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Market

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People or organizations with needs or wants and the ability and willingness to buy

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Market Segment

answer

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

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Market Segmentation

answer

The process of dividing a market into meaningful, relatively similar, and indentifiable segments or groups. 1) Substaniality 2) Identifiable/Measurable 3) Accessbility 4) Responsiveness

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Segmentation Bases (Variables)

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Characteristics of people, groups, or organizations.

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Geographic Segmentation

answer

Segmenting markets by region of a country or world, market size, market density, or climate. Ex:

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Demographic Segmentation

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

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Family Life Cycle

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A series of staged determined by age, martial status, and the presence or absence of children.

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Psychographic Segmentation

answer

Market Segmentation based on the basis of personality, lifestyle, and geodemographics.

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Geodemographic Segmentation

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Segmenting potential customers into neighborhood lifestyle categories.

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Benefit Segmentation

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

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Usage-rate Segmentation

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Dividing a market by the amount of product bought or consumed.

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80/20 Principle

answer

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

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Satisficers

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

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Optimizers

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

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Target Market

answer

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

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Undifferentiated Targeting Strategy

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A marketing approach that views the market as one big market with no indivdual segments, and thus uses a single marketing mix.

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Concentrated Targeting Strategy

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A strategy used to select one segment of a market (niche) for targeting marketing effots.

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Niche

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One segment of a market

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Multisegment Targeting Strategy

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

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Cannibalization

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

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One-to-One Marketing

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An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable, relationships wilth each customer.

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Positioning

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

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Position

answer

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

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Product Differentiation

answer

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

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Perceptual Mapping

answer

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

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Repositioning

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Changing consumers' perceptions of a brand in relation to competing brands.

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Marketing Information

answer

Everyday information about development in the marketing environment that managers use to prepare and adjust marketing plans.

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Decision Support System

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

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Datebase Marketing

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

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Marketing Research

answer

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

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Marketing Research Problem

answer

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

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Marketing Research Objective

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

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Management Decision Problem

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

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Secondary Data

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Data previously collected for any purpose other than the one at hand.

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Marketing Research Aggregator

answer

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

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Research Design

answer

Specifies which research questions must be answered, how and when the date will be gathered, and how the data will be analyzed.

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Primary Data

answer

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

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Survey Research

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

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Mall Intercept Interview

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A survey research method that involves interviewing people when in the common areas of shopping malls.

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Computer-Assisted Personal Interviewing

answer

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

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Computer-Assisted Self-Interviewing

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

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Central-Location Telephone Facility

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A specially designed phone room used to conduct telephone interviewing.

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Executive Interview

answer

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

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Focus Group

answer

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

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Open-ended Question

answer

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

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Close-ended Question

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

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Scaled-response Question

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A close-ended question designed to measure the intensity of a respondent's answer.

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Observation Research

answer

A research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity.

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Mystery Shoppers

answer

Researchers posing as customers who gather observational data about a store.

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Behavioral Targeting

answer

A form of observation marketing research that uses data mining couple with identifying Web surfers by their IP addresses

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Ethnographic Research

answer

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

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Experiment

answer

A method a researcher uses to gather primary data.

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Sample

answer

A subset from a larger population.

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Universe

answer

The population from which a sample will be drawn.

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Probability Sample

answer

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

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Random Sample

answer

A sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample.

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Nonprobability Sample

answer

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

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Convenience Sample

answer

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

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Measurement Error

answer

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

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Sampling Error

answer

An error that occurs when a sample somehow does not represent the target population.

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Frame Error

answer

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

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Random Error

answer

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

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Field Service Form

answer

A firm that specializes in interviewing respondents on a subcontracted basis.

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Cross-tabulation

answer

A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more questions.

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Consumer-generated Media

answer

Media that consumers generate and share among themselves.

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Scanner-based Research

answer

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

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BehaviorScan

answer

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

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InfoScan

answer

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

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Neuromarketing

answer

A field of marketing that studies the body's responses to markerting stimuli.

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Competitive Intelligence

answer

An intelligence system that helps managers asses their competition and vendors in order to become more efficient and effective competitors.

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Product

answer

Everything, both favorable and unfavorable, that a person receives in an exchange.

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Business Product

answer

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

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Consumer Product

answer

A product bought to satisfy an individual's personal wants.

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Convenience Product

answer

A relatively inexpensive item that merits little shopping effort.

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Shopping Product

answer

A product that requires comparison shopping because it is usually more expensive thatn a convenience product and is found in fewer stores.

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Specialty Product

answer

A particular item that consumers seach extensively for and are very reluctant to accept substitutes.

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Unsough Product

answer

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

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Product Item

answer

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

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Product Line

answer

A group of closely related product items.

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Product Mix

answer

All products that an organization sells.

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Product Mix Width

answer

The number of product lines an organization offers.

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Product Line Depth

answer

The number of product items in a product line.

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Product Modification

answer

Changing one or more of a product's characteristics.

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Planned Obsolescence

answer

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

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Product Line Extension

answer

Adding additional products to an existing product line in order to compete more broadly in the industry.

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Brand

answer

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

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Brand Name

answer

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

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Brand Mark

answer

The elements of a brand that cannot be spoken.

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Brand Equity

answer

The value of company and brand names

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Global Brand

answer

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

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Brand Loyalty

answer

Consistent preference for one brand over all others.

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Manufacturer's Brand

answer

The brand name of a manufacturer.

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Private Brand

answer

A brand name owned by a wholesaler or a retailer.

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Captive Brand

answer

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

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Individual Branding

answer

Using different brand names for different products.

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Family Branding

answer

Marketing several different product under the same brand name.

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Co-Branding

answer

Placing two or more brand names on a product or its package.

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Trademark

answer

The exclusive right to use a brand or part of a brand.

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Service Mark

answer

A trademark for a service.

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Generic Product Name

answer

Identifies a product by class or type and cannot be trademarked.

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Persuasive Labeling

answer

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

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Informational Labeling

answer

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

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Universal Product Codes

answer

A series of thick and think vertical lines, readable by computerized optical scanners, that represent numbers used to track products.

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Warranty

answer

A confirmation of the quality or performance of a good or service.

question

Express Warranty

answer

A written guarantee.

question

Implied Warranty

answer

An unwritten guarantee that the good or service is fit for the purpose for which it was sold.

question

New Product

answer

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

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New-Product Strategy

answer

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

question

Product Development

answer

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

question

Brainstorming

answer

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

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Concept Test

answer

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

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Business Analysis

answer

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

question

Development

answer

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

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Simultaneous Product Development

answer

A team-oriented approach to new-product development.

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Test Marketing

answer

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

question

Simulated Market Testing

answer

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

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Commercialization

answer

The decision to market a product.

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Innovation

answer

A product that perceived to be new by a potential adopter.

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Diffusion

answer

The process by which the adoption of an innovation spreads.

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Product Life Cycle

answer

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

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Product Category

answer

All brands that satisfy a particular type of need. Ex: shaving products, soft drinks.

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Introductory Stage

answer

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

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Growth Stage

answer

The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy.

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Maturity Stage

answer

A period during which sales increase at a decreasing rate.

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Decline Stage

answer

A long-run drop in sales.

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Service

answer

The result of applying human or mechanical efforts to people or objects.

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Intangibility

answer

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

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Search Quality

answer

A characteristic that can be easily accessed before purchase. Ex: color

question

Experience Quality

answer

A characteristic that can be assessed only after use. Ex: quality of a meal in a resturant.

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Credence Quality

answer

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience. Ex: medical services.

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Inseparability

answer

The inability of the production and consumption of a service to be separated; consumers must be present during production. Ex: haircut.

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Heterogeneity

answer

The variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods. Ex: Physicians differ from each other through their technical and interpersonal skills

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Perishability

answer

The inability of services to be stored, warehoused, or inventoried. Ex: empty hotel room = revenue lost

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Reliability

answer

The ability to perform a service dependably, accurately, and consistently. Getting it right the first time.

question

Responsiveness

answer

The ability to provide prompt service.

question

Assurance

answer

The knowledge and courtesy of employees and their ability to convey trust.

question

Empathy

answer

Caring, individualized attention to customers.

question

Tangibles

answer

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

question

Gap Model

answer

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

question

Gap 1

answer

The gap between what customers want and what management thinks customers want. A result of misunderstanding customers' needs/wants.

question

Gap 2

answer

The gap between what management thinks customers want and the quality specifications that mangement develops to provide the service. A result of management's inability to translate customers' needs into delivery systems.

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Gap 3

answer

The gap between the service quality specifications and the service that is actually provided. A result of management and employees' inability to do what should be done.

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Gap 4

answer

The gap between what the company provides and what the customer is told it provides. A result of a misscommunication, misleading or deceptive advertising.

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Gap 5

answer

The gap between the service cutomers receive and the service they want. Can be positive or negative.

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Core Service

answer

The most basic benefit the consumer is buying. Ex: overnight rental of a bedroom at a hotel

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Supplementary Services

answer

A group of services that support or enhance the core service. Ex: Room service at a hotel.

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People Processing

answer

The service is directed at a customer. Ex: health care

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Possesion Processing

answer

The service is directed at customer's physical possesions. Ex: dry-cleaning

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Mental Stimulus Processing

answer

Services directed at people's minds. Ex: education

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Information Processing

answer

Services that use technology or brainpower directed at a customer's assets. Ex: insurance or consulting

question

Mass Customization

answer

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

question

Place Strategy

answer

Distribution strategies for service organizations must focus on: convenience, number of outlets, direct/indirect distribution, location, and scheduling.

question

Promotion Strategy

answer

Service organizations that focus on: stressing tangible cues, using personal information sources, creating a strong organizational image, engaging in post purchase communication.

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Revenue-Oriented Pricing

answer

A pricing strategy that aims to maximize the surplus of income over costs.

question

Operations-Oriented Pricing

answer

A pricing strategy that focuses on matching supply and demand by varying prices. Ex: hotels raising price at peak times

question

Patronage-Oriented Pricing

answer

A pricing strategy aimed at maximizing the number of customers using the service.

question

Internal Marketing

answer

Treating employees as customers and developing systems and benefits to satisfy their needs. Ex: flextime, on-site day care, concierge services.

question

Nonprofit Organization

answer

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

question

Nonprofit Organization Marketing

answer

The effort to bring about mutually satisfying exchanges with target markets.

question

Public Service Advertisement

answer

An announcement that promotoes a program of a federal, state, or local government or of a nonprofit organization.

question

Marketing Channel

answer

A set of interdependent organizations that eases the transfer of ownership as products move from producers to business user or consumer.

question

Channel Members

answer

All parties in the marketing channel who negotiate with one another, buy and sell products, and facillitate the change of ownerhsip between buyer and seller in the course of moving the product from the manufactuere into the hands of the final consumer. Ex: Intermediaries, resellers, middlemen

question

Discrepancy of Quantity

answer

The difference between the amount of product produced and the amount an end user wants to buy

question

Discrepancy of Assortment

answer

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

question

Temporal Discrepancy

answer

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

question

Spatial Discrepancy

answer

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

question

Retailer

answer

A channel intermediary that sells mainly to consumers

question

Merchant Wholesaler

answer

An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them

question

Agents and Brokers

answer

Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

question

Logistics

answer

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

question

Direct Channel

answer

A distribution channel in which producers sell directly to consumers

question

Dual Distribution

answer

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

question

Private Exchange

answer

A company creates a network so it can connect its business with that of its suppliers

question

Strategic Channel Alliance

answer

A cooperative agreement between business firms to use the other's already established distribution channel

question

Intensive Distribution

answer

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

question

Selective Distribution

answer

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

question

Exclusive Distribution

answer

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

question

Arm's-Length Relationship

answer

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

question

Cooperative Relationship

answer

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

question

Integrated Relationship

answer

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

question

Channel Power

answer

The capactiy of a particular marketing channel member to control or influenece the behavior of other channel members

question

Channel Control

answer

A situation that occurs when one marketing channel member intentionally affects another member's behavior

question

Channel Leader (Captain)

answer

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

question

Channel Conflict

answer

A clash of goals and methods and methods between distribution channel members

question

Horizontal Conflict

answer

A channel conflict that occurs among channel members on the same level

question

Vertical Conflict

answer

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

question

Channel Partnering (Cooperation)

answer

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

question

Revenue Oriented Pricing

answer

Maximizing the surplus of income over costs

question

Operations Oriented Pricing

answer

Match supply and demand by varying prices

question

Patronage Oriented Pricing

answer

Maximize the number of customers using the service

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