Marketing Chapter 8-13
People or organizations with needs or wants and the ability and willingness to buy
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
The process of dividing a market into meaningful, relatively similar, and indentifiable segments or groups.
Segmentation Bases (Variables)
Characteristics of people, groups, or organizations.
Segmenting markets by region of a country or world, market size, market density, or climate. Ex:
Segmenting markets by age, gender, income, ethnic background, and family life cycle.
Family Life Cycle
A series of staged determined by age, martial status, and the presence or absence of children.
Market Segmentation based on the basis of personality, lifestyle, and geodemographics.
Segmenting potential customers into neighborhood lifestyle categories.
The process of grouping customers into market segments according to the benefits they seek from the product.
Dividing a market by the amount of product bought or consumed.
A principle holding that 20 percent of all customers generate 80 percent of the demand.
Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.
Business customers who consider numerous suppliers, (familiar and unfamiliar) solicit bids, and study all proposals carefully before selecting one.
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.
Undifferentiated Targeting Strategy
A marketing approach that views the market as one big market with no indivdual segments, and thus uses a single marketing mix.
Concentrated Targeting Strategy
A strategy used to select one segment of a market (niche) for targeting marketing effots.
One segment of a market
Multisegment Targeting Strategy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
A situation that occurs when sales from a new product cut into sales of a firm’s existing products.
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable, relationships wilth each customer.
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings.
A positioning strategy that some firms use to distinguish their products from those of competitors.
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
Changing consumers’ perceptions of a brand in relation to competing brands.
Everyday information about development in the marketing environment that managers use to prepare and adjust marketing plans.
Decision Support System
An interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions.
The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
The process of planning, collecting, and analyzing data relevant to a marketing decision.
Marketing Research Problem
Determining what information is needed and how that information can be obtained efficiently and effectively.
Marketing Research Objective
The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information.
Management Decision Problem
A broad-based problem that uses marketing research in order for managers to take proper actions.
Data previously collected for any purpose other than the one at hand.
Marketing Research Aggregator
A company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms.
Specifies which research questions must be answered, how and when the date will be gathered, and how the data will be analyzed.
Information that is collected for the first time; used for solving the particular problem under investigation.
The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
Mall Intercept Interview
A survey research method that involves interviewing people when in the common areas of shopping malls.
Computer-Assisted Personal Interviewing
An interviewing method in which the interviewer reads questions from a computer screen and enters the respondent’s data directly into the computer.
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.
Central-Location Telephone Facility
A specially designed phone room used to conduct telephone interviewing.
A type of survey that involves interviewing business people at their offices concerning industrial products or services.
Seven to ten people who participate in a group discussion led by a moderator.
an interview question that ecourages an answer phrased in the respondent’s own words.
an interview question that asks the respondent to make a selection from limited list of responses.
A close-ended question designed to measure the intensity of a respondent’s 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.
Researchers posing as customers who gather observational data about a store.
A form of observation marketing research that uses data mining couple with identifying Web surfers by their IP addresses
The study of human behavior in its natural context; involves observation of behavior and physical setting
A method a researcher uses to gather primary data.
A subset from a larger population.
The population from which a sample will be drawn.
A sample in which every element in the population has a known statistical likelihood of being selected.
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.
Any sample in which little or no attempt is made to get a representative cross section of the population.
A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher–employees, friends, or relatives.
An error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process.
An error that occurs when a sample somehow does not represent the target population.
An error that occurs when a sample drawn from a population differs from the target population.
An error that occurs when the selected sample is an imperfect representation of the overall population.
Field Service Form
A firm that specializes in interviewing respondents on a subcontracted basis.
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.
Media that consumers generate and share among themselves.
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.
A scanner-based research program that tracks the purchases of 3,000 households through store scanners in each research market.
A scanner-based sales-tracking service for the consumer packaged-goods industry.
A field of marketing that studies the body’s responses to markerting stimuli.
An intelligence system that helps managers asses their competition and vendors in order to become more efficient and effective competitors.
Everything, both favorable and unfavorable, that a person receives in an exchange.
A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers.
A product bought to satisfy an individual’s personal wants.
A relatively inexpensive item that merits little shopping effort.
A product that requires comparison shopping because it is usually more expensive thatn a convenience product and is found in fewer stores.
A particular item that consumers seach extensively for and are very reluctant to accept substitutes.
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A group of closely related product items.
All products that an organization sells.
Product Mix Width
The number of product lines an organization offers.
Product Line Depth
The number of product items in a product line.
Changing one or more of a product’s characteristics.
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
Product Line Extension
Adding additional products to an existing product line in order to compete more broadly in the industry.
A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
That part of a brand that can be spoken, including letters, words, and numbers.
The elements of a brand that cannot be spoken.
The value of company and brand names
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.
Consistent preference for one brand over all others.
The brand name of a manufacturer.
A brand name owned by a wholesaler or a retailer.
A brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation.
Using different brand names for different products.
Marketing several different product under the same brand name.
Placing two or more brand names on a product or its package.
The exclusive right to use a brand or part of a brand.
A trademark for a service.
Generic Product Name
Identifies a product by class or type and cannot be trademarked.
A type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary.
A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.
Universal Product Codes
A series of thick and think vertical lines, readable by computerized optical scanners, that represent numbers used to track products.
A confirmation of the quality or performance of a good or service.
A written guarantee.
An unwritten guarantee that the good or service is fit for the purpose for which it was sold.
A product new to the world, the market, the producer, the seller, or some combination of these.
A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products.
The process of getting a group to think of unlimited ways to vary a product or solve a problem.
A test to evaluate a new-product idea, usually before any prototype has been created.
The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated.
The stage in the product development process in which a prototype is developed and a marketing strategy is outlined.
Simultaneous Product Development
A team-oriented approach to new-product development.
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Simulated Market Testing
The presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market.
The decision to market a product.
A product that perceived to be new by a potential adopter.
The process by which the adoption of an innovation spreads.
Product Life Cycle
A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death).
All brands that satisfy a particular type of need. Ex: shaving products, soft drinks.
The full-scale launch of a new product into the marketplace.
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.
A period during which sales increase at a decreasing rate.
A long-run drop in sales.
The result of applying human or mechanical efforts to people or objects.
The inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed.
A characteristic that can be easily accessed before purchase. Ex: color
A characteristic that can be assessed only after use. Ex: quality of a meal in a resturant.
A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience. Ex: medical services.
The inability of the production and consumption of a service to be separated; consumers must be present during production. Ex: haircut.
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
The inability of services to be stored, warehoused, or inventoried. Ex: empty hotel room = revenue lost
The ability to perform a service dependably, accurately, and consistently. Getting it right the first time.
The ability to provide prompt service.
The knowledge and courtesy of employees and their ability to convey trust.
Caring, individualized attention to customers.
The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.
A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality.
The gap between what customers want and what management thinks customers want. A result of misunderstanding customers’ needs/wants.
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.
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.
The gap between what the company provides and what the customer is told it provides. A result of a misscommunication, misleading or deceptive advertising.
The gap between the service cutomers receive and the service they want. Can be positive or negative.
The most basic benefit the consumer is buying.
Ex: overnight rental of a bedroom at a hotel
Ex: overnight rental of a bedroom at a hotel
A group of services that support or enhance the core service. Ex: Room service at a hotel.
The service is directed at a customer. Ex: health care
The service is directed at customer’s physical possesions. Ex: dry-cleaning
Mental Stimulus Processing
Services directed at people’s minds. Ex: education
Services that use technology or brainpower directed at a customer’s assets. Ex: insurance or consulting
A strategy that uses technology to deliver customized services on a mass basis.
Distribution strategies for service organizations must focus on: convenience, number of outlets, direct/indirect distribution, location, and scheduling.
Service organizations that focus on: stressing tangible cues, using personal information sources, creating a strong organizational image, engaging in post purchase communication.
A pricing strategy that aims to maximize the surplus of income over costs.
A pricing strategy that focuses on matching supply and demand by varying prices. Ex: hotels raising price at peak times
A pricing strategy aimed at maximizing the number of customers using the service.
Treating employees as customers and developing systems and benefits to satisfy their needs. Ex: flextime, on-site day care, concierge services.
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Nonprofit Organization Marketing
The effort to bring about mutually satisfying exchanges with target markets.
Public Service Advertisement
An announcement that promotoes a program of a federal, state, or local government or of a nonprofit organization.
A set of interdependent organizations that eases the transfer of ownership as products move from producers to business user or consumer.
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
Discrepancy of Quantity
The difference between the amount of product produced and the amount an end user wants to buy
Discrepancy of Assortment
the lack of all the items a customer needs to receive full satisfaction from a product or products
A situation that occurs when a product is produced but a customer is not ready to buy it
The difference between the location of a producer and the location of widely scattered markets
A channel intermediary that sells mainly to consumers
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
Agents and Brokers
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
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
A distribution channel in which producers sell directly to consumers
The use of two or more channels to distribute the same product to target markets
A company creates a network so it can connect its business with that of its suppliers
Strategic Channel Alliance
A cooperative agreement between business firms to use the other’s already established distribution channel
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it
A form of distribution achieved by screening dealers to eliminate all but a few in any single area
A form of distribution that establishes one or a few dealers within a given area
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
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
A relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
The capactiy of a particular marketing channel member to control or influenece the behavior of other channel members
A situation that occurs when one marketing channel member intentionally affects another member’s behavior
Channel Leader (Captain)
A member of a marketing channel that exercises authority and power over the activities of other channel members
A clash of goals and methods and methods between distribution channel members
A channel conflict that occurs among channel members on the same level
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
Channel Partnering (Cooperation)
The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
Revenue Oriented Pricing
Maximizing the surplus of income over costs
Operations Oriented Pricing
Match supply and demand by varying prices
Patronage Oriented Pricing
Maximize the number of customers using the service
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