Marketing Management Chapters: 5-8
Mass customization/customerization
Also called one to one marketing, a new marketing process whereby a company takes a product or service that is widely marketed and develops a system for customizing it to each customer's specifications
Scenario Planning
planning that involves "what if" questions to produce forecast of alternative outcomes based on different assumptions about advertising, spending, price levels, competitors actions, and other variables
Product Variants
product brands, different specific combinations of features within a specific product type
Solutions Buy
purchase situation in which the organization is buying a system that solves a specific problem (Integrated technologic solution)
Modified rebuys
purchasing situation faced by an organization in which something has changed since the last purchase (Computer for lab, purchases 3-5 years apart)
Straight rebuys
routine purchases made by an organization from the same supplier used in the past (Food products, napkins paper towels)
Buy Class
set of descriptor variables used in industrial marketing segmentation that is based on the newness of the purchasing situation
Parfitt-Collins model
simple market share forecasting model that uses an estimate of the eventual penetration rate, an estimate of the ultimate repeat rate, and an estimate of the relative product category usage rate buyers of the new brand to determine eventual market share
Organizational Characteristics External and Internal Influences on Purchasing Behavior
size of company making the purchase decision, its level of technology, and the internal reward system are examples of these characteristics
Cannibalization
the amount of sales for new element of a product line that is taken away from the existing element of the line
Position
the communication of the value proposition to the customer, which differentiates the product from competition in the mind of the prospect
Uncertainty Avoidance The effects of culture
the degree to which employees are threatened by ambiguity
Lead users
the first buyers if an innovation in industrial marketing situations; also called innovators
Primary Needs
the main strategic benefits that the product or service attempts to deliver
Market Structure Analysis
the marketing manager seeks to better understand who the competition is and thus define the market
Supply Chain
the organizations involved in the movement of raw materials and components that are part of a products production process
Cross-elasticity of demand
the percentage change in ones products sales caused by a percentage change in a marketing variable for another product
Identifying the need Organizational buying stages
-Recognition can be stimulated by low inventory or marketing communications. -Need recognition phase varies according to buy class. -Purchasing decisions are feature/ benefit driven.
Individualism vs. Collectivism The effects of culture
-degree of integration of individuals withing groups -Individual achievement is valued more in the former
Power Distance The effects of culture
-extent to which less powerful parties accept the existing distribution of power and the degree to which adherence to formal channels is maintained -High power distance societies tend to be less egalitarian
Industry
-group of products that are close substitutes to buyers -available to a common group of buyers -are distant substitutes for all products not included in the industry
Long-term Orientation The effects of culture
-time frame used -Short term involving more inclination toward consumption versus long-term with its interest in preserving status-based relationships and deferred gratification
Demographics Segmentation Variables
Company size, industry type, geographic location, number of employees
Product class/category
one particular product segment of a particular industry
Personal Characteristics Segmentation Variables
organizations attitudes toward risk might help you determine whether it is likely to be an early purchaser of new technology
Product line
Group of closely related products
Situational Factors Segmentation Variables
Include the customers delivery speed needs, order size needs, and particular use of the product
Environmental factors External and Internal Influences on Purchasing Behavior
Legal, cultural, political, economic, competitive, and other factors affect purchasing decisions
Chapter 6
Market Structure and Competitor Analysis
Vertical Marketing
Occurs when firms focus on an industry, often creating a separate set of distribution channels for industry.
Chapter 7
Marketing Decision Making
Organizational Marketing
Marketing a product or service to another organization
industrial marketing
Marketing a product or service to another organization
Chapter 8
New Product Development
Horizontal marketing
Occurs across industries, where needs and uses are similar.
Choiceboards
Online, interactive systems that allow individual customers to design their own products by choosing from an array of attributes, delivery options and prices
Buying center member characteristics External and Internal Influences on Purchasing Behavior
Participants in the decision-making process can differ in terms of education, motivation, personality, experience, and degree of risk taking
User Buying Roles
people actually using product
Purchasing approach Segmentation Variables
Segment could be defined based on customers who use a bidding process vs those who do not
Group characteristics External and Internal Influences on Purchasing Behavior
Size, authority, leadership, and group structure can influence the choice as well
Packaging
The design of the container for the product in which it is displayed in a retail environment
Femininity vs Masculinity The effects of culture
The division of social roles between men and women
Purchaser Buying Roles
person who actually authorizes payment
Chasm
The large gab that can exist between the early adopters of innovation and the early majority
Prisoners dilemma game
a particular form of competitive game in which neither participant wants to change his current strategy because if one does and the competitor matches, both will be worse off
Joint Space
a perceptual map that contains both brand spatial locations as well as consumer perceptions of their ideal brand
Co-creation
Using people outside of the organization to help develop new product ideas
New-to-the-world
a product that has not been marketed by any company previously
New-to-the-company
a product that has not been marketed by the company but has been marketed by another company
Original Equipment Manufacture (OEM)
a channel of distribution for technology based products; companies that purchase ingredients or components from manufactures (Hard disk drives)
Global Marketing
a generic term encompassing any marketing activities outside a company's home market; also a standardization of the strategies used to market a product around the world
Buying Center
a group of individuals collectively involved in a purchase decision
Product form competition
a level of competition in which only products or services of the same product type are considered
Product class or product category competition
a level of competition in which products or services that have similar features and provide the same function are considered
Generic Competition
a level of competition that includes all products or services that the customer views as fulfilling the need requiring satisfaction on a particular purchase or use occasion
Budget competition
a level of competition that includes any product, related or unrelated, that could be viewed as substitutable in a budget.
Product Line Strategy
a marketing strategy covering a set if related products
House of Quality
a matrix used in new product development that illustrates how customer needs and engineering characteristics influences one another
Brands
a name, term, sign, symbol, or design, intended to identify the goods and services of a seller and differentiate them from the competition
Product features
characteristics or attributes of a product or service
Product Design
combines art, science and technology to create tangible three-dimensional goods
Product Definition
concepts are translated into actual products for further testing based on interactions with customers
Multidimensional scaling (MDS)
developed perceptual maps based only on customer based judgments of brand similarity
Operating variables Segmentation Variables
dimensions of the customers operations such as what technologies the customer is currently using
Initiator Buying Roles
first recognizes need for product or service
Product types
group of products that are functional substitutes
Target Costing
ideal selling price is determined first, the feasibility of meeting that price is assessed, and costs are controlled in order to product the product that can be sold at the target price
Payoff Matrix
in game theory, a graphic depiction of the rewards or costs to each player for each possible combination of strategies
Nash Equilibrium
in game theory, the most common form of equilibrium, which involves a list of strategies, one for each player, with the property that no manager wants to change it strategy unilaterally
Influences Buying Roles
influence decision about what to be chose
Concept Development
making further refinements to a new product concept
Secondary Needs
more tactical needs associated with the primary perceptual benefit
Competitor Analysis
the strengths and weaknesses of competitors and their current and likely future strategies are examined
Tertiary Needs
type of customer need considered in a new product development; the operational needs related to the engineering aspect of actually making the product
Decider Buying Roles
ultimate authority for go/no-go choice
B-to-B (business-to-business marketing)
when a product or service is sold to an organization