Term
| Marketing Research Approach |
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Definition
Define the problem
develop the research plan
collect relevant info
develop findings/take marketing actions |
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Term
| Collect Relevant Information - Types of Data |
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Definition
Primary = facts and figures newly collected for the project
- internal (inside the firm) i.e. financial statements
- external (outside the firm) i.e. consensus reports
- advantages = timely and specific
- disadvantages = costly and time consuming
Secondary - facts and figures already recorded prior to the project
- observational data (watching people) i.e. mechanical methods
- questionnaire data (asking people) i.e. idea generation methods
- other sources i.e. social networks
- advantages = obtained quickly and cheaper
- disadvantages = low relevance, out of date |
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Term
| Primary Data Research Methods |
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Definition
1. Observation Research
2. Interviewing
3. Survey
4. Panels
5. Experiments |
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Term
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Definition
Mystery shopper
Mechanical observations (electronic set-meters, store cameras, eye tracking, brain scanning...fMRI) |
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Term
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Definition
Used to gather preliminary info
Individual or focus groups. focus groups are important bc they provide trustworthy naturalistic data and leads to important insights about human behavior (can't generalize results) |
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Term
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Definition
- Large sample of past or present consumers
- can generalize answers
- disadvantages = respondents might be unwilling to respond or they may give inaccurate answers
- advantages = cheap and can reach a lot of people
- contact methods: personal, mail, phone, online
- nonprobability and probability |
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Term
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Definition
Nonprobability Samples:
- convenience sample = talk to friends or call into a radio station
- judgment samples: select people who are representative of population of interest
Probability Samples:
- Simple Random Sample = every member of the pop has a known and equal chance of getting picked
- Stratified random sample = the population is divided into mutually exclusive groups (like age groups) and random sample are drawn from each group |
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Term
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Definition
| Gathering measurements from a sample of consumers or stores to know if consumers change their behavior over time |
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Term
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Definition
best suited for gathering cause-and-effect relationships
ex: test market |
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Term
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Definition
1. Market Segmentation
2. Target Marketing
3. Market Positioning |
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Term
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Definition
Dividing a market into distinct groups w/ distinct needs, characterisitcs, or behaviors who might require separate products or marketing mixes.
- Segmenting consumer market, organizational markets, and international markets |
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Term
| Requirements for Effective segmentation |
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Definition
Measurable: the size, purchasing power, and profiles of the segments can be measured. (we don't know how many lefties there are).
Accessible: the market segments can be effectively reached and served (ppl who like to go out late still all read different magazines)
Sustainable:The market segments are large or profitable enough to survive (car for ppl over 7ft tall)
Differentiable: The segments are conceptually Distinguishable and respond differently to different marketing mixes
Actionable: effective programs can be designed for attracting and serving the segments |
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Term
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Definition
- The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
- develop positioning using perceptual maps = identify the attributes of a product class. use when need a repositioning strategy |
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Term
| Targeting Marketing at Different Levels (Broad --> Narrow) |
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Definition
1. Undifferentiated marketing = designing a product and a marketing program that will appeal to the largest number of buyers
2. Differentiated Marketing - Targeting several market segments and designing separate offers for each ex -- different kinds of cars
3. concentrated marketing = designing a marketing mix toward only consumers (one or a few smaller segments or niches that a company can serve best and most profitably) ex-- tetra fish food (main food source for tropical fish)
4. Micromarketing = tailoring products and marketing programs to suit the taste of specific individuals and location ex -- nikeID |
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Term
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Definition
1. Consumer Products = products purchased by the ultimate consumer (like dasani water).
2. Business Products = aka B2B or Industrial products. products organizations buy that assist in providing other products for resale. their sales are often the result of derived demand. ex - as a consumer demand for Ford cars increase (consumer product), the company needs to buy more paint spray equipment (business prodcut)
3. People and Places |
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Term
| Consumer Products - Four Types of Purchases |
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Definition
1. Convience products - items taht the consumer pruchases a lot with minimum shopping effort (dasani water)
2. shopping products - items for which the consumer compares several alternatives on criteria such as price, quality, or style (computer)
3. specialty products - items that the consuer makes a special effort to search out and buy (rolex)
4. unsought products - items the consumer doesn't know about or knows about but doesn't initially want (day care) |
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Term
| Business Products Subgroups |
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Definition
1. Components = items that become a part of the final product (raw materials)
2. Support Products = items used to assist in producing other goods and services
- installations (buildings and fixed equipment)
- accessory equipment (tools and office equipment)
- supplies (stationary, paperclips, brooms...)
- industrial services (maintenance, repair, legal services) |
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Term
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Definition
A group of products that are closely related
ex: oral care, personal care, pet nutrition... |
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Term
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Definition
- Intangibility = services can't be seen, tasted, felt, heard or smelled before purchase. ex -- phillie's mascot
- variability = quality of service depends on who provides them and when, where, how...ex = fast food wrkr
- Inseparability = servicescan't be separated from their providers. ex: citizens bank
- Perishability = services can't be stored for later use or sale |
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Term
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Definition
1. compare with existing products
2. newness from organization's perspective
3. newness from consumers' perspective |
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Term
| New Product Development/Stages |
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Definition
1. Strategy Development
2. Idea Generation
3. Screening and Evaluation
4. Business Analysis
5. Development
6. Market Testing
7. Commercialization |
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Term
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Definition
stage 1
define the role for a new product in terms of the firm's overall objectives
includes - SWOT, environmental scanning |
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Term
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Definition
Stage 2
internal idea sources: employee, research and development breakthroughs
external idea sources: consumers, distributors, suppliers, competitors |
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Term
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Definition
Stage 3
Concept development: product idea - idea for a possible product that the company can see itself offering to the market
testing = internal approach vs external approach (test on consumers for external) |
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Term
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Definition
Step 4
- marketing strategy development = designing an initial marketing strategy for introducing a car to the market
- business fit = financial analysis: expected costs and profits. marketing and product synergis with other existing products. Last checkpoint before significant resources are invested to create a prototype
ex- off peak pricing |
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Term
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Definition
Stage 6
offering a product for sale on a limited basis in defined area in order to determine if consumers will buy the product and to check other elements of the marketing mix |
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Term
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Definition
Step 7
What to launch, where to launch...
regional rollouts = introduce the product in certain areas first. |
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Term
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Definition
Synergies = the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.
Cannibalization = critical issue of if the new products or new chain simply are stealing customers and sales from the older, existing ones. ex: ann taylor loft (cheaper) is stealing sales from the normal ann taylor |
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Term
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Definition
Intro
Growth
Maturity
Decline |
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Term
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Definition
| Low sales, high cost per customer, negative profits, few competitors, objection is to gain awareness, few competitors, target innovators, basic product, stimulate primary demand and build brand awareness, use skimming or penetration, limited distribution |
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Term
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Definition
| Rapidly rising sales, average cost per customer, rising profits, growing number of competitors, target early adopters, maximize market share by differentiation, product extension, reduce promotion to take advantage of demand, use price penetration to gain market share, offer deals, build intensive distribution |
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Term
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Definition
| Peak sales, low cost per customer, high profits, stable number beginning to decline of competitors, maximize profit while defending market shares, stable competition, target the mid majority, use product diversity and models, increase promotion to remind brand differences and benefits to encourage brand switching, lower price to defend market share, distribute in outlets |
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Term
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Definition
declinging sales, low cost per customer, declining profits, declining number of competitors, reduce expenditures and milk the brand, declining competition, target laggards, phase out weak products, reduce promotion needed to retain hard-core loyalists, cut prices.
you can reposition the product or modify the market (find new consumers, increase a product's use, create a new use, or modify the product) |
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Term
| Alternative Product Life Cycles |
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Definition
| High Learning Product, Low learning product (juice), fashion product, fad product |
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Term
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Definition
1. Multip product Branding
- line extension and brand extension
2. Multibranding
3. Private Branding
4. Mixed Branding |
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Term
| Multiproduct Branding (corporate branding) |
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Definition
Use one name for all of its products in a product class
- Line extention = coke --> diet coke, coke with lime...
subbranding = combine a coporate brand with a new brand ex - porsche carrera (high end) and porsche boxster (low end)
advantages: take advantage of the value of the orginal brand, savings in advertising...
disadvantages: cannibalization
- Brand Extentsion = use successful existing brand name to launch a new product line. ex = gap --> gap perfume. or ivory soap --> ivory detergent.
advantages = instant recognition and earlier acceptance of the extended brand. save marketing costs
disadvantages = brand dilution: a mismatch btwn an orginal brand and a new product can damage the original brand |
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Term
| Multibranding (indvidual branding) |
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Definition
Use a distinct name for each product. ex = P&G - oral B and pringles
- advantages: differentiation of each brand (targeting different markets, positioning different images...) and a low brand dilution risk
- disadvantages = high promotion cost
- more examples: toyota/lexus, gap/oldnavy |
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Term
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Definition
use the brand name of a wholesaler ore retailer
ex: sear-kenmore appliances, craftman tools, diehard batteries |
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Term
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Definition
a compromise between a manufacturer and private branding
ex: michelin makes: michelin tires and sears tires |
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Term
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Definition
The added value a brand name gives to a product beyond the functional benefits it provides
- adv: provides a competitive advantage, consumers are willing to pay higher for a product iwth brand equity |
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Term
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Definition
1. Select an approximate price level
2. set the list or quoted price
3. make special adjustments to the list or quoted price |
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Term
| Select an approximate Price Level (step 1) |
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Definition
1. consider pricing objectives and constraints (profit vs demand)
2. Choose among the general pricing approaches (demand oriented, company-oriented, and competition oriented)
3. Break-even analysis |
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Term
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Definition
| skimming, penetration, prestige, odd-even, target, bundle, yield management |
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Term
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Definition
1. cost-oriented approaches
- standard markup, cost-plus
2. profit-oriented approaches
- target profit, target return on sales, target return on investment |
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Term
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Definition
| customary, above at or below market, loss leader |
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Term
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Definition
Setting the highest initial price that customers desiring the product are willing to pay
Less price sensitive products |
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Term
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Definition
Setting a low initial price to appeal to the mass market
Higher price sensitivity products |
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Term
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Definition
part of the demand-oriented approaches
tiffanies, rolex, lexus
target status-conscious consumers
- duracell charged more money so people assumed it was better than energizer batteries |
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Term
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Definition
| pricing things at 4.99 rather than 5.00 |
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Term
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Definition
demand-oriented approach
- you set the price and then decide what features to add (crest spinbrush) |
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Term
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Definition
demand-oriented approach
- charging different prices to maximize revenue for a set amount of capacity at any given time
ex: airlines |
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Term
| Standard Markup and cost-plus |
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Definition
- cost-oriented approach
standard markup = adding a fixed % to the cost of all items in a specific product class
cost-plus = variation of standard markup pricing. add the profit you want |
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Term
| Profit-orietned approach formula |
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Definition
target profit pricing = set a target profit and then decide the price. need an accurate estimate of demand
profit = total revenue - total costs
or
prof = (quantity sold * price) - (quantity sold * unit variable cost + fixed cost) |
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Term
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Definition
traditional pricing.
ex: candy bars are traditionally .25 cents |
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Term
| above-, at-, or below-market pricing |
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Definition
market price is what people are willing to pay.
rolex = above
jcpenny = at
generic products = below |
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Term
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Definition
you aren't trying to increase sales, you're trying to attract attention to it so they buy other products as well
put things on sale |
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Term
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Definition
technique used to analyze the relationship between total revenue and total cost to determine profitability at various levels of output.
total revenue = unit price x quantity sold
break even point = fixed cost / (unit price - unit variable cost)
profit = (unit price x quantity sold) - total cost
vc = costs that vary with changes in the level of output (packaging costs, raw material costs,, shipping costs...)
FC = costs that do not change as output is increased or decreased. ex: advertising expenditures, product design costs, overhead costs... |
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Term
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Definition
- Break even point = fixed cost / (unit price - unit variable cost)
- profit = (unit price x quantity sold) - total cost
- total revenue = unit price x quantity sold |
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Term
| Set the List or Quoted Price |
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Definition
one price policy = setting one price for all buyers of a product or service
VS
flexible price policy = setting different prices for products or services depending on customer segments, demand, cost, and competitive factors |
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Term
| Make special adjustments to the list or quoted price |
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Definition
discounts = quantity discounts, seasonal discounts, trade discounts, cash discounts
allowances = reductions from list or quoted prices to buyers for performing some activity |
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