Marketing, Exam 2
Marketing Concepts, Exam 2 (Fall, 2008)
Chapters 8-14
Chapters 8-14
Terms
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- Marketing Information System (MIS)
- a framework for managing and structuring information gathered regularly from sources inside and outside the organization
- Product Life Cycle
- the pattern of sales and profits over time for a product or product category; consists of an introductory stage, growth stage, maturity, and decline (and death).
- Customer Advisory Boards
- Small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of marketing strategy (beta testers)
- Product Manager
- the person within an organization responsible for a product, a product line, or several distinct products that make up a group
- Introduction Stage
- the product life-cycle stage in which the new product is first distributed and made available for purchase. profits are neg. or low b/c high distribution.
- Shopping Products
- items that are bought after considerable planning, including brand-to-brand and store-to-store comparisons of price, suitability, and style.
- Interest (Product Adoption Process)
- the buyer seeks information and is receptive to learning about the product
- Unsought Products
- Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention.
- Differentiated Targeting Strategy
- a strategy in which an organization targets two or more segments by developing a marketing mix for each segment
- Manufacturer Brands
- brands that are owned by national or regional manufacturers and widely distributed; also called national brands.
- Primary data
- data that are observed, recorded, or collected directly from respondents.
- Credence Quality
- A characteristic that consumers may have difficulty assessing even after purchase because they do not have necessary knowledge or experience.
- Adoption (Product Adoption Process)
- the buyer purchases the product and can be expected to use it again whenever the need for this general type of product arises
- Undifferentiated Targeting Strategy
- entire market is target market ; 1 marketing mix
- Private Distributor Brands
- a brand initiated and owned by a reseller (from a distributor)
- Addressability
- A marketer's ability to identify customers before they make a purchase (register to use a site, input personal info...all before purchasing something)
- Trend Analysis
- an analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
- Lifestyle Segmentation
- a target market segmented based upon what stage of life they are in (just turned 18, just got a car, just bought a house, etc...)
- Test Marketing
- tests in cities that are diverse (people from all over country, world, different needs (segments)
- Community
- a sense of group membership or feeling or belonging
- Product Line
- Closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations
- Evaluation (Product Adoption Process)
- the buyer considers the product's benefits and decides whether to try it
- Focus Group
- Group of individuals brought together for the purpose of asking them questions about a product or marketing strategy.
- Customer Contact
- the level of interaction between provider and customer needed to deliver the service (high: medical, massage; low: auto repair, dry cleaning)
- Perishability
- the inability of unused service capacity to be stored for future use
- Secondary data
- data are compiled inside and outside the organization for some purpose other than the current investigation
- Conclusive Research
- research designed to verify insights through objective procedures and to help marketers in making decisions
- Experimental Research
- research that allows marketers to make causal inferences about relationships
- Service
- an intangible result of the application of human and mechanical efforts to people or objects
- Trial (Product Adoption Process)
- the buyer examines, tests, or tries the product to determine if it meets his or her needs
- Blogs
- web based journals in which people can editorialize and interact with other internet users
- Individual Branding
- a branding policy in which each product is given a different name
- Intangibility
- the quality of being produced and consumed at the same time (services)
- Good
- a tangible physical entity
- Psychographic (Segmentation Variables)
- Personality - motives - lifestyle
- Co-Branding
- using two or more brands on one product
- Functional modifications
- changes affecting a product's versatility, effectiveness, convenience, or safety
- Growth Stage
- Second stage of the product life cycle, which begins when a firm starts to realize substantial profits from its investment in a product.
- Demographics (Segmentation Variables)
- Age - gender - race - ethnicity - income - education - occupation - family size - family life cycle - religion - social class
- Convenience Products
- Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort
- Brand Preference
- Consumer reliance on previous experiences with a product to choose that product again. (prefers it over others)
- Sales Forecast
- The amount of a product a company expects to sell during a specific period at a specified level of marketing activities
- Heterogeneity
- variation in quality (services are not consistently the same quality)
- Executive Judgement
- A sales forecasting method based on the intuition of one or more executives
- Brand Loyalty
- a customer's favorable attitude toward a specific brand
- Market Potential
- total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
- Who Defines Brands?
- Consumers; marketers work to control that definition
- Family Branding
- Branding all of a firm's products with the same name or part of the name
- Time Series Analysis
- a forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses
- Innovators
- First adopters of new products
- Decline Stage
- The final stage in a product life cycle, during which sales decrease as customer needs change.
- Product Modification
- changes in one or more characteristics of a product (quality, functional, aesthetics) (original product ceases to exist)
- Benefit Segmentation
- dividing a market into groups according to the different benefits that consumers seek from the product.
- Product Mix
- the combination of product lines offered by a manufacturer
- Marketing Mix
- The marketing manager's controllable factors (Product, Price, Promotion, Place) that can be used to solve a marketing problem.
- Inseparability
- the production of a service cannot be separated from its consumption by customers
- Specialty Products
- A good or service that has unique characteristics and is important to the buyer and for which the buyer will devote significant effort to acquire.
- Brand Equity
- Financial factors as well as the combination of factors - such as awareness, loyalty, perceived quality, images, and emotion - that people associate with a given brand name.
- New Product development process
- a seven-phase process for introducing new products: idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization
- Product Positioning
- refers to the place an offering occupies in consumers' minds on important attributes relative to competitive products.
- Accessibility
- the ability to obtain information available on the internet
- Brand insistence
- Consumer refusal of alternatives and extensive search for desired merchandise.
- Brand
- a name, term, design, symbol, or other feature that identifies a seller's products and differentiates them from competitor's products
- Quality modifications
- changes relating to a product's dependability and durability
- Service Quality
- Customer's perception of how well a service meets or exceeds their expectations
- Aesthetic modifications
- changes relating to the sensory appeal of a product
- Heterogeneous Market
- a market made up of individuals or organizations with diverse needs for products in a specific product class (cars)
- E-Marketing
- strategic process of creating, distributing, promoting and pricing products for targeted customers in the virtual environment
- Exploratory Research
- research conducted to gather more information about a problem or to make a tentative hypothesis more specific
- Maturity Stage
- The third and longest stage in the product life cycle, during which sales peak and profit margins narrow.
- Product Adoption Process
- The five-stage process of buyer acceptance of a product: awareness, interest, evaluation, trial, adoption
- late majority
- skeptics who adopt new products when they feel it is necessary
- Behavioristic (Segmentation Variables)
- Usage - end use - benefit expectations - brand loyalty price sensitivity (benefit segmentation)
- Line extension
- Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line. (diet coke)
- laggards
- the last adopters, who distrust new products
- Marketing Research
- the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities.
- Early majority
- individuals who adopt a new product just prior to the average person
- Geographic (Segmentation Variables)
- Region - urban/rural - city size - county size - state size - market density - climate - terrain - geodemographic
- Awareness (Product Adoption Process)
- the buyer becomes aware of the product
- Idea
- a concept, philosophy, image, or issue
- Brand Extension
- an organization uses one of its existing brands to brand a new product in a different category (bic razors and bic pens)
- Homogeneous Market
- a market in which a large proportion of customers have similar needs for a product
- Interactivity
- the ability to allow customers to express their needs and wants directly to the firm in response to the firm's marketing communications (geographic boundaries are not a problem; virtual sales agent)
- Brand recognition
- Consumer awareness and identification of a brand. (views as an alternative purchase if their preferred brand is not available)
- Brand Manager
- Marketer within an organization who is responsible for a single brand.
- Early adopters
- careful choosers of new products