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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
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)
the elimination of intermediaries such as wholesalers or distributers from a marketing channel
A firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
The condition that exists when one party has confidence in an exchange partner's reliability and integrity
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
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
Major Equipment (Installations)
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
either finished items ready for assembly or products that need very little processing before becoming part of some other product
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
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 identifiable segments or groups. Enable the marketer to tailor marketing mixed to meet the needs of one of more specific segments
segmenting markets by region of a country or the world, market size, market density, or climate
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
market segmentation on the basis of personality, motives, lifestyles, and geodemographics
The process of grouping customers into market segments according to the benefits they seek from the product
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, both 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
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
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 of 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 with 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, bands, or groups of products in customers' minds
Decision Support system (DSS)
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
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 data will be gathered, and how the data will be analyzed
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
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
a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services
questions that are followed by a list of possible answers to be selected by the respondent
a closed-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
Behavioral Targeting (BT)
a form of observation marketing research that uses data mining coupled 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 sample in which every element in the population has a known statistical likelihood of being selected
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
a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, 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 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
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
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
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.
Identify the four major
categories of business market customers
Producer, resellers, governments, institutions
business buying behavior
Buying center, evalutive criteria, buying situations, business ethics, and customer device
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 is positioned as associated with a particular category of products.
Positioning against competitors is a part of any positioning strategy.
Example: Avis vs hertz
Positioning using emotion focuses on how the product makes customers feel.
Example: Marlboro cigarettes
identifiability and measurability
must be identifiable and their size measurable; second basic criterion of a segmentation scheme
unless segment responds to a marketing mix differently, no separate treatment is needed.
Demographic characteristics, decision style, tolerance for risk, confidence level, and job responsibilities
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.
_____ are characteristics of individuals, groups, or organizations that marketers used to divide a total market into segments.
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?
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.
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
____ 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
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?
According to the ________ concept, customers who have not bought a certain product in quite some time are unlikely to do so in the future.
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?
In many cases, an increase in the price of a business product will cause consumer demand to?
An accounting firm purchases an entirely new telephone system to replace its current outdated system. This is an example of which buying situation?
A food products company groups its customers according to where they live. This is an example of ________ segmentation.
Toyota promotes its Sienna minivan as a safe and practical vehicle for families. This is an example of ________ segmentation.
Family life cycle
A company that uses the attribute base for positioning will emphasize
the products future or benefits
Database marketing creates a(n) ________ that contains information on customer profiles and purchase patterns.
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
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
The ________ method of research allows firms to monitor consumer responses to marketing campaigns in a continuous fashion.
________ is an important source of information on how to overcome a competitor's advantage.
Business purchasing roles are
Initiator, influencers/evaluators/ gatekeepers, decider, purchaser, and users
group member who regulate the flow of information. Frequently, the purchasing agent view the gatekeeping role as a source of his or her power.
the person who has the formal or informal power to choose or approve the selection of the supplier or brand
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.
The Smart car is aimed at young, urbanites who want efficient and convenient transportation. This is an example of ________ strategy.
In its advertisements, Verizon emphasizes how its mobile network is faster and offers more nationwide coverage than its competitors. This is an example of:
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