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192 Cards in this Set

  • Front
  • Back
Marketing information
Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans.
Decision support system (DDS)
An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.
Database marketing
The creation of a large computerized file of customers' and potential customers' profiles and purchase patterns.
Marketing research
The process of planning, collecting, and analyzing data relevant to a marketing decision.
Marketing research problem
Determining what information is needed and how that information can be obtained efficiently and effectively.
Marketing research objective
The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information.
Management decision problem
A broad-based problem that uses marketing research in order for managers to take proper actions.
Secondary data
Data previously collected for any purpose other than the one at hand.
Marketing research aggregator
A company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms.
Research design
Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.
Primary data
Information that is collected for the first time; used for solving the particular problem under investigation.
Survey research
The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
Mall intercept interview
A survey research method that involves interviewing people in the common areas of shopping malls.
Computer-assisted personal interviewing
An interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent's data directly into the computer.
Computer-assisted self-interviewing
An interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where the respondent reads questions off a computer screen and directly keys his or her answers into a computer.
Central-location telephone (CLT) facility
A specially designed phone room used to conduct telephone interviewing.
Executive interview
A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.
Focus group
Seven to ten people who participate in a group discussion led by a moderator.
Open-ended question
An interview question that encourages an answer phrased in the respondent's own words.
Closed-ended question
An interview question that asks the respondent to make a selection from a limited list of responses.
Scaled-response question
A close-ended question designed to measure the intensity of a respondent's answer.
Observation research
A research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity.
Mystery shoppers
Researchers posing as customers who gather observational data about a store.
Ethnographic research
The study of human behavior in its natural context; involves observation of behavior and physical setting.
Experiment
A method a researcher uses to gather primary data.
Sample
A subset from a larger population.
Universe
The population from which a sample will be drawn.
Probability sample
A sample in which every element in the population has a known statistical likelihood of being selected.
Random sample
A sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample.
Nonprobability sample
Any sample in which little or no attempt is made to get a representative cross section of the population.
Convenience sample
A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher--for example, employees, friends, or relatives (EX: Coke).
Measurement error
An error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process.
Sampling error
An error that occurs when a sample somehow does not represent the target population.
Frame error
An error that occurs when a sample drawn from a population differs from the target population.
Random error
An error that occurs when the selected sample is an imperfect representation of the overall population.
Field-service firm
A firm that specializes in interviewing respondents on a subcontracted basis.
Cross-tabulation
A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.
Unrestricted Internet sample
A survey in which anyone with a computer and Internet access can fill out the questionnaire (EX: CNN poll--"Which award show is bigger?").
Screened Internet sample
An Internet sample with quotas based on desired sample characteristics.
Recruited Internet sample
A sample in which respondents are prerecruited and must qualify to participate. They are then e-mailed a questionnaire or directed to a secure Web site.
Scanner-basd research
A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.
BehaviorScan
A scanner-based research program that tracks the purchases of 3,000 households through store scanners in each research market.
InfoScan
A scanner-based sales-tracking service for the consumer packaged-goods industry.
Competitive Intelligence (CI)
An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.
Product
Everything, both favorable and unfavorable, that a person receives in an exchange.
Business product (industrial product)
A product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers.
Consumer product
A product bought to satisfy an individual's personal wants.
Convenience product
A relatively inexpensive item that merits little shopping effort.
Shopping product
A product that requires comparison shopping because it is usually more more expensive than a convenience product and is found in fewer stores.
Specialty product
A particular item that consumers search extensively for and are very reluctant to accept substitutes (EX: jewelry, cars, gourmet restaurants, etc.).
Unsought product
A product unknown to the potential buyer or a known product that the buyer does not actively seek (EX: iPad, insurance, burial plots, etc.)
Product item
A specific version of a product that can be designated as a distinct offering among an organization's products.
Product line
A group of closely related product items.
Product mix
All products that an organization sells.
Product mix width
The number of product lines an organization offers.
Product line depth
The number of product items in a product line.
Product modification
Changing one or more of a product's characteristics (EX: "better tasting").
Planned obsolescence
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
Product modification
Changing one or more of a product's characteristics (EX: Oreo).
Brand
A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products.
Brand name
That part of a brand that can be spoken, including letters, words, and numbers.
Brand mark
The elements of a brand that cannot be spoken.
Brand equity
The value of company and brand names.
Global brand
A brand where at least 20 percent of the product is sold outside its home country or region.
Brand loyalty
A consistent preference for one brand over all others.
Generic product
A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
Manufacturer's brand
The brand name of a manufacturer.
Private brand
A brand name owned by a wholesaler or a retailer.
Individual branding
Using different brand names for different products (EX: P&G: Tide, Gain, etc.).
Product modification
Changing one or more of a product's characteristics (EX: Oreo).
Cobranding
Placing two or more brand names on a product or its package (EX: Breyers Reese's).
Trademark
The exclusive right to use a brand or part of a brand.
Service mark
A trademark for a service.
Generic product name
Identifies a product by class or type and cannot be trademarked.
Persuasive labeling
A type of package labeling that focuses on a promotional theme or logo and consumer information is secondary.
Informational labeling
A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.
Universal product codes (UPCs)
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.
Warranty
A confirmation of the quality or performance of a good or service.
Express warranty
A written guarantee.
Implied warranty
An unwritten guarantee that the good or service is fit for the purpose for which it was sold.
New product
A product new to the world, the market, the producer, the seller, or some combination of these.
New-product strategy
A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation (EX: 3M wants 25% of products introduced in 5 yrs).
Product development
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products.
Brainstorming
The process of getting a group to think of unlimited ways to vary a product or solve a problem.
Screening
The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.
Concept test
A test to evaluate a new-product idea, usually before any prototype has been created.
Business analysis
The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated.
Development
The stage in the product development process in which a prototype is developed and marketing strategy is outlined.
Simultaneous product development
A team-oriented approach to a new-product development.
Test marketing
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Simulated (laboratory) market testing
The presentation of advertising and other promotion materials for several products, including a test product, to members of the product's target market.
Commercialization
The decision to market a product.
Adopter
A consumer who was happy enough with his or her trial experience with a product to use it again.
Innovation
A product perceived as new by a potential adopter.
Diffusion
The process by which the adoption of an innovation spreads.
Product life cycle (PLC)
A concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death).
Product category
All brands that satisfy a particular type of need.
Introductory stage
The full-scale launch of a new product into the marketplace.
Growth stage
The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start acquiring small pioneering firms, and profits are healthy.
Maturity stage
A period during which sales increase at a decreasing rate.
Decline stage
A long-run drop in sales.
Marketing channel (channel of distribution)
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
Channel members
All parties in the marketing channel that 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 consumer.
Supply chain
The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.
Discrepancy of quantity
The difference between the amount of product produced and the amount an end user wants to buy.
Discrepancy of assortment
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Temporal discrepancy
A situation that occurs when a product is produced but a customer is not ready to buy (EX: Home Depot innovation center in July looks like Christmas).
Spatial discrepancy
The difference between the location of a producer and the location of widely scattered markets (EX: Automotive industry (dealerships)).
Retailer
A channel intermediary that sells mainly to consumers.
Direct channel
A distribution channel in which producers sell directly to consumers.
Dual distribution (multiple distribution)
The use of two or more channels to distribute the same product to target markets.
Strategic channel alliance
A cooperative agreement between business firms to use the other's already established distribution channel.
Supply chain management
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.
Intensive distribution
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
Selective distribution
A form of distribution achieved by screening dealers to eliminate all but a few in any single area.
Exclusive distribution
A form of distribution that establishes one or a few dealers within a given area.
Logistics
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
Logistics information system
The link that connects all of the logistics functions 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)
A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications.
Just-in-time production (JIT)
A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line.
Order processing system
A system whereby orders are entered into the supply chain and filled.
Electronic data interchange (EDI)
Information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission.
Inventory control system
A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand.
Materials requirement planning (MRP) (materials management)
An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer.
Distribution resource planning (DRP)
An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer.
Materials-handling system
A method of moving inventory into, within, and out of the warehouse.
Outsourcing (contact logistics)
A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing.
Electronic distribution
A distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals.
Importance of marketing research:
1) Improve quality of decision making
2) Understand why
3) Trace problems
4) Understand changes in marketplace
Marketing research process:
1) Define problem
2) Plan design/gather data
3) Specify sampling procedure
4) Collect data
5) Analyze data
6) Prepare/present report
7) Follow-up
Sources of secondary data:
Internal corporate information, government agencies, trade and industry associations, business periodicals, news media, and internet sources
Advantages of secondary data:
1) Saves time and money if on target
2) Aids in determining direction for primary data collection
3) Serves as a basis of comparison for other data
Disadvantages of secondary data:
1) May not give adequately detailed information
2) May not be on target with the research problem
3) Quality and accuracy of data may pose a problem
Advantages of primary data:
1) Answers a specific research question
2) Data are current
3) Source of data is known
Disadvantages of primary data:
1) Expensive (participants need incentive)
2) Time consuming
3) Consumer reluctance to participate (some bias)
T/F: Disadvantages are usually offset by the advantages of primary data.
TRUE
Methods of collecting primary data:
1) Survey (most common)
2) Observation
3) Experiments
Advantages of internet surveys:
1) Rapid development, real-time reporting
2) Reduced costs
3) Personalized questions and data
4) Improved respondent participation
5) Contact with the hard to reach (executives)
Disadvantages of internet surveys:
"On the Internet, nobody knows that you're a dog."
Issues with surveys:
1) Interviewer bias: presence of interviewer may change responses
2) Consumer unwillingness to participate: to increase, provide an incentive, make it easy to respond, be honest in your time estimate, and relate survey to something important.
T/F: Personal information should be asked at the beginning of a questionnaire.
FALSE; GPA, income, etc. should not be asked until the end of the interview.
Common types of questions:
1) Rating/rankings: "On a scale of 1 to 10, rate the tastiness of Wendy's food."
2) Likert scale: "Wendy's food was excellent. To what extent do you agree/disagree with the above statement?"
3) Semantic differential: "The food at Wendy's restaurant was excellent _ _ _ _ _ awful."
4) Projective technique: "If a Wendy's hamburger could talk to a McDonald's or a Burger King hamburger, what would it say?"
Questions to avoid:
1) Leading ("Wouldn't you agree...?")
2) Loaded ("There have been x # of deaths since the war began...")
3) Double barreled (2 questions in 1)
4) Jargon or inappropriate terminology (8th grade level)
Types of probability samples:
1) Random sampel: every member has equal chance of being selected.
2) Stratified random: population is first divided into exclusive groups, then each group is randomly sampled (EX: male vs. female).
3) Systematic random: based upon random starting point, every nth person selected.
Sources of Competitive Intelligence:
1) Internet
2) Company salespeople
3) Experts
4) CI Consultants
5) Government agencies
6) UCC Filings
7) Suppliers
8) Periodicals
9) Yellow pages
10) Trade shows
Types of shopping products:
1) Homogeneous: boils down to price (EX: washers/dryers)
2) Heterogeneous: noticeable difference (EX: colleges & clothes)
Firms usually sell a large number of different items to . . .
appeal to different markets and to meet different price points.
Product line _____ and product mix _____
depth, width
Benefits of branding:
1) Product identification
2) Repeat sales
3) New product sales
The ______ ___ protects brand names.
Lanham Act
Characteristics of a good brand name:
1) Easy to say and remember
2) Suggests product use
3) Can be easily translated
4) Not offensive
Family brand
Marketing several different products under the same brand name (EX: Johnson&Johnson).
Functions of packaging
1) Contain and protect
2) Promote
3) Facilitate storage, use, and convenience
4) Facilitate recycling
5) Provide information
Categories of "new" products:
1) New-to-the-World (EX: microwave oven)
2) New to the company
a. New product lines
b. Additions to the product line
3) Modifications to existing products (EX: upside-down ketchup bottles)
New-product development process:
1) New-product strategy
2) Idea generation
3) Idea screening
4) Business analysis
5) Development (lengthiest stage)
6) Test marketing
7) Commercialization
8) New product
Idea screening
The first filter in the product development process, which eliminates bad ideas.
Considerations in business analysis stage:
1) Demand
2) Cost
3) Sales
4) Profitability
Development
1) Creation of prototype
2) Marketing strategy
3) Packaging, branding, labeling
4) Promotion, price, and distribution strategy
5) Manufacturing feasibility
6) Final government approvals if needed
Commercialization
1) Production
2) Inventory Buildup
3) Distribution shipments
4) Sales training
5) Trade announcements
6) Customer advertising
T/F: Test markets guarantee success in the market.
FALSE; Test markets do not guarantee success in the market but will reduce risk.
Factors in successful new products:
1) Match between product and market needs.
2) Different from substitute products.
3) Benefit to large number of people.
Why new products fail:
1) No discernible benefits
2) Poor match btwn features and customer desires
3) Overestimation of market size
4) Incorrect positioning
5) Price too high or too low
6) Inadequate distribution
7) Poor promotion
8) Inferior product
Product Characteristics and the Rate of Adoption
1) Complexity
2) Compatibility
3) Relative advantage
4) Observability
5) Trialability
Categories of adopters:
1) Innovators (2 1/2%), seeking risk (1st to try/have)
2) Early adopters (13 1/2%), opinion leaders (gaint trust)
3) Early majority (34%), deliberate & ask
4) Late majority (34%), rely heavily on those around us (skeptical)
5) Laggards (16%), not actively sought by marketers
Introductory stage
1) High failure rates
2) Little competition
3) Frequent product modification
4) Limited distribution
5) High marketing and production costs
6) Negative profits with slow sales increases
7) Promotion focuses on awareness and information
8) Communication challenge is to stimulate primary demand
Growth stage
1) Increasing rate of sales
2) Entrance of competitors (selective demand)
3) Market consolidation
4) Initial healthy profits (profits increase, peak, then decrease)
5) Aggressive advertising of the differences between brands
6) Wider distribution
Maturity stage
1) Sales increase at a decreasing rate
2) Saturated markets
3) Annual models appear
4) Lengthened product lines
5) Service and repair assume important roles
6) Heavy promotions to consumers and dealers
7) Marginal competitors drop out
8) Niche marketers emerge
Decline stage
1) Long-run drop in sales
2) Large inventories of unsold items
3) Elimination of all nonessential marketing expenses
4) "Organized abandonment," which entails reviewing every product, service, and policy every two or three years and asking the critical question, "If we didn't do this already, knowing what we now do, would we go and do it?" (Peter Drucker)
Extending time in the PLC
1) Increase frequency of use by same consumers (EX: toothbrush color strip fades after three months, although we get a new toothbrush every six months at the dentist).
2) Increase number of users (EX: Milk's not just for kids).
a. Expand into different target market with the same product.
3) Find new uses (EX: Arm & Harmor baking soda)
a. Identify new applications of the product.
Physical supply network (downstream)
1) Raw materials
2) Components
3) Manufacturers
Marketing channel (upstream)
1) Manufacturers
2) Resellers
3) Consumers
Merchant wholesaler
1) Buys and takes title to goods from manufacturers
2) Stores, ships, and sells to other businesses
Agent and/or broker
Facilitates sale btwn manufacturer and others. Does not take title to the merchandise.
Marketing channel functions:
1) Specialization and division of labor.
2) Overcoming discrepancies.
3) Providing contact efficiency.
By overcoming discrepancies, channels provide:
1) Time
2) Place
3) Assortment
4) Possession utility (added value)
Manufacturers must decide . . .
the number of levels in the channel and the distribution intensity at each level.
Factors in deciding number of levels:
1) Market characteristics: size, geographic dispersion, buying patterns (What group of consumers are we extending our products to?)
2) Product factors: complexity, cost, ease of movement
3) Company (manufacturing) factors: size, desire for control, diversity in consumers/retailers
Shorter more direct channel for:
1) Complex, expensive, customized items
2) Many B2B products
Longer, more indirect channel for:
1) Low cost, standard items
2) Most consumer products
Levels of distribution intensity:
1) Intensive: convenience goods (many intermediaries)
EX: Coke
2) Selective: shopping and some specialty goods (several intermediaries)
EX: Not every department store, just Nordstrom's, Saks, Barneys, etc.
3) Exclusive: specialty goods and industrial equipment (one intermediary)
EX: Flour example
Disintermediation
Elimination or reduction in the number of levels
T/F: Regardless of the channel structure, all functions must be performed by someone.
TRUE
Objective of logistics
To give the customer (channel member or consumer) the needed level of customer service at the lowest cost.
Logistical components of the supply chain:
1) Sourcing & procurement
2) Production scheduling
3) Order processing
4) Inventory control
5) Warehouse & materials handling
6) Transportation
7) Logistics Information System
Objective of sourcing and procurement:
1) Obtain needed supplies in right quality at lowest cost
2) Develop long term relationships with suppliers.
Production scheduling:
Determining method and timing of the manufacturing of a mix of products (build to stock versus build to order)
Order processing
A system for easily receiving orders and accurately and quickly filling them (EX: EDI)
Goal of inventory control:
To meet product availability standards while keeping costs low (EX: MRP and DRP systems)
Materials handling functions:
Moving products within a facility (receiving, sorting, storing, finding, getting ready for shipment)
5 modes of transportation:
1) Railroads
2) Motor carriers
3) Pipelines
4) Water
5) Airways
Trends in supply chain management
1) Advanced computer technology (RFID)
2) Outsourcing of logistics functions (3PLs--3rd party logistic providers)
3) Electronic distribution