Marketing 7,8,9,16

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LAMB/HAIR/McDANIEL

Business Marketing

The marketing of goods and services to individuals and organizations for purposes other than personal consumption

Business-to-business electronic commerce

The use of the Internet to facilitate the exchange of goods, services, and information between organizations

stickiness

a measure of a web site's effectiveness; calculated by multiplying the frequency of visits times the duration of a visit times the number of pages viewed during each visit (site reach)

disintermediation

the elimination of intermediaries such as wholesalers or distributers from a marketing channel

reintermediation

the reintroduction of an intermediary between producers and users

strategic alliance (strategic partnership)

a cooperative agreement between business firms

Relationship commitment

A firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely

Trust

The condition that exists when one party has confidence in an exchange partner's reliability and integrity

Keiretsu

a network of interlocking corporate affiliates

Original equipment manufactures

individuals/organizations that buy business goods incorporating them into products they produce for sale

North American Industry Classification System

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

Derived Demand

The demand for business products

Joint demand

the demand for two or more items used together in a final product

Multiplier effect (Accelerator principle)

phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product

Business-to-business online exchange

an electronic trading floor that provides companies with integrated links to their customers and suppliers

Reciprocity

a practice where business purchasers choose to buy from their own customers

Major Equipment (Installations)

capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

Accessory Equipment

goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

Raw Materials

unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish

Component parts

either finished items ready for assembly or products that need very little processing before becoming part of some other product

Processed materials

products used directly in manufacturing other products

Supplies

consumable items that do not become part of the final product

Business Services

expense items that do not become part of a final product

Buying Center

all those people in an organization who become involved in the purchase decision

New Buy

A situation requiring the purchase of a product for the first time

Modified Rebuy

a situation where the purchaser wants some change in the original good or service

Straight Rebuy

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers. The common instrument used in straight rebut is the purchasing contract

Market

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

Market segment

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

Market segmentation

The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Enable the marketer to tailor marketing mixed to meet the needs of one of more specific segments

Segmentation bases (Variables)

characteristics of individuals, groups, or organizations

Geographic segmentation

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

Demographic segmentation

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

family life cycle

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

Psychographic segmentation

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

Geodemographic segmentation

segmenting potential customers into neighborhood lifestyle categories

benefit segmentation

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

usage-rate segmentation

Dividing a market by the amount of product bought or consumed

80/20 principle

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

Satisfiers

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

Optimizers

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

Target Market

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

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

Concentrated targeting strategy

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

niche

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

Cannibalization

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

One-to-one marketing

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

Positioning

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

Position

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

Product Differentiation

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

Perceptual Mapping

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

Repositioning

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

Market information

information that mangers use prepare and adjust marketing plans

Decision Support system (DSS)

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

Database Marketing

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

Marketing Research

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

Secondary Data

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

Research Design

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

Primary Data

Information collected for the specific purpose at hand

Survey data

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 in the common areas of shopping malls

Computer-assisted personal interviewing

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

computer-assisted self-interviewing

an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where the respondent reads 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

Executive interview

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

focus group

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

open-ended questions

questions that allow respondents to answer however they want

Closed-ended questions

questions that are followed by a list of possible answers to be selected by the respondent

Scaled-response question

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

Observation Research

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

Mystery Shoppers

researchers posing as customers who gather observational data about a store

Behavioral Targeting (BT)

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

Ethnographic Research

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

Experiment

A method a researcher uses to gather primary data

Sample

a subset of the population

Universe

the population from which a sample will be drawn

Probability Sample

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

Random sample

a sample in which every element in the population has an equal chance of being selected

Non probability sample

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

convenience sample

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

measurement error

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

sampling error

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

Fram Error

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

Random Error

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

Field Service firm

a firm that specializes in interviewing respondents on a subcontracted basis

Cross-tabulation

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 other questions

Consumer-gernerated media

Media that consumers generate and share among themselves

Scanner-based research

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

BehaviorScan

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

InfoScan

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

Neuromarketing

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

competitive intelligence

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

Relationship marketing has become an important business marketing strategy as customers have become more demanding and competition has become more intense. Building ____ with customers offers a way to build competitive advantage.

Long-term relationships

Identify the four major
categories of business market customers

Producer, resellers, governments, institutions

Demand is Derived

Demand for business products results from demand for consumer products

Demand is inelastic

A change in price will not significantly affect the demand for product.

Deman is joint

Multiple items are used together in final product. Demand for one item affects all.

Demand is Fluctuating

Demand for business products is more volatile than for consumer products.

business buying behavior

Buying center, evalutive criteria, buying situations, business ethics, and customer device

influencers

help define specifications and provide information for evaluating options.

purchaser

the person who negotiates the purchase.

attribute

Association of a product with a product feature, an attribute, or customer benefit.
Example: Faster delivery

price and quality

High price as a symbol of quality, or low price as an indicator of value may be used to position a product.
Example: Expect more pay less

use or application

Use or application: Stressing use or applications.
Example: UPS shipping VS shipping over night

product user

Positioning base focuses on a personality or type of user.
Example: Outback SUW

product class

Product is positioned as associated with a particular category of products.
Example: lifestyle

competitor

Positioning against competitors is a part of any positioning strategy.
Example: Avis vs hertz

emotion

Positioning using emotion focuses on how the product makes customers feel.
Example: Marlboro cigarettes

substantiality

Segment must be large enough to warrant a special marketing mix

identifiability and measurability

must be identifiable and their size measurable; second basic criterion of a segmentation scheme

Accessibility

members of targeted segments must be reachable with marketing mix

Responsiveness

unless segment responds to a marketing mix differently, no separate treatment is needed.

bases for segmentation

Geography, demographics, psychographics, benefits sought and usage rate

Geographic Segmentation

Market size, market density, and climate

Bases for psychographic segmentation

Personality, motives, lifestyles and geodemographics

buyer characteristics

Demographic characteristics, decision style, tolerance for risk, confidence level, and job responsibilities

Disadvantages of multisegment targeting strategy

High costs and cannibalization

advantages of multisegment targeting strategy

Greater financial success and economies of scale

Ford motor company produces passenger cars, commercial trucks and speciality vehicles, performance vehicles and race cars. Ford uses a procedure called_____ to divide its large market.

Market segmentation

_____ are characteristics of individuals, groups, or organizations that marketers used to divide a total market into segments.

Segmentation bases

____segmentation is based on personality, motives, and lifestyles

psychographic

what do the 80/20 principle propose?

roughly 20 person of a firms customers purchase 80 percent of the sales volume of the product

which target marketing strategy views the market as one big market with no individual segments and thus uses a single marketing mix?

undifferentiated

A(n)____ strategy entails selecting one segment of a market to target and focuses on understanding the needs, motives, and satisfaction of the members of that segment, as well as on developing a highly specialized marketing mix.

concentrated targeting

When a firm serves two or more well-defined market segments with a distinct marketing mix for each, it is using a(n)___ targeting strategy

multisegment

____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general and is related to the place a product occupies in consumers' minds relative to competing offerings

positioning

Products such as aspirin, unleaded regular gasoline, and some soaps are distinguished by differences such as brand names, packaging, color, smell or "secret" additives. With these products marketers attempt to convince customers that their product is significantly different from the others and should therefore be demanded over competing brands. These marketers are using?

product differentiation

Changing customers' perception of a brand in relation to competing brands is known as

Repositioning

The main difference between a business product and a consumer product is?

intended use

According to the ________ concept, customers who have not bought a certain product in quite some time are unlikely to do so in the future.

recency

what are examples of a type of strategic alliance?

R & D consortium, joint venture, licensing

two web-design firms recently merged, in spite of the fact that managers in both firms had doubts about the importance and benefits of the merger. This relationship lacks?

relationship commitment

In many cases, an increase in the price of a business product will cause consumer demand to?

be unaffected

An accounting firm purchases an entirely new telephone system to replace its current outdated system. This is an example of which buying situation?

new buy

A group of people who share traits and have similar product needs is known as

Market segment

________ is the process where distinct market segments are identified

Market segmentation

A food products company groups its customers according to where they live. This is an example of ________ segmentation.

Geographic

Toyota promotes its Sienna minivan as a safe and practical vehicle for families. This is an example of ________ segmentation.

Family life cycle

________ are customers who do extensive research before purchasing.

optimizers

A company that uses the attribute base for positioning will emphasize

the products future or benefits

A marketing decision support system allows managers to

gather and use marketing information

Database marketing creates a(n) ________ that contains information on customer profiles and purchase patterns.

computerized file

If a company calls potential consumers to get their opinions, it is performing

survey research

In market research, a ________ is necessary because it is difficult to impossible to take a census of, or interview, all possible users of a certain product

sample

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