question

Market

answer

people or organizations with needs or wantsand the ability and willingness to buy

question

Market Segment

answer

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

question

Market Segmentation

answer

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

question

Market Bases (Variables)

answer

characteristics of individuals, groups, or organizations

question

Geographic Segmentation

answer

segmenting markets by region of a country or the world, market size, market density, or climate

question

Demographic Segmentation

answer

segmenting markets by age, gender, income, ethnic background, and family life cycle

question

Family Life Cycle (FLC)

answer

a series of stages determined by a combination of age, marital status, and the presence or absence of children

question

Psychographic Segmentation

answer

market segmentation on the basis of personality, motives, lifestyles, and geodemographics

question

Geodemographic Segmentation

answer

segmenting potential customers into neighborhood lifestyle categories

question

Benefit Segmentation

answer

the process of grouping customers into market segments according to the benefits they seek from the product

question

Usage-Rate Segmentation

answer

dividing a market by the amount of product bought or consumed

question

80/20 Principle

answer

a principle holding that 20 percent of all customers generate 80 percent of the demand

question

Satisficers

answer

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

question

Optimizers

answer

business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one

question

Target Market

answer

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

question

Undifferentiated Targeting Strategy

answer

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

question

Concentrated Targeting Strategy

answer

a strategy used to select one segment of a market for targeting marketing efforts

question

Niche

answer

one segment of a market

question

Multisegment Targeting Strategy

answer

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

question

Cannibalization

answer

a situation that occurs when sales of a new product cut into sales of a firm's existing products

question

Positioning

answer

an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer

question

One-to-One Marketing

answer

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general

question

Position

answer

the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings

question

Product Differentiation

answer

a positioning strategy that some firms use to distinguish their products from those of competitors

question

Perceptual Mapping

answer

a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds

question

Repositioning

answer

changing consumers' perceptions of a brand in relation to competing brands

question

marketing information

answer

everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans

question

decision support system (DSS)

answer

an interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions

question

database marketing

answer

the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns

question

marketing research

answer

the process of planning, collecting, and analyzing data relevant to a marketing decision

question

marketing research problem

answer

determining what information is needed and how that information can be obtained efficiently and effectively

question

marketing research objective

answer

the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information

question

management decision problem

answer

a broad-based problem that uses marketing research in order for managers to take proper actions

question

secondary data

answer

data previously collected for any purpose other than the one at hand

question

marketing research aggregator

answer

a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms

question

research design

answer

specifies which research questions must be answered, how and when the data will be gathered and how the data will be analyzed

question

primary data

answer

information that is collected for the first time; used for solving the particular problem under investigation

question

survey research

answer

the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions and attitudes

question

mall intercept interview

answer

a survey research method that involves interviewing people in the common areas of shopping malls

question

computer assisted personal interviewing

answer

an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer

question

computer assisted self-interviewing

answer

an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into a computer

question

central location telephone facility

answer

a specially designed phone room used to conduct telephone interviewing

question

executive interviewing

answer

a type of survey that involves interviewing business people at their offices concerning industrial products or services

question

focus group

answer

seven to ten people who participate in a group discussion led by a moderator

question

open-ended question

answer

an interview question that encourages an answer phrased in the respondent's own words

question

closed-ended question

answer

an interview question that asks the respondent to make a selection from a limited list of responses

question

scaled-response question

answer

a closed-ended question designed to measure the intensity of a respondent's answer

question

observation research

answer

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

question

mystery shoppers

answer

researchers posing as customers who gather observational data about a store

question

behavioral targeting (BT)

answer

a form of observational marketing research that uses data mining coupled with identifying Web Surfers by their IP addresses

question

ethnographic research

answer

the study of human behavior in its natural context; involves observation of behavior and physical setting

question

experiment

answer

a method a researcher uses to gather primary data

question

sample

answer

a subset from a larger population

question

universe

answer

the population from which a sample will be drawn

question

probability sample

answer

a sample in which every element in the population has a known statistical likelihood of being selected

question

random sample

answer

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

question

nonprobability sample

answer

any sample in which little or no attempt is made to get a representative cross section of the population

question

convenience sample

answer

a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher- friends, employees or relatives

question

measurement error

answer

an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process

question

sampling error

answer

an error that occurs when a sample somehow doesn't represent the target population

question

frame error

answer

an error that occurs when a sample drawn from a population differs from the target population

question

random error

answer

an error that occurs when the selected sample is an imperfect representation of the overall population

question

field service firm

answer

a firm that specializes in interviewing respondents on a subcontracted basis

question

cross-tabulation

answer

a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one ore more other questions

question

consumer-generated media (CGM)

answer

media that consumers generate and share among themselves

question

scanner-based research

answer

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

question

Behavior Scan

answer

a scanner-based research program that tracks the purchases of 3,000 households through store scanners in each research market

question

infoscan

answer

a scanner-based sales-tracking service for the consumer packaged- goods industry

question

neuromarketing

answer

a field of marketing that studies the body's responses to marketing stimuli

question

competitive intelligence (CI)

answer

an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors

question

Product

answer

- everything, both favorable and unfavorable, that a person receives in an exchange

question

Business Product (Industrial Product)

answer

- a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

question

Consumer Product

answer

- a product to satisfy an individual's personal wants

question

Convenience Product

answer

- a relatively inexpensive item that merits little shopping effort

question

Shopping Product

answer

- a product that requires comparison shopping because in is usually more expensive than a convenience product and is found in fewer stores

question

Specialty Product

answer

- a particular item that consumers search extensively for and are very reluctant to accept substitutes

question

Unsought Product

answer

- a product unknown to the potential buyer or a known product that the buyer does not actively seek

question

Product Item

answer

- a specific version of a product that can be designated as a distinct offering among an organization's products

question

Product Line

answer

- a group of closely related product items

question

Product Mix

answer

- all products that an organization sells

question

Product Mix Width

answer

- the number of product lines an organization offers

question

Product Line Depth

answer

- the number of product items in a product line

question

Product Modification

answer

- changing one or more of a product's characteristics

question

Planned Obsolescence

answer

- the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

question

Product Line Extension

answer

- adding additional products to an existing product line in order to compete more broadly in the industry

question

Brand

answer

- a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

question

Brand Name

answer

- that part of a brand that can be spoken, including letters, words, and numbers

question

Brand Mark

answer

- the elements of a brand that cannot be spoken

question

Brand Equity

answer

- the value of company and brand names

question

Global Brand

answer

- a brand that obtains at least a third of its earning from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

question

Brand Loyalty

answer

- a consistent preference for one brand over all others

question

Manufacturer's Brand

answer

- the brand name of a manufacturer

question

Private Brand

answer

- a brand name owned by a wholesaler or a retailer

question

Captive Brand

answer

- a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

question

Individual Branding

answer

- using different brand names for different products

question

Family Branding

answer

- marketing several different products under the same brand name

question

Co-Branding

answer

- placing two or more brand names on a product or its package

question

Trademark

answer

- the exclusive right to use a bran or part of a brand

question

Service Mark

answer

- a trademark for a service

question

Generic Product Name

answer

- identifies a product by class or type and cannot be trademarked

question

Persuasive Labeling

answer

- a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

question

Informational Labeling

answer

- a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

question

Universal Product Codes (UPCs)

answer

- a series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products

question

Warranty

answer

- a confirmation of the quality or performance of a good or service

question

Express Warranty

answer

- a written guarantee

question

Implied Warranty

answer

- an unwritten guarantee that the good or service is fit for the purpose for which it was sold

question

New Product

answer

a product new to the world, the market, the producer, the seller, or some combination of these

question

New-Product Strategy

answer

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

question

Product Development

answer

a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products

question

Brainstorming

answer

the process of getting a group to think of unlimited ways to vary a product or solve a problem

question

Screening

answer

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

question

Concept Test

answer

a test to evaluate a new-product idea, usually before any prototype has been created

question

Business Analysis

answer

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

question

Development

answer

the stage in the product development process in which a prototype is developed and a marketing strategy is outlined

question

Simultaneous Product Development

answer

a team-oriented approach to new-product development

question

Test Marketing

answer

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

question

Simulated (Laboratory) Market Testing

answer

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market

question

Commercilization

answer

the decision to market a product

question

Innovation

answer

a product perceived as new by a potential adopter

question

Diffusion

answer

the process by which the adoption of an innovation spreads

question

Product Life Cycle (PLC)

answer

a concept that provides a way to trace the stages of a product's acceptance, from its introduction(birth) to its decline (death)

question

Product Category

answer

all brands that satisfy a particular type of need

question

Introductory Stage

answer

the full-scale launch of a new product into the marketplace

question

Growth Stage

answer

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

question

Maturity Stage

answer

a period during which sales increase at a decreasing rate

question

Decline Stage

answer

a long-run drop in sales

question

Service

answer

the result of applying human or mechanical efforts to people or objects

question

Intangibility

answer

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

question

Service Quality

answer

a characteristic that can be easily assessed before purchase

question

Experience Quality

answer

a characteristic that can be assessed only after use

question

Credence Qualiety

answer

a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience

question

Inseprarbility

answer

the inability of the production and consumption of a service to be separated; consumers must be present during the production

question

Heterogeneity

answer

the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods

question

Perishability

answer

the inability of services to be stored, warehoused, or inventoried

question

Reliability

answer

the ability to perform a service dependably, accurately, and consistently

question

Responsiveness

answer

the ability to provide prompt service

question

Assurance

answer

the knowledge and courtesy of employees and their ability to convey trust

question

Empathy

answer

caring, individualized attention to customers

question

Tagibles

answer

the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service

question

Gap Model

answer

a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality

question

Core Service

answer

the most basic benefit the consumer is buying

question

Supplementary Service

answer

a group of services that support or enhance the core service

question

Mass Custimization

answer

a strategy that uses technology to deliver customized services on a mass basis

question

Internal Marketing

answer

treating employees as customers and developing systems and benefits that satisfy their needs

question

Nonprofit Organization

answer

an organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment

question

Nonprofit Organization Marketing

answer

the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets

question

Public Service Advertisement (PSA)

answer

an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization

question

Market Channel (Channel of Distribution)

answer

- a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user of consumer

question

Channel Members

answer

- all parties in the marketing channel who negotiate with one another, buy and sell products and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

question

Supply Chain

answer

the connected chain of all of the business entities, both internal and external to the company, that perform or support the marketing (or logistics) channel functions

question

Discrepancy of Quantity

answer

- the lack of all the times a customer needs to receive full satisfaction from a product or products

question

Discrepancy of Assortment

answer

the lack of all the items a customer needs to receive full satisfaction from a product or products

question

Temporal Discrepancy

answer

- a situation that occurs when a product is produced but a customer is not ready to buy it

question

Spatial Discrepancy

answer

- the difference between the location of a producer and the location of widely scattered markets

question

Retailer

answer

- a channel intermediary that sells mainly to consumers

question

Merchant Wholesaler

answer

- an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receivers and take title to goods, stores them in its own warehouses, and later ships them

question

Agents and Brokers

answer

- 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

question

Logistics

answer

- the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through and out of channel member companies

question

Direct Channel

answer

- a distribution channel in which producers sell directly to consumers

question

Dual distribution

answer

- the use of two or more channels to distribute the same product to target markets

question

Strategic Channel Alliance

answer

- a cooperative agreement between business firms to sue the others already established distribution channel

question

Intensive Distribution

answer

- a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

question

Selective Distribution

answer

- a form of distribution achieved by screening dealers to eliminate all but a few in any single area

question

Exclusive Distribution

answer

- a form of distribution that establishes one or a few dealers within a given area

question

Arm's-Length Relationship

answer

- a relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service

question

Cooperative Relationship

answer

- a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company's goals

question

Integrated Relationship

answer

- a relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust interfirm commitment

question

Channel Power

answer

- the capacity of a particular marketing channel member to control or influence the behavior of other channel members

question

Channel Control

answer

- a situation that occurs when on marketing channel member intentionally affects another members' behavior

question

Channel Leader (Channel Captain)

answer

- a member of marketing channel that exercises authority and power over the activities of other channel members

question

Channel Conflict

answer

- a clash of goals and methods between distribution channel members

question

Horizontal Conflict

answer

- a channel conflict that occurs among channel members on the same level

question

Vertical Conflict

answer

- a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer

question

Channel Partnering (Channel Cooperation)

answer

- the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage

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