question

Marketing

answer

activity for creating, communicating, delivering, and exchanging offerings that befire the organization, stakeholders, and society

question

exchange

answer

trade of things between buyer/seller

question

4 THINGS needed for marketing to occur

answer

1-unsatisfied needs 2-desire and ability to be satisfied 3-a way for parties to communicate 4- exchange

question

target market

answer

specific group of potential consumers toward which an organization directs its marketing program

question

marketing mix

answer

marketing mgr's controllable factors product, price, promotion, place, that can be used to solve a mot'ing problem.

question

environmental forces

answer

social, economic, regulatory, technological, competitive

question

customer value proposition

answer

cluster of benefits that an org. promises cust's to satisfy their needs

question

relationship marketing

answer

liking organizations to individual customers or employees for long term benefits

question

marketing program

answer

plan that integrates marketing mix to provide good, service`

question

marketing concept

answer

organization should satisfy needs while also trying to achieve orgs goals

question

market orientation

answer

collect info about customers needs share info across departments create value

question

customer experience

answer

internal response customers have to organization

question

societal marketing

answer

view that organizations should satisfty needs of consumer in that provide for societys well being

question

ultimate consumers

answer

people who purchase goods for household use

question

organizational buyers

answer

manufactures, reatilers

question

utility

answer

benefits or customer value received by users of the product

question

form utility

answer

production of goods or services

question

place utility

answer

having the offering available where consumers need it

question

time utility

answer

available when needed

question

possession utility

answer

value of marking an item easy to purchase, credit cards

question

organization

answer

is a legal entity that consist of people who share a common mission

question

business firm

answer

is a privately owned organization such as target, nike, or hyundai that serves its customers to ear a profit so that it can survive

question

profit

answer

the money left after a business firm total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offering

question

nonprofit organization

answer

is a non-governmental organization that serves its customers but does not have profit as an organizational goal

question

strategy

answer

an organization long term course of action that delivers a unique customer experience while achieving its goal, may very both by level and by offering.

question

corporate level

answer

is where top management directs overall strategy for the entire organization "top management" usually means the board of directors and senior management officers w/ variety of skills and experiences

question

strategic business unit (SBU)

answer

which is subsidiary, division, or unit of an organization that markets a set of related offering to s clearly defined groups of customers.

question

strategic business unit level

answer

managers set a more specific strategic direction for their businesses to exploit value creating opportunities,

question

functional level

answer

where groups of specialist actually create value for the organization

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department

answer

generally refer to these specialized function such as marketing and finance

question

cross functional team

answer

consists of a small number of people from different department who are mutually accountable to accomplish a task or a common set of performance goals.

question

core value

answer

are the fundamental, passionate, and enduring principles that guide its conduct over time. inspire and motivate employees to take production action

question

mission

answer

a statement of the organization function in society that often identifies its customers, market, products, and technology.

question

mission statement/vision

answer

should be clear, concise, meaningful, inspirational, and long term

question

organizational culture

answer

the set of values, ideas, attitudes, and behavioral norm that is learned and shared among the members of organization

question

business

answer

describes the clear, broad, underlying industry or market sector of an organization offering

question

business model

answer

the strategies an organization develops to provide value to the customer it serves

question

goals/objective

answer

target of perfomance to be achieved, often by a specific time (statement of an accomplishment of a task to be achieved)

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market share

answer

is the rato of sales revenue of the firm to the total sale revenue of all firms in the industry, including the firm itself

question

marketing dashboard

answer

visual computer display of the essential information related to achieving marketing objective/info.

question

marketing metric

answer

a measure of the value or trend of a marketing activity or result

question

data visualization

answer

which present info about an organization marketing metric graphically so marketers can quickly... 1. spot deviation from plans 2. take corrective action

question

marketing plan

answer

road map for the marketing activities of an organization for a specified future time period, such as 1 yr to 5yr

question

competencies

answer

which are its special capabilities.. the skills, techonologies, and resources that distinguish it from other organization and provide customer value

question

competitive advantage

answer

a unique strength relative to competitor that provides superior return, often based on quality, time, cost, or innovation

question

business portfolio analysis

answer

technique that managers use to quantify performance measures and growth targets of their firm's strategic business units, determine if they should withdraw resources and phase out products, requires calculations of growth rate and market share, is applied by classifying a fir's products or services into a four-quadrant matrix.

question

market growth rate

answer

vertical axis - annual rate of growth of the SBU industry

question

relative market share

answer

horizontal axis - defind as the sales of the SBU divided by the sales of the largest firm n the industry

question

cash cows

answer

are SBU that generate large amounts of cash, far more than they can use . -they have dominant shares of slow growth market and provide cash to cover the organization overhead and to invest in other SBU

question

stars

answer

are SBU with a high share of high growth markets that my need extra cash to finance their own rapid futher growth -when their growth slows, they are likely to become cash cows

question

question marks

answer

are SBU with a low share of high growth markets. they reqire large injections of cash just to maintain their market share, much less increase it

question

dogs

answer

are SBU with low shares of slow growth market. although they may generate enough cash to sustain themselves, they do not hold the promise of ever becoming real winners for the organization

question

diversification analysis

answer

a technique that helps a firm search for growth opportunities from among current and new markets as weel as current and new products, includes market penetration, market development, product development and diversification.

question

market penetration

answer

is a marketing strategy to increase sales of current products in curren markets

question

market development

answer

is a marketing strategy to sell current products to new markets

question

product development

answer

is a marketing strategy of selling new products to current markets

question

diversification

answer

is a marketing strategy of developing new product and selling them in new markets

question

strategic marketing process

answer

an approach whereby an organization allocates its marketing mix resources to reach its target market 3phases - planning, implementation and evaluation

question

situation annalysis

answer

is taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization marketing plan and the external forces and trends affecting it

question

SWOT annalysis

answer

an acronym describing an organization appraisal of its internal strength and weaknesses and its external opportunities and threats

question

market segmentation

answer

the sorting of potential buyers into groups that have common needs and will respond similarly to a marketing action

question

points of difference

answer

those characteristic of a product that make it superior to competitive substitutes

question

marketing strategy

answer

is a means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it

question

marketing tactics

answer

detailed day to day operational decisions essential to the overall success of marketing strategies

question

Strategic Business Unit Levels

answer

1. Corporate, where top management directs overall strategy 2. Functional, where groups of specialist actually create value for the organization.

question

Organizational Culture

answer

the set of values, ideas, attitudes, and norms of behavior that is learned an shared among the members of an organization.

question

What are 2 elements that define an organization's direction?

answer

Specific goals, and "The business it's in"

question

Industry

answer

Organizations that develop similar offerings, when grouped together.

question

Implementation (Strategic Marketing Process)

answer

Obtaining resources and developing planning schedules.

question

What are two elements that define an organization's direction?

answer

The business it's in and its goals.

question

Where do we want to go?

answer

is answered by identifying on'e competencies, customers, and competitors.

question

What is the difference between a marketing strategy and marketing tactics?

answer

A marketing strategy is the means by which a marketing goal is to be achieved, whereas marketing tactics are the day to day operational decisions.

question

Why is international expansion (diversification) risky?

answer

Language differences, governmental regulations, cultural traditions.

question

These allow an organization to determine where are we now?

answer

Customers, Competitors, Competencies

question

Pathway for a SBU through the four quadrants of the BCG

answer

Question mark star cash cow, dog. counterclockwise

question

Market penetration

answer

current current

question

cross-functional team

answer

different departments

question

product development

answer

strategy offers a new product or service to a firm's existing market.

question

Market segmentation is most essential for what part of the planning phase of the strategic marketing process?

answer

Market-product focus.

question

What are the three levels of strategy

answer

corporate level, strategic level, functional level

question

Where are we now?

answer

reevaluate its competencies, assess its present and prospective customers, analyze its current and potential competitors.

question

Where do we want to go?

answer

Set a direction and allocate resources. Business portfolio and diversification analyses do this.

question

Three steps of the planning phase of the strategic marketing process

answer

Planning... A swot analysis, a market-product focus through market segmentation (grouping buyers into segments with things in common) and a marketing program that specifies the budget and activities (strategies and tactics) Implementation Evaluation

question

Implementation phase of the marketing process

answer

Obtain resources, design the marketing organization to perform product management, marketing research, sales and advertising and promotion activities, develop schedules to identify the tasks that need to be done

question

Evaluatin phase of the marketing process

answer

identify deviation or planning gaps, and take corrective actions to exploit positive deviation or correct negative ones

question

baby boomers

answer

The generation of children born between 1946 and 1964. Wealthiest generation in U>S> history. 50% of all consumer spending. Fitness, retirement, fiscal planning

question

barriers to entry

answer

Business practices or conditions that make it difficult for new firms to enter the market. Capital requirements, advertizing expenditures, product identity, distribution access, or the cost to customers of switching suppliers.

question

blended family

answer

A family formed by merging two previously separated units into a single household

question

competition

answer

alternative firms that could provide a product to satisfy a specific market's needs.

question

consumerism

answer

A grassroots movement started in the 1960's to increase the influence, power, and rights of consumers in dealing with institutions.

question

culture

answer

A social force that incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group.

question

demographics

answer

Describing a population according to selected characteristics such as age, gender, ethnicity, income and occupation.

question

discretionary income

answer

The money that remains after paying for taxes and necessities.

question

disposable income

answer

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing and transportation

question

economy

answer

The income, expenditures, and resources that affect the cost of running a business and a household

question

e-commerce

answer

Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services is often called electronic commerce.

question

environmental scanning

answer

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

question

Generation X

answer

Includes the 15% of the population born between 1965 and 1976. Self-reliant, supportive of racial and ethnic diversity, and better educated than any previous generation. Not extravagant. They are cautious, pragmatic and traditional.

question

Generation Y

answer

Includes the 72 million Americans born between 1977 and 1994. Increasing births. Music sports computers video games communication and networking. eco-boom or baby boomlet.

question

gross income

answer

The total amount of money made before taxes

question

marketspace

answer

an information and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.

question

multicultural marketing

answer

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

question

regulation

answer

restrictions state and federal laws place on business with regard to the conduct of its activities.

question

self-regulation

answer

An alternative to government control is self-regulation, where an industry attempts to police itself. tv networks, better business bureau

question

social forces

answer

to the environment include the demographic characteristics of the population and its values. Changes in these forces can have a dramatic impact on marketing strategy.

question

technology

answer

inventions or innovations from applied science or engineering research.

question

value consciousness

answer

the concern for obtaining the best quality, features, and performance of a product or service for a given price.

question

pure competition

answer

many sellers similar product like commodities

question

Monopolistic competition

answer

Many sellers compete with substitutable products within a price range. Ex if coffee goes up too much they may switch to tea.

question

Oligopoly

answer

When a few companies control the majority of industry sales. Verizon, att, sprint

question

Pure Monopoly

answer

Only one firm sells the product

question

consumer behavior

answer

ththe action a person takes in purchasing and using products and services, including the mental and social processes that come before and after these action

question

purchase decision process

answer

the stages a buyer passes through in making choices about which products and services to buy 5stages- 1. problem recognition 2. information search 3. alternative evaluation 4. purchase decision 5. postpurchase behavior

question

problem recognition

answer

the initial step in the purchase decision, is perceiving a difference between a person ideal and acutla situation big enough to trigger a decision.

question

evaluative criteria

answer

which represent both the objective attributes of a brand (display) and the subjective one (prestige) you use to compare different products and brands

question

involvement

answer

the personal, social, and economic significance of a purchase to the consumer.

question

consideration set

answer

the group of brand that you would consider from among all the brands of which you are aware in the product class

question

motivation

answer

the energizing force that stimulates behavior to satify a need

question

physiological needs

answer

basic to survival and must be satisfied first

question

safety needs

answer

involce self preservation as well as physical and financial well being

question

social needs

answer

are concerned with love and friendship

question

personal needs

answer

include the need for achievement, status, prestige, and self respect

question

self actualizattion needs

answer

involce personal fulfillment

question

personality

answer

a person's consistent behaviors or responses to recurring situations

question

self concept

answer

which is the way people see themselves and the way they believe others see them.

question

perception

answer

the process by which an individual selects, organizes, interprets info. to create a meaningful picture of the world.

question

selective perception

answer

filtering of exposure, comprehension, and retention

question

selective exposure

answer

occurs when people pay attention to messages that are consistence with their attitudes and beliefs and ignore messages that are inconsistent.

question

selective comprehension

answer

involves interpreting information so that it is consistent with your attitudes and beliefs.

question

selective retention

answer

means that consumers do not remember all the info. they see, read, or hear, even minutes after exposure to it.

question

subliminal perception

answer

means that you see or hear messages without being aware of them

question

perceived risk

answer

represents the anxiety felt because the consumer connot anticipate the outcomes of a purchase but believes there may be negative consequences

question

learning

answer

behaviors that result from repeated experience and reasoning

question

behavioral learning

answer

is the process of developing automatic responses to a situation built up through repeated exposure to it.

question

drive

answer

is a need that moves an individual to action

question

cue

answer

stimulus or symbol perceived by consumers

question

response

answer

is the action taken by a consumer to satisfy the drive

question

reinforement

answer

is the reward

question

stimulus generalization

answer

occurs when a response elicited by one stimulus is generalized to another stimulus

question

stimulus discrimnation

answer

refers to a person ability to perceive difference in stimuli

question

cognitive learning

answer

consumers also learn through thinking, reasoning, and mental problem solving without direct experience

question

brand loyalty

answer

a favorable attitude toward and consistent purchase of a single brand over time

question

attitude

answer

is a "learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way"

question

beliefs

answer

are a consumer subjective perception of how a product or brand performs on different attributes

question

lifestyle

answer

is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them

question

psychographics

answer

provides insights into consumer needs and wants

question

thinkers

answer

are mature, reflective, and well educated people who value order, knowledge, responsibility

question

achiever

answer

have a busy, goal

question

Attitude

answer

learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way

question

Beliefs

answer

A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

question

Brand Loyalty

answer

a favorable attitude toward and consistent purchase of a single brand over time

question

Cognitive dissonance

answer

The feeling of postpurchase psychological, the feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives

question

consideration set

answer

The group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class

question

consumer behavior

answer

The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions

question

consumer socialization

answer

the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. Children learn how to purchase 1. by interacting with adults in purchase situations and 2. through their own purchasing and product usage experiences

question

evaluative criteria

answer

factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands

question

family life cycle

answer

the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.

question

involvment

answer

the personal, social, and economic significance of the purchase to the consumer

question

learning

answer

Those behaviors that result from (1) repeated experience and (2) reasoning

question

lifestyle

answer

a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

question

motivation

answer

the energizing force that stimulates behavior to satisfy a need

question

opinion leader

answer

Individuals who exert direct or indirect social influence over others. about 10% of US adults are opinion leaders. study by popular mechanics showed 18 million opinion leaders responsible for influencing the purchases of some 85 million consumers.

question

perceived risk

answer

the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.

question

perception

answer

The process by which an individual selects, organizes, and interprets information to create an meaningful picture of the world

question

personality

answer

a person's consistant behaviors or responses to recurring situations

question

purchase decision process

answer

the five stages a buyer passes through in making choices about which products and servicesto buy: (1) problem recognition,(2) information search, (3) alternative evaluation, (4) purchase decision,and (5) postpurchase behavior.

question

reference groups

answer

people to whom an individual looks as a basis for self-appraisal or as a source of personal standards

question

self-concept

answer

the way people see themselves and the way they believe others see them

question

situational influences

answer

the five aspects of the purchase situation that impacts the consumer's purchase decision; (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states

question

social class

answer

the relatively permanent, homogenous divisions in a society into which people sharing similar values, interests and behavior can be grouped

question

subcultures

answer

subgroups within the larger or national culture that have unique values, ideas, and attitudes. 3 largest US subcultures are Hispanics, African-Americans, and Asian-Americans. They account for 1 in 4 of US consumers and are expected to spend about 3.4 TRILLION in 2013.

question

subliminal perception

answer

seeing or hearing messages without being aware of them

question

word of mouth

answer

the influencing of people during conversations. Most powerful and authentic information source for consumers, typically involves friends viewed as trustworthy. 67% of US sales are based directly on word-of-mouth among friends, family and collegues

question

Problem Recognition

answer

the initial step in the purchase decisionis perceiving a difference between a person's ideal and actual situations big enough to trigger a decision

question

Information Search

answer

after recognizing a problem, a consumer begins to search for information to clarify by 1. suggesting criteria for purchase 2. yielding brand names to meet criteria 3. developing consumer value perceptions

question

Internal Search

answer

scanning your memory for previous experiences with products or brands

question

External Search

answer

when personal knowledge is insufficient, consumers look to external sources for information including 1. personal sources; friends and relatives 2. public sources; rating organizations, consumer reports 3. marketer-dominated sources; info from sellers including, advertising, company web-sites ect..

question

Alternative Evaluation

answer

assessing value, The stage of the buyer decision-making process in which the consumer uses information to evaluate alternative brands in the choice set

question

Purchase Decision

answer

the decision of whether or not to buy and which competing product to buy, which is made after carefully weighing the alternatives. 1. From whom to buy 2. When to buy

question

Postpurchase behavior

answer

The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction

question

3 to 1 ratio

answer

Satisfied buyers tell 3 other people about their experience. Dissatisfied buyers complain to 9 people.

question

High-involvement purchase

answer

usually have at least one of these characteristics 1) expensive 2) can have serious personal consequences 3) could reflect on ones social image. For these consumers usually engage in extensive info search, consider many attributes and brands, form attitudes and participate in word-of-mouth communication

question

Low-involvement purchases

answer

purchases that have little importance or relevance for the customer

question

Extended problem solving

answer

each of the five stages of the consumer purchase decision process is used, including considerable time and effort on external information search and in identifying and evaluating alternatives. Used in high-involvement purchases and decisions involving risk

question

Limited problem solving

answer

consumers typically seek some information or rely on a friend to help them evaluate alternatives

question

Routine problem solving

answer

for products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives.

question

Low Involvement Marketing Strategy

answer

companies who are market leaders place attention on 1. maintaining quality 2. avoiding stockout situations so buyers don't substitute competing brands 3. repetitive advertising messages that reinforce a consumer's knowledge or assures buyers they made the right choice

question

High Involvement Marketing Strategy

answer

marketers know their consumers constantly seek and process information about objective and subjective brand attributes, form evaluative criteria, rate product attributes in various brands and combine these for overall brand evaluation. Market leaders ply consumers with product info through advertising and personal selling and create chat rooms and communities on company or brand websites

question

Psychological influences

answer

Motivation and personality, perception, learning, values, beliefs and attitudes, lifestyle

question

Sociocultural influences

answer

Personal Influence, Reference Groups, Social Class, Culture and Subculture.

question

Situational influences

answer

Purchase task, social surroundings, physical surroundings, temporal effects, antecedent states

question

Marketing mix influences

answer

product, price, promotion, place

question

Physiological needs

answer

the most basic human needs to be satisfied- water, food, shelter, and clothing

question

Safety Needs

answer

freedom from harm, financial security

question

Societal Marketing Concept

answer

concept view that org.'s should satisfy the needs of consumers in way provides for society's well being

question

Personal needs

answer

status, respect, prestige

question

Self-actualization needs

answer

self-fulfillment

question

Key Traits

answer

enduring characteristics witin a person or in his or her relationship with others. Assertiveness, extroversion, compliance, dominance, and aggression

question

Ideal Self

answer

describes how people would like to see themselves

question

Selective perception

answer

the brain's attempt to organize and interpret information. a filtering exposure, comprehensionand retention

question

Selective exposure

answer

occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent

question

Selective Comprehension

answer

interpreting information so that it is consistent with your attitudes and beliefs.

question

Selective Retention

answer

consumers do not remember all the information they see, read, or hear, event minutes after exposure to it.

question

Strategies to reduce consumer's risk

answer

Obbtaining seal of approval, Securing Endorsements from influential people, providing free trials of the product, giving extensive usage instructions, Providing warranties and Gaurantees

question

Behavioral Learning

answer

the process of developing automatic responses to a situation built up through repeated exposure to it

question

Learning Variables

answer

Drive, Cue, Response, Reinforcement

question

Drive

answer

a need that moves an individual to action. Examples such as hunger might represent motives

question

Cue

answer

a stimulus or or symbol percieved by customers

question

Response

answer

the action taken by the consumer to satisfy the drive

question

Reinforcement

answer

the reward recieved by a consumer as a result of a successful response

question

Stimulus Generalization

answer

occurs when a response elicited by one stimulus (cue) is generalized to another stimulus

question

Stimulus Discrimination

answer

refers to a person's ability to percieve differences in stimuli

question

Cognative learning

answer

involves making connections betewwn two more ideas or simply observing the outcomes of others' behavior and adjusting one's own accordingly

question

Attitude Change

answer

marketers use 3 approaches to change consumer attitude toward products. 1. Changing beliefs about the extent to which a brand has certain attributes 2. Changing the percieved importance of attributes 3. Adding new attributes to the product

question

Psychographics

answer

an analysis of consumer lifestyle, combining psychology, lifestyle and demographics, that provides insight into consumer needs and wants. Used to uncover consumer motivations for buying and using products and services

question

VALS

answer

prominent Psychographic system, developed by SRI Consulting, that identifies eight consumer segemnts based on 1. primary motivation for buying and having certain products and services 2. their resources

question

VALS Primary motivations

answer

Ideals, Achievment, Self-expression

question

Ideals-motivated Groups

answer

consumers guided by knowledge and principle.

question

Thinkers

answer

High-resource group, mature, reflective, and well-educated people who value order, knowledge, and responsibility. Deliberate information-seekers who value durability and functionality in products over styling and newness

question

Believers

answer

low-resource group, conservative, conventional people with concrete beliefs based on traditional, established codes, family, religion, community. They choose familiar products and brands, favor american products, generall loyal costomers

question

Achievement-motivated Groups

answer

Consumers look for products and services that demonstrate sauccess to their peers or to a peer group they aspire to.

question

Achievers

answer

High-resource group, Busy, goal directed lifestyle and a deep commitment to career and family. Image is important to them. They favor established, prestige products and services and are interested and time-saving devices given their hectic schedules

question

Strivers

answer

low-resource group, Trendy, fun-loving, and less self-confident than Achievers. They also have lower levels of education and household income. Money defines success for them. They favor stylish products and are as impulsive as their financial circumstances permit.

question

Self-expression-motivated Groups

answer

consumers that desire social or physical activity, variety and risk

question

Experiencers

answer

high-resource group, young, enthusiastic, and impulsive consumers that become excited about new possibilities but are equally quick to cool. They savor the new, the offbeat, and the risky, enjoy exercise, sports outdoor recreation and social activities. spend income on fashion items, entertainment, and socializing

question

Makers

answer

low-resource group of those who are motivated by self-expression. They are practical people who value self-sufficiency. They are focused on the familiar-family, work, and physical recreation-and have little interest in the broader world. As consumers, they appreciate practical and functional products.

question

High- and Low-resource groups

answer

The seperation of the VALS groups based on and seperated by a group's resources

question

Innovators

answer

Successful, sophisticated, take-charge people with high self-esteem and abundant resources of all kinds. Image is important to the, not as evidence of power or status, but as an expression of cultivated tastes, independence, and character. They are receptive to new ideas and technologies

question

Survivors

answer

Least resources of any segment. They focus on meeting basic needs (safety and security) rather than fulfilling desires. They represent a modest market for most products and services and are loyal to favorite brands, especially if they can be purchased at a discount.

question

Teaser advertising

answer

run in advance advance of new-product introductions to stimulate conversation

question

Buzz

answer

Popularity created by consumer word-of-mouth. BzzAgent, a company of 600,000 people who go out and channel their chatter toward products they deem authentically worth talking about

question

Membership group

answer

a group to which a person actually belongs, including fraternities, and soroities, social clubs, and family

question

Aspiration group

answer

a group that a person wishes to be a member of or wishes to identify with, such as a professional society

question

Dissociative group

answer

a group that a person wishes to maintain a distance from because a difference in values or behaviors

question

Traditional Family

answer

a married couple with children younger than 18 years constitutes just 22% of all US households. 78% of US households include single parents, unmarried couples, divorced, never married or widowed individuals and older couples whose children no longer live at home

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Spouse-dominant descision making

answer

those descisions for which the husband or wife is more responsible. Wives tend to have more say in groceries, children's toys, clothing, and medicines. Husbands tend to be more influential in home and car maintenance purchases

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Joint descsion making

answer

common decision process for cars, vacations, houses, home appliances and electronics, and medical care.

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Family descision making Roles

answer

1. information gatherer 2. influencer 3. descision maker 4. purchaser 5. user. 89% of wives make descisions or purchases of men's clothing. More than 40% of all food-shopping dollars are spent by males. Increasingly Teens and preteens are information gatherers, descision makers and purchasers given the prevelance of working parents and single-parent homes.

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Hispanic buying patterns

answer

quailty and brand concious, willing to pay a premium price for premium quality and are often brand loyal. Prefer buying American-made products, buying preferences strongly influenced by family and peers, consider advertising a credible product info source, convience is not an important product attribute with respect to food preparation or consumption

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African American buying patterns

answer

1. Spend more on boy's clothing, rental goods, audio equipment 2. Twice as likely to own a pager and spend twice as much for online services 3. African American women 3x more on health and beauty products 4. Typical family is 5 years younger 5. Strongly motivated by quality and choice 6. Respond more to products such as apparel and cosmetics 7. Respond more to advertising that appeal to African American pride and heritage

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Asian American buying patterns

answer

difficult to make generalizations due to diverse subculture. Divided into two groups 1. Assimilated, conversant in english, highly educated, good jobs and exibit buying patterns typical of the American consumer 2. Nonassimilated, those who prefer their native tongue and customs

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bidder's list

answer

a list of firms believed to be qualified to supply a given item

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business marketing

answer

the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others

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buy classes

answer

consists of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy

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buying center

answer

the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.

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derived demand

answer

the demand for industrial products and services is driven by, or derived from, demand for consumer products and services

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e-marketplaces

answer

online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products and services. Also, called B2B exchanges or e-hubs

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ISO 9000

answer

standard for registration and certification of manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO)

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make-buy decisions

answer

an evaluation of whether components and assemblies will be purchase from outside suppliers or built by the company itself

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North American Industry Classification System (NAICS)

answer

a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes

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Organizational buyers

answer

those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale

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Organizational buying behavior

answer

the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.

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Organizational buying criteria

answer

the objective attributes of the supplier's products and services and the capabilities of the supplier itself

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reciprocity

answer

an industrial buying practice in which two organizations agree to purchase each other's products and services

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reverse auction

answer

in an e-marketplace, it is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other

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supplier development

answer

the deliberate efforts by organizations buyer to build relationships that shape suppliers' products, services and capabilities to fit the buyer's needs and those of its customers

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supply partnership

answer

buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer., a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer

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traditional auction

answer

in an e-marketplace, it is an online auction in which a seller puts an item up for sell and would-be buyers are invited to bid in competition with each other

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value analysis

answer

a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs

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Organizational Buyer Markets

answer

1. Industrial Market 2. Reseller 3. Government

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Industrial Market

answer

7.2 million firms in industrial or business market; often reprocess a product or service before selling it; Physical goods make up 25% of market and Services make up 75%

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Reseller Market

answer

wholesalers and resellers that buy physical products and resell them again without reprocessing. in the US there are about 2 million resellers and 430,000 wholesalers

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Government Market

answer

federal, state, and local government agencies that buy goods and services for the constituents they serve. about 89,500 in the US

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Global Market

answer

Largest exporting organizations focus on organizational buyers. Capital equipment and industrial supplies account for 46% of US product exports

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NAICS

answer

North American Industry Classification System provides common industry definitions for Canada, Mexico and the US which makes it easier to measure economic activity in the members of NAFTA

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NAFTA

answer

North American Free Trade Agreement, Trade agreement , North American Free Trade Agreement; allows open trade with US, Mexico, and Canada

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NAICS coding system

answer

six-digit system; first 2 digits represent sector, 3rd digit represents subsector, 4th represents industry group, 5th designates a specific industry and is the most detailed level at which comparable data is available for Canada, Mexico and the US, 6th digit designates the individual country. p.142 figure 6-1

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NAPCS

answer

North American Product Classification System, provides a classification system for for products and services across North America

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Key Characteristics of Organization Buying

answer

Market Characteristics, Product or Service Characteristics, Buying Process Characteristics, Marketing Mix Characteristics

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Marketing Characteristics

answer

Demand for industrial products and services is derived, Few customers typically exist and their purchase orders are large

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Product or service Characteristics

answer

Products or services are technical in nature and purchased on the basis of specifications; many goods purchased are raw and semi-finished; Heavy emphasis is placed on delivery time, technical asistance, and postsale service

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Buying Process Characteristics

answer

Technically qualified and professional buyers follow established purchasing policies and procedures; Buying objectives and criteria are typically spelled out, as are procedures for evaluating sellers and their products; There are multiple buying influences and mulitple parties participate in purchase decisions; There are reciprocal arrangements, and negotiation between buyers and sellers is commonplace; online buying is widespread

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Marketing Mix Characteristics

answer

Direct Selling to organizational buyers is the rule and distribution is very important; Advertising and other forms of promotion are technical in nature; Price is often negotiated, evaluated as part of broader seller and product or service qualities, and frequently affected by quality discounts.

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Product

answer

a good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is recieved in exchange for money or something else of value

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Good

answer

has tangible attributes that a consumer's five senses can percieve.

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Non-durable Good

answer

an item that is consumed in one or a few uses, such as food and fuel. Rely heavily on adveritising

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Durable Good

answer

an item that lasts over many uses, such as appliances, cars and mobile phones. Generally emphasize personal selling.

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Services

answer

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Significant part of US economy accounting for more that 40% of GDP.

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Idea

answer

a thought that leads to an action such as a concept for a new invention, or getting people out to vote.

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Consumer Products

answer

products purchased by the ultimate consumer

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Business Products

answer

products that organizations buy that assist in providing other products for resale. Also known as B2B products or industrial products

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3 variables of Consumer Products

answer

1. effort the consumer spends on the decision. 2. attributes used in making the purchase descision and 3. frequency of purchase.

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Convenience Products

answer

items that the consumer purchases frequently, conviently, and with a minimum of shopping effort.

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Shopping Products

answer

items for which the consumer compares several alternatives on criteria such as price, quality or style.

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Speciality Products

answer

items the consumer makes a special effort to search out an buy.

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Unsought Products

answer

items that the consumer does not know about or knows about but does not initially want

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Derived Demand

answer

sales of business products frequently result (or are derived) from the sale of consumer products.

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Components

answer

items that become part of the final product, including raw materials such as grain or lumber, as well as assemblies or parts, such as a car engine or door hinges

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Support Products

answer

items used to assist in producing other goods and services. such as... Installations: buildings and fixed equipment Accessory Equipment: tools, office equipment Supplies: stationary, paper clips, and brroms Industrial Services: maintenence, repair, and legal services

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Product Item

answer

a specific product that has a unique brand, size, or price. For example, fabric softener that comes in different sizes

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Stock Keeping Unit (SKU)

answer

unique identification number that defines an item for ordering purposes

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Product Line

answer

a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets or fall within a given price range. Each group has it's own marketing strategy. Nike examples include shoes, clothing and sports equipment.

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Product Mix

answer

consists of all product lines offered by an organization.

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Marketing Dashboard

answer

tool used to narrow focus of the performance of a product in a specific category such as growth rate or annual % sales change

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Existing Product Comparison

answer

newness described as a product that is functionally different from existing products.

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Feature Bloat

answer

a proliferation of extra features causing consumers to be overwhelmed

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Legal Term Definition

answer

the US Federal Trade Comission (FTC) advises that the term new be limited to use with a product up to six months after it enters regular distribution

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Organizational Perspective

answer

Newness viewed at 3 levels 1. lowest level is a product line extension or incremental improvement of existing products (low risk) 2. a significant jump in the innovation or technology such as land line to cellular service phones 3. true innovation, a truly revolutionary product such as the first Apple computer in 1976

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Consumer perspective

answer

newness defination based on the degree of learning required in terms of low to high

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Continuous Innovation

answer

consumers don't need to learn new behaviors. Effective marketing based on generating awareness and not reeducation consumers. (toothpaste)

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Dynamically Continuous Innovation

answer

only minor changes in behavior are required. Marketing focus on educating prospective buyers on product benefits, advantages, and proper use. (heinz ez-squirt ketchup)

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Discontinuous Innovation

answer

making the consumer learn entirely new consumption patterns to use the product. Marketing involves not only gaining customer awareness but educating customer on the benefits and proper use of the innovative product

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Protocol

answer

a statement that, before product development begins, identifies 1. a well-defined target market 2. specific consumers' needs, wants, and preferences 3. what the product will be and do.

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Insignificant Point of Difference

answer

having superior characteristics that deliver unique benefits to the user; a distinct point of difference is the single most important factor for a new product to defeat competitive ones

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Incomplete market and product protocol

answer

firms trying to design vague product for a phantom market.

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Not satisfying customer needs on critical factors

answer

this factor stresses that problems on one or more critical factors can kill the product, even though the general quality is high.

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Bad timing

answer

results when product is introduced too soon, too late, or when consumer tastes are shifting dramatically

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Too little market attractiveness

answer

often target market is too small or competitive to warrant the huge expenses necessary to reach it. (ideal: large target market with high growth & real buyer need)

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Poor product quality

answer

results when a product is not thoroughly tested; the costs to an organization for this can be staggering and include the labor, materials, & other expenses necessary to fix the problem (not to mention the lost sales, profits, and market share that usually result)

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Poor execution of the marketing mix

answer

somewhere in the marketing mix there can be a showstopper that kills the product

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No economical access to buyers

answer

supermarkets carry more than 30 thousand different SKUs, cost to gain access to retailer shelf space is huge (space is judged in terms of sales per square foot; ex:thirsty dog failed to generate enough sales to meet requirements); must displace an existing product on supermarket shelves (difficult task with the high sales per square foot demands of stores)

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Not listening to the voice of the consumer

answer

product managers thinking they "know better" than their customers or feel they "can't afford" the valuable marketing research that could uncover problems

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Skipping stages in the new product process

answer

skipping one of the seven stages, this is why many firms have a "gate" to ensure that all steps are completed satisfactorily before going on to the next step

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Seeking quick revenue

answer

pressure from top managers cause marketing managers to push products into the marketplace to generate sales, often leads to overlooking the network of services needed to support the physical product.

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Groupthink

answer

the mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives

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Not learning from past failures

answer

easiest lessons are from "intelligent failures"- ones that happen early in the new-product process. at this point these failures are less expensive and immediately give better understanding of customers' wants and needs.

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Engineers in Silicon Valley

answer

Chinese, Russian, Indian and other immigrants represent more than half of the total number

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New-product process

answer

seven stages an organization goes throughto identify business opportunities and convert them to a salable good or service.

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New-product strategy development

answer

the 1st stage of the new-product process that defines the role for a new product in terms of the firm's overall corporate objectives. During this stage a firm uses bot SWOT analysis and enviornmental scanning to asses strenghts and weaknesses relative to the trends it identifies as opportunities or threats. Often difficult with services because they're intangible and performance-oriented

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Idea generation

answer

the 2nd stage of the new-product process that develops a pool of concepts as candidates for new products, building upon the previous stage's results

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open innovation

answer

an organization finds and executes creative new-product ideas by developing strategic relationships with outside individuals and organizations

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Auto Sales

answer

women buy two-thirds and influence 85% of all of these sales

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Industrial design

answer

an applied art that improves the aesthetics and usefulness of mass-produced products for users

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Screening and evaluation

answer

the 3rd stage of the new-product process that involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort

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Customer Experience Management (CEM)

answer

the process of managing the entire customer experience within the firm

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Concept Tests

answer

external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product

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Business analysis

answer

the 4th stage of the new-product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections

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Prototype

answer

a full-scale operating model of a product

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Capacity management

answer

Integrating the service component of the marketing mix with efforts to influence consumer demand

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Off-peak pricing

answer

Charging different prices during different times of the day or days of the week to reflect variations in demand for the service

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Development

answer

the 5th stage of the new-product process that turns the idea on paper into a protype

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Market testing

answer

the 6th stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy

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Test Marketing

answer

involves offering a product for sale on a limited basis in a defined area. This test is done to determine whether consumers will actually buy the product and to try different ways of marketing it.

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Simulated Test Markets (STM)

answer

A technique that simulates a full scale test market but in a limited fashion. This technique can be used to save time cost and confidentiality not offered by regular test markets.

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Commercialization

answer

the 7th stage of the new-product process that positions and launches a new product in full-scale production and sales. Companies proceed carefully to this stage because it is the most expensive stage.

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Regional rollouts

answer

introducing the product sequentially into geographical areas of the United States, to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure

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Slotting Fee

answer

a payment a manufacturer makes to place a new item on a retailer's shelf

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Failure Fee

answer

a penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make

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Time to Market (TtM)

answer

the speed of marketing or introducing new products into the marketplace

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Parallel Development

answer

cross-functional team members who conduct the simultaneous development of both the product and the production process stay with the product from conception to production

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Fast Prototyping

answer

uses a "do it, try it, fix it" approach, encouraging continuing improvement even after the initial design

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Constraints

answer

in a decision the restrictions placed on potential solutions to a problem

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data

answer

the facts and figures to a problem that are divided into two main parts: secondary data and primary data.

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data mining

answer

the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

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decision

answer

a conscious choice from among two or more alternatives

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information technology

answer

involves operating computer networks that can store and process data

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marketing research

answer

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions

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measures of success

answer

criteria or standards used in evaluating proposed solutions to a problem

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observational data

answer

facts and figures obtained by watching, either mechanically or in person, how people behave

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primary data

answer

facts and figures that are newly collected for the project

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questionnaire data

answer

facts or figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

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sales forecast

answer

the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing effort. Also called company forecast

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secondary data

answer

facts and figures that have already been recorded before the project at hand

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Ethnographic Research

answer

specialized observational approach in which trained observers seek to discover subtle behavioral/emotional reactions as consumers encounter products in their nature use environment

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5 steps of Marketing Research

answer

1. define problem 2.determine research plan 3. collect relevant information through secondary and primary data 4. develop finding 5. take marketing actions

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Define the problem

answer

Set research Objectives; Identify possible marketing actions

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Develop the research plan

answer

Specify constraints; identify data needed for marketing actions; determine how to collect data

question

Collect Relevant Information

answer

Obtain secondary data; Obtain Primary Data; Use Information technology and data mining

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Develop Findings

answer

Analyze the data; present the findings

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Take Marketing Actions

answer

Make action recommendatons; implement action recommendations; evaluate the results

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Exploratory research

answer

provides ideas about a relatively vague problem

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Descriptive research

answer

generally involves trying to find the frequency that something occurs or the extent of a relationship between two factors

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Causual research

answer

the most sophisticated, tries to determine the extent to which the change in one factor changes another

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Causation

answer

A cause and effect relationship in which one variable controls the changes in another variable.

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Correlation

answer

a reciprocal relation between two or more things, ex. swamp and malaria (really caused by mosquitos)

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Between Subjects Experiment

answer

an experimental design in which the independent variable is made to vary across >two or more groups < of subjects.

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Within Subjects Experiment

answer

Experiment in which each subject of a >single group< receives all the variables/stimuli.

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Key Elements to collect data

answer

1. Concepts 2. Methods

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Concepts

answer

ideas about products or services.

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Methods

answer

approaches that can be used to collect data to solve all or part of the problem

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Sampling

answer

a technique to select a group of distributors, customers, or prospects and treating the information they provide as typical of all those in whom they are interested.

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Statistical Inference

answer

generalizes the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions

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Secondary Data: Internal

answer

Examples include detailed sales breakdowns by product line, by region, by customer, and by sales representative, as well as customer inquiries and complaints. Often a starting point for research

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Secondary Data: External

answer

Published data from outside the organization. Examples include, US Census, Trade Association studies, business periodicals

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Census Bureau

answer

Population poll every 10 years; Economic Census every 5 years

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NAICS

answer

North American Industry Classification System

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Advantages of Secondary Data

answer

1. Tremendous time savings because the data have already been collected andpublished 2. the low cost such as free or inexpensive census reports

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Disadvantages of Secondary Data

answer

1. Out of date data (census every 5-10 years) 2. Definitions or categories might not be quite right 3. Data may not be specific enough

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Primary Data: Watching People

answer

Observing people and asking them questions are the two principal ways to collect new or primary data for a marketing study. 3 main methods, Mechanical (including electronic), Personal, and Neuromarketing methods.

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Mechanical Methods

answer

Ratings system for TV, Anytime Anywhere Media Measurement (A2/M2) Initiative

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Personal Methods

answer

Personal shoppers, watching consumers in person or videotaping, Ethnographic research

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Neuromarketing Methods

answer

use of brain scanning to analyze buying processes, mixing the study of the brain with marketing

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Primary Data: Asking people

answer

Asking consumers to gather data. Divided into 1. Idea Generation methods and 2. Idea Evaluation Methods

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Idea Generation Methods

answer

Individual interview, Depth Interviews, Focus Groups

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Idea Evaluation Method

answer

the process by which the marketing researcher tries to test the ideas discovered earlier to help marketing manager recommend marketing actions.

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CATI

answer

Computer Assisted Telephone Interviewing

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open-ended question

answer

allows respondent to express opinions, ideas and behaviors

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Closed-end or fixed alternative Question

answer

require respondent to select one or more predetermined choices

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Dichotomous question

answer

simple form of a fixed alternative question that allows only a yes or no answer

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semantic differential scale

answer

five point scale using 1-2 word adjectives with opposite meanings

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Likert Scale

answer

respondant expresses the ec=xtent to which they agree or disagree

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Wording Problems

answer

Leading questions, Ambiguous question, unanswerable question, 2 questions in one, non-mutually exclusive answers

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Panel

answer

A sample of consumers or stores from which researchers take a series of measurements

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Experiment

answer

Obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, an example of causal research

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Marketing Drivers

answer

independent, variables of interest, often one or more of the marketing mix elements such as price, product features, or promotion

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Data Warehouse

answer

Databases at the core where the ocean of info is collected and stored.

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Sensitivity Analysis

answer

querying the database with "what if" questions to determine how a hypothetical change in driver such as advertising can affect sales.

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Actions

answer

Delivering results in a clear picture and if possible, a single page

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Sales Forecasting Techniques

answer

1. Judgments of the decision maker (99%0 2. surveys of knowladgeable groups 3. Statistical methods

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Direct Forecast

answer

estimating the value to be forecast without any intervening steps ex.. "How many quarts of milk should i buy?"

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Lost-horse Forecast

answer

involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast

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Survey of Buyers Intentions Forecast

answer

asking prospective customers if they are likely to buy the product during some future time period

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Salesforce Survey Forecast

answer

involves asking the salespeople to estimate sales during a coming period

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Trend Extrapolation

answer

involves extending a pattern observed in past data into the future

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80/20 rule

answer

A concept that suggests 80% of a firm's sales are obtained from 20% of its customers. The percentages in the concept are not really fixed but suggets that a small fraction of customers provides a large fraction of a firm's sales.

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marketing-product grid

answer

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization

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market segmentation

answer

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

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market segments

answer

The relatively homogeneous groups of prospective buyers that result from the market segmentation process.

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perceptual map

answer

a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand to develop marketing actions to move its product or brand into an ideal position.

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product differentation

answer

a marketing strategy that involves a firm's using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

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Usage Rate

answer

The quantity consumed or patronage (store visits) during a specific period. Also called frequency marketing

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Key of Marketing segmentation

answer

1. forms meaningful groupings 2. develops specific marketing mix actions

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One Product and Multiple market segments

answer

when an organization produces only a single product or service and attempts to sell it to two or more market segments, it avoids the exra costs of developing and producing additional versions of the product

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Multiple Markets and Multiple Market Segments

answer

many firms now offer different variations of the same basic offering to high-end and low-end segments

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Segments of One: Mass Customization

answer

tailoring goods or services to the tastes of individual customers on a high-volume scale made possible by today's internet ordering, flexible marketing and flexible manufacturing.

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Built-to-order (BTO)

answer

manufacturing a product only when there is an order from a customer.

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Organizational Synergy

answer

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently

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Cannibalization

answer

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

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5 step market segmentation process

answer

1. Group potential buyers into segments 2. group products to be sold into categories 3. develop a market-product grid and estimate size of markets 4. select target markets 5. take marketing actions to reach target markets

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Criteria for forming segments

answer

1. simplicity and cost-effectiveness of assigning potential buyers to segments 2. potential for increased profit 3. similarity of needs of potential buyers within a segment 4. difference of needs of buyers among segments 5. potential of a marketing action to reach a segment

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Geographic segmentation

answer

Dividing a market based on different geographical units such as nations, states, regions, counties, cities, or neighborhoods

question

Demographic segmentation

answer

Dividing a market based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) or perspective customers

question

Psychographical segmentation

answer

Dividing a market based on some subjective mental or emotional attribute (personality), aspirations (lifestyle), or needs of perspective customers.

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Behavorial segmentation

answer

Dividing a market based on some observable actions or attributes by prospective customers, such as where they buy, what benefits they seek, how frequently they buy and why they buy.

question

Ways to Segment Consumer Markets

answer

Geographical - region Demographic - household size Psychographic - lifestyle Behavioral - product features and usage rate

question

Frequency Marketing

answer

strategy that focuses on the usage rate of consumers

question

Segment Usage

answer

Geographical - 88% Behavioral - 65% Demographic - 53% Psychographic - 43%

question

Ways to Segment Organizational Markets

answer

Geographic - statistical areas Demographic - North American Industry Classification System codes Demographic - Number of employees Behavioral - Usage rate

question

Select Target Markets

answer

A firm must take care to choose its target market segments carefully. If it picks too narrow a set of segments, it may fail to reach the volume of sales and profits it needs

question

Target Market Criteria

answer

Market Size, Experienced growth, Competitive Position, Cost of reaching the segment, and Compatibility with the Organization's objectives and resources

question

Market Size

answer

The estimated size of the market in the segment is an important factor in deciding whether it's worth going after.

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Expected Growth

answer

although the size of the market in the segment may be small now, perhaps it is growing significantly or is expected to grow in the future.

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Competitive position

answer

is there a lot of competition in the segment now or is there likely to be in the future? The less competition, the more attractive the segment is.

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Cost of reaching the segment

answer

a segment that is inaccessible to a firm's marketing actions should not be pursued. For example, if few people in the marketing area are reachable by newspaper or print ads, don't waste advertising money.

question

Compatibility with objectives and resources

answer

judging the cost of pursuing and obtaining a particular market in contrast with the current goals and regulations/resources of the company

question

This chapter

answer

is crap and won't shut up about Wendy's

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Take Marketing Action

answer

Step 5 in the segment and targeting process. The purpose of developing a market-product grid is to trigger marketing actions to increase sales and profits. This means that someone must develop and execute an action plan in the form of a marketing program.

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Immediate Strategy

answer

Using the current or past information to formulate a current approach to advertising and marketing.

question

Future Strategy

answer

Changing customer tastes and competition mean you must alter your strategies when necessary. This involves 1. Looking at company headquarters 2. What competitors are doing and 3. What might be changing in your area.

question

Marketing Synergies

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Running horizontally across the grid, each row represents an opportunity for efficiency in terms of a market segment. Often these come at the expense of product synergies because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured. The company saves money on marketing but spends more on production.

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Product Synergies

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Running vertically down the market-product grid, each column represents and opportunity for efficiency in research and development and production.

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Product positioning

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the place a product occupies in consumers' minds on important features relative to competitive products

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product repositioning

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changing the place a product occupies in a consumer's mind relative to competitive products

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Head-to-head positioning

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competing directly with competitors on similar products attributes in the same target market

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Differentiation positioning

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Seeking a less competitive smaller market niche in which to locate a brand. Companies also follow this strategy among brands within their own product line to minimize the cannibalization of a brand's sales or market share

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Positioning Statement

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A succinct written statement describing the ideas for the product or the brand that is not only used internally within the marketing department, but also for those in areas such as research and development and advertising

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Customer positioning steps

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1. identify the important attributes for a productor brand class 2. Discover how target customers rate competing products or brands with respect to these attributes 3. Discover where the company's product or brand is on these attributes in the minds of potential customers 4. Reposition the company's product or brand in the minds of potential customers

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Simplicity and Cost-effectiveness

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a marketing manager must be able to put a marketing segmentation plan into effect. This means identifying the characteristics of potential buyers in a market and then Cost-effectively assigning them to a segment

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Potential for increased Profit

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The best segmentation approach is one that maximizes the opportunity for future profit and return on investment (ROI). If this potential is maximized without segmentation, don't segment! For non-profit organizations, the criterion is the potential for serving clients more effectively.

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Similarity of needs

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Potential buyers within a segment should be similar in terms of common needs that, in turn, leads to a common marketing action, such as product features sought or advertising media used.

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Difference of needs

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If the needs of the various segments aren't very different, combine them into fewer segments. A different segment usually requires a different marketing action that, in turn, means greater costs. If increased sales don't offset extra costs, combine segments and reduce the number of marketing actions.

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Reaching a segment

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Reaching a segment requires a simple but effective marketing action. If no such action exists, don't segment.

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PRIZM

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Designed by Nielsen Claritas, this lifestyle segmentation system classifies every household in the US into one of 66 unique market segments based on the concept that, "birds of a feather flock together."

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Usage Index

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This emphasizes the importance of the Heavy-user segment. For example, giving light users an index of 100 and the heavy users an index of 640 means that for every $1 spent by light users, heavy users are spending $6.40. This is why business owners focus on the heavy-user segment.

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Grouping

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Combining the products a firm sells into meaningful categories is as important as grouping customers into segments. When a firm has dozens or hundreds of products, they must be grouped in some way so buyers can relate to them.

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Back Translation

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The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.

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Balance of Trade

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The difference between the monetary value of a nation's exports and imports.

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Bottom of the Pyramid

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The largest but poorest socioeconomic group of people in the world.

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Consumer Ethnocentrism

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The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products

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Countertrade

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The practice of using barter rather than money for making global sales.

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Cross-Cultural Analysis

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The study of similarities and differences among consumers in two or more nations or societies.

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Cultural Symbols

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Things that represent ideas and concepts.

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Currency Exchange Rate

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The price of one country's currency expressed in terms of another country's currency.

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Customer Value

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Unique combo of benefits received by targeted buyers that includes quality, convenience, on time delivery & both b4/after sale svc. @ a specific price.

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Direct Investment

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A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.

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Dumping

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When a firm sells a product in a foreign country below its domestic price or below its actual cost.

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Economic Espionage Act (1996)

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A law that makes the theft of trade secrets by foreign entities a federal crime in the United States.

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Exporting

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A global market-entry strategy in which a company produces goods in one country and sells them in another country.

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Foreign Corrupt Practices Act (1977)

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A law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

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Global Brand

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A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.

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Global Competition

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Exists when firms originate, produce, and mar-ket their products and services worldwide.

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Global Consumers

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Consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.

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Global Marketing Strategy

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A strategy used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

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Gray Market

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A situation where products are sold through unau-thorized channels of distribution. Also called parallel importing.

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Gross Domestic Product

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The monetary value of all goods and services produced in a country during one year.

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Joint Venture

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A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.

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Microfinance

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The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.

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Multidomestic Marketing Strategy

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A strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business

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Protectionism

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The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.

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Quota

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A restriction placed on the amount of a product allowed to enter or leave a country.

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Semiotics

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A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people.

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Strategic Alliances

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Agreements among two or more independent firms to cooperate for the purpose of achieving common goals.

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Tariffs

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Government taxes on goods or services entering a country that primarily serve to raise prices on imports.

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Values

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A society's personally or socially preferable modes of con-duct or states of existence that tend to persist over time. NOT to be confused with VALUE--The ratio of perceived benefits to price; or Value = (Perceived benefits ÷ Price).

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World Trade Organization

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A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.

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Social Forces Order

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1) Baby Boomers 2) Gen X 3) Gen Y

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Ethics

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moral principles and values that govern the actions and decisions of an individual or group.

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Laws

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Laws are society's values and standards that are enforceablein the courts.

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Caveat Emptor

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Caveat emptor is the legal concept of "let the buyer beware" that was pervasive in the American business culture priorto the 1960s.

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Consumer Bill of Rights (1962)

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The Consumer Bill of Rights (1962) is a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed,to choose, and to be heard.

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Code of Ethics

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A code of ethics is a formal statement of ethical principlesand rules of conduct.

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Whistle-Blowers

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Whistle-blowers are employees who report unethical or illegal actions of their employers.

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Moral Idealism

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Moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

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Utilitarianism

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Utilitarianism is a personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.

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Social Responsibility

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Social responsibility is the idea that organizations are part of a larger society and are accountable to that society for their actions.

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Triple-Bottom Line

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The triple-bottom line is the recognition of the need for organizations to improve thestate of people, the planet, and profit simultaneously if they areto achieve sustainable, long-term growth.

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Green Marketing

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Green marketing consists of marketing efforts to produce, promote, and reclaim environmentally sensitive products.

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Cause Marketing

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Cause marketing occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one ofits products.

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Social Audit

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A social audit consists of a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.

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Sustainable Development

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Sustainable development consists of conducting businessin a way that protects the natural environment while making economic progress.

MARKETING KERIN, HARTLEY, RUDELIUS CH’S 1-10 (10TH & 11TH EDITION) – Flashcards

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