Murdock MKT 3343 Exam 2

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Direct forecast: involves estimating the value to be forecast without any intervening steps. The best guess of a person who's selling based on what they think.
Business marketing: is the marketing of goods and services to companies, government, or non-profit organizations for the use in the creation of goods and services that they can produce and market to others
Market Segmentation: putting prospective buyers into groups that 1. have common needs, 2. will respond simarlarly to the market action
Stage 3 in Organizational Buying Process: Alternitave Evaluation./ (Bidder's List: a list of firms believed to be qualified to supply a given item.)
5 Step Marketing Research Approach: 1.Define the Problem: set research objectives & possible solutions, 2.Develop the Research Plan: constraints, data, 3.Collect Relevent Data, 4.Develop Findings: analyze data, 5. Take Mkt Action: implement
Foreign Corrupt Practices Act (1977): a law, amended by the International Anti-Dumping & Fair Competition Act (1998), that makes it a crime for US corporations to bribe an official of a foreign government or political part to obtain/retain business in a foreign country.
Sales/Company forecast: refers to the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions & its own marketing efforts. Also called company forecast.
Blanace of Trade: difference between the monetary value of a nation's exports & imports. Import>export=deficit, Export>import=surplus.
Observational data: the facts & figures obtained by watching, either mechanically or in person, how people actually behave. More truthful.
Product differentation: a strategy that involves a firm's using different marketing mix activities to help consumers perceive the product as being different & better than competing products.
Supply Partnership: exists when a buyer & its supplier adopt mutually beneficial objectives, policies & procedures for the purpose of lowering the costs/increasing the value of products & services delivered to the ultimate consumer.
Product modification: altering a product's characteristic, such as its quality, performance or appearance, to try to increase the product's sales
Private branding: branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called private labeling or reseller branding
Direct Exporting: sell directly from us to them
Economic Infrastructure: a country's communication, transportation, financial, & distribution systems. Critical for determining weather to enter a country's market.
Protocol: a statement that, before product development begins, identifies: 1) a well-defined target market 2) specific customers' needs, wants & preferences 3) what the product will be & do
NAPCS: North American Product Classification System: classification system for products & services, UN-Central Product Classification System
Bottom of the Pyramid: largest, but poorest socioeconomic group in the world, mostly landlocked countries, it's to our advantage to help these coutries (Trade)
Questionnaire data: the facts & figures obtained by asking peple about their attitudes, intentions & behaviors.
Synergy: the increased customer value achieved through performing organizational functions more efficicently. Customers are the reason companies do things more efficicently & that benefit goes back to the customer through customer value.
New-product Strategy Development: the stage of the new product process that defines the role for a new product in terms of the firm's overall corporate objectives.
Marketing research: the process of defining a marketing problem & opportunity, collecting data to try & fix the problem.
Reverse Auctions: a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other
Unsought goods: items that the consumer either does not know about or knows about but does not initially want
Trading up: involves adding value to a product (or line) through additional features or higher-quality materials
Multi branding: branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment
Question Formats: 1.Open ended, 2. fixed alt., 3.Dichotomous(Y/N), 4. Semantic Differential(Y/N scale), 5.Likert(agrrement scale)
Traditional Auctions: a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other
Methods of Collecting Data: Sampling, Probability Sampling, Nonprobability Sampling, Statistical Inference
Trademark: identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
Supplier development: the deliberate efforts by a company to build relationships with suppliers to improve their efficency, quality, & costs for an ultimate result for consumer & company
Primary data: facts & figures that are newly collected for the project. The advantages are that it is specific to the problem. The disadvantage is that it's time consuming & expensive. (Observation, Questionarre)
Skimming Strategy: Enter market at highest price for as long as possible
Primary Demand: A demand for a class of products
Microfinance: practice of offering small, collateral-free loans to individuals who otherwise would not hav access to the capital necessary to participat in an income generating activity
Prominence of Online Buying in OM's: 1.timely supplie information, 2. reduces buyer order prcessing costs, 3. can reduce marketing costs
Multidomestic Marketing Strategy: used by multinational firms that have as many different product variations, brand names & advertising programs as countries in which they do business.
Trend Extrapolation: extending a pattern observed in past data into the future
E-Marketplaces: online trading communities that bring together buyers & supplier organizations to make possible the real time exchange of information, money, products & services. AKA: B2B exchanges, e-hubs
European Union: 27 countries with a common currency (Euro), no protectionism within their borders.
Stage 5 in Organizational Buying Process: Postpurchase Behavior
Quota: a restriction placed on amount of a product allowed to enter or to leave a country.
Cultural symbols: things that represent ideas or concepts.
Derived Demand v. Organizational Market: demand is always much lower for derived demand
Gray market: a situation where products are sold through unauthorized channels of distribution. Also called parallel importing
Currency exchange rule: the price of one country's currency expressed in terms of another country's currency.
Organizational Buying Behavior: the decision-marking process that organizations use to establish the need for products & services & identify, evaluate & choose among alternative brands & suppliers. (5 steps)
Types of Global Companies: International, Multinational, Transnational
Perceptual map: a means of displaying or graphing in 2 dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers to enable a manager to see how consumers perceive competing products or brands relative to its own & then take marketing actions
Brand name: in any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller's goods or services
Casual Research: how much one thing occuring effects another thing occuring.
7 most common Organizational Buying Criteria: 1. price, 2. ability to meet required delivery schedules, 3. ability to meet the quality specifications, 4. technical capabilites, 5. warranties & claim polocies 6. past performance, 6. production facilities/capabilities
Direct investment: entails a domestic firm actually investing in & owning a foreign subsidiary or division
GATT: General Agreement on Tariffs & Trade: to limit trade barriers & promote world trade through the reduction of tariffs. Did not explicitly adress non-tariff trade barriers(e.g.quotas)
Semiotics: a field of study that examines the correspondence between symbols & their role in the assignment of meaning for people. Semiotics are the study of symbols. Example is that #4 is an un-lucky number in Japan
International Firm: same product, marketing program, etc. everywhere, selling the same idea (ex. Coke)
ISO 9000: International Standards Org: meet exact standards to set standards for quality/ consists of standards for registration & certification of a manufacturer's quality management & assurance system based on an on-site audit of practices & procedures
Contact Manufacturing: US may contract with a foreign form for them to manufacture product to specifications
80/20 Rule: concept that suggests 80% of a firm's sales are obtained from 20% of its customers. And 20% of business from 80% of customers
Asian Free Trade Agreement: have reduced tariffs among countries & promoted trade. To liberate East Asia from Japan & "The Four Little Dragons"
Government Markets: federal, state, and local agencies that buy goods & services for the constituents they serve
"Trading down": reducing the number of features, quality or price.
Global brand: brand marketed under the same name in multiple countries with similar & culturally coordinated marketing programs.
Transnational Firm: change mkt strategy where needed keep same where can.
World Trade Organization: (WTO) a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members & issue binding decision. Ultimate goal of the WTO is to eliminate tariffs & quotas. WTO is an organization to make nations treat each other right. Member nations agree that they'll accept/abide by organization's decision if complaints are filed against their country.
Brand equity: the added value of a given brand name gives to a product beyond the functional benefits provided
Joint venture: when a foreign country & a local firm invest together to create a local business
Probability sampling: random sample
Derived Demand: means the demand for industrial products/services is derived from, demand for consumer products/services. Example: milk & all it's compnents are now in demand when purchased. Based on future expectations of consumer demand.
Roles in the Buying Center: 1.Users (use product), 2. Influences(define specifications), 3. Buyers(negotiate terms of contact), 4. Deciders(selects supplier), 5. Gatekeepers(control flow of info)
Secondary data: facts & figures that have already been recorded before the project at hand. The advantage is that it is inexpensive & fast. The disadvantages are that it's not specific to your problem. (Internal & external)
NAICS: North American Industry Classification System, provides common industry definitions for Canada, Mexico, & the US, which makes the measurment of economic activity, in the 3 member countries of NAFTA, easier. Replaces SIC system. Each given a "zipcode"
Specialty goods: items that a consumer makes a special effort to search out & buy.
Sampling: involves selecting representative elements from a population. Involves making judgments about whole by what you know about a few.
Packaging: component of a product that refers to any container in which it is offered for sale & on which label information is conveyed.
Dumping: when a firm sells a product in a foreign country below its domestic price or below its actual cost.
Organizational Buying Criteria: the objective attributes of the supplier's products & services & the capabilities of the supplier itself.
Strategic Alliances: agreements among 2+ independent firms to cooperate for the purpose of achieving common goals.
GDP: gross domestic product: monetary value of all goods/services produced in a country during one year. US always has the highest GDP, but Unions of countries now create competition.
North American Free Trade Agreement: NAFTA: lifted many tade barriers between Canada, Mexico, & US. Extended many advantages with CAFTA-DR
Six sigma: means to "delight the customer" by achieving quality through a highly disciplined process to focus on developing & delivering near-perfect products & services.
Buy Classes: consists of three types of buying situations: straight rebuy; modified rebuy; and new buy.
Global Competition: exists when firms originate, produce & market their products & services worldwide.
Market testing: stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy
Co-branding: a branding strategy that involves the practice of the pairing of 2 brand names of 2 manufacturers on a single product
Porter's Diamond: explain a nation's competitive advantage. 1. Factor Conditions-natural resources, 2. Demand Conditions-# & sophistication of domestic customers for a product, 3.Related Supporting Industries- infrastructure, talent pool, 4. Company Stategy, Structure, & Rivalry- competitive atmoshpere
Multinational Firm: changes whats needed for other countries markets (ex: breathe right)
Contact Assembley: contacts for a foreign company to ASSEMBLE parts for the prodcut.
Support goods: items used to assist in producing other goods & services
Convenience goods: items that the consumer purchases frequently, conveniently & with a minimum of shopping effort.
Screening & evaluation: the stage of the new-product process that involves internal & external evaluations of the new-product ideas to eliminate those that warrant no further effort
Trade Feedback Effect: export creates demand for import, vice versa
Exporting: producing goods in one country & selling them in another country.
Industrial/Buisness Markets: reprocess a product or service before selling it again to the next buyer.
Business analysis: the stage of the new-product process that involves specifying the product features & marketing strategy & making necessary financial projections needed to commercialize a product.
Ultimate consumer: are people who use the goods and services purchased for the household
Exploratory research: gives ideas about a vague problem, used for many new products
Development: stage of the new-product process that involves turning the idea on paper into a prototype.
Failure fee: penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make.
Selective Demand: A brand of a class of products
Measures of success: criteria or standards used in evaluating proposed solutions to a problem, how we know if our research tells us anything
Label: integral part of the package that typically identifies the product or brand, who made it, where & when it was made, how it is to be used, & package contents & ingredients
Product positioning: refers to the place an offering occupies in consumers' minds on important attributes relative to competitive products.
Stage 2 in Organizational Buying Process: Information Search./ (Value analysis: a systematic appraisal of the design, quality & performance of a product to reduce purchasing costs.)
Independent E-marketplace: p.158
Product line: group of products that are closely related b/c they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or falls within a given price range.
Back translation: when a translated word/phrase is retranslated into the original language by a different interpreter to catch errors
Organizational buyers: are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. There are 3 different markets.
3 markets of organizational buyers: 1. Industrial/Buisness Markets, 2. Reseller Markets, 3.Gevernment Markets
Shopping goods: items for which the consumer compares several alternatives on criteria, such as price, quality or style.
Slotting fee: payment a manufacturer makes to place a new item on a retailer's shelf.
Mixed branding: a branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market
Indirect Exporting: sell to a country through an intermediary
Usage rate: the quantity consumed or patronage (store visits) during a specific period of time. An example is frequent flier miles.
Difficulties of Marketing Research: Consumers do not know about new products, lying, purchase behavior could be different.
Lost horse forecast: making a forecast using the last known value & modifying it according to positive or negative factors expected in the future. When bring products back when they've phased it out for a while. Go from where product last was & go from there (the closest known result)
Constraints: in a decision are the restrictions placed on potential solutions to a problem. Boundaries/limits on types of things trying to figure out, so not too broad.
Values: a society's personally or socially preferable modes of conducts/states of existence that tend to persist over time.
Product class: the entire product category or industry. Example: string trimmers, like a weed eater
Trade name: a commercial, legal name under which a company does business
product life cycle: describes the stages a new product goes through in the marketplace: introduction, growth, maturity & decline
Economic Espionage Act (1996): a law that makes the theft of trade secrets by foreign entities a federal crime in the US.
Downsizing: reducing the content of packages without changing package size & maintaining or increasing the package price.
Decision: a conscious choice from among 2+ alternatives
Customs: what is considered normal & expected about the way people do things in a specific country.
Liscencing: A company offer the right for items of intellectual property for a royalty fee, in other countries however they lose all control of it's product, may lose profit, or create competition with their company.
Brand personality: a set of human characteristics associated with a brand name.
Global Marketing Strategy: used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similitarties & adapting them when cultures differ.
Global consumers: consists of customer groups living in many different countries or regions of the world who have similar needs or seek similar features & benefits from products/services. People around the world have a lot in common
Multi-product Branding: a branding strategy in which a company uses one name for all its product in a product class
Market-product grid: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm.
Buying Center: group of people in an org. who participate in the buying process & share common goals, risks & knowledge important to a purchase decision. AKA Buying Comitee
"Fuzzy Front End": try to id trends before typical consumers have recognized them themselves.
Stage 1 in Organizational Buying Process: Problem Recognition./ (Make-Buy Decision: do we make it or do we buy it?)
Countertrade: practice of using barter rather than money for making global sales
Statistical inference: involves drawing conclusions about a population from a sample taken from that population. Drawing conclusions from information gotten from research.
Product mix: the number of product lines offered by a company
Warranty: statement indicating the liability of the manufacturer for product deficiencies.
Market segments: the relatively homogeneous groups of prospective buyers that result from the market segementation process.
Data mining: the extraction of hidden predictive information from large databases.
Cross-cultural analysis: involves the study of similiarities & differences among consumers in 2+ nations or societies. For effective marketing programs
Brand licensing: contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another (license) for a royalty or fee
Idea generation: the stage of the new-product process that involves developing a pool of concepts as candidates for new products
Market modification: a strategy in which a company tries to find new customers, increase a product's use among existing customers or create new use situations.
Consumer goods: products purchased by the ultimate consumer
U.S. Balance of trade: U.S. in deficit& overall volume has decreased. Importers-Canada, China, Mexico, Japan/Exporters-China, Japan, South Korea, Taiwan, Phillipines
Product: a good, service, or idea consisting of a bundle of tangible & intangible attributes that satisfies consumers & is received in exchange for money or some other unit or value
Product repositioning: involves changing the place an offering occupies in a consumer's mind relative to competitive's products
JIT Inventory System: Just In Time...
Data: the facts & figures related to the problem, & are divided into 2 main parts: secondary data & primary data.
Penetration Pricing: Enter Market at low price to reach as many people as possible & create a brand loyalty
Stage 4 in Organizational Buying Process: Purchase Decision
Information technology: involves a computer & communication system to satisfy an organization's needs for data storage, processing & access. There is lots of statistical information available.
Descriptive research: frequency or relationship of 2 factors
Tariffs: a government tax on goods or services entering a country, primarily serving to raise prices on imports. Screws the customer!
Business goods: products that assist directly or indirectly in providing products for resale. Also called as B2B goods, industrial goods or organizational goods.
Linear Trend Extrapolation: using a straight line to extend a pattern observed in past data into the future
Introduction of a Product: trying to increase primary demand, use pricing strategies
Market/Industry potential: the maximum total sales of a product by all firms to a segment during a specified time period under specified environmental conditions & marketing efforts of the firm. Also called industry potential
Growth of a Product: rapid sales, repeat purchasers, new features, broader distribution and gain competitors
Production goods: items used in the manufacturing process that become part of the final product
Branding: a basic decision in marketing products in which an organization uses a name, phrase, design or symbols, or combination of these to identify its products & distinguish them from those of competitors
Reseller Markets: Wholsalers and retailers that buy physical products and resell them again without any reprocessing.
Protectionism: the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quota. What countries engage in to protect their country includes tariffs, quotas, etc. The use of protectionism is declining.
Commercialization: stage of the new-product process that involves positioning & launching a new product in full-scale production & sales
Product form: pertains to variations of a product within the product class. Example: weed eater: gas, electric, fat string, skinny string, etc.
Nonprobability sampling: involves using arbitrary judgments to select the sample so that the chance of selecting a particular elements by an unknown or 0. A random sample w/ consraints, can't get statistical inference

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