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Marketing 3000 Exam 2 Book Notes
Definitions from the book
170
Marketing
Undergraduate 3
03/05/2012

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Term
Marketing Information
Definition
Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans
Term
Decision Support System (DSS)
Definition
An interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions
Term
Characteristics of a true DSS
Definition
  • Interactive
    • Managers give simple instructions and see immediate results.  The process is under their direct control.  Managers don't have to wait for scheduled reports.
  • Flexible
    • A DSS can sort, regroup, total, average, and manipulate the data in various ways.  It will shift gears as the user changes topics, matching information to the problem at hand
  • Discovery oriented
    • Managers can probe for trends, isolate problems, and ask "what if" questions
  • Accessible
    • Managers who aren't skilled with computers can easily learn how to use a DSS.  Novice users should be able to choose a standard, or default, method of using the system.  They can bypass optional features so they can work with the basic system right away while gradually learning to apply its advanced features
Term
Database Marketing
Definition
  • The creation of a large computerized file of customers' and potential customers' profiles and purchase patterns
  • Key tool for successful one-to-one marketing
Term
Marketing Research
Definition
  • The process of planning, collecting, and analyzing data relevant to a marketing decision
  • Marketing research is the function that links the consumer, customer, and public to the marketer through information
  • Is a main data source for both management information systems and DSS
Term
The Marketing Research Process
Definition
  1. Identify and formulate the problem/opportunity
  2. Plan the research design and gather primary data
  3. Specify the sampling procedures
  4. Collect the data
  5. Analyze the data
  6. Prepare and present the report
  7. Follow up
Term
Three Roles of Marketing Research
Definition
  • Descriptive
    • Gathering and presenting factual statements
  • Diagnostic
    • Explaining data
  • Predictive
    • To address "what if" questions
Term
Marketing Research Problem
Definition
  • Determining what information is needed and how that information can be obtained efficiently and effectively
  • Is information oriented
Term
Marketing Research Objective
Definition
  • The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information
Term
Management Decision Problem
Definition
  • A broad-based problem that uses marketing research in order for managers to take proper actions
  • Is action oriented
Term
Secondary Data
Definition
  • Data previously collected for any purpose other than the one at hand
  • Save time and money if they help solve the researcher's problem
  • Disadvantages stem mainly from a mismatch between the researcher's unique problem and the purpose for which the secondary data were originally gathered
Term
Marketing Research Aggregator
Definition
  • A company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms
Term
Research Design
Definition
  • Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed
Term
Primary Data
Definition
  • Information that is collected for the first time; used for solving the particular problem under investigation
  • Are current and researchers know the source
  • Gathering primary data is expensive
Term
Piggyback Studies
Definition
  • Gathering data on two different projects using one questionnaire
Term
Survey Research
Definition
  • The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes
Term
In-Home Personal Interviews
Definition
  • Often provide high-quality information, but they tend to be very expensive because of the interviewers' travel time and mileage costs
  • They are rapidly disappearing from the American and European researchers' survey toolbox
Term
Mall Intercept Interview
Definition
  • A survey research method that involves interviewing people in the common areas of shopping malls
  • Drawback is that it is hard to get a representative sample of the population
  • One advantage is the ability of the interviewer to probe when necessary
  • Must be brief
Term
Computer-Assisted Personal Interviewing
Definition
  • An interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer
Term
Computer-Assisted Self-Interviewing
Definition
  • An interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into a computer
Term
Central-Location Telephone (CLT) Facility
Definition
  • A specially designed phone room used to conduct telephone interviewing
Term
Mail Surveys
Definition
  • Advantages
    • Relatively low cost, elimination of interviewers and field supervisors, centralized control, and actual or promised anonymity for respondents
  • Disadvantages
    • Mail questionnaires usually produce low response rates because certain elements of the population tend to respond more than others
Term
Mail Panels
Definition
  • Offer an alternative to the one-shot mail survey
  • Consists of a sample of households recruited to participate by mail for a given period
    • Panel members often receive gifts in return for their participation
Term
Executive Interview
Definition
  • A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services
Term
Focus Group
Definition
  • A type of personal interviewing
  • Is seven to ten people who participate in a group discussion led by a moderator
  • Can be used to gauge consumer response to a product or promotion and are occasionally used to brainstorm new product ideas or to screen concepts for new products
Term
Open-Ended Question
Definition
  • An interview question that encourages an answer phrased in the respondent's own words
Term
Closed-Ended Question
Definition
  • An interview question that asks the respondent to make a selection from a limited list of responses
    • Dichotomous
      • Yes or No
    • Multiple Choice
Term
Scaled-Response Question
Definition
  • A closed-ended question designed to measure the intensity of a respondent's answer
Term
Observation Research
Definition
  • A research method that relies on four types of observation:
    • People watching people
    • People watching an activity
    • Machines watching people
    • Machines watching an activity
Term
Mystery Shoppers
Definition
  • Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions
Term
Behavioral Targeting (BT)
Definition
  • A form of observation marketing research that uses data mining coupled with identifying Web surfers by their IP addresses
Term
Conversational Eavesdropping Analysis or User-Declared Information Targeting
Definition
  • The form of BT that uses information that a member of MySpace or Facebook shares, in combination with his demographic and psychographic information
Term
Ethnographic Research
Definition
  • The study of human behavior in its natural context; involves observation of behavior and physical setting
Term
Experiment
Definition
  • A method a researcher can use to gather primary data
  • The researcher alters one or more variables- price, package design, shelf space, advertising theme, advertising expenditures- while observing the effects of those alterations on another variable (usually sales)
Term
Sample
Definition
  • A subset from a larger population
Term
Universe
Definition
  • The population from which a sample will be drawn
Term
Probability Sample
Definition
  • A sample in which every element in the population has a known statistical likelihood of being selected
Term
Random Sample
Definition
  • A sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample
Term
Nonprobability Sample
Definition
  • Any sample in which little or no attempt is made to get a representative cross section of the population
Term
Convenience Sample
Definition
  • A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher- for example, employees, friends, or relatives
Term
Measurement Error
Definition
  • An error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process
Term
Sampling Error
Definition
  • An error that occurs when a sample somehow does not represent the target population
Term
Frame Error
Definition
  • An error that occurs when a sample drawn from a population differs from the target population
Term
Random Error
Definition
  • An error that occurs when the selected sample is an imperfect representation of the overall population
Term
Field Service Firm
Definition
  • A firm that specializes in interviewing respondents on a subcontracted basis
Term
Types of Probability Samples
Definition
  • Simple Random Sample
  • Stratified Sample
  • Cluster Sample
  • Systematic Sample
Term
Types of Nonprobability Samples
Definition
  • Convenience Sample
  • Jedgment Sample
  • Quota Sample
  • Snowball Sample
Term
Cross-Tabulation
Definition
  • A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions
Term
Advantages of Internet Surveys
Definition
  • Rapid development, real-time reporting
  • Dramatically reduced costs
  • Personalized questions and data
  • Improved respondent participation
  • Contact with the hard-to-reach
Term
Methods of Conducting Online Surveys
Definition
  • Web Survey Systems
  • Survey Design and Web Hosting Sites
  • Online Panel Providers
Term
Advantages of Online Focus Groups
Definition
  • Better participation rates
  • Cost-effectiveness
  • Broad geographic scope
  • Accessibility
  • Honesty
Term
Advantages of Web Community Research
Definition
  • Engage customers in a space where they are comfortable, allowing clients to interact with them on a deeper level
  • Achieve customer-derived innovations
  • Establish brand advocates who are emotionally invested in a company's success
  • Offer real-time results, enabling clients to explore ideas that normal time constraints prohibit
Term
Consumer-Generated Media (CGM)
Definition
  • Media that consumers generate and share among themselves
  • Comes from various sources, such as blogs, message boards, review sites, podcasts, etc.
  • Because it is consumer based, CGM is trusted more than traditional forms of advertising and promotion
Term
Scanner-Based Research
Definition
  • A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy
Term
BehaviorScan
Definition
  • A scanner-based research program that tracks the purchases of 3,000 households through store scanners in each research market
Term
InfoScan
Definition
  • A scanner-based sales-tracking service for the consumer packaged-goods industry
Term
Neuromarketing
Definition
  • A field of marketing that studies the body's responses to marketing stimuli
Term
Competitive Intelligence (CI)
Definition
  • An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors
Term
Product
Definition
  • Everything, both favorable and unfavorable, that a person receives in an exchange
  • Tangible goods, services, and ideas are all products
Term
Business product, or Industrial product
Definition
  • A product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers
Term
Consumer product
Definition
  • A product bought to satisfy an individual's personal wants
Term
Convenience product
Definition
  • A relatively inexpensive item that merits little shopping effort
Term
Shopping product
Definition
  • A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
    • homogeneous
      • washers, dryers, refrigerators, televisions, etc.
    • heterogeneous
      • furniture, clothing, housing, universities, etc.
Term
Specialty Product
Definition
  • A particular item that consumers search extensively for and are very reluctant to accept substitutes
    • Brand name and quality are often very important
Term
Unsoughtful product
Definition
  • A product unknown to the potential buyer or a known product that the buyer does not actively seek
Term
Product item
Definition
  • A specific version of a product that can be designated as a distinct offering among an organization's products
Term
Product line
Definition
  • A group of closely related product items
Term
Product mix
Definition
  • All products that an organization sells
Term
Product mix width
Definition
  • The number of product lines an organization offers
Term
Product line depth
Definition
  • The number of product items in a product line
Term
Product modification
Definition
  • Changing one or more of a product's characteristics
Term
Quality modification
Definition
  • Change in a product's dependability or durability
Term
Functional modification
Definition
  • Change in a product's versatility, effectiveness, convenience, or safety
Term
Style modification
Definition
  • Aesthetic product change rather than a quality or functional change
Term
Planned obsolescence
Definition
  • The practice of modifying products so those that have already been sold become obsolete before they actually need replacement
Term
Repositioning
Definition
  • Involves changing consumers' perceptions of a brand
Term
Product line extension
Definition
  • Adding additional products to an existing product line in order to compete more broadly in the industry
Term
Brand
Definition
  • A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
Term
Brand name
Definition
  • That part of a brand that can be spoken, including letters, words, and numbers
Term
Brand mark
Definition
  • The elements of a brand that cannot be spoken
Term
Brand equity
Definition
  • The value of company and brand names
Term
Global brand
Definition
  • A brand that obtains at least a third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data
Term
Brand loyalty
Definition
  • Consistent preference for one brand over all others
Term
Benefits of Branding
Definition
  1. Product Identification
  2. Repeat Sales
  3. New-product Sales
Term
Manufacturer's brand
Definition
  • The brand name of a manufacturer
Term
Private brand
Definition
  • A brand name owned by a wholesaler or a retailer
Term
Captive brand
Definition
  • A brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation
Term
Individual branding
Definition
  • Using different brand names for different products
Term
Family branding
Definition
  • Marketing several different products under the same brand name
Term
Co-branding
Definition
  • Placing two or more brand names on a product or its package
    • Ingredient branding
    • Cooperative branding
    • Complementary branding
Term
trademark
Definition
  • The exclusive right to use a brand or part of a brand
Term
Service mark
Definition
  • A trademark for a service
Term
Generic product name
Definition
  • Identifies a product by class or type and cannot be trademarked
Term
Most important functions of packaging
Definition
  1. Contain and protect products
  2. Promote products
  3. Facilitate the storage, use, and convenience of products
  4. Facilitate recycling and reduce environmental damage
Term
Persuasive labeling
Definition
  • A type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary
Term
Informational labeling
Definition
  • A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase
Term
Greenwashing
Definition
  • When a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly
Term
Universal Product Codes (UPCs)
Definition
  • A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products
Term
Three options a firm has for handling the brand name when entering a foreign market
Definition
  • One brand name everywhere
    • Coca-Cola
  • Adaptations and modifications
  • Different brand names in different markets
Term
Warranty
Definition
  • A confirmation of the quality or performance of a good or service
Term
Express waranty
Definition
  • A written guarantee
Term
Implied warranty
Definition
  • An unwritten guarantee that the good or service is fit for the purpose for which it was sold
Term
New product
Definition
  • A product new to the world, the market, the producer, the seller, or some combination of these
Term
Six categories of new products
Definition
  1. New-to-the-world products
  2. New product lines
  3. Additions to existing product lines
  4. Improvements or revisions of existing products
  5. Repositioned products
  6. Lower-priced products
Term
New-product strategy
Definition
  • A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
Term
New-Product Development Process
Definition
  1. New-product strategy
  2. Idea generation
  3. Idea screening
  4. Business analysis
  5. Development
  6. Test marketing
  7. Commercialization
  • New product
Term
Idea Generation
Definition
  • New-product ideas come from many sources:
    • Customers
    • Employees
    • Distributors
    • Vendors
    • Compeititors
    • Research and development
    • Consultants
Term
Product Development
Definition
  • A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
Term
Brainstorming
Definition
  • The process of getting a group to think of unlimited ways to vary a product or solve a problem
Term
Screening
Definition
  • The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason
Term
Concept test
Definition
  • A test to evaluate a new-product idea, usually before any prototype has been created
Term
Business analysis
Definition
  • The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
Term
Development
Definition
  • The stage in the product development process in which a prototype is developed and a marketing strategy is outlined
Term
Simultaneous product development
Definition
  • A team-oriented approach to new-product development
Term
Test marketing
Definition
  • The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
Term
Simulated (laboratory) market testing
Definition
  • The presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market
Term
Commercialization
Definition
  • The decision to market a product
Term
Firms that routinely experience success in new-product introductions tend to share these characteristics
Definition
  • A history of listening carefully to customers
  • An obsession with producing the best product possible
  • A vision of what the market will be like in the future
  • Strong leadership
  • A commitment to new-product development
  • A project-based team approach to new-product development
  • Getting every aspect of the product development process right
Term
Innovation
Definition
  • A product perceived as new by a potential adopter
Term
Diffusion
Definition
  • The process by which the adoption of an innovation spreads
Term
Five categories of adopters participate in the diffusion process
Definition
  1. Innovators
    1. The first 2.5% of all those who adopt the product
    2. Venturesome
  2. Early adopters
    1. The next 13.5% to adopt the product
    2. The respect of others
  3. Early majority
    1. The next 34% to adopt
    2. Deliberateness
  4. Late majority
    1. The next 34% to adopt
    2. Skepticism
  5. Laggards
    1. The final 16% to adopt
    2. Tradition
Term
Product Characteristics and the Rate of Adoption
Definition
  1. Complexity
    1. The degree of difficulty involved in understanding and using a new product
  2. Compatibility
    1. The degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs
  3. Relative advantage
    1. The degree to which a product is perceived as superior to existing substitutes
  4. Observability
    1. The degree to which the benefits or other results of using the product can be observed by others and communicated to target customers
  5. "Trialability"
    1. The degree to which a product can be tried on a limited basis
Term
Two types of communication that aid the diffusion process
Definition
  1. Word-of-mouth communication
  2. Communication directly from the marketer to potential adopters
Term
Product life cycle (PLC)
Definition
  • A concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death)
Term
Product category
Definition
  • All brands that satisfy a particular type of need
Term
Four stages of the Product Life Cycle
Definition
  1. Introductory Stage
  2. Growth Stage
  3. Maturity Stage
  4. Decline Stage
Term
Introductory Stage
Definition
  • The full-scale launch of a new product into the marketplace
Term
Growth Stage
Definition
  • The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
Term
Maturity Stage
Definition
  • A period during which sales increase at a decreasing rate
Term
Decline Stage
Definition
  • A long-run drop in sales
Term
Marketing channel (channel of distribution)
Definition
  • A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
Term
Channel members
Definition
  • All parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
Term
Discrepancy of quantity
Definition
  • The difference between the amount of product produced and the amount an end user wants to buy
Term
Discrepancy of assortment
Definition
  • The lack of all the items a customer needs to receive full satisfaction from a product or products
Term
Temporal discrepancy
Definition
  • A situation that occurs when a product is produced but a customer is not ready to buy it
Term
Spatial discrepancy
Definition
  • The difference between the location of a producer and the location of widely scattered markets
Term
Retailer
Definition
  • A channel intermediary that sells mainly to consumers
Term
Merchant wholesaler
Definition
  • An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
Term
Agents and brokers
Definition
  • Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
Term
Transactional functions
Definition
  • Involve contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits
Term
Logistics
Definition
  • The efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies
Term
Facilitating Functions
Definition
  • Includes research and financing
Term
Direct channel
Definition
  • A distribution channel in which producers sell directly to consumers
Term
Dual distribution (multiple distribution)
Definition
  • The use of two or more channels to distribute the same product to target markets
Term
Strategic channel alliance
Definition
  • A cooperative agreement between business firms to use the other's already established distribution channel
Term
Factors affecting channel choice
Definition
  1. Market Factors
  2. Product Factors
  3. Producer Factors
Term
Intensive distribution
Definition
  • A form of distribution aimed at having a product available in every outlet where target customers might want to buy it
Term
Selective distribution
Definition
  • A form of distribution achieved by screening dealers to eliminate all but a few in any single area
Term
Exclusive Distribution
Definition
  • A form of distribution that establishes one or a few dealers within a given area
Term
Supply chain
Definition
  • The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
Term
Supply chain management
Definition
  • A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
Term
Logistics
Definition
  • The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption
Term
The supply chain consists of several interrelated and integrated logistical components:
Definition
  1. Sourcing and procurement of raw materials and supplies
  2. Production scheduling
  3. Order processing
  4. Inventory control
  5. Warehousing and materials handling
  6. Transportation
Term
Logistics information system
Definition
  • The link that connects all the logistics functions of the supply chain
Term
Supply chain team
Definition
  • An entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer
Term

Mass customization

(build-to-order)

Definition
  • A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
Term
Just-in-time production (JIT) or Lean production
Definition
  • A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the production line
Term
Order processing system
Definition
  • A system whereby orders are entered into the supply chain and filled
Term
Chasing
Definition
  • Chasing happens when a buyer orders a small amount of product to test in stores, and if the product sells well, the buyer quickly places a larger order with the supplier and requires the new order to be delivered even faster
Term
Electronic data interchange (EDI)
Definition
  • Information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission
Term
Inventory control system
Definition
  • A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand
Term
Materials requirement planning (MRP) or materials management
Definition
  • An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer
Term
Distribution resource planning (DRP)
Definition
  • An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer
Term
Automatic replenishment program
Definition
  • A real-time inventory system that triggers shipments only when a good is sold to the end user
Term
Materials-handling system
Definition
  • A method of moving inventory into, within, and out of the warehouse
Term
Supply chain managers generally choose a mode of transportation on the basis of several criteria:
Definition
  1. Cost
    1. The total amount a specific carrier charges to move the product from the point of origin to the destination
  2. Transit time
    1. The total time a carrier has possession of goods, including the time required for pickup and delivery, handling, and movement between the point of origin and the destination
  3. Reliability
    1. The consistency with which the carrier delivers goods on time and in acceptable condition
  4. Capability
    1. The ability of the carrier to provide the appropriate equipment and conditions for moving specific kinds of goods, such as those that must be transported in a controlled environment (e.g., under refrigeration)
  5. Accessibility
    1. A carrier's ability to move goods over a specific route or network
  6. Traceability
    1. The relative ease with which a shipment an be located and transferred
Term
Trends in Supply Chain Management
Definition
  1. Advanced computer technology
  2. Outsourcing of logistics functions
  3. Electronic distribution
Term
Outsourcing or Contract logistics
Definition
  • A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing
Term
Electronic distribution
Definition
  • A distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals
Term
Green supply chain management
Definition
  • Involves the integration of environmentally conscious thinking into all phases of key supply chain management processes
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