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65 terms

Marketing exam 2

STUDY
PLAY
marketing research
process of defining a marketing problem and oppurtunity, systematically collecting and analyzing info, and recommending actions.
explaratory research
provides ideas about a vague problem
descriptive research
finding the frequency that something occurs or the extent of a relationship between two factors
causal research
tries to determine the extent to which the change in one factor changes another one
primary research
facts and figures newly collected for the project; observational, questionnaire, & (other: social networks, panels and experiments, info technology and data mining)
secondary research
facts and figures that have already been recorded before the project at hand; internal and external
open-ended questions
allows respondents to express opinions, ideas, or behaviors in their own words without choosing alternatives that have been predetermined
semantic differential scale
five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings
dichotomous question
simplest form of a fixed alternative question that allows only a "yes" or "no" response
closed-end (fixed alternative questions)
requires resopndents to select one or more response options from a set of predetermined choices
ways to segment the market
*behavioral
*psychographic
*geographic
*demographic
market segmentation
aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action
criteria used to select target segments
market size
expected growth
competitive position
cost of reaching the segment
compatibility with the organization's objectives and resources
perceptual map
way to display or graph in two dimesions the location of products or brands in the minds of comsumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand.
product positioning
the place a product occupies in comsumer's minds on important attributes relative to competitive products
four types of consumer products
convenience
shopping
specialty
unsought
convenience products
items that the consumer purchases frequently, conveniently, and with a minimum shopping effort
shopping products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
specialty products
items that the consumer makes a special effort to search out and buy
unsought products
items that the consumer does not know about or knows about but does not initially want
derived demand
sales of business products frequently result from the sale of consumer products
U.S. Federal Trade Commission definition of new
use with a product upto six months after it enters regular distribution
Marketing reasons for New-Product failure
(1) Insignificant point of difference
(2) Incomplete market and product protocol before product development starts
(3) Not satisfying customer needs on critical factors
(4)Bad timing
(5) Too little market attractiveness
(6) Poor products quality
(7) Poor execution of the marketing mix: brand name, package, price, promotion, distribution
(8) No economical access to buyers
Organizational Problems in New-Product failure
(1) Not really listening to the "voice of the consumer"
(2) Skipping stages in the new-product process
(3) Pushing a poorly conceived product into the market to generate quick revenue
(4) Encountering "groupthink" in task force and committe meeting
(5) Not learning critical takeaway lessons from past failures
product life cycle
(1) introduction stage
(2)growth
(3)maturity
(4)decline
fashion products
style of the times, are introduced then decline and then return once again ex's women's sheer hosiery( out of style now but may return)
fad products
experience rapid sales on introduction and then an equally rapid decline; short life cycles. Ex's car tattoos, vinyl dresses
product adopters
(1)innovators
(2) early adopters
(3)early majority
(4) late majority
(5)laggards
branding
an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors
trademark
a firm has legally registered its brand name or trade name s the firm has its exclusive use, thereby preventing others from using it
brand equity
the added value a brand name gives to a product beyond the functional benefits provided
Pricing Objectives
Profit
sales
market share
unit volume
survival
social responsibilty
demand curve
graph relating to the quantity sold and price
demand factors
price
consumer tastes
price and availability of similar products
consumer income
elasticity of demand
the percentage change in quantity demanded relative to a percentage change in price
break even analysis
technique that analyzes the relationship between total revenue and total cost to determine profitabilty at various levels of output
skimming
setting the highest initial price that customers really desiring the product are willing to pay
penetration
setting a low initial price on a new product to appeal immediately to the mass market
prestige pricing
setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it
bundling
the marketing of two or more products in a single package price
discounts
quantity
seasonal
trade
cash
middleman
intermediary between manufacturer and end-user markets
agent(broker)
intermediary with legal authority to act on behalf of the manufacturer
wholesaler
intermediary who sells to other intermediaries( usually to retailers); term usually applies to consumer markets
retailer
intermediary who sells to consumers
distributor
imprecise, intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on
dealer
more imprecise term that can mean the same as distributor, retailer, wholesaler, and so on...
dual distribution
a firm reaches different buyers by employing two or more different types of channels for the same basic product (Ex: Apple: can buy directly from Apple or go to Best Buy)
strategic channel alliances
one firm's marketing channel is used to sell another firm's products
limited-service wholesalers
rack jobbers
cash and carry wholesalers
dop shippers/desk jobbers
truck jobbers
rack jobbers
furnish the racks or shelves of retail stores, retain title to products displayed and bill retailers only for the merchandise sold
cash and carry wholesalers
take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. Do not make delieveries Ex Sam's & Costco
drop shippers/ desk jobbers
own merchandise they sell but dont physically handle, stock, or deliever it. They solicit orders. Ex's coal, lumber, and chemicals
truck jobbers
small wholeslers that have a small wharehouse from which they stock their trucks for distribution to retailers
vertical marketing system
professionally managed and centrally coordianated marketing channels designed to achieve channel economies and maximum marketing impact
forward intergration
Manufacturer first, then buys a retail outlet
backward intergration
retailer first, then buy a manufacturer
target market coverage
intensive distribution
exclusive distribution
selective distribution
intensive distribution
a firm tries to place its product and services in as many outlets as possible Ex Coca-cola
exclusive distribution
only one retailer in a specified geographical area carries the firm's products. Ex specialty products, Gucci, yachts
selective distribution
a firm selects a few retailers in a specific geographical area to carry its products. Ex Dell
Sherman Act
horizontal price fixing
predatory pricing
Federal Trade Commission Act
deceptive pricing
Predatory Pricing
geographical pricing
Robinson-Patman Act
geographical pricing
price discrimination
consumer goods pricing act
vertical price fixing