Term
| business-to-business marketing |
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Definition
marketing of goods and services that business and organizational customers need to produce other goods and services for resale or to support their operations
The marketing of goods and services to business customers that need them to enable their production of goods and services. A business my purchase goods and services that are:
1) part of the products/services they make and sale (i.e., BMW buying auto engines), or raw materials such as shoe leather
2) resold such as when Ford purchases Nissan cars and puts their name plate on them.
Value-added resellers take a product and modify it for a customer (i.e., IT consultants buy software then modify it for resale, such as Protiviti buying SAP software and customizing it for resale
3) in support of their operations (i.e., consumables such as copy paper and hand soap) |
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Term
| business-to-business markets |
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Definition
the group of customers that include manufacturers, wholesalers, retailers, and other organizations
In comparison to B2C, are characterized as a relatively small # of players, yet a huge $$ amount. |
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Term
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Definition
| demand for business or organizational products caused by demand for consumer goods or services |
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Term
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Definition
| demand in which changes in price have little or no effect on the amount demanded |
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Term
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Definition
| demand for two or more goods that are used together to create a product |
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Term
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Definition
| the individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations |
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Term
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Definition
| the federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations |
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Term
| North American Industry Classification System (NAICS) |
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Definition
| The numerical coding system that the United States, Canada, and Mexico use to classify firms into detailed categories according to their business activities |
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Term
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Definition
one of three classifications of business buying situations that characterized the degree of time and effort required to make a decision
The three categories are straight re-buy, modified re-buy, new task buy |
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Term
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Definition
a buying situation in which business buyers make routine purchases that require minimal decision making
re-buy the same product from a pre-approved vendor. The choice of vendor, delivery specs, and price may change though, but not the product. |
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Term
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Definition
a buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making
For example instead of buying a fleet of rental cars, Avis buys a fleet of hybrid vehicles. |
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Term
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Definition
a new business-to-business purchase that is complex or risky and that requires extensive decision making
This occurs when you have no experience buying the product or service. For ex: a small business buying a we-hosting service. |
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Term
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Definition
| The group of people in an organization who participate in a purchase decision. Can include purchasers, legal, engineering, and other advisors. These can be full-time purchasing dept. employees or called in as needed. |
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Term
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Definition
| A written description of the quality, size, weight, and so forth required of a product purchase. When creating an RFP, a business defines the specs they need the requested products/services to meet. The more detailed the specs, the higher the product/service quality will be. |
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Term
| customer reference program |
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Definition
| a formalized process by which customers formally share success stories and actively recommend products to other potential clients, usually facilitated through an on-line community |
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Term
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Definition
| The business practices of buying a particular product from only one supplier. This is pretty risky. Many technology companies (computers, software, or equipment like cat scan machines) try to lock a customer in by using proprietary technologies. |
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Term
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Definition
| The business practice of buying a particular product from several different suppliers. Doing this can keep the price down as companies compete for your business |
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Term
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Definition
| A trading partnership in which two firms agree to buy from one another. |
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Term
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Definition
| The business buying process of obtaining outside vendors to provide goods of services that otherwise might be supplied in-house. Examples are outsourcing tax accounting and preparation, or outsourcing legal representation. |
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Term
| business-to-business (B2B) e-commerce |
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Definition
| Commerce conducted using Internet-based exchanges. Businesses or organizations locate each other’s goods and services via e-commerce forums. |
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Term
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Definition
| E-commerce systems that link an invited group of suppliers and partners over the web. These are industry groups organized around the production of, for example, meat, steel, ceramics, etc. |
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Term
| Inter-organizational system (IOS) |
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Definition
| A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization. An example is the Wal-mart extranet that suppliers have to use to communicate order info or a system built on SAP’s Enterprise Resource Planning (ERP system) |
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Term
| Request for proposal (RFP) |
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Definition
| a company asks suppliers to place bids (proposals) on a job (such as to build a building or provide component parts or services). Proposals are needed as the job specs are unique (ex: construction job). |
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Term
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Definition
| a company asks suppliers to provide quotes (prices) for off-the-shelf needed products |
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Term
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Definition
| The creation of many consumer groups (segments) due to a diversity of distinct needs and wants in modern society |
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Term
| target marketing strategy |
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Definition
| Dividing the total market into different segments on the basis of consumer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments. |
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Term
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Definition
| The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics. |
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Term
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Definition
| Dimensions that divide the total market into fairly homogenous groups , each with different needs and preferences |
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Term
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Definition
| the group of consumers born between 1979-1994 |
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Term
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Definition
| Statistics that measure observably aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure. |
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Term
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Definition
| Marketing to members of a generation, who tend to share the same outlook and priorities. Ex: baby boomers, Gen X, Y. |
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Term
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Definition
| the group of consumers born between 1965-1978 |
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Term
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Definition
| the segment of people born between 1946-1964 |
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Term
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Definition
| management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization's employees, customers, suppliers and distribution channel partners |
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Term
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Definition
| A segmentation technique that combines geography with demographics. You map demographic consumer segments to neighborhoods/regions. |
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Term
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Definition
| Customizing advertising (Web, print ads, Radio ads, TV ads, etc.) so that people who live or log on in different places will be exposed to advertising for local businesses. |
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Term
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Definition
| The use of psychology, sociological, and anthropological factors to construct market segments. Segments are formed based on attitudes, interests and opinions. |
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Term
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Definition
| A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service. |
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Term
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Definition
| A marketing heuristic that claims that 20% of purchasers account for 80% of a product’s sales. |
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Term
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Definition
| An indicator used in one type of market segmentation based on when consumers use a product most. |
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Term
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Definition
| A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers. |
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Term
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Definition
| The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts. |
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Term
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Definition
| A description of the “typical” customer in a segment. |
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Term
| undifferentiated targeting strategy |
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Definition
| Appealing to a broad spectrum of people. |
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Term
| differentiated targeting strategy |
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Definition
| Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace. |
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Term
| concentrated targeting strategy |
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Definition
| Focusing a firm’s efforts on offering one ore more products to a single segment. |
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Term
| custom marketing strategy |
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Definition
| An approach that tailors specific products and the messages about them to individual customers. |
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Term
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Definition
| An approach that modifies a basic good or service to meet the needs of an individual. |
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Term
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Definition
| Developing a marketing strategy aimed at influencing how a particular market segment (persuading consumers) perceives a good or service in comparison to the competition. |
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Term
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Definition
| Updating a product's position (such as the promotional materials) to respond to new marketplace changes. |
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Term
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Definition
| A distinctive image that captures a good’s or service’s character and benefits. |
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Term
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Definition
| A vivid way to construct a picture of where products or brands are “located” in consumer’s minds. |
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Term
| Customer relationship management (CRM) |
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Definition
A philosophy that sees marketing as a process of building long-term relationships with customers to keep them satisfied and to keep them coming back. Involves systematically tracking consumers’ preferences and behaviors over time in order to tailor the value of proposition as closely as possible to each individual’s unique wants and needs.
Said another way, the purpose of CRM is to increase revenues, profits, and customer service by understanding customer preferences and catering to them in such a way that they choose to spend additional dollars with your firm. Its the use of information to change behaviors that makes the difference. If you understand customer preferences than you can segment them and use different promotions to talk to them. |
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Term
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Definition
| any point of direct interface between customers and a company (online, by phone, or in person) |
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Term
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Definition
| The percentage of an individual customer’s purchase of a product that is a single brand. |
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Term
| lifetime value of a customer |
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Definition
| an estimation of the potential profit that one consumer may provide over their lifetime. |
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Term
| Customer experience management (CEM) |
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Definition
| the concept of holistically aligning a firm's people, processes, systems, and strategies to maximize the customer's experience with all aspects of your firm and its brands |
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Term
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Definition
| A tangible product that we can see, touch, smell, hear, or taste. |
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Term
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Definition
| All the benefits the product will provide for consumers or business customers. Ex: what are all the benefits a person received from a hair cut (style). |
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Term
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Definition
| The physical good or the delivered service that supplies the desired benefit. |
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Term
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Definition
| The actual product plus other supported features such as warranty, credit, delivery, installation, bundled services, and repair service after the sale. |
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Term
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Definition
| Consumer products that provide benefits over a long period of time (usually many years) such as cars, furniture, and appliances. |
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Term
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Definition
| Consumer products that provide benefits for a short time because they are consumed (such as food) or are no longer useful (such as yesterday's newspaper). |
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Term
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Definition
| A consumer good or service that is usually low-priced, widely available, or purchased frequently with a minimum of comparison or effort. |
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Term
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Definition
| Basic or necessary items that are available almost everywhere. |
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Term
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Definition
| a product people often buy on the spur of the moment |
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Term
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Definition
| products we purchase when we we're in dire need |
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Term
| fast-moving consumer goods (FMCG) |
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Definition
| products that exhibit consistently high velocity of sales in the consumer marketplace |
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Term
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Definition
| A good or service for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase. Consumers have enduring involvement for shopping products (ex: coffee beans). |
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Term
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Definition
| computer programs that find sites selling a particular product |
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Term
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Definition
| A type of good or service that has unique characteristics which often makes the the consumer brand loyal. There are probably not any 'generics' for the product. (ex: pepto-bismal?). |
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Term
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Definition
| Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention. |
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Term
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Definition
| expensive goods that an organization uses in its daily operations that last for a long time |
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Term
| maintenance, repair, and operating (MRO) products |
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Definition
| goods that a business customer consumes in a relatively short time |
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Term
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Definition
| products of the fishing, lumber, agricultural, and mining industries that organizational customers purchase to use in their finished products |
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Term
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Definition
| products created when firms transform raw materials from their original state |
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Term
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Definition
| manufactured goods or subassemblies of finished items that organizations need to complete their own products |
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Term
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Definition
| product that consumers perceive to be new and different from existing products. |
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Term
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Definition
| A change in an existing product that requires a moderate amount of learning or behavior change (ie., ipod’s change from using hard-drives to flash memory). |
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Term
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Definition
| a new product that copies, with slight modification, the design of an original product |
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Term
| dynamically continuous innovation |
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Definition
| a change in an existing product that requires a moderate amount of learning or behavior change |
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Term
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Definition
| The coming together of two or more technologies or industries to create a new system with greater benefits than its parts. Ex: iPhone or G3 phone which can download songs, make/play videos, do email, and Internet browsing. |
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Term
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Definition
| A totally new product that creates major changes in the way we live. Some examples are PC’s, refrigerators, and email. |
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Term
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Definition
| The first step of product development in which marketers brainstorm for products that provide customer benefits and are compatible with the company mission. |
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Term
| product concept development and screening |
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Definition
| The second step of product development in which marketers test product ideas for technical and commercial success. |
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Term
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Definition
| the development of marketing strategies that support environmental stewardship by creating an environmentally-founded differential benefit in the minds of consumers |
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Term
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Definition
| The step in the product development process in which marketers assess a product’s commercial viability. |
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Term
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Definition
| The step in the product development process in which a new product is refined and perfected by company engineers. |
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Term
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Definition
| Test versions of a proposed product. |
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Term
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Definition
| Testing the complete marketing plan in a small geographic area that is similar to the large market the firm hopes to enter. |
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Term
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Definition
| The final step in the product development process in which a new product is launched into the market. |
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Term
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Definition
| The process by which a 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
| The process by which the use of a product spreads throughout a population. |
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Term
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Definition
| in the context of product diffusion, the point when a product's sales spike from a slow climb to an unprecedented new level, often accompanied by a steep price decline |
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Term
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Definition
| a massive advertising campaign that occurs over a relatively short time frame |
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Term
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Definition
| the first segment (roughly 2.5 percent) of a population to adopt a new product |
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Term
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Definition
| those who adopt an innovation early in the diffusion process, but after the innovators |
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Term
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Definition
| those whose adoption of a new product signals a general acceptance of the innovation |
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Term
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Definition
| the adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase |
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Term
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Definition
| the last consumers to adopt an innovation |
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Term
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Definition
| The degree to which a consumer perceives that a new product provides superior benefits than existing products. |
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Term
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Definition
| The extent to which a new innovation is consistent with the target market’s existing cultural values, customs, and practices. For example the IPOD was compatible with people's desire to control the music they carried around and listened to. |
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Term
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Definition
| The degree to which consumers find a new innovation or its use difficult to understand, learn and use. Complexity is the opposite of ease of use. |
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Term
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Definition
| the ease of sampling a new product and its benefits |
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Term
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Definition
| how visible a new product and its benefits are to others who might adopt it |
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Term
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Definition
| the fee that retail vendors charge to a manufacturer, or wholesaler to ensure a good product placement. For example the products are placed near the front of the store, at the end of each aisle, or at eye-level on the shelves. |
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Term
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Definition
| A firm’s total product offering designed to satisfy a single need or desire of target customers (ex: all the different types of Starbucks Roasted Whole Bean Coffee) |
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Term
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Definition
| When a company's product sells a lot and 'eats' the sales of the current product line. The loss of sales of an existing brand or product line when a new item in a product line or product family is introduced. For example sales of coke classic dropped when coke zero was introduced. This can be a problem if the profit margin for the new product is lower than the (cash cow) existing product. |
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Term
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Definition
| the total set of all product lines a firm offers for sale. The product mix can be one product line or many (referred to as narrow or wide). |
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Term
| total quality management (TQM) |
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Definition
| A management philosophy that incorporates the ideals of continuous improvement and a myriad of performance measures. TQM measures indiacate whether in fact business performance is improving, stagnant, or declining. |
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Term
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Definition
| A concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline. (Not all products die though, they can be continually reinvented). |
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Term
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Definition
| The first stage in the product life cycle = the introduction of a new product in the market place. Equivalent to commercialization phase of the product innovation cycle. |
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Term
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Definition
| The second stage in the product life cycle, during which the product is accepted and sales rapidly increase. |
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Term
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Definition
| The third and longest stage in the product life cycle, during which sales peak and profit margins narrow as competition gets stiffer. |
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Term
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Definition
| The final stage in a product life cycle, during which sales decrease as customer needs change, and consumers lose interest. The product may be pulled or sold-off to a specialty vendor. |
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Term
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Definition
| A name, a term, a symbol, or any other unique element of a product that identifies one firm’s product(s) and sets it apart from the competition. Brands also attempt to bond and elicit an emotional reaction from the consumer. Strong brands make it possible to charge triple for essentially a commodity. (ex: string cheese, fishy cheese crackers, bunny batteries). |
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Term
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Definition
| The legal term for a brand name, brand mark, or trade character; trademarks need to be legally registered by a government to obtain protection for exclusive use in that country or territory. |
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Term
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Definition
| The legal term for a brand name, brand mark, or trade character; trademarks need to be legally registered by a government to obtain protection for exclusive use in that country or territory. |
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Term
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Definition
| A company leveraged it strong brand to enter a new market. A brand extension is a new branded product or service sold under the same brand name. The brand extension can be an extension to the product line or an entirely new product line which makes it an extension to the product mix . An example is TGI Friday's frozen food, or Disney weddings & honeymoons |
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Term
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Definition
| A brand that a group of individual products or individual brands share. Ex: All Microsoft products have the word Microsoft in their product name or advertising, ditto Disney. The opposite to this is individual branding where consumer don't know the brands are from the same manufacturer (ex: did you know Proctor & Gamble sells Tide Soap, Pringles and Pampers diapers? Each of those is its own family brand, but P&G does not leverage its brand name on any of these products.) |
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Term
| national or manufacturer brands |
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Definition
| Brands that are owned by the manufacturer of the product. This is the normal case, ex: ford, Ben & Jerry's, etc. |
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Term
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Definition
| Brands that are owned and sold by a certain retailer of distributor (ex: Safeway's Select or Costco's Kirkland) |
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Term
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Definition
| No brand = product is a commodity (see large bins at Winco). A strategy in which products are not branded and are sold at the lowest possible price. |
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Term
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Definition
| An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time. (Ex: licensed toys). There is approval of usage of brand name but there is no working together (co-design). Think generic manufacturing company licensing Spiderman logo to create new set of toys. |
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Term
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Definition
| An agreement between two brands to work together in marketing a new product. (Ex: Eddie Bauer Ford, Morgan Pepsi). |
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Term
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Definition
a form of co-branding that uses branded materials as ingredients or component parts in other branded products |
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Term
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Definition
| The covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication (such as usages, benefits, instructions for usage, etc.) |
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Term
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Definition
| Organizational employee whom is responsible for developing, implementing and refining the marketing plan for a single brand. This person makes sure the marketing communications and 4p's are consistent across the product line, so that the product synergistically fit together. Over time the brand manager runs marketing research studies to discover what the brand means to consumers. |
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Term
| product category managers |
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Definition
individuals who are responsible for developing and implementing the marketing plan for all the branded products within one product line
(Ex: all Tide detergents for P&G, all trousers for Dockers) |
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Term
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Definition
| Organizational employee who is responsible for developing and implementing the marketing plans for products sold to a particular customer group (as in typical in business-to-business where customers are large OR where the customers form a target market ex: adrenaline hungry college students). |
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Term
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Definition
| groups of people within an organization who work together focus exclusively on the development of a new product. |
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Term
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Definition
| This is a brand that has been on the market for a long time, such as Converse Chuck Taylor sneakers or SPAM. The marketing strategy is to rejuvinate (reposition) the brand to resonate with the current generation (ex: this is not your fathers shaving cream) |
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Term
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Definition
- initiator- recognizes that a purchase needs to be made
- user- individual(s) who will ultimately use the product
- gatekeeper- controls flow of information to others in the organization
- Influencer- affects decision by giving advice and sharing expertise
- decider-makes the final purchase decision
- buyer- executes the purchase decision
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Term
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Definition
- Recognize the problem- make purchase requisition or request; form buying center if needed
- search for information- develop product specification; identify potential suppliers; obtain proposals and quotations
- evaluate the alternatives- evaluate proposals; obtain and evaluate samples
- select the product and supplier- issue purchase order
- evaluate post purchase- survey users; document performance
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Term
| Three steps in Target marketing |
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Definition
- Segmentation
- Targeting
- positioning
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Term
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Definition
- analyze competitors' positions
- offer a good or service with a competitive advantage
- finalize the marketing mix
- evaluate responses and modify as needed
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Term
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Definition
| is the consumer's perception of the benefits she will receive if she buys a good or service |
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Term
| new product development phases |
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Definition
- Idea generation
- Product concept development and screening
- Marketing strategy development
- Business analysis
- Technical development
- Test marketing
- Comercialization
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Term
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Definition
- Awareness: that the innovation exists at all
- Interest: prospective adopter begins to see how a new product might satisfy an existing or newly-realized need
- Evaluation: weigh the costs and benefits of the new product
- Trial: potential buyers will actually experience or use the product for the first time
- Adoption: prospect actually buys the product
- Confirmation: reinforce the customer's choice through advertising, sales promotion, and other communications
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Term
| types of relationships people have with products |
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Definition
- self-concept attachment: product helps establish the user's identity
- nostalgic attachment: product serves as a link with a past self
- Interdependence: product is a part of the user's daily routine
- love: product elicits emotional bonds of warmth, passion, or other strong emotion
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