Term
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Definition
o You can pay person to person instead of person to business
o Used through American Express
o Using smart phones
o Sign up through serve.com |
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Term
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Definition
o You can access your file from the internet, instead of only your computer
o Give 5 gigabytes of free storage
§ After 5 gigabytes, they charge 20 dollars
o Can save your music and everything
o Will work on smart-phones, but not the iPhone
o Google is providing a similar service
§ Through subscription service
o Pandora does the same
§ Free service, but get money from advertising
· They also have a ad-free subscription service, but you have to pay for that service
o iTunes Vs. Cloud
§ sound quality |
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Term
| Methods of Forecasting (3) |
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Definition
Market Build-up method
Time Series Analysis
Multivariate Statistical Analysis |
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Term
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Definition
§ Is based on current demand
§ Identifies all the potential buyers and estimates potential purchases
§ problem is –this is current demand, not the future demand
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Term
| Market Build-up method equation |
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Definition
§ Q= n*q*p
§ Q= total market demand
§ n= Numbers of buyers in the market
§ q= # purchased by a buyer per year
§ p = Price/Unit |
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Term
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Definition
§ Uses past sales to estimate the future sales
§ Out performs most complex methods
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Term
A time series anaylisis breaks down sales into 4 components and combines them to produce sales forecast:
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Definition
· Trend =T
· Cycle= C
· Seasonality= S
· Erratic Components
o Examples are natural disasters, national attacks |
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Term
| Time Series Analysis Equation |
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Definition
§ Computed by:
· Vt= Vt – 1 * Tt * Ct *St
· V = previous sales
· t= time |
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Term
| Multivariate Statistical Analysis |
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Definition
§ Uses historical data
§ Uses multiple regression to develop an equation to fit the data
§ Uses demand factors to predict sales
· Sales= a + b1 * price + b2 * number of salespeople + b3 * ad budget + b4 * unemployment rate + b5 * population
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Term
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Definition
o RYKA- a shoe company (female)
§ Sherry Poe is the president
§ Athletic shoe for women
§ Some profits would go towards battered women
· 7% goes towards “R.O.S.E”
o Regaining one’s self esteem
§ Has a tag of physical safety tips on each shoe
§ Niche market |
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Term
| • Concept Testing Methods |
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Definition
o Used for new products
o Obtain their buying intentions |
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Term
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Definition
o Experts answer questions in several rounds
§ Until consensus is reach
o The first round is somewhat unstructured
o Relies on people with expertise in a given area
o Often used in new product development
o Is well suited as a method for consensus-building |
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Term
· CRM (customer relations management) |
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Definition
o Is a process of compiling information that increases an understanding of how to manage an organization’s relationships with its customers |
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Term
| CRM system brings together lots of information |
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Definition
· Customer characteristics
§ Demographics
· Sales transactions
· Marketing effectiveness
· Market trends |
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Definition
§ Helps to increase repeat sales
§ Increases long-run sales by establishing relationships
§ Improves profitability
§ Helps to customize
§ Improves customer satisfaction
§ An effective CRM should assist all departments of an organization
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Term
| Cost of adding new customers is_________as much as retaining them |
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Definition
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Term
· Mobile-app makers face US privacy investigation |
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Definition
o Collecting user information and selling it to different businesses
§ Violating the law
o But they can legally collect information, just as long as they tell them |
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Term
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Definition
o P&G are getting rid of all of their food items
o Sold them to diamond foods
§ Second largest behind petco
o Shareholders can either go to the new entity or stay with P&G
o Pringles weren’t actually “potato chips”
§ They say they aren’t in Britain, but say they are in the U.S.
· Trying to avoid taxes in Britain
o They are going more towards cosmetics which have a higher yield
§ Food markets are slower markets
· They are considered “dogs” |
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Term
· Marriott plans India hotel expansion |
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Definition
o They are using the “Fairfield Inn Name” instead of the Marriot name
§ Using it because of perception/positioning
· Not trying to lose brand equity
· Reaching two segments
o Marriott is managing the hotels and not franchising
o First time in history to redesign a brand for a foreign country
§ Did intensive research for it
o Going to be in fairly central locations
o Lack of good hotels in India
o After they build a brand, then they plan to franchise
o This is a joint venture |
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Term
· Benefits of CRM for organizations (4) |
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Definition
o Helps to enhance the customer focus
o Improves customer retention
o Increases the customers’ share of wallet (cross-selling)
§ One aspect of cross-selling is Bundling
· Example: McDonald’s Value Meal
o Improves the long-term profitability |
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Term
· Costs of CRM organizations (2) |
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Definition
o Cost of infrastructure
§ Example: IT costs, personnel costs
o Cost of process change
§ Example: training costs, cost of incentives to build brand loyalty |
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Term
· Benefits of CRM to customers (3) |
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Definition
o Decreases costs due to continuity
o Increases the availability of more contact points
o Improves satisfaction due to customized services |
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Term
· Costs of CRM to customers (2) |
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Definition
o Poses privacy problem
o Leads to opportunity costs of ignoring better products from competitors |
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Term
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Definition
o A metric is a measuring system that quantifies a characteristic
§ Example: market share
o No single metric is likely to be perfect |
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Term
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Definition
o Indicates how well a firm is doing against competition |
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Term
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Definition
- Unit Market Share
- Revenue Market Share
- Relative Market Share
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Term
| Unit market share (%) FORMULA |
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Definition
o Unit market share (%) = unit sales (#)/ total market unit sales (#) |
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Term
| Revenue market share (formula) |
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Definition
o Revenue market share (%) = sales revenue ($)/ total market revenue($) |
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Term
o Relative market share FORMULA |
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Definition
o Relative market share (%)= brand’s market share ($ or #)/ largest competitor’s market share ($ or #) |
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Term
| Some issues with Market Share Metric (3) |
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Definition
o Which unit to be used (# or $)?
o If a firm defines its market too broadly, it my dilute its focus
o If defined too narrowly, it will miss opportunities |
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Term
· You Tube recasts for new viewers |
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Definition
o Looking to compete with broadcast television, to stay on YouTube longer
o Plan to change the homepage
§ Spend $100 mil
o They are pressuring satellite companies
o Network of ad supported articles
o Probably start before the end of the year |
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Term
· McDonalds’s brings back Ronald |
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Definition
o Mascot for 48 years
o Stopped using him because they started to have a new target market
o They are going to start marketing through kids again
§ Through websites
o Parents don’t like it
§ Predatory marketing technique
o Groups are attacking the mascot
§ Deep-fried camel Joe |
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Term
· The Internet tax mirage |
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Definition
o Governor of Ill
§ Sales tax to internet purchases
§ Amazon stopped doing business with small businesses from there
o Violation of 1992 decision
§ state can’t impose tax if company isn’t in the state
o best outcome is for the states to rethink their tax policies |
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Term
· J&J settlement in bribery case |
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Definition
o Johnson & Johnson agreed to pay the settlement to the UK
§ Greece, Poland, Armenia
o Stepped up enforces of the bribery act
o Chief executive admitted to the bribery
o FCVA Act was abused
o Lost $40 million |
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Term
· How to wreck your credit score? |
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Definition
o Example used was the mortgage payment
§ Missed payments from that can hurt your credit
§ Missing it once or 30 days can drop you by 100 points
o 750 and above is the best
o Don’t walk away from your home, or do a short
o The better the credit score, the better the interest rates |
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Term
· Is the market share based on shipment data, retail sales, or consumer surveys? |
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Definition
| Consumer surveys will give the best answer |
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Term
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Definition
o Is a measure of brand popularity
o Is the % of relevant population that has purchased a given brand in a give time period
§ Number of people buying |
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Term
| Brand Penetration equation |
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Definition
o Brand penetration (%)=# of customers who have purchased the brand/ total relevant population |
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Term
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Definition
o Is a leading indicator of consumer purchase intentions and brand loyalty
o Typical scale goes from “very dissatisfied” to “very satisfied”
o Measured by the number of customers whose reported experience exceeds specified satisfaction goal
o Satisfaction levels are reported as “top box” or “top two boxes”
o Brand loyalty leads to positive word-of-mouth marketing |
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Term
· Some issues with customer satisfaction metric: |
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Definition
o Response bias
o Non-response bias
§ Example: people who haven’t responded to the survey
o Setting high expectations may lead to lower satisfaction score |
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Term
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Definition
o The buying behavior of organizations that buy goods and services for use in the production of other products
o Sales in the business market far exceed sales in consumer markets |
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Term
| o Difference between B2C and B2B markets: |
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Definition
o Business markets require more personal relationships with customers
o Number of customers and order size differs
o Business markets tend to concentrate in certain locations
o Buying process is more complex in B2B
o The supply chain is complex
o The demand for B2B products depends on the consumer demand want a customized product
o Experience major problems if supply fails
o Switching to another supplier is difficult
o Demand is price inelastic
o Demand fluctuates a lot |
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Term
o Major Influences on Business Buyers |
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Definition
o Economic trends
o Supply conditions
o Technological changes
o Changes in competition |
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Term
o Buying Center Structure: |
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Definition
o Refers to number of people involved in decision making |
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Term
| Buying Center Structure Members |
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Definition
§ Users
§ Influencer's
§ Gatekeepers who control access to info and relevant individuals in buying center
§ Deciders |
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Term
§ Single Sourcing Benefits |
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Definition
o increased responsiveness to buyer's needs
o elimination of supplier switching costs
o reduced prices through large volume
o enhanced ability to implement JIT system |
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Term
| Single Sourcing Disadvantages |
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Definition
§ Supply vulnerability
§ Higher costs due to lack of competitive pressure |
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Term
| Multiple Sourcing Advantages |
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Definition
Increased competitive pressure
Improved supply continuity |
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Term
| Multiple Sourcing Disadvantages |
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Definition
§ Lack of commitment
§ Reduced willingness to adapt |
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Term
Business Buying on the Internet
E-procurement offers many benefits: |
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Definition
o Access to new suppliers
o Lower purchasing costs
o Quicker order processing and delivery
o Online auctions including Reverse Auctions |
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Term
Stages in the Business Buying Process (7) |
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Definition
· Stage 1: Problem Recognition
· Stage 2: General Need Description
· Stage 3: Product Specification
· Stage 4: Supplier Search
· Stage 5: Obtain Proposals
· Stage 6: Supplier Selection
· Stage 7: Performance Review |
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Term
· What are new products? (5) |
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Definition
o New-to-the-world products
§ Example: Segway
o New category entries for a company
§ Example: Apple: IPod, IPhone
o Additions to product lines
§ Example: Cherry Coke
o Product Improvements
§ Example: Windows-Vista
o Repositioning
§ Example: Arm & Hammer
· Started out to be for baking, and now it’s for cleaning purposes also |
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Term
· Why do new products fail? |
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Definition
o Faulty estimates of market potential
o Poor product quality
o Poor execution of the marketing mix
o Poor positioning of the product
o Bad timing |
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Term
| New Product Development Process (6) |
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Definition
o Idea generation
o Idea screening
o Project planning
o Product development
o Test marketing
o Commercialization |
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Term
| Idea generations can come from... |
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Definition
§ From brainstorming or focus groups
§ Looking at competition
§ Employees
§ Research & Development (R&D)
§ Customers
§ Accidents |
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Term
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Definition
o Is the limited introduction of the new product in areas chosen to represent the intended market
o Done in selective cities
o It allows marketers to identify weakness in the marketing mix |
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Term
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Definition
§ Competitors may sabotage the testing program
§ Competitors may copy the product |
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Term
· Test Marketing Method (3) |
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Definition
o Market test
o Scanner-based tests
o Simulated tests |
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Term
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Definition
§ Place the product with an existing product in the stores
§ Most expensive
§ More realistic environment |
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Term
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Definition
§ Data is gathered from checkout stands
§ Less realistic than the market test
· Because you are missing out on stores
o Some stores don’t have checkout stands |
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Term
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Definition
§ Bring groups of people to a private location to test them
§ Helps prevent the competition from copying what you are doing or sabotaging
§ The least expensive |
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