Term
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Definition
| people or organizations with needs or wants and the ability and willingness to buy |
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Term
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Definition
| a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs |
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Term
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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 |
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Term
| Criteria for Effective Segmentation |
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Definition
•Substantial (must have enough potential customers to be viable)
•Identifiable and Measurable
•Accessible (members of a market segment must be accessible to marketing efforts)
•Responsive (a market segment must respond to particular marketing efforts in a way that distinguishes it from other segments) |
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Term
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Definition
| based on region, size, density, and climate characteristics |
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Term
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Definition
| based on age, gender, income level, ethnicity, and family life-cycle characteristics |
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Term
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Definition
| includes personality, motives, and lifestyle characteristics |
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Term
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Definition
| identifies customers according to the benefits they seek in a product |
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Term
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Definition
•Type of Organization
•Size of Organization
•Geographic Location
•Product Use |
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Term
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Definition
•Select a Market or Product Category for Study
•Choose a Base or Bases for Segmenting the Market
•Select Segment Descriptions
•Profile and Analyze Segments
•Select Target Market(s)
•Design, Implement, & Maintain Appropriate Marketing Mixes |
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Term
| Segmentation Stradegies:Undifferentiated (Total Market Approach) Targeting Strategy |
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Definition
| a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix |
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Term
| Segmentation Stradegies:Concentration Targeting Strategy |
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Definition
| a strategy used to select one segment of a market for targeting marketing efforts |
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Term
| Segmentation Stradegies:Multi-Segment Targeting Strategy |
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Definition
| a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each |
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Term
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Definition
| developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general |
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Term
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Definition
| a positioning strategy that some firms use to distinguish their products from those of competitors |
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Term
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Definition
| a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds |
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Term
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Definition
| • An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions |
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Term
| Characteristics of Decision Support Systems |
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Definition
Interactive
Flexible
Discovery oriented
Accessible |
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Term
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Definition
| the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns |
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Term
| Rule of Marketing Research |
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Definition
The process of planning, collecting, and analyzing data relevant to a marketing decision
Descriptive (includes gathering and presenting factual statements), Diagnostic (includes explaining data), Prescriptive (addresses “what if” questions) |
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Term
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Definition
•Identify and Formulate the Problem/Opportunity
•Plan the Research Design and Gather Primary Data
•Specify the Sampling Procedures
•Collect the Data
•Analyze the Data
•Prepare and Present the Report
•Follow-up |
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Term
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Definition
| data previously collected for any purpose other than the one at hand |
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Term
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Definition
| information that is collected for the first time; used for solving the particular problem under investigation |
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Term
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Definition
| the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes |
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Term
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Definition
| a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity |
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Term
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Definition
| the study of human behavior in its natural context; involves observation of behavior and physical setting |
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Term
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Definition
| the population from which a sample will be drawn |
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Term
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Definition
| a subset from a larger population |
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Term
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Definition
| a sample in which every element in the population has a known statistical likelihood of behind selected |
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Term
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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 |
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Term
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Definition
| any sample in which little or no attempt is made to get a representative cross section of the population |
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Term
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Definition
| a form of non-probability sample using respondents who are convenient or readily accessible to the researcher – for example, employees, friends, or relatives |
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Term
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Definition
everything, both favorable and unfavorable, that a person receives in an exchange
Good
Service
Idea |
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Term
| Convenience product(good) |
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Definition
| a relatively inexpensive item that merits little shopping effort |
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Term
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Definition
| a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores |
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Term
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Definition
| a particular item that consumers search extensively for and are very reluctant to accept substitutes |
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Term
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Definition
| a product unknown to the potential buyer or a known product that the buyer does not actively seek |
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Term
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Definition
•Production goods
•Support goods |
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Term
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Definition
| a specific version of a product that can be designated as a distinct offering among an organization’s products |
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Term
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Definition
| a group of closely related product items (shallow or deep) |
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Term
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Definition
| the number of products in a product line (narrow or wide) |
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Term
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Definition
| changing one or more of a product’s characteristics |
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Term
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Definition
| the practice of modifying products so those that have already been sold become obsolete before they actually need replacement |
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Term
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Definition
| involves changing consumers’ perceptions of a brand |
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Term
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Definition
| adding additional products to an existing product line in order to compete more broadly in the industry |
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Term
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Definition
| benefits include resources becoming concentrated on the most important products, managers no longer wasting resources trying to improve the sales and profits of poorly performing products, and new product items having a greater chance of being successful because more financial and human resources are available to manage them |
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Term
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Definition
| a name, term, symbol, design, or combination there of that identifies a seller’s products and differentiates them from competitors’ products |
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Term
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Definition
| the exclusive right to use a brand or part of a brand |
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Term
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Definition
| that part of a brand that can be spoken, including letters, words, and numbers |
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Term
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Definition
| the elements of a brand that cannot be spoken |
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Term
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Definition
| the brand name of a manufacturer |
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Term
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Definition
| a brand name owned by a wholesaler or a retailer |
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Term
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Definition
| using different brand names for different products |
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Term
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Definition
| marketing several different products under the same brand name |
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Term
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Definition
| identifies a product by class or type and cannot be trademarked |
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Term
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Definition
| placing two or more brand names on a product or its package |
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Term
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Definition
| • Containing protecting products, promoting products, and facilitating the storage, use, and convenience of products |
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Term
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Definition
| a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary |
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Term
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Definition
| a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase |
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Term
| universal product codes (UPC) |
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Definition
| a series of thick and thin vertical lines (bar codes, readable by computerized optical scanners, that represent numbers used to track products |
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Term
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Definition
| • A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death) |
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Term
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Definition
| the full-scale launch of a new product into the marketplace |
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Term
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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 |
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Term
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Definition
| a period during which sales increase at a decreasing rate |
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Term
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Definition
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Term
| extending the product life cycle |
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Definition
•Product Modifications (quality, functional, style)
•More frequent usage
•Varied usage
•New users
•New uses |
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Term
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Definition
| the process by which the adoption of an innovation spreads |
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Term
| five categories of adopters |
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Definition
innovators
early adopters
early majority
late majority
laggards |
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Term
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Definition
| first 2.5% of all those who adopt the product; innovators are eager to try new ideas and products, almost as an obsession; have higher incomes and are more worldly and more active outside their community than their innovators; because they are well educated, they are more likely to get their information from scientific sources and experts |
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Term
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Definition
| the next 13.5% to adopt the product; compared to innovators, they rely much more on group norms and values; they are also more oriented to the local community, in contrast to the innovators’ worldly outlook; more likely to be opinion leaders than innovators because of their closer affiliation with groups |
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Term
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Definition
| the next 34% to adopt; the early majority weighs the pros and cons before adopting a new product; they are likely to collect more information and evaluate more brands than early adopters, therefore extending the adoption process; they rely on the group for information but are unlikely to be opinion leaders themselves, instead they tend to be opinion leaders’ friends and neighbors |
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Term
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Definition
| the next 34% to adopt; the late majority adopts a new product because most of their friends have already adopted it; because they also rely on group norms, their adoption stems from pressure to conform; this group tends to be older and below average in income and education; the dominant characteristic of the late majority is skepticism |
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Term
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Definition
| the final 16% to adopt; like innovators, laggards to not rely on group norms; the past heavily influences their decisions; tend to be suspicious of new products and alienated from a rapidly advancing society; the dominant value of laggards is tradition |
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Term
| New-to-the-world Products (discontinuous innovations) |
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Definition
| these products create an entirely new market. New-to-the-world products represent the smallest category of new products |
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Term
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Definition
| these products, which the firm has not previously offered, allow it to enter an established market |
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Term
| additions to existing product lines |
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Definition
| this category includes new products that supplement a firm’s established line |
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Term
| Improvements or Revisions of Existing Products |
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Definition
| the “new and improved” product may be significantly or slightly changed |
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Term
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Definition
| these are existing products targeted at new markets or market segments, or repositioned to change the current market’s perception of the product; sometimes repositioning is intended to boost sales of a product with declining sales |
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Term
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Definition
| this category refers to products that provide performance similar to competing brands at a lower price |
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Term
| New product development process: Brainstorming |
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Definition
| the process of getting a group to think of unlimited ways to vary a product or solve a problem |
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Term
| New product development process: screening |
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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 |
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Term
| New product development process: business analysis |
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Definition
| the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated |
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Term
| New product development process: development |
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Definition
| the stage in the product development process in which a prototype is developed and a marketing strategy is outlined |
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Term
| New product development process: test marketing |
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Definition
| the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation |
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Term
| New product development process: commercialization |
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Definition
| the decision to market a product |
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Term
| New product development process |
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Definition
brainstorming
screening
business analysis
development
test marketing
commercialization |
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Term
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Definition
•Equipment Based
•People Based |
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Term
| Characteristics of services (the four I's) |
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Definition
intangibility
inconsistency
inseparability
inventory |
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Term
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Definition
| the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods |
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Term
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Definition
| the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed |
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Term
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Definition
| the inability of the production and consumption of a service to be separated; consumers must be present during the production |
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Term
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Definition
| the inability of services to be stored, warehoused, or inventoried |
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Term
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Definition
| the ability to perform a service dependably, accurately, and consistently |
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Term
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Definition
| the ability to provide prompt service |
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Term
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Definition
| the knowledge and courtesy of employees and their ability to convey trust |
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Term
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Definition
| caring, individualized attention to customers |
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Term
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Definition
| the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service |
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Term
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Definition
| a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality |
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Term
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Definition
| the gap between what customers want and what management thinks customers want |
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Term
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Definition
| the gap between what management thinks customers want and the quality specifications that management develops to provide the service |
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Term
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Definition
| the gap between the service quality specifications and the service that is actually provided |
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Term
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Definition
| the gap between what the company provides and what the customer is told it provides |
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Term
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Definition
| the gap between the service that customers receive and the service they want |
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Term
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Definition
| a channel intermediary that sells mainly to consumers |
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Term
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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 |
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Term
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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 |
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Term
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Definition
| a distribution channel in which producers sell directly to consumers |
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Term
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Definition
| a form of distribution aimed at having a product available in every outlet where target customers might want to buy it |
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Term
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Definition
| a form of distribution achieved by screening dealers to eliminate all but a few in any single area |
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Term
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Definition
| a form of distribution that establishes one or a few dealers within a given area |
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Term
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Definition
| the capacity of a particular marketing channel member to control or influence the behavior of other channel members |
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Term
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Definition
| a situation that occurs when one marketing channel member intentionally affects another member’s behavior |
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Term
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Definition
| a member of a marketing channel that exercises authority and power over the activities of other channel members |
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Term
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Definition
| a clash of goals and methods between distribution channel members |
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Term
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Definition
| the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage |
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Term
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Definition
| the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function |
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Term
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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 |
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Term
| benefits of supply chain management |
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Definition
•Lower Costs
•Greater Flexibility
•Improved Service
•Higher Revenues
•Increased Profitability |
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Term
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Definition
•Purchasing departments plan purchasing strategies, develop specifications, select suppliers, and negotiate price and service levels
•The goal of most sourcing and procurement activities is to reduce the costs of raw materials and supplies
•Procurement deals with the purchase of raw materials, supplies, and components according to production scheduling |
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Term
| mass customization (build to order) |
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Definition
| a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications |
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Term
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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 |
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Term
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Definition
| a system whereby orders are entered into the supply chain and filled |
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Term
| electronic data interchange |
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Definition
| information technology that replaces 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 |
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Term
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Definition
| a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand |
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Term
| materials-handling-system |
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Definition
| a method of moving inventory into, within, and out of the warehouse |
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Term
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Definition
sourcing and procurement
production and scheduling
order processing system
inventory control
warehouse and materials handling
transportation |
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Term
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Definition
| retailers owned by a single person or partnership and not operated as part of a larger retail institution |
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Term
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Definition
| stores owned and operated as a group by a single organization |
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Term
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Definition
| the right to operate a business or to sell a product |
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Term
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Definition
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Term
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Definition
depth vs. depth of a line
•Depth refers to the number of different brands offered within each assortment |
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Term
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Definition
| the tendency to offer a wide variety of nontraditional goods and services under one roof |
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Term
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Definition
| a store housing several departments under one roof |
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Term
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Definition
| a retail store specializing in a given type of merchandise |
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Term
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Definition
| a large, departmentalized, self-service retailer that specializes in food and some nonfood items |
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Term
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Definition
| a retail store that stocks pharmacy-related products and services as its main draw |
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Term
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Definition
| a miniature supermarket, carrying only a limited line of high-turnover convenience goods |
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Term
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Definition
| a retailer that competes on the basis of low prices, high turnover, and high volume |
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Term
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Definition
| the use of machines to offer goods for sale |
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Term
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Definition
| the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties |
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Term
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Definition
| techniques used to get consumers to make a purchase from their home, office, or another nonretail setting |
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Term
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Definition
| includes online retailing and the twenty-four-hour, shop-at-home television networks |
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Term
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Definition
| the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product |
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Term
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Definition
| an individual or business that is granted the right to sell another party’s product |
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Term
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Definition
| a combination of the six P’s – product, place, price, presentation, and personnel – to sell goods and service to the ultimate consumer |
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Term
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Definition
•Entry Phase
•Trading-up Phase
•Vulnerability Phase |
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