Marketing Exam 2

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Marketing Research

The systematic gathering, recording, an analysis of information to help managers make marketing decisions.

Advertising Research

The systematic gathering and analysis of information specifically to facilitate the development or evaluation of advertising strategies, ads and commercials, and media campaigns.

Advertising Strategy Research

Used to help define the product concept or to assist in the selection of target markets, advertising messages, or media vehicles.

Media Research

The systematic gathering and analysis of information on the reach and effectiveness of media vehicles.

Pretesting

Testing the effectiveness of an advertisement for gaps or flaws in message content before recommending it to clients, often conducted through focus groups.

Posttesting

Testing the effectiveness of an advertisement after it has been run.

Marketing Information System (MIS)

A set of procedures for generating an orderly flow of pertinent information for use in making marketing decisions.

Informal Research

The second step in the research process, designed to explore a problem by reviewing secondary data and interviewing a few key people with the most information to share.

Primary Data

Research information gained directly from the marketplace.

Secondary Data

Information that has previously been collected or published.

Formal Research

Collecing primary data directly from the marketplace using qualitative or quantitative methods.

Qualitative Research

Research that tries to determine market variables according to unquantifiable criteria such as attitudes, beliefs, and lifestyle.

Quantitative Research

Research that tries to determine market variables according to reliable, hard statistics about specific market conditions or situations.

Projective Techniques

In marketing research, asking indirect questions or otherwise involving consumers in a situation where they can express feelings about the problem or product. The purpose is to get an understanding of people's underlying or subconcious feelings, attitudes, opinions, needs, and motives.

Intensive Techniques

Qualitative research aimed at probing the deepest feelings, attitudes, and beliefs of respondents through direct questioning. Typical methods include in-depth interviews and focus groups.

In-Depth Interview

An intensive interview technique that uses carefully planned but loosely structured questions to probe respondents' deeper feelings.

Focus Group

A qualitative method of research in which four or more people, typical of the target market, are invited to a group session to discuss the product, the service, or the marketing situation.

Ethnographic Research (Ethnography)

An intensive research technique that has been gaining in popularity among advertisers. It involves trying to understand behavior and culture by going out and talking to people wherever they are, while they're doing whatever it is they do.

Observation Method

A method of research used when researchers actually monitor people's actions

Universal Product Code (UPC)

An identifying series of vertical bars with a 12-digit number that adorns every consumer packaged good.

Experimental Method

A method of scientific investigation in which a researcher alters the stimulus received by a test group or groups and compares the results with those of a control group that did not receive the altered stimulus.

Test Market

An isolated geographic area used to introduce and test the effectiveness of a product, ad campaign, or promotional campaign, prior to a national rollout.

Survey

A basic method of quantitative research. To get people's opinions, surveys may be conducted in person, by mail, on the telephone, or via the internet.

Direct Questioning

A method of pretesting designed to elicit a full range of responses to the advertising. It is especially effective for testing alternative advertisements in the early stages of development.

Central Location Tests

A type of pretest in which videotapes of test commercials are shown to respondents on a one-to-one basis, usually in shopping center locations.

Clutter Tests

Method of pretesting in which commercials are grouped with noncompetitive control commercials and shown to prospective customers to measure their effectiveness in gaining attention, increasing brand awareness and comprehension, and causing attitude shifts.

Attitude Tests

A type of posttest that usually seeks to measure the effectiveness of an advertising campaign in creating a favorable image for a company, its brand, or its products.

Recall Tests

Posttesting methods used to determine the extent to which an advertisement and its message have been noticed, read, or watched.

Inquiry Tests

A form of test in which consumer responses to an ad for information or free samples are tabulated.

Sales Tests

A useful measure of advertising effectiveness when advertising is the dominant element, or the only variable, in the company's marketing plan. Sales tests are more suited for gauging the effectiveness of campaigns than of individual ads or components of ads.

Validity

An important characteristic of a research test. For a test to be valid, it must reflect the true status of the market.

Reliability

An important characteristic of research test results. For a test to be reliable, it must be repeatable, producing the same result each time it is administered.

Universe

An entire target population

Sample

A portion of the population selected by market researchers to represent the appropriate targeted population. Also, a free trial of a product.

Probability Samples

A research sample in which all members of the target population have an equal and independent chance of being selected for the study.

Nonprobability Samples

Research samples that do not provide every unit in the population with an equal chance of being included. As a result, there is no guarantee that the sample will be representative.

Marketing Plan

The plan that directs the company's marketing effort

Top-down Marketing

The traditional planning process with four main elements: situation analysis, marketing objectives, marketing strategy, and tactics for action programs.

Situation Analysis

A factual statement of the organization's current situation and how it got there.

SWOT Analysis

After addressing a companies situation, the writer of a marketing plan prepares an analysis that identifies the brand's or product's strengths, weaknesses, opportunities, and threats.

Cooperative Objectives

Goals of the company stated in terms of profit or return on investment.

Marketing Objectives

Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives.

Need-Satisfying Objectives

A marketing objective that shifts management's view of the organization from a producer of products or services to a satisfier of target market needs.

Sales-Target Objective

Marketing objectives that relate to a company's sales. They may be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share, growth rate of sales volume, or gross profit.

Marketing Strategy

The statement of how the company is going to accomplish its marketing objectives.

Positioning

The association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer.

Tactics

The specified short-term actions that will be used to achieve marketing objectives.

Bottom-up Marketing

The opposite of standard, top-down marketing planning, bottom-up marketing focuses on one specific tactic and develops it into an overall strategy.

Relationship Marketing

Creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value.

Value

The ratio of perceived benefits to the price of the product.

Stakeholders

In relationship marketing, customers, employees, centers of influence, stockholders, the financial community, and the press. Different stakeholders require different types of relationships.

Lifetime Customer Value

The toatl sales or profit value of a customer to a marketer over the course of that customer's lifetime.

Synergy

An effect achieved when the sum of the parts is greater than the expected from simply adding together the individual components.

Endcap Promotion

A merchandising method that uses special displays on shelving at the end of aisles in a store.

Integrated Marketing Communications

The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make consecutive contact with the company/brand through a variety of media.

Planned Messages

Traditional marketing communications messages, including advertising, sales, promotion, publicity, and personal selling. These messages have the least impact because they are seen as self-serving.

Product Messages

Messages communicated by a product, its packaging, price, or distribution elements.

Service Messages

Messages resulting from employee interactions with customers. These messages typically have greater impact than planned messages.

Unplanned Messages

Messages that emanate from gossip, unsought news stories, rumors, or major disasters. Companies have little control over unplanned messages, but the messages can dramatically affect customers' attitudes.

Advertising Plan

The plan that directs the company's advertising effort. A natural outgrowth of the marketing plan, it analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created.

Advertising Strategy

The advertising objective declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference. Advertising strategy describes how to get there. It consists of two substrategies: the creative strategy and the media strategy.

Creative Strategy

A written statement that serves as the creative team's guide for writing and protecting an ad.

Media Strategy

A document that helps media planners determine how messages will be delivered to consumers. It defines the target audience, the communication objectives that must be achieved, and the characteristics of the media that will be used for delivery of the messages.

Percentage of Sales Method

A method of advertising budget allocation based on a percentage of the previous year's sales, the anticipated sales for the next year, or a combination of the two.

Share-of-Market/Share-of-Voice Method

A method of allocating advertising funds based on determining the firm's goals for a certain share of the market and them applying a slightly higher percentage of industry advertising dollars to the firm's budget.

Objective/Task Method

A method of determining advertising allocaitons, also referred to as the budget-buildup moethod, that defines objectives and how advertising is to be used to accomplish them. It has three steps: defining the objectives, determining the strategy, and estimating the cost.

Media Planning

The process that directs advertising messages to the right people in the right place at the right time.

Audience Objectives

Definitions of the specific types of people the advertiser wants to reach.

Media Vehicles

Particular media programs or publications

Distribution Objectives

Where, when, and how advertising should appear.

CIrculation

A statistical measure of a print medium's audience; includes subscription and vendor sales and primary and secondary leadership.

Readers Per Copy

Variable used to determine the total reach of a given print medium. RPC is multiplied by the number of vendor and subscription sales to determine the total audience size.

Pass-Along Rate

The number of people who read a magazine without actually buying it.

Message Weight

The total size of the audience for a set of ads or an entire campaign.

Advertising Impression or Opportunity to See

A possible exposure of the advertising message to one audience member

Gross Impressions

The total of all the audiences delivered by a media plan.

Rating

The percentage of homes or individuals exposed to an advertising medium.

Television Households TVHH

Households with tv sets

Gross Rating Points GRPs

The total audience delivery or weight of a specific media schedule. One rating point equals 1 percent of a particular market's population.

Reach

The total number of different people or households exposed to an advertising schedule during a given time, usually four weeks. Reach measures the unduplicated extent of audience exposure to a media vehicle and may be expressed either as a percentage of the total market or as a raw number.

Frequency

The number of times the same person or household is exposed to a vehicle in a specific time span. Across a total audience, frequency is calculated as the average number of times individuals or homes are exposed to the vehicle.

Continuity

The duration of an advertising message or campaign over a given period of time.

Wearout

The point at which an advertising message has been seen or heard so often that it starts to irritate consumers and therefore loses its effectiveness.

Five M's

The elements of the media mix that include markets, money, media, mechanics, and methodology.

Markets

Groups of potential customers who share a common interest, need, or desire; who can use the offered good or service to some advantage; and who can afford or are willing to pay the purchase price.

Money

In media planning, one of the five elements in the media mix.

Media

A plural form of medium, referring to communications vehicles paid to present an advertisement to their target audience.

Mechanics

One of the five Ms of the media mix, dealing creatively with the available advertising media options.

Methodology

The overall strategy of selecting and scheduling media vehicles to achieve the desired reach, frequency, and continuity objectives.

Brand Development Index

The percentage of a brand's total sales in an area divided by the total population in the area; it indicates the sales potential of a particular brand in a specific market area.

Category Development Index CDI

The percentage of a product category's total US sales in an area divided by the percentage of total US population in the area.

Audience

The total number of people exposed to a particular medium.

Exposure Value

The value of a medium determined by how well it exposes an ad to the target audiences.

Attention Value

A consideration in selecting media based on the degree of attention paid to ads in particular media by those exposed to them.

Motivation Value

A consideration in selecting media based on the medium's ability to motivate people to act. Positive factors include prestige, good quality, reproduction, timeliness, and editorial relevance.

Cost Per Thousand

A common term describing the cost of reaching 1,000 people in a medium's audience.

Cost Efficiency

The cost of reaching the target audience through a particular medium as opposed to the cost of reaching the medium's total circulation.

Target COP

The cost per thousand to expose a message to the target audience rather than to the total circulation.

Cost Per Point CPP

A simple compulation used by media buyers to determine which broadcast programs are the most efficient in relation to the target audience.

Mixed Media Approach

Using a combination of advertising media vehicles in a single advertising campaign.

Continuous Schedule

A method of scheduling media in which advertising runs steadily with little variation.

Flighting

An intermittent media scheduling pattern in which periods of advertising are alternated with periods of no advertising at all.

Pulsing

Mixing continuity and flighting strategies in media scheduling.

Bursting

A media scheduling method for promoting high-ticket items that require careful consideration, such as running the same commercial every half-hour on the same network in prime time.

Roadblocking

Buying simultaneous airtime on all four television networks.

Blinking

A scheduling technique in which the advertiser floods the airwaves for one day on both cable and network channels to make it virtually impossible to miss the ads.

Media Buyer

Person responsible for negotiating and contracting the purchase of advertisement space and time in various media.

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