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163 terms

Marketing 7,8,9,16

LAMB/HAIR/McDANIEL
STUDY
PLAY
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
In its market research, a jewelry company selects a sample with no regard to factors such as income, cultural background, or age. It thus produces a ________ sample
random
The ________ method of research allows firms to monitor consumer responses to marketing campaigns in a continuous fashion.
scanner-based research
________ is an important source of information on how to overcome a competitor's advantage.
competitive intelligence
Business purchasing roles are
Initiator, influencers/evaluators/ gatekeepers, decider, purchaser, and users
Initiator
the person who first suggest making a purchase
influencers/evaluators
people who influence the buying decision
Gatekeepers
group member who regulate the flow of information. Frequently, the purchasing agent view the gatekeeping role as a source of his or her power.
deciders
the person who has the formal or informal power to choose or approve the selection of the supplier or brand
user
members of the organization who will actually use the product. users often initiate the buying process and help define product specifications
Steps in segmenting a market
select market or product, choose basis for segmenting the market, select segment descriptors, profile and analyze segments, select target markets, design, implement and maintain appropriate marketing mixes
A computer manufacturer promotes its products with a single campaign aimed at various groups. This is an example of ________ strategy.
undifferentiated targeting
The Smart car is aimed at young, urbanites who want efficient and convenient transportation. This is an example of ________ strategy.
concentrated targeting
In its advertisements, Verizon emphasizes how its mobile network is faster and offers more nationwide coverage than its competitors. This is an example of:
product differentiation
A company implements ________ in order to change the opinions that consumers have about their products.
repositioning