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Marketing ch. 8-10
marketing stufff
152
Business
Undergraduate 3
07/02/2011

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Cards

Term
What is marketing research?
Definition
Set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid marketers of goods services or ideas. Should only be used to produce unbiased, factual information.
Term
Why do marketers find marketing research valuable?
Definition
1.) it helps reduce some of the uncertainty under which they constantly operate. successful managers know when research might help their decision making and then take appropriate steps to acquire the info they need.
2.) marketing research provides a crucial link between firms and their environments, which enables them to be customer oriented because they build their strategies using customer input and continual feedback.
3.) by constantly monitoring their competitors, firms can respond quickly to competitive moves.
Term
What is the marketing information system ( MKIS)
Definition
set of procedures and methods that apply to regular, planned collection, analysis, and presentation of information used in marketing decisions.
Term
What are data warehouses?
Definition
Large computer files that store millions or billions of pieces of individual data.
Term
What is data mining?
Definition
use of carious statistical analysis tools to uncover previously unknown patterns in data stored in databases or relationships among variables.
Term
What does MKIS provide?
Definition
a means to accumulate info from sources both internal and external to the organization for the purpose of making it routinely available to mangers for their more informed decision making. it enables a company to better meet the needs of its best business customers, thus improving the overall value of its offering.
Term
What must be an integral part of a firms marketing strategy and decision making?
Definition
a strong ethical orientation.
Term
when it comes to the ethics of using customer information, what must firms do?
Definition
marketers musts adhere to legislative and company policies as well as respect consumers desires for privacy.
Term
What three guidelines do the Marketing Association provide for conducting marketing research?
Definition
1) it prohibits selling or fundraising under the guise of conducting research
2.) it supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research data
3) it encourages the fair treatment of clients and suppliers.
Term
What factors do managers consider before embarking on a marketing research project?
Definition
1.) will the research be useful?
2.) will it provide insights beyond what the managers already know and reduce uncertainty associated with the project?
3.) is top managment committed to the project and wiling to abide by the results of the research?
Term
What is the 5 step process to the marketing research process?
Definition
1) defining objectives
2.) Designing the research project
3.) Data collection
4.) Analyzing Data
5.) Presenting results
Term
When marketers define the objective, what do they need to make sure to do.
Definition
B/c research is expensive and time consuming marketers need to define in advance exactly what information they are looking for. Marketing research efforts can be wasted if research objectives are poorly defined.
Term
what do researchers do when they design the project?
Definition
they identify the type of data needed and determine the type of research necessary to collect it.
Identifying the type of data needed is the first purpose, and determining market share is also important.
Term
What is secondary data?
Definition
pieces of information already collected from other sources and usually readily available.
Term
What is syndicated data?
Definition
data available for a fee from commercial research firms.
Term
What is primary data?
Definition
data collected to address specific research needs.
Term
what is exploratory research?
Definition
attempts to begin to understand the phenomenon of interest. provides intitial information when the problem lacks clear definition.
Term
What are some advantages and disadvantages of secondary data?
Definition
Advantages: Saves tome in collecting data because they are readily available
- reduces data collection costs

Disadvantages:
- may not be precisely relevant to information needs.
- Info may not be as timelely as needed
- Sources not original, and therefore useless.
Term
What are some advantages and disadvantages of primary research?
Definition
Advantages:
- specific to the immediate topic at hand.
- offers behaviorial insights unlike secondary.

Disadvantages:
- More costly to collect
- takes longer to collect
- more sophisticated training.
Term
What are some examples of exploratory research?
Definition
observation, in depth interviews, focus groups projective techniques.
Term
What is conclusive research, and what are some examples?
Definition
Information needed to confirm preliminary insights which managers use to purse appropriate actions.Ex: Experiments, survey, scanner, panel
Term
What is an observation?
Definition
Exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny. May take hours or weeks.
Term
What is an in-depth interview?
Definition
Exploratory research technique in which trained researchers ask questions, listen to and record answers, and pose additional questions to clarify a particular issue.
Term
what is a focus group interview?
Definition
Research technique that uses a small group of persons to discuss a particular topic, conversation guided by a trained moderator using unstructured inquiry method. In particular they gather qualitative data about initial reactions to a new or existing product or service.
Term
What is a projective technique?
Definition
Qualitative research in which subjects are provided with a scenario and express their thoughts and feelings about it.
Term
What is a survey?
Definition
Systematic means of collecting information from people that generally use a questionarre.
Term
What is a Questionarre?
Definition
Form that features questions designed to gather information from respondents and accomplish reearcher's objectives, questions can be unstructured ( fill in a box) or structured.
Term
What are unstructured questions?
Definition
open ended questions that allow respondents to answer in their own words.
Term
What are structured questions
Definition
Closed-ended questions that provide a discrete set of response alternatives or specific answers, to respondents.
Term
Marketing survey can be what?
Definition
online or offline.
Term
What are some benefits of online surveys?
Definition
response rates are relatively high.
respondents may lie less.
It is inexpensive
Results are processed and recieved quickly.
Term
What is experimental research?
Definition
Quantitative research that systematically manipulates one or more variables to determine which has a casual effect of the other variables. Ex: if the cheescake factory is trying to determine most profitable price for a menu item.
Term
What is scanner research?
Definition
Quantitative research that uses data obtained from scanner readings of UPC codes at checkout counters.
Term
What is panel research?
Definition
quantitative research that collects information from a group of consumers ( panel) over time data may be from a survey or record of purchases.
Term
What is a key difference between scanner research and panel research?
Definition
the nature of aggregation. scanner research focuses on weekly consumption of a particular product, whereas panel research focuses on the total weekly consumption of a particular person or a group of people.
Term
What is the fourth step in the marketing research process?
Definition
analyzing the data. purpose is to describe, explain, predict, or evaluate a particular situation.
Term
What is the 5th step of the marketing research process?
Definition
presenting the results.
Term
What does a typical marketing research report include?
Definition
executive summary, body of the report ( has objectives, methodology, and detailed findings) and conclusions, limitiations, and appropriate supplemental tables, figures, and appendixes.
Term
To be effective a written report must be what?
Definition
short, interesting, methodical, precise, lucid, and free of errors.
Term
What are some key thoughts on the marketing research process?
Definition
1.) marketing research process doesnt always go step by step.
2.) planning the entire project in advance is important.
3.)
Term
What is a product?
Definition
Anything that is of value to a consumer and can be offered through a voluntary market exchange.
Term
What is a product assortment/ product mix?
Definition
Complete set of all products offered by a firm.
Term
What are product lines.
Definition
Groups of associated items, including those consumers use together or think of as part of a group of similiar products.
Term
What is a product category?
Definition
Assortment of items the customer sees as reasonable subtitutes.
Term
What is a brand?
Definition
Name, term, design, symbol, or any other features that distinguish a seller's good or service from those of other sellers.
Term
What is product line breadth?
Definition
Number of product lines, or variety offered by the firm.
Term
What is product line depth?
Definition
Number of categories within a product line.
Term
What is stock keeping units? ( SKU )
Definition
Individual items within each product category, the smallest unit available for inventory control.
Term
What is category depth?
Definition
Number of stock keeping units within a category.
Term
Give an example of a product category and a product line.
Definition
Product category: oral care
Product line: toothbrush, toothpaste, whitening products, floss.
Term
If a firm is adding or deleting product categories, what is it doing?
Definition
Changing its product mix breadth.
Term
Why do firms what to increase breadth?
Definition
to capture new product categories, or evolving markets, or increase sales, and compete in new venues.
Term
Why would a firm want to decrease its breadth?
Definition
because sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities.
Term
Why would a firm want to increase its depth?
Definition
firms may want to add new product lines or categories to address changing consumer preferences or preempt competitors while boosting sales.
Term
Why would a firm want to decrease its depth?
Definition
to realign resources. the decision is not taken lightly though.
Term
Why would a firm what to change the number of SKU's?
Definition
to stimulate sales or react to consumer demand.
Term
Many of the strategies used to make product line decisions for physical products can also be applied to:
Definition
services.
Term
What does branding provide?
Definition
a way for a firm to differentiate its product offerings from those of its competitors and can be used to represent the name of a firm and its entire product assortment.
Term
Brands do what to value?
Definition
they add value to merchandise and services beyond physical and functional characteristics or the pure act of performing the service.
Term
How do brands facilitate purchasing?
Definition
brands are often easily recognized by consumers and, because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions.
Term
What are the 6 brand elements?
Definition
Brand name, URLS, Logos and symbols, characters, slogans, jingles.
Term
What are the 6 ways brands add value?
Definition
1.) they facilitate purchasing
2.) they establish loyalty.
3.) they impact market value
4.) they are assets
5.) they reduce marketing costs
6.) they protect from competition.
Term
What is brand equity?
Definition
assets and liabilities linked to a brad that add to or subtract from the value provided by the product or service.
Term
What four aspects do firms look at to determine a brands equity?
Definition
1.) brand awarness
2.) percieved value
3.)Brand associations
4.) brand loyalty
Term
What is brand awareness?
Definition
Measure of how many consumers are familiar with the brand and its image, created through repeated exposures of brand elements in the firms communication.
Term
what is percieved value?
Definition
relationship between a products or services benefits and cost.
Term
What is brand association?
Definition
mental links between a brand and its key product attributes. can involve a logo, slogan or famous personality
Term
What is brand personality?
Definition
set of human characteristics associated with a brand, with symbolic or self expressive meanings for consumers.
Term
What is brand loyalty?
Definition
when consumers buy the same brand repeatedly over time rather than buying from multiple suppliers withing the same category.
Term
What are the 3 brand ownership strategies?
Definition
generic, store or private label, and manufacturer or national brand.
Term
what is manufacturer brands?
Definition
brands owned and managed by the manufacturer.
Term
What are private label or store brands?
Definition
brands developed and marketed by a retailer, and only available from that retailer.
Term
What is meant by the term generic?
Definition
product sold without a brand name, typically in commodities markets.
Term
What is a corporate brand?
Definition
use of a firms corporate name to brand all of its product lines and products.
Term
What is corporate and product line brands?
Definition
use of a product line name to brand rather than a corporate name.
Term
What are individual brands?
Definition
use of individual brand names for each of a firms products.
Term
What are the 3 brand name strategies?
Definition
Corporate or family brand, corporate and product line brand, individual.
Term
What is a brand extension?
Definition
the use of the same brand name for new products introduced to the same or new markets.
Term
what is brand dilution?
Definition
when a brand extension adversely affects consumer perceptions about the attributes of the core brand.
Term
what is cobranding?
Definition
marketing two or more brands together in the same package or promotion.
Term
to prevent potentially negative consequences of brand extension, what caveats must firms consider?
Definition
1.) marketers should carefully evaluate the fit between the product class of the core brand and that of the extension.
2.) firms should carefully evaluate consumer perceptions of the attributes of the core brand and seek out similiar attributes for the extension because brand specific associations are very important for extensions.
3.) Firms should refrain from extending the brand name to too many products and product categories to avoid diluting the brand and damaging equity.
4.) Firms should consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of the existing brand associations.
Term
what can cobranding do?
Definition
enhance consumers perceptions of product quality by signaling an unobservable product quality through links between the firms brand and a well known quality brand.
It can also be a prelude to an acquisition strategy, but cant be too different, such as burger kind and haagen das.
Term
What is brand licensing?
Definition
contractual arrangments whereby one firm allows another to use its brand name, logo, symbols, or characters for a negotiated fee.
Term
what risk does licensing have for the licensor?
Definition
dilution of brand equity through over exposure of the brand, especially if the brand name and characters are used inappropriately.
Term
What is brand repositioning?
Definition
Strategy to change a brands focus to target new markets or realign the core emphasis with changing market preferences.
Term
What can brand re positioning do?
Definition
change the quality image of the brand, breathe life into old brands, however repositioning is not without costs and risks.
Term
What is the primary package?
Definition
packaging the consumer uses, such as a toothpaste tube; typically seeks convenience in terms of storage, use, and consumption.
Term
what is the secondary package?
Definition
wrapper or exterior carton containing primary package; provides UPC label used by retail scanners; can contain product information unavailable on the primary package.
Term
because all packages are critical to the firms brand positioning and shelf appeal, many innovations in design and materials have occured in the past few decades, what are some examples?
Definition
1.) stand up, reclosable zipper pouches.
2.) Aluminum beverage cans
3.) Ring pull cans
4.) aseptic drink bottles
5.) Child-resistant/ senior friendly packages.
Term
Labels on products should do what?
Definition
provide information the consumer needs for his or her purchase decision and consumption of the product. they must comply with the laws and regulations, such as what ingrediants are inside of it, where it was made, directions for use, etc.
Term
labeling is ultimately a what?
Definition
a communication tool, and very important.
Term
what is innovation?
Definition
process by which ideas are transformed into new products and services that will help firms grow.
Term
What 5 step process does IDEO follow?
Definition
1.) observation
2.) brainstorming
3.) Prototyping
4.) Refining
5.) Implementation.
Term
Without innovation and its resulting new products and services, firms would have what two choices?
Definition
continue to market current products to current customers or take the same product to another market with similiar customers.
Term
Although innovation strategies may not work in the short run, overriding long term reasons compel firms to introduce new products and services. why is this?
Definition
1.) as they add new products to their offerings, firms can create and deliver value more effectively by satisfying the changing needs of their current and new customers or simply keeping customers from getting bored with the current product of service.
2.) the longer a product exists in the marketplace, the more likely it is that the market will become saturated. without new products or services, the value of the firm will ultimately decline.
3.)the portfolio of products that innovation can create helps the firm diversify its risk and therefore enhances firm value better than a single product can.
4.) In some industries such as the arts and software, most sales come from new products.
Term
What is a pioneer?
Definition
New product introductions that establish a completely new market or radically change the rules of competition and consumer preferences.
Term
What are first movers?
Definition
product pioneers, first to create a market or product category. readily recognizable to consumers, they establish a commanding early market share lead.
Term
Do all new pioneers succeed?
Definition
No, in many cases imitators capitalize on the weaknesses of pioneers and subsequently gain advantage in the market.a lot of new products are failures.
Term
What is diffusion of innovation?
Definition
Process by which an innovation spreads throughout a target market over time and various categories of adopters.
Term
What are innovators?
Definition
Consumers who want to be the first to have a new product or service.
Term
The diffusion of innovation follows what kind of curve?
Definition
a bell shaped curve
Term
the diffusion of innovation has what kind of people in it?
Definition
innovators, early adopters, early majority, late majority, laggards.
Term
Why are innovators important?
Definition
they keep themselves well informed about a product or service, they help the product gain market acceptance, and spread positive word of mouth.
Term
What are early adopters and why are they important?
Definition
early adopters are the second group of consumers in the diffusion of innovation model to use an innovation. less risk tolerant than innovators, wait to purchase until after careful review. they are crucial to bringing the other three categories to the market.
Term
What is the early majority, and why are they important?
Definition
early majority represents 34 percent of the population, they are crucial because new products cant bet be profitable until this large group buys them. when early majority has entered the market, competition has reached its peak, there are many price and quality choices.
Term
What is the late majority?
Definition
Last group of buyers to enter a new product market, when they do, the product has reached its full market potential.
Term
what are laggards.
Definition
make up roughly 16 percent of the population. they avoid change and rely on traditional products until they are no longer available.
Term
How do firms use the diffusion of innovation theory?
Definition
firms can predict which types of products customers will buy, they can develop effective marketing mix to push acceptance among each consumer group.
Term
What is one catch of the diffusion rate?
Definition
different products diffuse at different rates, marketers must understand what the diffusion curve for a new product looks like, as well as the characteristics of the target customers in each stage of the diffusion.
Term
What are the four factors affecting product diffusion?
Definition
1.) compatibility
2.) relative advantage
3.) trialability
4.) observability
Term
What do the four factors affecting the diffusing rate mean?
Definition
relative advantage- if a product is percieved to be better than substitutes, it will diffuse quickly.
complexity and trialability- products that are simple are easy to try, and will diffuse faster than more complex products.
compatibility- ritual of having coffee is ingrained in many cultures, but may be slow in markets like china, where tea is more popular.
observability- when products are easily observed, like the starbucks logo, their benefits are communicated to others enhancing the diffusion process.
Term
What is the product development process?
Definition
1.) Idea generation
2.) Concept testing
3.) Product development
4.) Market testing
5.) Product launch
6.) evaluation of results
Term
What can a firm do to generate new ideas for a product?
Definition
it can use its own Research and development efforts, collaborate with other firms and institutions, license technology from research intensive firms, brainstorm, research competitors products and services, or conduct consumer research.
Term
What is internal research and development, what is one benefit and on disadvantage of this.
Definition
It's the firms own R and D dept. in which scientists work to solve complex problems and develop new ideas. the costs are high, but the product has a good chance of being a market breakthrough
Term
What are the 6 sources of ideas?
Definition
1) R and D consortia
2.) Licensing
3.) Brainstorming
4.) Competitors products
5.) customer input
6.) Internal R and D
Term
What is R and D consortia?
Definition
groups of other firms and institutions possibly including government and educational institutions, to explore new ideas or obtain solutions for developing new products.
Term
What is licensing?
Definition
For many new scientific and technological products, firms buy the rights to use the technology or ideas from other research intensive firms through a licensing agreement. It saves costs, but banks on a solution that exists but isnt marketed. royalties go to the licensor.
Term
What is brainstorming?
Definition
when a group works together to generate ideas. no idea can be immediately accepted or rejected.
Term
What is reverse engineering?
Definition
involves taking apart and analyzing a competitors product to create an improved product that does not infringe on the competitors patents, if any exist.
Term
What are lead users?
Definition
innovative product users who modify existing products according to their own ideas to suit their specific needs.
Term
What are concepts?
Definition
brief written descriptions of the product.
Term
Why is customer input important?
Definition
it is essential to listen to the firm for successful idea generation. 85% of all new B2B product ideas come from customers.
Term
Ideas with potential are what?
Definition
developed further into concepts, which in this context refer to brief written descriptions about the product, its technology, working principles and forms. and what customer needs it would satisfy
Term
What is concept testing?
Definition
presenting a concept statement that describes a product or service to potential buyers to obtain their reactions.
Term
What does concept testing do for the firm?
Definition
if the concept fails to meet customers expectations, it is doubtful it would succeed if it were to be produced and marketed. it helps the firm avoid the costs of unnecessary product development.
Term
What is product development or product design?
Definition
Entails balancing various engineering, manufacturing, marketing, and economic considerations to develop a product or service.
Term
what is a prototype?
Definition
First rough physical form or description of new product, with the same properties as the new product but produced through different manufacturing processes, sometimes crafted individually.
Term
What is alpha testing?
Definition
Attempt by R and D to determine whether a product will perform according to its design and satisfy the intended need.
Term
Why are many people concerned with alpha testing?
Definition
if it involves tests on animals, it can be unethical.
Term
What is beta testing?
Definition
potential consumers examine a product prototype in real-use setting to determine its functionality, performance, potential problems, and other issues.
Term
What is a premarket test?
Definition
conducted before a product or service comes to market to determine how many customers will try and continue to use it.
Term
During a premarket test, what happens?
Definition
potential customers are exposed to the marketing mix variables, then surveyed and given a sample of the product to try. they are then surveyed about whether they would buy or use the product again.
Term
What is test marketing?
Definition
introduces new product or service to a limited geographical area ( usually a few cities) prior to a national launch.
Term
What are some advantages and disadvantages of using test marketing?
Definition
it costs more and takes longer than premarket tests. however the firm can study actual consumer behavior, which is more reliable than a simulated test.
Term
If the market testing returns with positive results, than what?
Definition
the firm is ready to introduce the product to the entire market. It is the most critical step because it requires tremendous financial resources and extensive coordination of all aspects of the marketing mix. it might be difficult to recover after the failure of a product.
Term
What does a product launch involve?
Definition
the firm confirms its target market based on research, and decides how the product will be positioned. then the firm finalizes the remaining marketing mix variables for the product, as well as the marketing budget for the first year.
Term
in terms of launching a product, what must the firm be sure of when it comes to promotion, place, price, and timing?
Definition
promotion- the more complex products need to provide and educate consumers on the benefits they would receive.
place- the firm must have an adequate quantity of products available for shipment and to keep in stock at the relevant stores.
price- the firm needs to ensure that they get the price right. it is easier to start high and offer promotions, rather than start at a low price.
timing- certain products, like movies, have a time when they should be released.
Term
How do firms measure the success of a new product?
Definition
1.) its satisfaction of technical requirements, such as performance.
2.) customer acceptance
3.) its satisfaction of the firms financial requirments such as sales and profits.
Term
What is the product life cycle?
Definition
defines the stages of new products as they enter, get established, and ultimately leave the marketplace; offers marketers a starting point for strategy planning.
Term
What is the introduction stage?
Definition
stage of the product life cycle when the innovators start buying the product.
Term
What is the growth stage?
Definition
stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge.
Term
what is the maturity stage?
Definition
when sales reach their peak, so firms try to rejuvinate products by adding new features or repositioning.
Term
what is the decline stage.
Definition
when sales decline and the product exits the market.
Term
what are some key facts about the product life cycle?
Definition
not every product follows this shape. some white good categories like washers stay in the maturity stage till a new product replaces them.
Term
What are some key facts about the introduction stage?
Definition
usually starts with a single firm, and innovators are the ones who try it first. it is characterized by initial losses by the firm, but firms might see profits at a later stage.
Term
What is the growth stage marked by?
Definition
more product adopters, rapid growth in industry sales, increased competitors and product versions. market is more segmented. profits rise due to scale of economy.
Term
what is the maturity stage marked by?
Definition
adoption of the product by the late majority, and intense competition. market costs increase as firms defend their market share.
Term
What strategies might firms use in the maturity stage to increase their customer base or defend their market share?
Definition
1.) entry into new markets or market segments- firms might try to enter less saturated market. Even in mature markets, firms may be able to find new market segments. new trends or tastes can open opportunities. New market opportunities may emerge through simple product design changes.
2.) development of new products- firms need constant innovation to defend market share against competition. sometimes new products are introduced by less than famous companies.
Term
what do firms in the decline stage do?
Definition
position themselves for a niche segment of die hard consumers or those with special needs or they completely exit the market.
Term
What is important about the shape of the life cycle of a product?
Definition
it is assumed to be bell shaped, but this it not always the case. each product has its own shape.
Term
what is the most challenging part of the product life cycle?
Definition
managers dont know the shape of the curve. a manager could think something is in the decline stage, but really it has a lot more potential.
Term
when breakthrough innovations are few and far between...
Definition
firms use the product life cycle to identify the consumer promotions needed at each stage to get the most out of their existing brands.
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