective in managing data derived from social media and other online sources -MIS acts as a filter. It systematically screens out the desired information from the various streams of data that flow through the organization. These streams include: internal company data, competitive intelligence, marketing research -helps users to analyze and use the collected information to develop customer insights, form marketing decisions, and better manage customer relationships
New Product Development (NPD)
The process of conceiving, testing, and launching a new product in the marketplace. -new product strategy development -idea generation -idea screening -business analysis -product development -test marketing -product launch reducing risks: listening to customer, NPD process, understanding current market trends, being willing to fail on occasion
sampling
The process of selecting participants who are members of the population that the researcher wishes to study -can be broken down into two types: probability and nonprobability
product life cycle (PLC)
The series of stages a product goes through from the time it is launched into the market until the time it is removed from the market.
product development stage
The stage of new-product development at which a firm determines that the good can be produced or the service can be offered in a way that meets customer needs and generates profits.
idea generation
The stage of new-product development in which a set of product concepts is generated from which to identify potentially viable new products. -ideas develop from external sources -proctor & gamble get their ideas outside the company
new-product strategy development
The stage of new-product development in which the company determines the direction it will take when it develops a new product. -provides general guidelines for NPD process -specify's how new products will fit into the company's marketing plan -outlines characteristics of types of products they will develop -specifies the target markets to be served by new products
decline stage
The stage of the product life cycle characterized by decreases in sales and profits. -sales and profits fall off
growth stage
The stage of the product life cycle characterized by increases in sales, profits, and competition. -brings a spike in sales and profits
maturity stage
The stage of the product life cycle during which the firm focuses on profitability and maintaining the firm's market share for as long as possible. -sales and profits begin to drop
competitive advantage
The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category.
competitive intelligence
The systematic gathering of data about strategies that direct and indirect competitors are pursuing in terms of new-product development and the marketing mix. -fuze beverage example -such information can provide a firm with foreknowledge of a competitors upcoming promotions or products -ATLANTIC-ACM -SEC and U.S Patent and Trademark Office
personal selling
The two-way flow of communication between a buyer and a seller that is paid for by the seller and seeks to influence the buyer's purchase decision. -face-to face -the challenge is the cost involved -advantages: result sin immediate feedback and a personal relationship with the customer
neuromarketing
The use of insights and tools from neuroscience to better understand consumer responses to different kinds of marketing stimuli. other methods include: eye tracking, facial expression coding, core biometrics, and implicit response testing
outsource
To procure goods, services, or ideas from a third-party supplier rather than from an internal source.
uplift modeling (persuasion modeling)
creating models that predicted which individuals would be most likely to be positively persuaded by campaign contact. based upon model results, higher-scoring voters were targeted for follow up by campaign workers -oboma 2012 campaign
primary data
data collected specifically for the research problem at hand -can be either qualitative or quantitative
B2B segmentation
demographic, geographic, behavioral
publicity
disseminating the unpaid news items through dome form of media (e.g. television story, newspaper article, etc.) to gain attention or support -allows marketers to communicate with customers at an extremely low cost
coupons
documents that entitle the customers who carry them to a discount on a product -most common type of sales promotion -disadvantage: fraud of misredemption practices
micro-expressions
dr ekman; small, split second changes in facial muscle movements
bee swarms
dynamic versions of a heat map that illustrate changes in aggregate attention for a group of subjects over time
targeting
evaluating each market segment to determine which segments present the most attractive opportunity to maximize sales
three marketing research trends
growing use of social media, mobile marketing research, and nueromarketing
compatibility
how well a new product fits into potential customers needs, values, product knowledge, and past behaviors
secondary data
information collected for alternative purposes prior to the study -collected from day-to-day operations and can access it directly -it is often free or relatively inexpensive and is typically readily accessible
frequency
measure of how often the audience is exposed to a communication within a specified period of time
Research Instruments
measurement device such as a survey, test or questionnaire
EEG
measures patterns of electrical activity emanating from the cortex
Marketing Research
organizational activity that links the consumer, customer, and public to the marketer through information to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process - marketing research affects every aspect of a company throughout the 4 P's -product: wants and needs of customer -price: analysis of the size of the potential market and effects of price changes on demand -place:decisions regarding place deals with sales forecasting -promotion:advertising -companies spend $40 million on marketing research
Qualitative
primary data that includes focus groups, depth interviews ethnographic research, and observation research -time consuming -poor interpretation
Quantitative
primary data that includes surveys and experiments -can be done quickly at low cost
eye tracking
print advertising, user experience, ,promotions, packaging and retail store layout, television advertising -relatively inexpensive -rather easy to set up studies -requires little complex knowledge -does not necessarily tell you "why"
new-category entries
products that are new to a company but not new to the marketplace -help companies compete in an already established market or enter a new market -less risky then new-to-the-market
product-line extentions
products that extend and supplement a company's established product line -ex:tide pods -add new functions, flavors, or other attributes to an existing product line -advantages:easily recognized, customers may already feel loyal, manufacturing may be easier and more efficient, new products can be advertised alongside existing products
low-learning products
products with benefits customers can easily see ex: concentrated laundry detergent
mobile marketing research
research that involves participants taking part in marketing research via mobile devices -wifi network in stores example
loyalty programs
sales promotions that allow consumers to accumulate points or other benefits for doing business with the same company -designed to strengthen customer relationships -popular in airline and hotel businesses
regional segmentation
segmentation that divides consumers into groups whose needs and wants extend across the region or several countries -firms will often use this when they want to capitalize on the financial savings of global segmentation but still adjust for local customers and culture
demographic segmentations
segmentation that divides markets by characteristics such as age, gender, income, education and family size/marital status. age and gender are the most common.
psychographic segmentation
segmentation that divides markets using demographics, psychology, and personality traits. more meaningful -psychological traits, motivation, consumer attitudes
lifestyle segmentation
segmentation that divides people into groups based on their opinions and the interests and activities they pursue
global segmentation
segmentation that identifies a group of consumers with common needs and wants that spans the entire globe -results in market segments made up of young people, those who have more money to spend, or those with access to the internet
unique segmentation
segmentation that targets the preferences of a group of consumers with similar needs and wants within only one country -if a firm wants to completely localize, it may choose to target a particular segment within one country
develop a research plan (research design)
specifying what information is needed, determining what type of research techniques may be used to acquire it, presenting this research plan to management - types of research -design a research instrument -must be presented in the form of a written proposal for management's approval. must include : research problems and objectives, info that will be obtained, how results will help management's decision making, a budget
goods
tangible products with physical dimensions
FACS facial action coding system
taxonomy of muscle movements by dr ekman
reliability (of research)
the ability of a measurement instrument to produce almost identical results over repeated trials
respositioning
the act of reestablishing a products position in response to changes in the marketplace
positioning
the activities a firm undertakes to create a certain perception of its product in the eyes of the target market -it assumes that consumers compare goods and services on the basis of their benefits follow: 1. analyze competitors positions 2. clearly define your competitive advantage (price/quality relationship, attributes, application) 3. evaluate feedback
product mix
the combination of all of the products a company sells -characterized by the width, depth, consistency
complexity
the easier it is to understand a product the faster it will diffuse
trailability
the extent to which a potential customer can examine the merits of a new product without having to spend a lot of money or time doing so
Validity
the extent to which a research instrument measures what it is intended to measure
market segmentation
the process of dividing a larger market into smaller groups, or market segments, based on meaningfully shared characteristics -helps firms define the needs and wants of the customers who are most interested in buying the firms products -helps firms design specific marketing strategies for the characteristics of specific segments -helps firms decide how to allocate their marketing resources in a way that maximizes profit -MUST BE: substantial, measurable, differentiable, accessible, actionable
global marketing research
the project-specific, systematic gathering of data in the search scanning mode on a global basis -can be done by a firm itself -Chinese consumers don't like to pay with a credit card and want luxury items -the absence of good secondary data in foreign countries increases the difficulties facing global marketing researchers
product
the specific combination of goods, services, or ideas that a firm offers to consumers
time to market
the speed with which a company launches a product
idea screening
the stage of new product development in which the firm evaluates ideas to determine their fit within the new- product strategy -where company's start rejecting ideas must meet ROI requirments
introduction stage
the stage of the product life cycle that occurs after the firm launches the product into the marketplace and innovators begin to buy it -sales increase slowly
experiment
type of quantitative research study in which the research systematically manipulates one or more variables
paid display advertising
typically consists of banner advertising
web scrapping
uses automated systems that extract information from websites
collect data
using primary and secondary data
observability
when people can see others using a product and perceive value in its use, the product will diffuse quickly
