MKTG 310 Exam 2
marketing research
procedures that develop and analyze new information about a market
marketing information system (MIS)
an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions
volume
the quantity of data generated and stored
vareity
the numerous different formats of data
velocity
the speed at which data are generated and can be processed
veracity
the quality of the data
data warehouse
a place where databases are stored so that they are available when needed
decision support system (DSS)
a computer program that makes it easy for a marketing manager to obtain and use information as they make decisions
marketing dashboard
displays up-to-the-minute marketing information in an easy-to-read format (e.g., a car's dashboard that shows the speedometer and fuel gauge)
marketing model
a statement of relationships among marketing variables
personal data
information that can be used by itself or in combination with other information to identify someone
informational privacy
anything that limits others' access to personal data that people consider sensitive or confidential
General Data Protection Regulation (GDPR)
a set of laws on data protection and privacy for all individuals within the European Union
scientific method
a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them
hypotheses
educated guesses about the relationships between things or about what will happen in the future
marketing research process
1. defining the problem
2. analyzing the situation
3. getting problem-specific data
4. interpreting the data
5. solving the problem
situation analysis
an informal study of what information is already available in the problem area
secondary data
information that has been collected or published already
primary data
information specifically collected to solve a current problem
sentiment analysis
an automated process of analyzing and categorizing social media to determine the amount of positive, negative, and neutral online comments a brand receives
consumer panels
a groups of consumers who provide information on a continuing basis
research proposal
a plan that specifies what information will be obtained and how
qualitative research
seeks in-depth, open-ended responses, not yes or no answers
quantitative research
seeks structured responses that can be summarized in numbers--such as percentages, averages, or other statistics
depth interview
a researcher asks detailed, open-ended questions to get people to share their thoughts on a topic, without giving them many directions or guidelines about what to say
customer journey map
the story and graphic diagram of a customer's experience in the buying process from need awareness through the purchase process and post-purchase relationship
focus group interview
involves simultaneously interviewing 6 to 10 people in an informal group setting
quanititative research
seeks structured responses that can be summarized in numbers, such as percentages, averages, or other statistics
response rate
the percentage of people contacted who complete the questionnaire
observation method
researchers try to see or record what the subject does naturally
experimental method
researchers compare the responses of two or more groups that are similar except on the characteristic being tested
statistical packages
easy-to-use computer programs that analyze data
confidence intervals
the range on either side of an estimate that is likely to contain the true value for the whole population
validity
the extent to which data measure what they are intended to measure
Product
the need-satisfying offering of a firm
quality
a product's ability to satisfy a cusomter's needs or requirements
warranty
what the seller promises about its product
individual product
a particular product within a product line
product line
a set of individual products that are closely related
product assortment
the set of all product lines and individual products that a firm sells
product line length
the number of individual products in a product line
service
an intangible offering involving a deed, performance, or effort
augmented reality (AR)
overlays a computer-generated image, sound, text, or video on a user's view of the physical world
branding
the use of a name, term, symbol, or design to identify a product
brand name
a word, eltter, or a group of words or letters
trademark
words, symbols, or marks that are legally registered for use by a single company
service mark
words, symbols, or marks that are legally registered for use by a single company to refer to a service offering
brand familiarity
how well customers recognize and accept a company's brand
brand rejection
potential customer won't buy a brand unless its image is changed or if the customers have no other choice
brand nonrecognition
final consumers don't recognize a brand at all
brand recognition
customers remember the brand
brand preference
target customers usually choose the brand over other brands
brand insistence
customers insist on a firm's branded producted and are willing to search for it
brand evangelism
customers are so enthusiastic about a brand that they actively spread positive word-of-mouth
family brand
the same brand name for several products or individual brands for each product
licensed brand
a well-known brand that sellers pay a fee to use
individual brands
separate brand names for each product
generic products
products that have no brand at all other than identification of their contents and the manufacturer or intermediary
manufacturer brands
brands created by producers
dealer brands/private brands
brands created by intermediaries
battle of the brands
the competition between dealer brands and manufacturer brands
packaging
promoting, protecting, and enhancing the product
Federal Fair Packaging and Labeling Act (1966)
requires that consumer goods be clearly labeled in easy-to-understand terms to give consumers more information
consumer products
products meant for the final consumer
business products
products meant for use in producing other products
convinience products
products a consumer needs but isn't willing to spend much time or effort shopping
staples
products that are bought often, routinely, and without much thought
impulse products
products that are bought quickly, unplanned, because of a strongly felt need
emergency products
products that are purchased immediately when the need is great
shopping products
products that a customer feels are worth the time and effort to compare with competing products
homogeneous shopping products
items the customer sees as basically the same and wants at the lowest price
heterogeneous shopping products
items the customer sees as different and wants to inspect for quality and suitability
specialty products
consumer products that the customer really wants and makes a special effort to find
unsought products
products that potential customers don't yet want or know they can buy, so they don't search for them at all
new unsought products
products offering really new ideas that potential customers don't know about yet
regularly unsought products
products that stay unsought but not unbought forever (life insurance, gravestones, etc)
derived demand
the demand for business products derives from the demand for final consumer products
expense item
a product whose total cost is treated as a business expense in the year it's purchased
capital item
a long-lasting product that can be used and depreciated for many years
installations
important capital items such as buildings, land rights, and major equipment
accessories
short-lived capital items--tools and equipment used in production or office activities
raw materials
unprocessed expense items that are moved to the next production process with little handling (logs, iron ore, wheat)
components
processed expense items that become part of a finished product
supplies
expense items that do not become part of a finished product (maintenance, repair, and operating supplies)
professional services
specialized services that support a firm's operations
product life cycle
describe industry sales and profites for a product idea
1. market introduction
2. market growth
3. market maturity
4. sales decline
market introduction
a stage of the product life cycle when sales are low as a new idea is first introducted to a market
market growth
a stage of the product life cycle when industry sales grow fast but industry profits rise and then start falling
market maturity
a stage of the product life cycle when industry sales level off and competition gets tougher
sales decline
a stage of the product life cycle when new products replace the old
new product
a product that is new in any way for the company concerned
continuous innovation
new products that don't require customers to learn new behaviors
dynamically continuous innovations
new products that require minor changes in customer behavior
discontinuous innovations
new products that require that customers adopting the innovation significantly change their behavior
Federal Trade Commission (FTC)
the federal government agency that polices antimonopoly laws
patent
grants the inventor the ability to exclude others from making, using, offering for sale, or selling the invention
new-product development process
1. idea generation
2. screening
3. idea evaluation
4. development
5. commercialization
Consumer Product Safety Act (1972)
a law that set up the Consumer Product Safety Commission to encourage more awareness of safety in product design and better quality control
product liability
the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products
return on investment (ROI)
the ratio of net profit (after taxes) to the investment used to make the profit, mulitplied by 100
concept testing
getting reactions from customers about how well a new-product idea fits their needs
prototype
an early sample or model built to test a concept
co-creation process
customers react to prototypes and suggest improvements
rapid prototyping
customer input is received and quickly designed into a revision of the product and then fed back to customers for further input
marketing testing
get customer reactions under real market conditions or to test variations in the marketing mix
product/brand managers
manage specific products, often taking over the jobs formerly handled by an advertising manager
total quality management (TQM)
the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's, activities, to better serve customer needs
continuous improvement
a commitment to constantly make things better one step at a time
empowerment
giving employees the authority to correct a problem without first checking with management
channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer
direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling
discrepancy of quantity
the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want
discrepancy of assortment
the difference between the lines a typcial producer makes and the assortment final consumers or users want
regrouping activities
adjust the quantities or assortment of products handled at each level in a channel of distribution
accumulating
collecting products from many small producers
bulk-breaking
dividing larger quantities into smaller quantities as products get closer to the final market
sorting
separating products into grades and qualities desired by different target markets
assorting
putting together a variety of products to give a target market what it wants
traditional channel systems
the various channel members make little or no effort to cooperate with one another
vertical channel conflict
conflict that occurs between firms at different levels in the channel of distribution
horizontal channel conflict
conflict that occurs between firms at the same level in a distribution channel
channel captain
a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts
vertical marketing systems
channel systems in which the whole channel focuses on the same target market at the end of the channel
corporate channel systems
corporate ownerships all along the channel
vertical integration
acquiring firms at different levels of channel activity
administered channel systems
various channel members informally agree to cooperate with one another
contractual channel systems
the channel members agree by contract to cooperate with one another
ideal market exposure
makes a product available widely enough to satisfy target customers' needs but not exceed them
intensive distribution
selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product
selective distribution
selling through only those intermediaries who will give the product special attention
exclusive distribution
selling through only one intermediary in a particular geographic area
multichannel distribution
when a producer uses several competing channels to reach the same target market, using several intermediaries in addition to selling directly
multichannel shoppers
shoppers who use differnt channels as they move through the purchase process
omnichannel
a multichannel selling approach in which a retailer provides a seamless customer shopping experience from a computer, mobile device, or brick-and-mortar store
reverse channels
channels used to retrieve products that customers no longer want
exporting
selling some of what the firm produces to foreign markets
licesning
selling the right to use some process, trademark, patent, or other right for a fee or royalty
management contracting
the seller provides only management and marketing skills while others own the production and distribution facilities
joint venture
a domestic firm enters into a partnership with a foreign firm
direct investment
a parent firm has a division in a foreign market
logistics/physical distribution (PD)
the transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix where both are within individual firms and along a channel of distribution
customer service level
how rapidly and dependably a firm can deliver what the customers want
physical distribution (PD) concept
all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level
total cost approach
evaluating each possible PD system and identifying all of the costs of each alternative
supply chain
the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
electronic data interchange (EDI)
an approach that puts information in a standardized format easily shared between different computer systems
transporting
the marketing function of moving goods
containerization
grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination
storing
the marketing function of holding goods so they are available when they are needed
inventory
the amount of goods being stored
private warehouses
storing facilities owned or leased by companies for their own use
public warehouses
independent storing facilities
distribution center
a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs
retailing
all of the activities involved in the sale of products to final consumers
wholesaling
the activites of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users
corporate chain
a firm that owns and manages more than one store (often many stores)
franchise operation
a franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units
Product Marketing Strategy
Place marketing strategy
Price marketing strategy
Promotion marketing strategy
general stores
early retailers that carried anything they could sell in reasonable volume
single-line/limited-line stores
stores that specialize in certain lines of related products rather than a wide assortment
specialty shop
a type of conventional limited-line store, usually small with a distinct personality
department store
larger stores that are organized into many separate departments and offer many product lines
convenience (food) stores
a convenience-oriented variation of the conventional limited-line food stores
automatic vending
selling and delivering products through vending machines
door-to-door selling
a salesperson going directly to the consumer's home
mass-merchandising concept
retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets
supermarkets
large stores specializing in groceries with self-service and wide assortments
mass-merchandisers
large self-service stores with many departments that emphasize "soft goods" (housewards, clothing, and fabrics) and staples at lower prices to get faster turnover
supercenters (hypermarkets)
very large stores that try to carrry not only food and drug items but all goods and service that the consumer purchases routinely
warehouse clubs
stores with limited assortment, little service, and low prices that usually require a membership and annual fee
stockturn rate (inventory turnover)
the number of times the average inventory is sold in a year
online retailers
stores that sell exclusively or almost exclusively online
social commerce
an entire shopping experience occurring within a social media platform
wheel of retailing theory
new types of retailers enter the market as low-status, low-margin, low price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices
scrambled merchandising
carrying any product lines they think they can sell profitably
standardization & grading
involves sorting products according to size and quality
risk taking
involves bearing the uncertainties that are part of the marketing process
market information
collect, analysis and distribution of all the information needed to plan, carry out, and control marketing activities
manufacturers' sales branches
warehouses that producers set up at separate locations away from their factories
merchant wholesalers
wholesalers that own the products they sell
service wholesalers
merchant wholesalers that provide all the wholesaling functions
general merchandise wholesalers
service wholesalers that carry a wide variety of nonperishable items
single-line (general-line) wholesalers
service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers
specialty wholesalers
service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers
limited-function wholesalers
provide on some of the wholesaling functions
cash-and-carry wholesalers
like service wholesalers, but the customer must pay cash
drop-shippers
own the products they sell, but do not actually handle, stock, or deliver them
truck wholesalers
specialize in delivering products that they stock in their own trucks
rack jobbers
specialize in hard-to-handle assortments of products that a retailer doesn't want to manage and display the products on their own wire racks
catalog wholesalers
sell through catalogs that may be distributed widely to smaller industrial customers or to retailers that might not be called on by other wholesalers
agent wholesalers
wholesalers that do not own the products they sell
manufacturers' agent
sells similar products for several noncompeting producers for a commission
export agents
manufacturers' agents who specialize in export trade
import agents
manufacturers' agents who specialize in import trade
brokers
agent wholesalers who specialize in bringing buyers and sellers together
export & import brokers
brokers who specialize in bringing together buyers and sellers from different countries
selling agents
agent wholesalers who take over the whole marketing job of producers, not just the selling function
combination export manager
a blend of manufacturers' agent and selling agent--handlying the entire export function for several producers of similar but noncompeting lines
auction companies
provide a place where buyers and sellers can come together and bid to complete a transaction