MARK 3001: Exam 2
169 Cards in this Set
| Front | Back |
|---|---|
|
Marketing Information
|
everyday information about developments in the marketing environment that managers must use to prepare and adjust marketing plans
|
|
Decision Support System
|
interactive, flexible, computerized information system that enables managers to obtain and manipulate info as they make decisions;
CHARACTERISTICS:
interactive - see immediate results under direct control
flexible - can manipulate data in various ways
discovery oriented - managers as…
|
|
Data-base marketing
|
creation of large computerized file of consumers and potential customer profiles and purchase patterns
|
|
Marketing Research
|
process of planning, collecting, and analyzing data relevant to a marketing decision; function that links the consumer, customer and public to the marketer through information;
THREE ROLES:
descriptive - gathering/presenting factual statements
diagnostic - explain data
predictive - ad…
|
|
Steps in Marketing Research
|
1. Define Problem
2. Plan research design/gather data
3. specific sampling procedure
4. collect data
5. analyze data
6. prepare/present report
7. follow up
|
|
Management Decision Problem
|
broad-based problem that requires marketing research in order for managers to take proper actions
|
|
Marketing Research Problem
|
determining what info is needed and how that info can be obtained effectively/efficiently
|
|
Marketing Research Objective
|
to provide insightful decision-making info
|
|
Secondary Data
|
data previously collected for another purpose; using it saves time and money
|
|
Sources of Secondary data
|
internal corporate info
government info
trade and industry associations
business periodicals
news media
internet sources
|
|
Advantages of Secondary Data
|
saves time, money
aids in determining direction for primary data collection
serves as a basis of comparison for other data
|
|
Marketing Research aggregator
|
company that acquire, catalogs, reformats, segments and resells reports already published by marketing firms
|
|
Primary data
|
information collected for the first time, unique to particular problem at hand
|
|
Advantages of Primary Data
|
answers specific research question
data are current
source of data is known
|
|
Disadvantages of Primary data
|
expensive
time consuming
consumer reluctance to participate, so might be biased
offset by advantages
|
|
Research Design
|
specifies which research questions must be answered, how and when the data will be gathered, and how data will be analyzed
|
|
survey research
|
most popular technique for gathering primary data, researcher asks people questions to obtain facts, opinions and attitudes
|
|
In-Home interviews
|
high quality, but expensive; disappearing
|
|
Focus groups
|
7-10 people with certain desired characteristics;
online focus groups becoming popular: better participation rates, cost-effective, broad geographic scope, accessibility, honesty
|
|
Mall-Intercept interviews
|
conducted in small rented space, hard to get representative sample of population
|
|
Computer-assisted personal interviewing
|
interviewer reads questions from a computer screen and enters the data directly into computer; interviewee does not enter answers
|
|
computer-assisted self-interviewing
|
respondent inputs data into computer themself
|
|
executive interviews
|
interviewing businesspeople at their offices concerning industrial products/services; expensive; often cancellations
|
|
telephone interviews
|
cost less than personal interviews, but increasing due to refusal to participate; CLT facitilty- (central-location telephone) specially designed phone room
|
|
mail surveys
|
low cost, centralized control, anonymity, but low response rates and no elaboration; mail panels popular: consists of a sample of households; receive gifts in exchange for participation
|
|
Internet surveys
|
Advantages
rapid development, real time reporting
reduced costs
personalized questions and data
improved respondent participation
contact with the hard-to-reach
disadvantage: don't know who is participating
|
|
Interviewer Bias
|
presence of interviewer may change responses; saying what think they should say
|
|
Consumer unwillingness to participate
|
leads to a bias; increase participation by:
providing incentive
make it easy to respond
be honest in time estimate
relate survey to something important
|
|
Likert Scale
|
question design: strongly agree to strongly disagree
|
|
semantic differential
|
excellent to awful
|
|
observational research
|
watching and recording can be done by people or machines
|
|
mystery shoppers
|
researchers posing as customers who gather observational data about store including employee/customer interactions
|
|
behavioral targeting
|
combines consumer online activity w/ psychographic / demographic profiles compiled in data base
|
|
ethnographic research
|
study of human behavior in natural context, involves observation of behavior and physical setting
|
|
scanner based research
|
using ID cards and check out scanners to track purchases, often linked to other research/ promotions seen
|
|
Behaviorscan
|
tracks purchases of 3000 households through store scanners in each research market; invented by specific marketing firm
|
|
Infoscan
|
same marketing firm; scanner based tracking service for consumer packaged goods industry
|
|
Role of Blogs
|
data mining from blogs, tracking comments from influential bloggers
|
|
experiments
|
changing a variable and analyzing results, usually change one of the 4P's and look at either sales or awareness, field or lab
|
|
Web community/Text Msg based
|
engage customers in comfortable space, allowing clients to interact on deeper level, achieve customer derived innovations, establish brand advocates with emotional investment, offer real time results
|
|
consumer generated media
|
media consumers generate themselves and share among themselves
|
|
Sample
|
subset of larger population
|
|
Universe
|
population from which sample will be drawn
|
|
probability sample
|
sample in which every element in the population has a known statistical likelihood of being selected
|
|
Random sample
|
every member has equal chance of being selected
|
|
stratified random
|
population is first divided into exclusive groups, then each group is randomly sampled
|
|
systematic random
|
based upon starting point, every Nth person selected
|
|
nonprobability sample
|
any sample in which little or no attempt is made to get representative section of population, probability of selection is not known; usually a convenience sample
|
|
unrestricted internet sample
|
anyone with computer/modem can fill out questionnaire
|
|
screened internet sample
|
sample with quotas based on desired sample characteristics
|
|
recruited internet sample
|
respondents are pre-recruited and must qualify to participate
|
|
measurement error
|
when there is a difference between the info desired by the researcher and info provided by the measurement process
|
|
sampling error
|
when sample doesn't represent target population
|
|
frame error
|
arises if sample drawn from population differs from target population
|
|
random error
|
when selected sample is imperfect representation of overall population
|
|
field service firm
|
firm that specializes in interviewing respondents from a subcontracted basis
|
|
cross-tabulation
|
a method of analyzing data that lets the analyst look at the responses of one question in relation to the responses to one or more other questions
|
|
Report
|
concise, understandable statement of research design
explanation for research design
summary of findings
recommendations
|
|
follow up
|
find out why/why not recommendations implemented
|
|
Competitive Intelligence
|
an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors;
intelligence is analyzed information
becomes decision-making intelligence when it has implications for the org
|
|
product
|
everything, both favorable and unfavorable, that a person receives in an exchange, starting point of marketing mix
good
service
idea
|
|
business product
|
used to manufacture other goods or services, to facilitate an org's operations or to resell to other consumers
|
|
Consumer Product
|
product bought to satisfy an individual's personal wants
|
|
Convenience Product
|
a relatively inexpensive item that merits little shopping effort
|
|
shopping product
|
requires comparison shopping because it is usually more expensive and found in fewer stores
|
|
Homogeneous shopping products
|
similar products, customers look for lowest price; ex: refrigerator
|
|
Heterogeneous shopping product
|
essentially different customers have trouble comparing all the differences; ex: furniture, college
|
|
specialty product
|
particular item for which consumers search extensively and are reluctant to accept substitutes
|
|
unsought product
|
product unknown to potential buyer or a known product that buyer does not seek like life insurance
|
|
Number of products firm sells
|
sell a variety: appeal to different markets; meet different price points
Total number is a function of product line depth
|
|
Product Mix
|
all products that an organization sells, each specific version of a product is referred to as a product item
|
|
Product Mix Width
|
number of product lines an organization offers
diversifies risk to generate sales and boost profits
capitalizes on established reputations
|
|
Product Line
|
a group of closely related product items;
BENEFITS
advertising economies
packaging uniformity
standardized components
efficient sales and distribution
equivalent quality
|
|
Product Line Depth
|
number of product items in a product line
attracts buyers with different preferences
increases sales/profits by further market segmentation
capitalizes on economies of scale
evens out seasonal sales patterns
|
|
product modification
|
changing one or more of a products characteristics
|
|
quality modification
|
change in product dependability or durability
|
|
functional modification
|
change in versatility, effectiveness, convenience of safety
|
|
style modification
|
aesthetic product change rather than a quality or functional change
|
|
planned obsolescence
|
to describe practice of modifying products so that those that have already been sold become obsolete before they need to be replaced
|
|
product repositioning
|
involves changing consumer perceptions of a brand
|
|
product line extension
|
occurs when company management decides to add products to an existing product line in order to compete more broadly in the industry
|
|
Overextended Product Line
|
products in line don't contribute to profits because of low sales
cannibalization
resources are disproportionately allocated to slow products
some products become obsolete because of new entries
|
|
Product Line contraction
|
strategic solution to over extension;
resources become concentrated on most important products
resources no longer wasted on poorly performing products
new items have greater chance of success
|
|
brand
|
name, term, symbol, and/or design that identifies seller's prodcuts and differentiates them from competitor's products
|
|
brand name
|
part of a brand that can be spoken including letters/words/numbers
GOOD ONES
easy to say and remember
suggests product use
can be easily translated
not offensive
unique/distinguishable from others
invokes correct emotion/imagery for product category
fits company image
|
|
Benefits of Branding
|
product identification
repeat sales
facilitate new-product sales
|
|
Brand Equity
|
refers to financial value of company and brand names
|
|
global brand
|
brand where at least 20% of the product is sold outside its home country
|
|
brand loyalty
|
consistent preference for one brand over all others
|
|
brand Love (Lovemark)
|
loyalty beyond reason, passionate consumers
|
|
generic brand
|
no-frills, no brand name, low cost product that is simply identified by product category
|
|
Manufacturer's Brand
|
brand name of a manufacturer -- Oreo's, Kodak
strong consumer loyalties from heavy advertising
well known brands attract new customers and enance dealer /retailer's prestige
rapid delivery from manufacturers means less inventory
customer may remain loyal to dealer if find bad product
|
|
Private Brand
|
brand name owned by a wholesaler or retailer
higher profits on own brand, less pressure for markdowns
can decide to drop brand at any time
ties wholesaler to retailer
more control than over manufacturer brands
|
|
Captive brand
|
brand manufactured by a third party of an exclusive retailer, without evidence of retailer's affiliation
|
|
Individual Brand
|
using different brand names for different products
|
|
family brand
|
marketing several products under same brand name
|
|
Co-Branding
|
two or more products on one brand
ingredient: identifies brand making up larger product; Splenda in Coke
cooperative: equal treatment, borrow from each other's brand equity
Complementary: products are advertised or marketed together to suggest usage
|
|
trademark
|
exclusive right to use a brand or part of a brand;
can also trademark: sounds, shapes, colors, designs, catch-phrases, abbreviations
comes from use rather than registration
must continuously protect it
also applies to online world; like domain names
CANNOT trademark generic product n…
|
|
Functions of Packaging
|
1. Contain and Protect
2. Promote - differentiates from competitors and associate with product families, influence perceptions of quality
3. facilitates storage, use and convenience - easy to ship/store/stock on shelves
4. facilitate recycling - eco-consiousness
5. provide information…
|
|
Persuasive Labeling
|
focuses on promotional theme or logo, consumer info is secondary
|
|
informational labeling
|
designed to help consumers make proper product selections and lower their cognitive and lower their cognitive dissonance after purchase
|
|
greenwashing
|
when product attempts to give impression of environmental friendliness whether or not it really is
|
|
Global issues in branding/packaging
|
one brand name everywhere: name doesn't always translate well/ mean the same thing
adaptations and modifications: like fast food chains changing offerings to suit tastes and resource availability
|
|
Warranty
|
confirmation of the quality of a performance of a good or service
|
|
Express Warranty
|
a written guarantee
|
|
Implied Warranty
|
unwritten guarantee that the good or service is fit for the purpose for which it was sold
|
|
Categories of New Products
|
new to the world - create entirely new market
new product lines - allow firm to enter established market
additions to existing product lines - supplement established part of the firm
improvements or revisions of existing products
repositioned products - targeted at new markets or segm…
|
|
New Product Development Process
|
1. New Product Strategy
2. Idea Generation
3. Idea Screening
4. Business Analysis
5. Development
6. Test Marketing
7. Commercialization
8. New Product
|
|
new product strategy
|
a goal or a strategy on how new product will fit into overall corporate success
|
|
Idea Generation
|
customers - marketing concept suggests customers wants/needs should be springboard for new products
employes - find new ideas through analyzing marketplace
distributors - more aware of customer needs because they are closer to end users
vendors
competitors
Research and Development t…
|
|
Idea Screening
|
first filter in the product development process, eliminates awful ideas
concept testing - evaluates new product ideas before prototype
|
|
Business Analysis
|
1. Demand
2. Cost
3. Sales
4. Profitability
|
|
Development
|
creation of prototype
outline marketing strategy
packing, branding, labeling
promotion, price, distribution strategy
manufacturing feasibility
final government approvals if necessary
simultaneous product development: team oriented approach to new product development to shorten proce…
|
|
Commercialization
|
1. production
2. Inventory buildup
3. distribution shipments
4. sales training
5. trade announcements
6. customer advertising
|
|
Successful New Products
|
product matches up with market needs
different from substitute products
benefits large number of people
|
|
Failing new products
|
no discernible benefits
poor match between features and customer desires
overestimation of market size
incorrect positioning
price
|
|
Innovation
|
product perceived as new by a potential adopter
|
|
diffusion
|
process by which adoption of new product spreads
|
|
Five Categories of adopters
|
1. innovators - first 2.5%; eager to try new ideas, almost obsessive
2. early adopters - next 13.5%; rely on group norms/values; opinion leaders because more attuned to local community
3. early majority - next 34%, weighs pros and cons before adopting new product; will evaluate more bra…
|
|
Test Marketing
|
limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation; high cost, but almost essential
|
|
stimulated Market testing
|
ad and promo materials are shown to target market; more like a focus group
|
|
Characteristics affect Adoption Rate
|
Complexity - degree of difficulty involved in understanding and using a product; more complex --> slower diffusion
compatibility - degree to which new product is consistent with existing values/ product knowledge, past experience, current needs
relative advantage - degree to which produ…
|
|
product life cycle
|
concept that provides a way to trace stages of a product's acceptance, from its introduction to its decline; can be used to analyze brand, product form, or product category
|
|
introductory stage
|
high failure rates
little competition
frequent product modification
limited distribution
high marketing and production costs
negative profits with slow sales increases
promotion focuses on awareness and information
communication challenge: stimulate primary demand
|
|
Growth stage
|
increasing rate of sales
entrance of competitors
market consolidation
initial healthy profits
aggressive advertising of the differences between brands
wider distribution
|
|
Maturity Stage
|
Sales increase at decreasing rate
saturated markets
annual models appear
lengthened product lines
service and repair assume important roles
heavy promotions to consumers and dealers
niche markets emerge
|
|
Decline Stage
|
long run drop in sales
large inventories of unsold items
organized abandonment
|
|
How to extend Life Cycle
|
increase frequency of use by the same consumers
increase number of uses by expanding into different markets with same product
find new uses
|
|
Supply Chain Management
|
seamless management of all activities through which raw materials are transformed into products and made available to final consumers
|
|
Marketing Channel
|
set of interdependent organizations that eases the transfer ownership as products move from producer to business user or consumer
|
|
channel members
|
aka: intermediaries, resellers, middlemen; all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final cons…
|
|
retailer
|
channel intermediary; sells mainly to consumers
|
|
merchant wholesaler
|
institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in own warehouses and later ships them
|
|
to take title
|
own merchandise and control terms of sale
|
|
agent/broker
|
wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
|
|
discrepancy of quantity
|
difference between efficient production volumes and volume desired by end customer; cheaper to mass produce but can't always sell that much
|
|
discrepancy of assortment
|
difference between mix of items produced by one manufacturer and mix of items desired by customer
|
|
temporal discrepancy
|
difference between time when item is produced and time when consumer wants to buy it
|
|
spatial discrepancy
|
difference between place where item is produce and place where consumer wants to buy it
|
|
Key functions channel members perform
|
transactional - contacting and promoting, negotiating, risk taking
logistical - physically distributing, storing, sorting
facilitating - researching, financing
|
|
providing contact efficiency
|
marketing channels reduce number of stores customers must shop in to complete their purchases
simplify distribution by cutting number of transactions required to get products from manufacturers to consumers
|
|
logistics
|
efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through and out of channel member companies
|
|
direct channel
|
a distribution channel in which producers sell directly to consumers
|
|
agent/broker channel
|
bring manufacturers and wholesalers together; then wholesalers sell to retailers --> consumer
|
|
retailer channel
|
producer --> retailer --> consumer
|
|
wholesaler channel
|
producer --> wholesaler --> retailer --> consumer
|
|
how to choose marketing channel
|
Shorter, more direct channel
complex, expensive, customized items
business to business products
Longer, more indirect channels
low cost, standardized items
most consumer products
|
|
private exchange
|
a company creates a network that connects its business with private supplier; more secure transaction
|
|
Multiple channels
|
dual-distribtuion: when a producer selects two or more channels to distribut the same product to target markets
|
|
nontraditional channels
|
help differentiate a firm's product from the competition, may limit brand coverage but serve to niche markets
|
|
Strategic Channel Alliances
|
cooperative agreement between business firms to use the other's already established distribition channel
|
|
Intensive Distribution
|
aimed at maximum market coverage, tries to have product available at every possible outlet; usually convenience goods; many intermediaries
|
|
selective distribution
|
achieved by screening dealers and retailers to eliminate all but few in a single area, superior product image in order to change minimum price; usually shopping goods, some specialty; several intermediaries
|
|
exclusive distribution
|
one or few dealers within a given area; one intermediary; specialy goods
|
|
supply chain
|
the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
|
|
Benefits of Supply Chain Management
|
lower inventory
lower cost of transportation
lower warehousing cost
lower packaging costs
greater supply chain flexibility
improved customer service
higher revenues
|
|
Objective of Logistics
|
to give customer needed level of customer service at lowest cost
|
|
logistics information system
|
link connecting all of the logistics components of the supply chain
|
|
supply chain team
|
an entire group of individuals who orchestrate the movement of goods, services and information from the source to the consumer
|
|
mass customization (build-to-order)
|
production method where products are not made until order is placed by the customer and made according to customer's specifications
|
|
Just in Time Production (JIT)
|
process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the production line
lower costs, shorter lead times
|
|
chasing
|
buyer orders small amount of product to test sales in store and if successful places larger order with quick delivery
|
|
order processing system
|
system for easily receiving order and quickly filling them
|
|
electronic data interchange EDI
|
computer to computer exchange of ordering information; reduces inventory levels, improves cash flow, streamline operations, increase speed and accuracy of information transmission, closer relationship between buyers/sellers
|
|
Inventory Control
|
method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's/customer's demand while keeping costs low
|
|
materials requirement planning
|
manages replenishment of raw materials, supplies, and components from supplier to the manufacturer
|
|
Distribution resource planning
|
manages replenishment of goods from the manufacturer to the final consumer
|
|
automatic replenishment program
|
a real-time system that triggers shipments only when a good is sold to the end user
|
|
materials-handling system
|
tracking technology moves inventory into, within and out of the warehouse w/ minimal handling
|
MARK 3001: Exam 1