Marketing Mid Term 2
Terms
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- environmental monitoring
- getting infomation regarding a company's external environment analyzing it and forecasting the impact of trends the analysis suggests
- macro
- affects all firms such as demographics, economic conditions culture and laws
- micro
- affect a particular firm consists of suppliers, marketing intermediaries and customers, closely related to the company
- macroenvironmental forces
- demographics, economic conditions, competiton, social and cultural forces, political and legal forces, technology
- demographics
- the vital statistics trhat describe a population including age, gender family life cycle, education income and ethniity
- business cycle
- goes through 4 stages, prosperity recession dperession and recovery
- infaltion
- a rise in the prices of goods and services
- interest rates
- external economic factor that influences marketing programs
- brand competition
- comes from marketers of directly similar products
- substitute products
- they satisfy the same need
- differential advantage
- any feature of an organization or brand that is perceived to be desireable and sidderent fromt hose of the competition
- social and cultural forces
-
emphasize the quality of life rather than the quantity of goods consumed
changing gender roles
premium on time(working longer)
political and legal forces
technology - market
- people or organizations with needs to satisfy, money to spend and the willingness to spend it
- suppliers
- firms that provie the merchadise a wholesaler or retailer resells
- marketing intermediaries
- independant business organizations tha tdirectly aid in the flow of goods and sercices between a marketing organicxation an dits markets. 2 types of intermediaries: the firms(middlemen-wholesalers and retainers), various facilitating organizations that furnish services like transportation, warejoising and financing tha tare needed to complete ecxchanges between buyers and sellers
- value chain
- the company, its suppliers and its intermediaries
- ultimate consumers
- buy goods and services for their own personal or household use
- Metropolitan statistical area
- the basic urban unit an MSAhas an urban area with at least 50000 residents the boundaries are drawn along county lines and may cross state borders
- micropolitan statistical area
- muust have at least one urban cluster of at least 10000 residents but less than 50000
- combined statistical area
- consists of an adjacent metropolian and micropolitan statistical area
- family life cycle
- the various forms families acn take over time and are the major determinants of behavior there are 9 cycles
- need recognition
- the consumer is moved to action by a need or a desire
- identification of alternativesa
- the consumer identifdies alternative products and brands and collects information about them
- evaluation of alternitives
- the consumer weights the pros and cons of the alternatives identified
- postpurchase behavior
- the consumer seeks reassurance that the choice made was the correct one
- loyalty
- when A CONSUMER BECAUSE OF PAST EXPERIENCE IS SUFFICIENTLY satisfied with a particular brand or retailer that he or she buys that brand when the need arises without considering the alternatives
- impulse buying
- purchasing with little or no advance plannng, low involvement decision making
- patronage buying motives
- the most common source is a retail store and the reasons a consumers chooses to shop at a particular store
- postpurchase cognitive dissonance
-
a state of anxiety tbrought on by the difficulty of hoosing from among desirable alternatives
dissonance increases based on the greater imrtance of the pirchase descision and the greater the similarity between the item selected and items rejected - social information environment
- comprised of familt riends and acquaintces who directly or indirectly provide information about products
- culture
- a set of symbols and artifacts created by a society and handed down from generation to generation as determinants and regulators of human behavior
- subcultures
- groups in a culture that ecxhibit characteristic behavior patterns sufficient to distinguish them from other groups within the same culture. such as race, nationality, religion, and urban rural identification
- social class
- a ranking with in a society deternmined by the members of the society
- reference groups
- groups of people that influence a person;s attitudes, values and behavior
- family
- a group of teo or more people related by blood, marriage or adoption living together in a household during their lives people belong to at least two familites the one into which they are vorn and the one they form at marriage
- household
- consists of a single person a family or any group of unrelated persons who occupy a housing unit
- motive
- a need to sufficiently stimulate an individual to seek satisfaction for physiological and psychological needs
- maslows need hierarchy
-
self actualixation-needs for self fulfillment
esteem-needs for sef respec, reputation, prestige and status
belonging and love-needs for affection belonging to a group and acceptancesafety-needs for security, protection and order
physiological-needs for food drink sex and shelter - the 15 mtices are
- curiosiry rejection order citizenship family food sex independence pain avoidance social contact, honor physical exercise power prestige and venegence
- perception
- the process of receiving, organizing and assinng meaning to information or stimuli detected by our ive stages
- learning
- incolces chanfes in behavior resulting from observation and ecperience
- stimulus response theory
- learning occurs as a person responds to some stimulus by behaving in a particular way and is rewarded a correct responce or penalized for an incorrect one
- personality
- traits that influence behavior
- psychianaltic theory
- people have subconscious drives that cannot be satisfied in socially acceptable ways
- attitude
- is a learned perdispositiob to respond to an object or class of objects in a consistently favorable or unfavorable way
- self concept
- the way that people see themselves
- situational influence
-
a temporanry force associated with the envorment around an immediate purchase that affects behavior:
-time of day
-surroundings
-terms of the purchase
-consumer moods and motives - business market
- any good or service purchased for a reason other than personal or household consumption
- business user
- each buyer in the business marketr
- business marketing
- marketing the goods and services to a business user rather than the ultimate consumer
- value added
- at each step of production the value of the product increases it is the dollar value od a firms output minus the value od theinputs it purchase from other firms
- agribusiness
- farming, food processing, and other large scale farming related businesses
- reseller market
- resellers create time, place information and posession utilities rather than form utility
- disintermediation
- replacement of some traditional intermediaries in a process that is very commonplace
- business service market
- includes purchasers of marketing research and the services of ad agencies
- non business market
- consists of organizations that do not have profit making as a primary objective
- derived demand
- the demand for a business product generated from the demand for the consumer products in which that business product is uded
- elasticity of deamand
- how responsive demand is to a change in the price of a product
- vertical business market
- exists when a firms product is usable by virtually all the firms in only one or two industries
- horizontal busines market
- where the firms product is usable by many industries
- new task buying
- first time purcase of a major product
- straight rebuy
- routine low involeurchase with minimal inforamtion needsand little or no consideration of alternatives
- modified rebuy
- somewhat between the other two terms od time and people involved information needed and alternatives considered
- operational crm
- maje routine marketing operations such as sales calls, service programs and customer support activities more efficient
- analytical CRM
- to effectively analyze all tht available data about a cystimer
- collaborative CRM
-
the objective is to provise mechanisms tor customers to interact with the firm rathen thean the traditional one way seller to buter communication of media advertising.
Ex. call cebters, chat rooms - direct purchase
- consumers reately buy directly from the producer except in the acase of services
- frequency of purchase
- firms buy certain products very infrewuently
- electronic commerce
- involves interacions and transactions over the internet
- market segmentation
- dividuing the total markets for a goodor sevice into several smaller, internally homogeneous groups
- benefits of market segmentation
- it is customer oriented, the company can do a better job and be more efficient with its marketing resources, t can help firms grow more rapidly
- market segmentation conditoins
-
-measurable and obtainable data
-large enough to be profitable
-segment is accesssible - micromarketing
- treat each customer as a sepatarate segment
- geographic segmentation
- subdividing markets into segmetns based on location
- demographic segmentation
- are age ggender occupation income and education
- psychographic segmentation
- involves examining attributes related to how a person thinks feels and behaces
- lifestyle
- a persons activities interests and opinions. how you spend your time, what your beliefs are on various social , economic and political issues
- values
- are a reflection of needs adjusted for the realitites of the world in which we live
- behaviorial segmentation
- segment their markets on the basis of the product related behavior
- product differentiation
- one of the firms distinguishes its product from competitice brands offered same aggregate market
- single segment strategy
- concentration strategy, incolces selecting one segment within the total market as the target market
- niche marketers
- a single segment strategy enables a seller to penetrate one market in depth and to acquire a reputation as a specialist or an ecpert in this limited market
- multiple segment strategy
- two or more different groups of potential customers are identified as target markets, a separate marketing mix is deceloped to rach each targeted segment
- positioning
- the way a firms product brand or organizario is viewed relative to the compeition by current and prospective custimers
- repositioning
- when a firm tries to reestablish its attractiveness
- demand forcasting
-
estimates sales of a product during some defined future period
-done to make various kinds of perceptions - market share
- is the proportion of total sales of a product during a stated period in a pecific market that is captured by a single firm
- market factor
- is something that exists in a market is measurable and is related to the demand for a product in a known way
- market potential
- the total sales volume that all organizations selling a produc during a stated period of time in a specid market could expect to acheve under ideal conditions
- sales potential
- the portion od market potential that a specific company could expect to achieve under ideal conditions
- market factor analysis
- entails determingig the related factors are and then measuring their relatioship to sales activity`
- derivaton method
- can tarnslate the market factor behavior into a demand forecast
- correlation analysis
- a measure of potential sales of the product and the market
- multiple correlation
- it is possible to incluse more thn one market factor in the calculation
- correlation analysis can only be used if...
-
the sales history of the industry or firm consisting of 20 consecutive time periods is available and a corresponding history of the market factor being used to forecast demand
-correlation factor depends on the assumptions whcih can be unrelaistic - survey of buyer intention
- involves asking a sample of current or potential customers how much of a particular product they would buy at a given price during a specified future period
- test marketing
- forecasts demand,firm markets a new product in a limited geographic area measures sales and projects sales over a larger area-shows whether or not there is a large enough demand for a product
- trend analysis
- examines past sales data to calculate the rate of change in sales volume and uses it to forecast future sales
- past sales analysis
- the demand dorecast is a flat percentage change apploed to te colume achieved last year or to the average volume of the past few years
- sales force composite
- collecting from all sales people to estimate sales for their territories during the furture period of interest
- executive judgement
- obtainining opinions from one or more ecevutives regarfing future sales
- delphi
- where each person makes a prediction without knowing how othersin the group have responded and then the estimates ae summarized and the group members decide on which decision to go with
- consumer products
- intended for personal consumption by household
- business products
- intended for resale and use inproducing other products
- convenience good
- consumer feels comfortable purchasing without aditional information, buys with minimum effort
- shopping good
- a tangivle roduct for which a consumer wants to companre quality price and perhaps style in several stores before making a purchase
- specialty good
- a tangible product for which a cconsumer had a strong brand preseence and is willing to expenf substantial time and effort lacating the desired brand
- unsought good
- a new prduct that consumer is not yet aware of or a product that the consumer is does not want
- raw materials
- business goods that become part of another tangible product prior to being processed in any way
- fabricating materials
- undergo further prcessing
- fabricating parts
- are assembled with no further change in form
- installations
- manudactured products that are an organizationmajor ecpensice and ling lived equipment
- accessory equipment
- tangble products that have substantial value and are used in an organizations operations
- operating supplies
- business goods that are characterized by low dollar value per unit and a short llife and that contribute to an organixations operations without becoming part of the finished product
- new products
-
products that are really innovative :truly unique"
relacements that are significantly different from existing products in terms of form function sna benefits provided
-imitative prosucts that are new to a partivulat copany but not new to the market - new product strategy
- a statement ifentifying the role of a new prduct is ecpected to play in achieving corporate and marketing goals
- new product development process
-
generating new product idea
screening ideas
business analysis-mgt identiites product features, estimates market demand and establishes a program to develop the product - diffusion
- where an innovation sreads throughout a social system over time
- adoption process
- the set of successice decisions an individual person or organixation makes before acceptiing an innovation
- innovators
- venturesome consumers who are te first to adopt an innovation
- early adopters
- purchase a new product after innovators but sooner than other consumers
- early majority
- deliberate consumers who accept an innovation just before the average adopter in society
- late majority
- the skeptical group of consimers who usually adopt an innnovation to save money or response to social pressure from thei peers
- laggards
- consumers who are bound by tradition and are the last to adopt an innovation
- product planning committee
- members include executives from major departments marketing production finance engineering and research
- new product department
- organization structure for products or planning these units are small consisting of five or fewer people the head of the group typical reports to the company president
- brand manager
- responsible for planning new products and managing established products
- adoption rate...what factors does it depend on..
-
rate at which a new product is adopted
depends on the relative advantage of the product comapared to other products
-compatibility:agrees with the lifestyles of the consumers
-complexity: the degree of difficulty in understaninng it
-trialability: the degree to which an innovation may be sampled
observability-how it can be demonstrated to be affective