Term
|
Definition
Markets are composed of people or organizations with needs and wants that can be satisfied by particular product categories.
They have the ability to buy the products they seek, and are willing to exchange their resources for the desired products. A group of people that lacks one of these they are not a market. |
|
|
Term
|
Definition
| a subgroup of people or orgaizations sharing one or more characteristics that cause them to have similiar product needs. |
|
|
Term
| Why is market segmentation so important |
|
Definition
Market segmentation plays a key role in the marketing strategy of organizations, leading to competitive advantage.
uproduct needs and preferences
uMarketers can better
define customer needs
uDecision makers can define objectives and allocate resources more accurately |
|
|
Term
| What is the criteria for a sucessful market segmentation |
|
Definition
Substantiality- Segment must be large enough to warrant a special marketing mix.
Identifiability and measurability- Segments must be identifiable and their size measurable.
Accessibility- Members of targeted segments must be reachable with marketing mix.
Responsiveness- Unless segment responds to a marketing mix differently, no separate treatment is needed. |
|
|
Term
| What are the bases for segmentation. |
|
Definition
Geographic
Demographic Psychographic
Benefits sought
Usage Rate |
|
|
Term
| What is geographic segmentation |
|
Definition
| Geographic segmentation of markets is based on the region, market size, market density (number of people within a unit of land), or climate. |
|
|
Term
| What are the benefits of regional segmentation |
|
Definition
uNew ways to generate sales in sluggish and competitive markets
uScanner data allow assessment of best selling brands in region
uRegional brands appeal to local preferences
uQuicker reaction to competition |
|
|
Term
| Describe demographic segmentation |
|
Definition
1.Demographic information is widely available and often related to consumer behavior and buying.
2.Some common bases are age, gender, income, ethnic background, and family life cycle. |
|
|
Term
| Describe ethics segmentation |
|
Definition
uLargest ethnic markets are:
u Hispanic Americans
u African Americans
u Asian Americans
u Will comprise 1/3 of U.S. population by 2010
with buying power of $1 trillion annually
|
|
|
Term
| What is the family life cycle? |
|
Definition
| The FLC is a series of stages determined by a combination of age, marital status, and the presence or absence of children |
|
|
Term
| What are the bases of psychographic segmentation |
|
Definition
Personalities
motives
lifestyle
geodemographics
1.Demographic segmentation provides the “skeleton,” but psychographic segmentation adds “meat to the bones.” |
|
|
Term
| Describe lifestyle segmentation |
|
Definition
1.Lifestyle segmentation divides people into groups according to how time is spent, the importance of things around them, beliefs, and socioeconomic characteristics such as income and education. |
|
|
Term
| describe geodemographic segmentation |
|
Definition
Segmenting potential customers into neighborhood lifestyle categories.
Combines geographic, demographic, and lifestyle segmentation.
|
|
|
Term
| describe benefit segmentation |
|
Definition
Usage rate segmentation- Dividing a market by the amount of product bought or consumed
80/20 principle- A principle holding that 20 percent of all customers generate 80 percent of the demand. |
|
|
Term
| What are the bases for segmenting business markets |
|
Definition
producers
resellers
governents
institutions |
|
|
Term
| Describe company characteristics |
|
Definition
uGeographic location
uType of company
uCompany size
uVolume of purchase
uProduct use |
|
|
Term
| Describe buyer characteristics |
|
Definition
satisficers- Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.
Optimizers- Business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one. |
|
|
Term
| What is the purpose of a market segment |
|
Definition
| identify marketing opportunities |
|
|
Term
|
Definition
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. |
|
|
Term
| What is am undifferentiated targeting strategy |
|
Definition
1.is essentially a mass-market philosophy—viewing the market as one big market and using one marketing mix.
Advantage:
uPotential savings on production and marketing costs
Disadvantages:
uUnimaginative product offerings
uCompany more susceptible to competition
|
|
|
Term
| What is a concentrated marketing strategy |
|
Definition
A strategy used to select one
segment of a market for targeting marketing efforts.
Advantage:
uConcentration of resources
uMeets narrowly defined segment
uSmall firms can compete
uStrong positioning
Disadvantages:
uSegments too small, or changing
Large competitors may
market to niche segment |
|
|
Term
| What is a mutlisegment targeting strategy |
|
Definition
A strategy that chooses two or more well-defined market segments and develops a distinct marketing
mix for each.
Advantage:
uGreater financial success
uEconomies of scale
Disadvantages:
uHigh costs
Cannibalization |
|
|
Term
| What are the costs of multisegment targeting |
|
Definition
uProduct design costs
uProduction costs
uPromotion costs
uInventory costs
uMarketing research costs
uManagement costs
Cannibalization
|
|
|
Term
|
Definition
Situation that occurs when sales of a new product cut into sales of a firm’s existing products. |
|
|
Term
| What is one to one marketing |
|
Definition
| One-to-one marketing focuses on understanding customers as individuals instead of as part of a group. It is an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer. The goal is to reduce costs through customer retention and increase revenue through customer loyalty. |
|
|
Term
|
Definition
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
Effective positioning
1.Assess the positions occupied by competing products
2.Determine the dimensions underlying these positions
3.Choose a market position where marketing efforts will have the greatest impact |
|
|
Term
|
Definition
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds. |
|
|
Term
| What are the positioning bases |
|
Definition
1.Attribute: Association of a product with a product feature, an attribute, or customer benefit.
2.Price and quality: High price as a symbol of quality, or low price as an indicator of value may be used to position a product.
3.Use or application: Stressing use or applications.
4.Product user: Positioning base focuses on a personality or type of user.
5.Product class: Product is positioned as associated with a particular category of products.
6.Competitor: Positioning against competitors is a part of any positioning strategy.
7.Emotion: Positioning using emotion focuses on how the product makes customers feel.
|
|
|
Term
|
Definition
Changing consumers’ perceptions of a brand in relation to competing brands. |
|
|
Term
| What are the characteristics of a DSS system |
|
Definition
interactive
flexible
discovery-oriented
accessible |
|
|
Term
| What is marketing research |
|
Definition
The process of planning, collecting, and analyzing data relevant to a marketing decision. |
|
|
Term
| What is the role of market research |
|
Definition
Marketing research has three roles: descriptive, diagnostic, and predictive.
1.Descriptive: What is the historic sales trend in the industry? What are consumers’ attitudes toward a product?
2.Diagnostic: What was the impact on sales after a change in the package design?
3.Predictive: “What if questions,” such as how can descriptive and diagnostic research be used to predict the results of a marketing decision?
|
|
|
Term
| What are the objectives and problems with market research |
|
Definition
1.The marketing research problem is information oriented.
2.The marketing research objective is to provide decision-making information.
3.In contrast, the management decision problem is action oriented.
|
|
|
Term
|
Definition
| Data previously collected for any purpose other than the one at hand |
|
|
Term
| What are the sources of secondary data |
|
Definition
internal corporate info
government agencies
trade and industry associations
business periodicals
news media |
|
|
Term
| What are the advantages of secondary data |
|
Definition
uSaves time and money if on target
uAids in determining direction for primary data collection
uPinpoints the kinds of people to approach
uServes as a basis of comparison
for other data |
|
|
Term
| What are the disadvantages of secondary data |
|
Definition
uMay not give adequate detailed information
uMay not be on target with the research problem
uQuality and accuracy of data may pose a problem |
|
|
Term
|
Definition
| Information collected for the first time. Can be used for solving the particular problem under investigation |
|
|
Term
| What are the advantages of primary data |
|
Definition
uAnswers a specific research question
uData are current
uSource of data is known
uSecrecy can be maintained
|
|
|
Term
| What are the disadvantages of primary data |
|
Definition
uExpensive
u“Piggybacking” may confuse respondents
uQuality declines if interviews are lengthy
Reluctance to participate in lengthy interviews |
|
|
Term
|
Definition
| The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes |
|
|
Term
| What are the forms of survey research |
|
Definition
Mall intercept interview- Survey research method that involves interviewing people in the common areas of shopping malls.
Executive Interview- A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services. |
|
|
Term
|
Definition
| Seven to ten people who participate in a group discussion led by a moderator |
|
|
Term
| What is the design of the questionnaire |
|
Definition
clear and concise
no ambigous language
only one question
unbiased
reasonable terminology |
|
|
Term
| What is observatoin research |
|
Definition
A research method that relies on three types of observation:
Ø people watching people
Ø people watching an activity
Ø machines watching people |
|
|
Term
| What is ethnographic research |
|
Definition
The study of human behavior
in its natural context; involves
observation of behavior and
physical setting. |
|
|
Term
|
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
| How as the internet impacted market research |
|
Definition
uAllows better and faster decision making
uImproves ability to respond quickly to customer needs and market shifts
uMakes follow-up studies and tracking research easier
uSlashes labor- and time-intensive research activities and costs |
|
|
Term
| What are the advantages of internet surveys |
|
Definition
1.Rapid development, real-time reporting: Survey results can be tabulated and broadcast in a much shorter time frame.
2.Reduced costs: Costs can be cut by 25 to 40 percent with results in half the time required for traditional telephone surveys.
3.Personalized questions and data: Personalization allows relevance to each respondent’s own situation, thus speeding the response process.
4.Improved respondent participation: Internet surveys take half as much time to complete as phone interviews and can be accomplished at the respondent’s convenience.
5.Contact with the hard-to-reach: Doctors, management, and high-income professionals are among the most surveyed and the most difficult to reach. Many of these groups are well represented online.
|
|
|
Term
| What is the role of blogs in market research |
|
Definition
uRefined technologies allow companies to mine data available in Internet blogs.
uCompanies can identify the most influential bloggers and learn exactly what they are saying (and how they are saying it). |
|
|
Term
| What is scanner based research |
|
Definition
1.Scanner-based research is used for gathering information by monitoring the marketing mix and purchase behavior of a single group of respondents. |
|
|
Term
| What is competitive intelligence |
|
Definition
| An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors |
|
|
Term
| What are the sources of competitive intelligence |
|
Definition
| internet, company salespeople, exports, CI consultants, gov agencies, UCC filings,suppliers, periodicals, yellow pages, trade shows |
|
|
Term
|
Definition
Everything, both favorable and unfavorable, that a person receives in an exchange.
u Tangible Good
u Service
Idea
Product is the starting point of a marketing mix |
|
|
Term
| Types of consumer products |
|
Definition
•Convenience: candy, soft drinks, deodorant, aspirin, hardware, dry cleaning.
•Shopping: Homogeneous shopping products such as washers, dryers, televisions. Decisions are based on the lowest-priced brand with the desired features.
Heterogeneous shopping products are essentially different, for example furniture, clothing, housing, universities. Decisions are highly-individual and based on “finding the best product for me.”
•Specialty: fine watches, expensive automobiles, gourmet restaurants.
•Unsought: new products, insurance, burial plots, encyclopedias.
|
|
|
Term
| What are product itmes, lines, and mixes |
|
Definition
A product item is a specific version of a product that can be designated as a distinct offering among organizations products
A product line is a group of closely- related product items
A product mix is all products that an organization sells |
|
|
Term
| Benefits of products lines |
|
Definition
Advertising economies
package uniformity
standardized components
efficient sales and distribution
equivalent quality
|
|
|
Term
| What is a product line depth |
|
Definition
The number of product Items in a product line.
uAttracts buyers with different preferences
uIncreases sales/profits by further market segmentation
uCapitalizes on economies of scale
uEvens out seasonal sales patterns |
|
|
Term
| What is product mix width |
|
Definition
The number of product lines an organization offers.
uDiversifies risk
uCapitalizes on established reputations |
|
|
Term
| What are the types of product modification |
|
Definition
| Quality, functional, and style modification |
|
|
Term
| What is planned obsolescence |
|
Definition
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement. |
|
|
Term
| What is a product line extension |
|
Definition
Adding additional products to an existing product line in order to compete more broadly in the industry. |
|
|
Term
|
Definition
| A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products |
|
|
Term
|
Definition
Benefits- Product id, repeat sales, new product sales
Brand name- brand that can be spoken uncluding letters, word, and numbers
Brand Mark- elements of brand that cannot be spoken
Brand Equity- value of company and brand names
Global Brand- 20% of product sold outside home country |
|
|
Term
| Advantages of manufacturers Brands |
|
Definition
uHeavy consumer ads by manufacturers
uAttract new customers
uEnhance dealer’s prestige
uRapid delivery, carry less inventory
uIf dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer
|
|
|
Term
| Advantages of private brands |
|
Definition
uEarn higher profits on own brand
uLess pressure to mark down price
uManufacturer can become a direct competitor or drop a brand/reseller
uTies customer to wholesaler or retailer
uWholesalers and retailers have no control over the intensity of distribution of manufacturers’ brands |
|
|
Term
| What is an individual brand and a family brand |
|
Definition
And individual brand is using different brand names for different products
A family brand is marketing several different products under the same brand name |
|
|
Term
| What are the functions of packaging |
|
Definition
| Contain and protect, promote, facilitate storage use and convience, facilitate recycling |
|
|
Term
| What are universal product codes |
|
Definition
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. |
|
|
Term
|
Definition
A product new to the world, the market, the producer, the seller, or some combination of these. |
|
|
Term
| What are the categories of new products |
|
Definition
New to the world
new product lines
product line additions
improvements or revisions
repositioned products
lower priced products |
|
|
Term
| What is the new product development process |
|
Definition
L-T commitment
company specific approach
capitalize on experience
establish an enviroment |
|
|
Term
| What are the tips for new product development |
|
Definition
uDisperse R & D around the globe
uKeep teams small and empower employees
uFlatten hierarchy
uEncourage generation of crazy new ideas
uWelcome mistakes |
|
|
Term
|
Definition
The process of getting a group to think of unlimited ways to vary a product or solve a problem. |
|
|
Term
|
Definition
The first filter in the product
development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason. |
|
|
Term
|
Definition
A test to evaluate a
new-product idea, usually before any prototype has been created. |
|
|
Term
| What is simultaneous product development |
|
Definition
| A new team-oriented approach to new-product development where all relevant functional areas and outside suppliers participate in the development process |
|
|
Term
|
Definition
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. |
|
|
Term
| What is commercialization |
|
Definition
The decision to market a product sets several tasks in motion, as shown on this slide.
Production
inventory buildup
distribution shipments
sales training
trade announcements
customer advertising |
|
|
Term
|
Definition
uNo discernible benefits
uPoor match between features and customer desires
uOverestimation of market size
uIncorrect positioning
uPrice too high or too low
uInadequate distribution
uPoor promotion
uInferior product |
|
|
Term
| What are the factors to sucessful new products |
|
Definition
match btw product and market needs
different from substitute products
Benefit large number of people |
|
|
Term
|
Definition
The process by which the adoption of an innovation spreads. |
|
|
Term
|
Definition
innovators
early adoptors
early majority
late majority
laggards |
|
|
Term
|
Definition
1. A service is the result of applying human or mechanical efforts to people or objects. Services involve a deed, a performance, or an effort that cannot be physically possessed. |
|
|
Term
| How do services differ from goods |
|
Definition
intangible
inseparable
heterogenous
perishable |
|
|
Term
| The components of service quality |
|
Definition
realibilty
responsiveness
assurance
empathy
tangibles |
|
|
Term
| What is a core service and a supplementary service |
|
Definition
Core service- most basic benefit the sonsumer is buying
Supplementary service- group of service that support or snhance the core service |
|
|
Term
| What is mass customization |
|
Definition
A strategy that uses technology to deliver customized services on a mass basis. |
|
|
Term
| Place distribution strategy |
|
Definition
convience
number of outlets
direct or indirect distribution
location
scheduling
|
|
|
Term
| What is promotion strategy |
|
Definition
Services are less tangible and are more difficult to promote than tangible goods. Four promotion strategies are:
1.Stressing tangible cues
2.Using personal informational sources
3.Creating a strong organizational image
Engaging in postpurchase communication |
|
|
Term
|
Definition
uDefine the unit of service consumption
uDetermine if multiple elements are “bundled” or priced separately |
|
|
Term
| What are pricing objectives |
|
Definition
Rev oriented pricing
Operations oriented pricing
Patronage orientated pricing |
|
|
Term
| What is internal marketing |
|
Definition
Treating employees as customers and developing systems and benefits that satisfy their needs. |
|
|
Term
| What is non-profit organization marketing |
|
Definition
| An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment |
|
|
