Marketing Test 2

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Less for Much Less

Potential Value Proposition: Fewer benefits for much lower price ex. Dollar General

Adoption Process

Stages include: awareness, interest, evaluation, trial and adoption.

Primary Data

data that consists of info collected for the specific purpose at hand must be relevant, accurate, current, and unbiased.

Marketing Information System

The goal of this is giving the right info @ the right time and in the right form to help decision makers in generating value

Late Majority

one of the general "adopter" categories: skeptical; adopt only after a majority have tried. 34%

Customer Insight

fresh understanding of customers and the marketplace derived from marketing info that becomes the basis for creating customer value and relationship

Interest

customer seeks info about new product

Better information

Marketers don't want more information, they want....

Research Plan

these must be translated into specific info needs. Info needs include: detailed customer characteristics, usage patterns, retailer reactions, etc. These are research objectives for....

Cultural Factors

Factors that influence consumer behavior: culture, subculture, social class

Social factors

factors that influence consumer behavior: reference groups, family, roles and status

Culture

the most basic cause of a person's wants and behavior. It is learned from family, church, school, peers, colleagues. Reflects basic values, perceptions, wants and behaviors. Shifts create opportunities for new products and many otherwise influence consumer behavior.

Disadvantages to Secondary Data

data that when desired may not provide desired info. Must be carefully evaluated for relevancy, accuracy, currency, and impartially

Occasional Segmentation

Behavioral segmentation that uses special promotions and labels for holidays. Special products for special ....

Customer Relationship Management

managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty. It analyzes it in-depth

Marketing Research

source of developing marketing: systematic design, collection, analysis, and reporting of data relevent to a specific marketing situation facing a firm (e.g. focus groups)

Perception

Psychological factor. Process by which people select, organize, and interpret information to form a meaningful picture of the world.
Can be influenced by:
Selective attention, selective distortion, selective retention

Selective Attention

the focusing of conscious awareness on a particular stimulus, as in the cocktail party effect

Selective Distortion

A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

Selective Retention

a process whereby a consumer remembers only that information that supports personal beliefs

Subculture

groups of people with shared value system based on common life experiences. ex. Hispanic consumers, Asian-American consumers, Mature consumer

Compatibility

a product characteristic that influences the rate of adoption: Does the innovation fit or "work with" the existing products uses, values, or experiences of the target market?

Research Plan

MORE IMPORTANT THAN RESEARCH ITSELF... should be presented in a written proposal, may outline need for primary and secondary data

Descriptive Research

generating info to better describe marketing problems, situations, or markets

Adoption

decision to make full and regular use of the product

Stimuli

Part of the model of consumer behavior: these are evaluated in light of the buyers decision process and the buyer's characteristics

Buyer Responses

-Formation of attitude and preferences
-purchase(s)
-development of a relationship with the brand or firm

Psychographic Segmentation

dividing a market into different groups based on social class, lifestyle, or personality characteristics

Lifestyles

pattern of living as expressed in his or her activity, interests, opinions. People buy the __________ represented by products or services.

Monitor, Adapt, to match changes

Firms must also ___________ and ______________ the position over time ____ _____________ ____________ in consumer needs and competitors strategy.

Segmentation

Key variables of ___________________: geographic, demographic, psychographic, and behavioral

Economic Situation

Some goods and/or services are especially income-sensitive. Often influences choice of store as well.

Social Class

relatively permanent and ordered divisions who share similar values, interests, and behaviors. Measured by a combination of occupation, income, education, wealth, and other variables.
Categories include: upper class, middle class, working class, lower class.

More for Less

Potential value proposition. More benefits for a lower price. Most difficult to hit.
Ex. Home Depot at the beginning

Competitive Advantage

an advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits than justifying higher prices

Adopter Categories

Speed to try a product is highly idiosyncratic.
Innovators, Early Adopters, Early Majority, Late Majority, Laggards.

Idiosyncratic

peculiar to the individual. Speed to try a product is highly ____________________.

Secondary Data

provide insight but doesn't fully influence it. Information that already exists somewhere which has been collected for another purpose.
Common Sources: internal databases, commercial data services, government sources.

Selective Attention

screening out most of what one's exposed to.
Ex. how advertisements on the TV are showing more of their logo because people tune in and out. and TiVO and record things.

Defining Problem and Objectives

most difficult step of the marketing research process... May include: exploratory research, descriptive research, causal research.

Exploratory Research

gathering preliminary info that will help define the problem and suggest hypothesis

Research plan

this requires: determining the exact info needed, developing a plan for gathering it efficiently, presenting the written plan to management

Local Marketing

One type of micro-marketing. tailoring brands and promotions to the needs and wants of local customer groups - cities, neighborhood, specific stores (how they behave)

Competitive Marketing Information

a source for developing market info:
systematic collection and analysis, and reporting of data relevant to a specific marketing situation facing a firm (e.g. focus groups)

Sampling

This requires three decisions:
Who is to be surveyed? selecting sampling unit
How many people should be surveyed? referred to as a sampling site
How should the people in the sample be chosen? describes sampling procedure

Sampling Unit

who is to be surveyed? who is to be studied in the the survey?

Sampling Site

how many people should be surveyed? how many people should be included in the survey.

Sampling procedure

How should the people in the sample be chosen? the different kinds of samples

Complexity

product characteristic that influences the rate of adoption: Is the innovation difficult to understand or use?

Satisfaction

Performance = Expectation

Delight

Performance > Expectation

Differentiation and Positioning Strategy

choosing this involves: identifying a set of differentiating competitive advantages on which to build a position. Choosing the right competitive advantage. Selecting an overall positioning strategy.

Product Differentiation

the process of distinguishing a product or offering from others, to make it more attractive to a particular target market.

Trial

small scale _________ to improve one's estimate of value.

Channel Differentiation

looks at various ways a firm distributes or sells or offers its products to its customers
Ex. Iams selling premium dog food through vets, breeders, and pet stores.

Behavioral Segmentation

dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product. Ex. Occasional (diff. segs desire diff benefits from products)

Consumer Behavior

Factors influencing this: cultural factors, social factors, personal factors, psychological factors

Continuum of Sophistication

tools used to span the ________________ of _________________ in market research: elaborate conjoint analysis and agent-based modeling programs = simple communication and design

Conjoint Analysis

a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

Agent-Based Modeling

A way of simulating human organizations using multiple intelligent agents, each of which follows a set of simple rules and can adapt to changing conditions

Probability Sampling

type of sampling where members have a known chance

Socially Responsible Targeting

smart targeting helps both companies and consumers. Marketing sometimes generates controversy and concern when targeting arises when an attempt is made to profit at the expense of segments

Concentrated Marketing or Niche

targets one or a couple small segments

Marketing Information Systems

value not only for the marketing/firms value chain but entire value chain system. Consists of people and procedures for accessing info needs, developing the needed info, and helping decision making to use the info to generate and validate actionable customer and market insights

More for Same

potential value proposition. More benefits for the same price. Ex. Lexus

Methods of Contact

mail surveys, telephone surveys, personal interviews (individual interviewing, focus groups interviewing), online marketing research (internet surveys, online panels experiments, online focus groups) Ex. companies using your cookies on your computer to market to you

Marketing Mix

The ____________ _________ efforts must deliver the positioning strategy

Internal Databases

one source to get marketing info.
They are: electronic collections of consumer and market info obtained from data sources within the firm's network. (e.g. website usage by customers)

Example of Positioning Statement

"To busy mobile professionals who need to always be in the loop, Blackberry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go."

International Marketing

this research is growing but presents unique challenges

Market Targeting

involves: evaluating market segments, selecting target market segments, being socially responsible

Gatekeeper

One of the six roles of the "buying center": people with power to prevent sellers and info from reaching members of the "buying center"
Most commonly known as secretary or receptionist

Questionnaire Decisions

Research instrument: What question to ask for? Form of each question? (Close-ended vs. open-ended wording)
Wording? double-barrel, framing ("ground beef" or "asian disease")
Ordering?

Income

identifies and targets the affluent for luxury goods. people with low annual _________ can be lucrative marketers. troubled economy makes marketing to all _______ groups a challenge.

Evaluation

considering whether trying product makes sense

Experimental Research

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. Explaining cause-and-effect relationships. (Causal)

Ambidextrous Organizations

learning organization. firms that both exploit their current competencies (through efficiently improvement) while simultaneously exploring new competencies (based upon firm strengths and customer needs)

Competencies

The knowledge, skills, abilities, and other talents that employees possess.

Differentiated Marketing or Segmented

target several segments and make separate offers to each other

People Differentiation

Human resource based advantage. Hiring and training better people than the competitor can become an immeasurable competitive advantage for a company.

Image Differentiation

work to establish images that differientiate from competitors. By giving a product personality, can be done through a story, symbol or other identifying means.
ex. Keebler elves

Divisibility

a product characteristic that influences the rate of adoption: Can the innovation be tried on a limited basis? (i.e. degree of commitment and applicability affects rate)

Product's Position

the way the product is defined by consumers on important attributes - the place the product occupies in consumers' mind relative to competing products. Perceptual positioning maps can help define a brand's position relative to competitors.

Perceptual positioning Maps

can help define a brand's position relative to competitors

Customer Insight

the origin of the differential advantage

Differential Advantage

a company's competitive edge such as lower price, superior quality or unique product features

Causal Research

testing hypothesis about cause-and-effect relationships

Same for Less

Potential Value proposition. Same benefits for a lower price. Ex. Walmart

Status

esteem given to role by society

Demographic Market Segmentation

age, gender, family size, family life cycle, income, occupation, education, race, religion, generation, nationality. The most popular bases for segmenting customer groups, needs, wants, and usage often vary. Easier to measure than most other types of variables

Geographic Segmentation

nations, regions of country, states, countries, cities, neighborhoods are examples of this...

Micromarketing

Two types: local marketing, individual marketing.
Tailoring products and marketing programs to suit the tastes of specific individuals and location.

Data Mining

what the company uses to sift through the mounds and mounds of data in the data warehouse and dig out interesting findings about customers.
Ex. Kroger uses this technique to guide strategies for tailored promotions, pricing, placement, and even stocking variations from store to store.

Data Warehouses

a company wide electronic database of finely detailed customer information that needs to be sifted through for gems. The purpose for it is not to just gather info, but to pull it together into a central, accessible location.

Multiple Segmentation Bases

The use of these provide: ability to identify smaller, better-defined target groups. Start with single base and expand to other bases.

Brand's Value Proposition

overall or full positioning of the brand is called....

Approvers

one of the six roles of the "buying center": people who must authorize the proposed actions of the deciders and/or buyers

Occupation

influences the purchase of clothing and other goods

Buyer's Black Market

Part of the model of consumers behavior...
It is very difficult to see inside the consumer's head and figure out the whys of buying behavior. Marketers spend a lot of time and dollars trying to figure out what makes customers tick. This includes the buyer's characteristics, and buyer's decision process.

Marketers

Central question for ____________ = "How do consumers respond to various marketing efforts the company might use?"

Consumer Buying Behavior

refers to the buyers behavior of individuals and households who buy goods and services for personal use. These people make up the consumer market.

Balancing Act

the info users would like vs. what they really need and what is feasible to offer. Bounded by: avaliability, cost, managers, not knowing what to ask for, 2 much info = just as bad as 2 little

Awareness

one becomes aware of existence but lacks info about

Ethnographic Research

observational research that includes trained observers that watch and interact with consumers in their natural habitat.
"Research with the purpose of articulating a socio-cultural system embedded in human behavior." Yields richer understanding of consumers but isn't really "planned" and instead "evolves" based upon themes.

Age and Life-Cycle Style

Personal factors. people change the goods they buy over their lifetimes.

Personality

refers to the unique psychological characteristics that distinguish a person or a group. Generally defined in terms of traits.

Innovators

"adapter" categories venturesome and don't mind the risk. 2.5%

Role

expected activities

Undifferentiated Mass Marketing

this target strategy includes and ignores segmentation opportunities. This mass marketing strategy focuses on what is common in the needs of consumers rather than on what is different. the company designs a product that will appeal to the largest number of buyers.

Communicability

a product characteristic that influences the rate of adoption. Can results be easily observed or described to others?

Self-Concept Theory

suggests that peoples possessions contribute to and reflect their identities

Individual Marketing

tailoring products and marketing programs to the needs and preferences of individual customers

Gender

neglected __________ segments can offer new opportunities
Ex. Harley Davidson and Women

Family

strongly influences buying behavior. gender stereotypes for certain types of purchases are relaxing in the US. Children are very influential and have substantial disposal income of their own.

PRIZM NE

multivariable segmentation systems developed by Claritas, Inc. Stands for: Potential Rating Index for Markets.
Based on US census data.
Classifies US households in 66 clusters or segments within 14 different social groups

Claritas, Inc

who created PRIZM NE

66 clusters

US households are classified into ___________ by the PRIZM NE

14

how many social groups does the PRIZM NE classify households in?

Attitude

a persons' consistently favorable or unfavorable evaluations, feelings, and tendencies towards an object or idea

Need Recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem or need

Need Recognition and Info Search

can be triggered by internal or external stimuli
several sources of info may be used during info search: personal, commercial, public, experimental

Business Buying Process

Steps of this include:
1. Problem recognition
2. General need description
3. product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order-routine specification
8. Performance review

Purchase Decision

2 factors may interfere with realization of this:
1. Attitude of others
2. unexpected situational factors

Customer Satisfaction

function of consumer expectations and perceived product performance

Learning

Behaviors with satisfying results tend to be repeated. Defined as changes in an individual's behavior arising from experience. Occurs due to an interplay of drives, stimuli, cues, responses, and reinforcement

Belief

a descriptive thought that holds about something

Disappointment

Performance < Expectations

Match

Brands also have personalities, thus requiring a perceived ____________ to be present

Laggards

one of the general "adopter" categories: traditional bound; suspicious of change and adopt once somewhat a tradition itself. 16%

Customer Insight teams

the new name for market research and info functions and replacing marketing research depts. The name change alters the focus from info to customer needs.

Cognitive Dissonance

almost all major purchases result in this, whether it was the right decision due to the inherent compromise in all buying decisions.

Positioning Statement Format

"To (target segment and need) our (brand) is (a concept) that (point of difference)."

Services Differentiation

two companies can offer a similar physical product, but the company that offers additional services can charge a premium for the product.
ex. Mary Kay cosmetics
ex. Dominos and their 30 minutes or less

Social Factors

groups and social networks: memberships, reference, and aspirational groups
Marketers attempt to reach opinion leaders with in groups. Important to target market.
Opinion leaders are recruited as brand ambassadors or buzz marketers. Online social networks allow marketers to interact with consumers.

Advantage of Secondary Data

data that is available quickly and at lower costs. Can lead to info that an individual firm could not gather itself.

Segmentation

the process of dividing a market into distinct groups of buyers who have diff. needs, characteristics, or behaviors and who might require separate products or marketing programs.

Marketing Research Process

-Define the problem and research objectives
-Develop research plan for collecting info
-Implement the research plan
-Interpret and report the findings

Customer-Driven Market Survey

designing one of these involves: Segmentation, targeting, differentiation, and positioning

Buyers

one of the six roles of the buying center: people with the formal authority for selecting the supplier and arranging the terms of the purchase. Can have overlap with decider if only one supplier is allowed- thus becoming only the negotiator unless both performed by one individual.

Primary Data Collection Plan

in order to design this you must make decisions related to the: research approach, contact methods, sampling plan, research instruments

Market Segments

To be useful these must be: measurable, accessible, substantial, differentiable, actionable

Sample

segment of the population selected to represent the population as a whole

Observational Research

the gathering of primary data by observing relevant people, actions, and situations. Can obtain info people are unwilling or unable to provide. Can not be used to observe feelings, attitudes, and motives and long-term or infrequent behavior.

Observational Research

this research can obtain info people are unwilling or unable to provide

Observational Research

this research cannot be used to observe feelings, attitudes, and motives and long-term or infrequent behavior

Age and Life-Cycle Segmentation

dividing a market into different age and life-cycle groups. using different products or different marketing approaches

More for More

Potential Value Proposition. More benefits for higher prices. Ex. Neiman Marcus

Business Buyer Behavior

the buying behavior of the organizations that buy goods and services for use of the production of other products and services for resell or rent to others for a profit. The business market is significantly larger than the consumer market in terms of both dollars and items sold.

Business to Business Market

Market structure and demand:
-For fewer buyers than b2c
-yet larger in purchase size
-business demand is derived from consumer demand
-thus they have more fluctuating demand due to anticipating consumers than having to react
-inefficiently due to "peaks and valleys"
they must do their best to understand business markets and business buyer behavior. Then, like businesses that sell to final buyers, they must build profitable relationships with business customers by creating superior customer value.

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