Marketing 305 Final Exam

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marketing
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the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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marketing plan
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a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro forma income
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exchange
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the trade of things of value between the buyer and the seller so that each is better off as a result
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marketing mix
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product, price, place, and promotion – the controllable set of activities that a firm uses to respond to the wants of its target markets
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goods
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items that can be physically touched
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service
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any intangible offering that involves a deed, performance, of effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer
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ideas
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intellectual concepts – thoughts, opinions, and philosophies
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business-to-consumer marketing
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the process in which businesses sell to consumers
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business-to-business marketing
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the process of selling merchandise or services from one business to another
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C2C marketing
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the process in which consumers sell to other consumers
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employment marketing
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marketing programs to attract applicants to the hiring firm
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value
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reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives
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value cocreation
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customers act as collaborators with a manufacturer or retailer to create the product or service
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marketing strategy
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a firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage
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sustainable competitive advantage
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something the firm can persistently do better than its competitors
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customer excellence
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involves a focus on retaining loyal customers and excellent customer service
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operational excellence
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involves a firm’s focus on efficient operations and excellent supply chain management
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product excellence
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involves a focus on achieving high-quality products; effective branding and positioning is key
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locational excellence
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a method of achieving excellence by having a strong physical location or internet presence
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marketing plan
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a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro forma income statements
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planning phase
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the part of the strategic marketing planning process when marketing executives define the mission or vision of the business and evaluate the situation by assessing how various players affect the firm’s potential for success
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implementation phase
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the part of the strategic marketing planning process when marketing managers identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and implement the marketing mix using the four P’s
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control phase
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the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions
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mission statement
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a broad description of a firm’s objectives anad the scope of activities it plans to undertake; attempts to answer two main questions: what type of business is it? What does it need to do to accomplish its goals a objectives
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situation analysis
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second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats
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STP
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the process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits
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market segment
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a group of consumers who respond similarly to a firm’s marketing efforts
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market segmentation
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the process of dividing the market into groups of customers with different needs, wants, or characteristics – who therefore might appreciate products or services geared especially for them
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target marketing
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the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
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market positioning
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involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
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products
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anything that is of value to a consumer and can be offered through a voluntary marketing exchange
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metric
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a measuring system that quantifies a trend, dynamic, or characteristic
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strategic business unit
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a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objective
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product line
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groups of associated items, such as those that consumers use together of think of as part of a group of similar products
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market share
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percentage of a market accounted for my a specific entity
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relative market share
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a measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry
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market growth rate
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the annual rate of growth of the specific market in which the product competes
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market penetration strategy
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a growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers
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market development strategy
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a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international
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product development strategy
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a growth strategy that offers a new product or service to a firm’s current target market
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diversification strategy
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a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve
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related diversification
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a growth strategy whereby the current target market and marketing mix shares something in common with the new opportunity
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unrelated diversification
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a growth strategy whereby a new business lacks any common elements with the present business
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need recognition
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the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual needy state to a different desired state
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functional needs
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pertain to the performance of a product or service
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psychological needs
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pertain to the personal gratification consumers associate with a product or service
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internal search for information
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occurs when the buyer examines his or her own memory ad knowledge about the product or srevice, gathered through past experiences
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external search for information
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occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
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internal locus of control
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refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities
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external locus of control
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refers to when consumers believe that fate or other external factors control all outcomes
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performance risk
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involves the perceives danger inherent in a poorly performing product or service
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financial risk
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risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service
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social risk
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the fears that consumers suffer when they worry others might not regard their purchases positively
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physiological risk
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the fear of an actual harm should a product not perform properly
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psychological risk
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associated with the way people will feel if the product or service does not convey the right image
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universal state
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includes all possible choices for a product category
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retrieval state
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includes those brands or stores that the customer can readily bring forth from memory
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evoked state
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comprises the alternative brands of stores that the consumer states he of she would consider when making a purchase decision
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evaluative criteria
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consist of a set of salient, or important, attributes about a particular product
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determinant attributes
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product or service features that are important to the buyer and on which competing brands of stores are perceived to differ
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compensatory decision rules
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at work when the consumer is evaluating alternatives and trades off one characteristic against another; such that good characteristics compensate for bad ones
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consumer decision rules
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the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives
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multi-attribution tool
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a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues
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noncompensatory decision rule
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at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes
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decision hueristics
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mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation
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conversion rate
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percentage of consumers who buy a product after viewing it
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postpurchase cognitive dissonance
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the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse
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negative word of mouth
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occurs when consumers spread negative information about a product, service, or store to others
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geographic segmentation
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the grouping of consumers on the basis of where they live
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demographic segmentation
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the grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education
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psychographics
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used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them chose how they occupy their time and what underlying psychological reasons determine those choices
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self-value
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goals for life, not just the goals one wants to accomplish on a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life
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self-concept
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the image a person has of himself
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lifestyles
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refers to the way a person lives his or her life to achieve goals
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VALS
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a psychographic tool developed by SRI Consulting Business Intelligence; classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors
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geodemographic segmentation
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the grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics
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benefit segmentation
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the grouping of consumers on the basis of the benefits they derive from products or services
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behavioral segmentation
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a segmentation method that divides customers into groups based on how they use the product or service, some common behavioral measures include occasion and loyalty
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occasion segmentation
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a type of behavioral segmentation based on when a product or service is purchased or consumed
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loyalty segmentation
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strategy of investing in loyalty initiatives to retain the firm’s most profitable customers
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undifferentiated targeting strategy
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a marketing strategy a firm can use if the product of service is perceived to provide the same benefits to everyone, with no to develop separate strategies for different groups
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differentiated strategy
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a strategy through which a firm targets several market segments with a different offering for each.
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concentrated targeting strategy
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a marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that markets needs
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mircomarketing
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an extreme form of segmentation that tailors a product or service to suit an individual customers wants or needs
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value proposition
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the unique value that a product or service provides to its customers and how it is better than and different from those of competitors
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positioning
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involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
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value
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reflects the relationship of benefits to costs, of what the consumer gets for what he or she gives
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marketing research
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a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas
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secondary data
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pieces of information that have already been collected from other sources and usually are readily available
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primary data
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data collected to address specific research needs
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external secondary data
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data collected from sources outside the firm
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syndicated data
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data available for a fee from commercial research firms
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scanner data
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a type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters
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panel data
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information collected from a group of consumers
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internal secondary data
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data collected from a firm’s own data taken from their day to day operations
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data warehouse
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large computer files that store millions and even billions of pieces of individual data
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data mining
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the use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables
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exploratory research
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attempts to begin to understand the phenomenon of interest; also provides initial information when the problem lacks any clear definition
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conclusive research
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provides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of action
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observation
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an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny
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crowdsourcing
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an exploratory research technique that uses social media to obtain ideas an content from a large group of people
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in-depth interview
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an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue
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focus group interviews
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a research technique in which a small group of persons comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry
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survey
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a systematic means of collecting information from people that generally uses a questionaire
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questionaire
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a form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers objectives; questions can be either unstructured or structured
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unstructured questions
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open-ended questions that allow respondents to answer in their own words
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structured questions
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closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate
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sample
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a group of customers who represent the customers of interest in a research study
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experimental research
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a type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a casual effect on another variable
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data
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raw numbers or facts
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information
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organized, analyzed, interpreted data that offer value to marketers
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churn
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the number of consumers who stop using a product or service, divided by the average number of consumers or that product or service

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