Term
| Key differences in business vs consumer markets (4) |
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Definition
multiple buyers
Number of customers
geographic concentration
size of purchases |
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Term
| More than half of business buyers are in 8 states |
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Definition
| NY, CA, TX, IL, PENN, OH MICH NJ |
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Term
| Specific Differences in business vs consumer |
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Definition
• Multiple buyers: have to satisfy many peoples needs
• Number of customers: far less business customers than consumers
• Geographic concentration: more than half of business’s buyers are concentrated in 8 states – NY, CA, TX, IL, PENN, OH, MICH, NJ
• Size of purchases: business markets are much greater in volume |
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Term
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Definition
Derived
Inelastic
Fluctuating-small changes in consumer create larger demand changes
Joint-Demand for 2 or more products that are used to create another |
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Term
| B2B E-commerce (4 positives 1 negative) |
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Definition
Marketers linked to value chain members
Website critical
GSI shit
Dark Side-insecurity in website
Games generate buzz and drive brand awareness |
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Term
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Definition
North American Industry Classification System
-US, Canada, and Mexico |
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Term
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Definition
| allow companies to share information |
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Term
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Definition
| routine purchase where you are simply re-ordering |
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Term
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Definition
| requries effort because something has changed |
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Term
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Definition
| complex purchase with high risk |
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Term
| Roles in the Buying Center (the following 5) |
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Definition
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Term
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Definition
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Term
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Definition
| Interacts with the product |
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Term
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Definition
| controls flow of information |
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Term
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Definition
| Impacts decision because of personal knowledge of the product |
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Term
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Definition
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Term
| Steps in the Buying Process and Consumer Decision Process (5 Steps) |
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Definition
1. Recognize the probelm
2. Search for Information
3. Evaluate Alternatives
4. Select Product and Supplier
5. Evaluate Postpurchase |
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Term
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Definition
| change in technology, low inventory, need to replace outdated equipment |
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Term
| Step 2: Search for information |
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Definition
| potential suppliers, get quotes |
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Term
| Step 3: evaluate alternatives |
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Definition
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Term
| 4 Select product and supplier |
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Definition
single source-one supplier
multiple source-multiple supplier
Reciprocity: 2 companies agree to buy from eachother
OUtsourcing-hire another company to ahndle something inhouse
Crowdsourcing-gather expertise from around globe
Reverse Marketing-Buyers try to find suppliers to sell purchases to |
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Term
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Definition
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Term
| Step 5: Evaluate Postpurchase |
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Definition
| is it up to expectations? |
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Term
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Definition
| creation of consumer groups |
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Term
| Target Marketing Process (3 steps) |
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Definition
1. Segmentation
2. Target and evaluate segments
3. Positioning-Market mix with competitive advantage |
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Term
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Definition
| Demographics, Psychographics (sociological and psychological) and bevahior (how people act and feel towards a product) |
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Term
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Definition
-Evaluate segment
-develop profiles
Choose a targeting strategy (undifferentiated, differentiated, and concentrated) |
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Term
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Definition
-Undifferentiated-assumption of similar needs and broad appeal
-Differentiated-products for several different groups and deals with brands and consumers
-Concentrated-promote products of single segment-best for small companies
-Mass customization-modify basic product to meet individual needs |
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Term
| 3. Positions-Marketing mix that will create a competitive advantage |
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Definition
1. analyze competitor position
2. offer a good or service with advantage
3. finalize marketing mix
4. evaluate responses and modify as needed |
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Term
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Definition
| re-do product position to respond to market changes |
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Term
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Definition
| once popular brand now revived |
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Term
| Brand personality (5 dimensions) |
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Definition
Define brand as a person
sincerity
excitement
competence
sophistication
ruggedness |
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Term
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Definition
Customer Relationship management
systematic tracking of sonsumers preferences and behvarios over time in order to tailor to value proposition of unique needs
-capture infromation through computers, software databases and internet |
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Term
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Definition
-order and elivery tracking
-call centers
-automatic reminder sytems
-sales management software |
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Term
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Definition
lifetime value of customer-potential profit from single customer
customer equity-overall financial value of relationship with customer
customer prioritization-keep most important satisfied
share of customer-percentage of particular product that belong to a certain brand |
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Term
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Definition
1. identify and know customer
2, differntiate them by needs
3. interact and find ways to imporve actions
4. customize some aspect |
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Term
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Definition
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Term
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Definition
core-benefit it will provide
actual-physical good or service
augmented-support features (delivery of a washing machien) |
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Term
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Definition
| provides benefit over a period of time |
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Term
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Definition
| consumed over short period of time |
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Term
| 3 types of convenience products |
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Definition
| staples, impulse, and emergncy |
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Term
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Definition
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Term
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Definition
spur of the moment
candy bar in the aisle |
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Term
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Definition
purchased when there is a dire need
draino |
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Term
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Definition
purchased with considerable time and effort (riskier)
attribute based (best product) and price based |
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Term
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Definition
| uniqe product unwilling to except substitute ex. Rolex |
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Term
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Definition
expensive and not thoguht anout
ex. burial plot and plumbing service |
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Term
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Definition
equipment
maintenance, repair operating
raw materials-lumber
processed materials-sheet of steel
component part-car part |
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Term
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Definition
| product that customers see as new and different |
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Term
| Federal Trade COmmussoin says innovation must be |
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Definition
| entirely new or significantly changedd and can only be new for six months |
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Term
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Definition
| Dynamic, discontinuous, and continuous |
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Term
| 1. dynamically continuous |
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Definition
| requires some new learning and behvior changes. generally modification to existing product (record-cd-mp3) |
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Term
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Definition
| creates major changes in day to day life (first car or first computer |
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Term
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Definition
| deals with little change and there are knockoffs of the original |
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Term
| Measure innovation with respect to |
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Definition
| company strategy, company culture, and outcomes of innovation |
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Term
| to succesffully introduce new products |
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Definition
high R&D
products become obsolete faster
deal with high slotting fees (product needs retail space) |
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Term
| Key reasons for product failure |
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Definition
no new benefits
companies over estimate size of market
poor positiong stragey
poor use of 4 P's |
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Term
| Phases In Development (7) |
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Definition
1. Idea Generation-
2. Product Concept Development and Screening-testing
3. marketing strategy development-find target market
4. business analysis-develop prototype
5. technical development
6. test marketing-sampling
7. commercialization-lauched into market |
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Term
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Definition
| process wehre consumer or business customer begins to buy and use a new good, service, or idea |
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Term
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Definition
awareness
interest
evaluation
trial
adoption |
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Term
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Definition
| company provides information |
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Term
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Definition
| consumer wants more information |
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Term
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Definition
| consumer weighs pros and cons |
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Term
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Definition
| use product ona small scalea nd offers sales promotion |
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Term
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Definition
| use product ona small scalea nd offers sales promotion |
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Term
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Definition
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Term
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Definition
innovators-first to accept
early adopters-rely heavily on media and concerned with social acceptance
early majority-adopt prior to mean time of adoption higher education and social status
late majority-follow average slightly below average in educationa dn social status
laggards-last to adapt to innovation lower in social class and traditional |
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Term
| Product factors affect rate of adoption |
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Definition
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Term
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Definition
| perceived as better than existing alternatives. better performance, more comfort, saves time/effort, offers more immediate reward |
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Term
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Definition
| how it fits in ways od doing things |
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Term
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Definition
| how difficult product is to use and understand |
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Term
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Definition
| ability to use product before purchase |
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Term
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Definition
| we can see positive effects of usage |
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Term
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Definition
| process where the use of a product spreads throughout population as a whole |
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Term
| Product objective problems |
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Definition
| financial focus, short term, product company match up, managers focus on their specific product and conflicting products |
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Term
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Definition
| company's total product offering designed to satisfy a single need |
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Term
| Full-line vs limited-line |
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Definition
| target many customer segments |
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Term
| upward, downward, or two way line stretch |
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Definition
| stretching and adding new items to line |
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Term
| ISO 9000 international organization for standardization |
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Definition
| voluntary standards for quality management |
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Term
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Definition
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Term
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Definition
| allow no more than 3.4 defects per million |
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Term
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Definition
product-improve customer service
place-improve on time delivery
price-lower our price without impacting aspects of quality
promotion-make sure we give customers information when and where they want it |
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Term
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Definition
| risk that new product steals sales from existing product |
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Term
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Definition
introduction-slow growth as entering the market with little profit
price-cost plus formula total costs and add a mark up
place-selective distribution
promotion-heavy encourage to trial
growth-product is accepted and sales increase rapidly
maturity-longest state sales will peak and profit margins narrow
4 mixes of maturity
product-diversify brand
price-match or best competition
place-build even more intense distribution
promotion-increase it again
decline-sales decrease as customers need change and overall market shrinks |
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Term
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Definition
| legal term for a brand name, mark, or trade character |
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Term
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Definition
| maintains relationships with customers, positions a product by portray in image, describing what it does, easy to say spell and rememner, fits target market products benefit customer culture and legal requriement |
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Term
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Definition
brand's value to its organization overa nd obove value of the generic version
creating competitive advantage |
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Term
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Definition
| product is part of user identity |
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Term
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Definition
| product connects us to the past |
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Term
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Definition
| product is part of daily routine |
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Term
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Definition
| deeper emotional connection |
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Term
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Definition
| helps us to engage the customer |
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Term
| characteristics of world class brands |
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Definition
| properly positioned, consistent, and stay relevant |
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Term
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Definition
| new products sold with the same brand name |
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Term
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Definition
| secondary brand within the main brand |
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Term
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Definition
| provide umbrella under which multiple products can be martketed |
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Term
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Definition
| available at many different retailers |
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Term
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Definition
| exclusive to particular seller |
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Term
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Definition
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Term
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Definition
| two brands create a new product to receive greater recognition |
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Term
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Definition
Visibility-packages ability to stand out on shelf
Information-presence of warnings, diretions, and marketing communications
emotional appeal-packages ability to provide cues of its attributes
workability-fit on retailer shelves and in consumer lives |
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Term
| Federal Fair Packagins and Labeling Act of 1966 |
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Definition
| aims at making labels more helpful to consumers by providing useful information |
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Term
| nutrition labeling and education act of 1990 |
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Definition
| require food labels to state how much fat, protein, etc |
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Term
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Definition
| specialists in different areas work together for a new product |
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Term
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Definition
| small isolated group with minimal supervision working on development |
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Term
| services accounted for ___ of GDP and ___ of US employment |
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Definition
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Term
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Definition
| intangible, perishable, vary each time, and inseperable |
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Term
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Definition
| eliminating direct interaction with service provider and customer (ex. Banking) |
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Term
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Definition
| allow firm to adjust services to match supply and demand |
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Term
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Definition
| interaction between customer and service produder |
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Term
| facility based serivce (amusement park) |
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Definition
operational factors-(clear sings)
locational factors (provide support)
environmental factor (overall atmosphere) |
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Term
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Definition
| environment where service is delivered and wehre firm and customer interact |
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Term
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Definition
| search engine optimization |
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Term
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Definition
| observed before product (decor or overall environment |
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Term
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Definition
| characteristics buyers can determine during or after consumption |
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Term
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Definition
| characteristics that are difficult to evaluate even after they have been experienced (like a visit to the doctor) |
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Term
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Definition
| someone sent in from company to evaluate experience |
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Term
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Definition
| people who no longer do business and asking them why |
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Term
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Definition
ask customer perception of service quality
tangibles
reliability
responsiveness
assurance
empathy |
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Term
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Definition
| comparing difference between customer expectations and what actually occurs |
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Term
| critical incident technique |
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Definition
| focus on customer complaints, want to find out where we lack quality |
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Term
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Definition
| traditional marketing mix (companya nd customer) |
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Term
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Definition
| effective training and motivation of employees |
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Term
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Definition
| between employees and customers, focuses on providing a satisfying service encounter |
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