Marketing Ch 8-9

Front 1

marketing research

Back 1

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions

Front 2

decision

Back 2

a conscious choice from among two or more alternatives

Front 3

measures of success

Back 3

criteria or standards used in evaluating proposed solutions to the problem

Front 4

constraints

Back 4

restrictions placed on potential solutions to a problem

Front 5

what is the five-step marketing research approach?

Back 5

define the problem, develop the research plan, collect relevant information, develop findings, and take marketing actions

Front 6

data

Back 6

facts and figures related to the problem

Front 7

secondary data

Back 7

facts and figures that have already been recorded before the project at hand

Front 8

primary data

Back 8

facts and figures that are newly collected for the project

Front 9

what are some advantages and disadvantages of secondary data?

Back 9

two advantages of secondary data are the tremendous time savings because the data have already been collected and published or exist internally and the low cost, such as free or inexpensive Census reports. Disadvantages are the secondary data may be out of date and the definitions or categories might not be quite right for a researcher's project.

Front 10

observational data

Back 10

facts and figures obtained by watching, either mechanically or in person, how people actually behave

Front 11

questionaire data

Back 11

facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

Front 12

information technology

Back 12

operating computer networks that can store and process data.

Front 13

which survey provides the greatest flexibility for asking probing questions: mail, telephone, or personal interview?

Back 13

individual interview

Front 14

what is the difference between a panel and an experiment?

Back 14

A panel is a sample of consumers or stores from which researchers take a series of measurements. An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect.

Front 15

data mining

Back 15

the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

Front 16

sales forecast

Back 16

the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.

Front 17

what are the three kinds of sales forecasting techniques?

Back 17

judgments of the decision maker, surveys of knowledgeable groups, and statistical methods.

Front 18

how do you make a lost-horse forecast?

Back 18

starting with he last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast. The technique gets its name from how you'd find a lost horse: go to where it was last seen, put yourself in its shoes, consider those factors that could affect where you might go, and go there.

Front 19

Identify the reason for conducting marketing research

Back 19

To be successful, products and marketing programs must meet the wants and needs of potential customers. So marketing research reduces risk by providing the vital information to help marketing managers understand those wants and needs and translate them into marketing actions.

Front 20

Describe the five-step marketing research approach that leads to marketing actions.

Back 20

Marketing researchers engage in a five-step decision-making process to collect information that improves marketing decisions. The first step is to define the problem, which requires setting the research objectives and identifying possible marketing actions. The second step is to develop the research plan, which involves specifying the constraints, identifying data needed for marketing decisions, and determining how to collect the data. The third step is to collect the relevant information, which includes considering pertinent secondary data (both internal and external) and primary data (by observing and questioning consumers) as well as using information technology and data mining to trigger marketing actions. The fourth step is to develop findings from the marketing research data collected. This involves analyzing the data and presenting the findings of the research. The fifth and last step is to take marketing actions, which involves making and implementing the action recommendations.

Front 21

Explain how marketing uses secondary and primary data.

Back 21

Secondary data have already been recorded before the start of the project and consist of two parts: (a) internal secondary data, which originate from within the organization, such as sales reports and customer comments, and (b) external secondary data, which are created by other organizations, such as the U.S. Census Bureau (provides data on the country's population, manufacturers, retailers, and so on) or business and trade publications (provide data on industry trends, market size, etc.). Primary data are collected specifically for the project and are obtained by either observing or questioning people.

Front 22

Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.

Back 22

Marketing researchers observe people in various ways, such as electronically using Nielsen people meters to measure TV viewing behavior or personally using mystery shoppers or ethnographic techniques. A recent electronic innovation is neuromarketing— using high-tech brain scanning to record the responses of a consumer's brain to marketing stimuli like packages or TV ads. Questionnaires involve asking people questions (a) in person using interviews or focus groups or (b) via a questionnaire using a telephone, fax, print, e-mail, or an Internet survey. Panels involve a sample of consumers or stores that are repeatedly measured through time to see if their behaviors change. Experiments, such as test markets, involve measuring the effect of marketing variables such as price or advertising on sales. Collecting data from social networks like Facebook or Twitter is increasingly important because users can share their opinions about products and services with countless "friends" around the globe.

Front 23

Explain how information technology and data mining lead to marketing actions.

Back 23

Today's marketing managers are often overloaded with data— from internal sales and customer data to external data on TV viewing habits or grocery purchases from the scanner data at checkout counters. Information technology enables this massive amount of marketing data to be stored, accessed, and processed. The resulting databases can be queried using data mining to find statistical relationships useful for marketing decisions and actions.

Front 24

Describe three approaches to developing a company's sales forecast.

Back 24

One approach uses subjective judgments of the decision maker, such as direct or lost-horse forecasts. A direct forecast involves estimating the value to be forecast without any intervening steps. A lost horse forecast starts with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast. Surveys of knowledgeable groups is a second method. It involves obtaining information such as the intentions of potential buyers or estimates of the salesforce. Statistical methods involving extending a pattern observed in past data into the future is a third example. The best-known statistical method is linear trend extrapolation.

Front 25

market segmentation

Back 25

involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

Front 26

market segments

Back 26

the relatively homogeneous groups of prospective buyers that result from the market segmentation process.

Front 27

product differentiation

Back 27

this strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products.

Front 28

in terms of market segments and products, what are the three market segmentation strategies?

Back 28

identify market needs, link needs to actions, and execute marketing program actions.

Front 29

usage rate

Back 29

the quantity consumed or patronage during a specific period

Front 30

80/20 rule

Back 30

a concept that suggest 80 percent of a firm's sales are obtained from 20 percent of its customers.

Front 31

market product grid

Back 31

a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization

Front 32

what factor is estimated or measured for each of the cells in a market-product grid?

Back 32

market size

Front 33

what are some criteria used to decide which segments to choose for targets?

Back 33

market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization's objectives and resources.

Front 34

how are marketing and product synergies different in a market-product grid?

Back 34

market synergies run horizontally across the grid, each row represents an opportunity for efficiency in terms of a market segment. product synergies run vertically down the market-product grid, each column represents an opportunity for efficiency in research and development and production.

Front 35

product positioning

Back 35

the place a product occupies in consumers' minds on important attributes relative to competitive products

Front 36

product repositioning

Back 36

changing the place a product occupies in a consumer's mind relative competitive products

Front 37

perceptual map

Back 37

means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand

Front 38

Explain what market segmentation is and when to use it.

Back 38

Market segmentation involves aggregating prospective buyers into groups that (a) have common needs and (b) will respond similarly to a marketing action. Organizations go to the expense of segmenting their markets when it increases their sales, profits, and ability to serve customers better.

Front 39

Identify the five steps involved in segmenting and targeting markets.

Back 39

Step 1 is to group potential buyers into segments. Buyers within a segment should have similar characteristics to each other and respond similarly to marketing actions like a new product or a lower price. Step 2 involves putting related products to be sold into meaningful groups. In step 3, organizations develop a market-product grid with estimated sizes of markets in each of the market-product cells of the resulting table. Step 4 involves selecting the target market segments on which the organization should focus. Step 5 involves taking marketing mix actions —often in the form of a marketing program—to reach the target market segments.

Front 40

Recognize the bases used to segment consumer and organizational markets.

Back 40

Bases used to segment consumer markets include geographic, demographic, psychographic, and behavioral ones. Organizational markets use the same bases except for psychographic ones.

Front 41

Develop a market-product grid to identify a target market and recommend resulting actions.

Back 41

Organizations use five key criteria to segment markets, whose groupings appear in the rows of the market-product grid. Groups of related products appear in the columns. After estimating the size of market in each cell in the grid, they select the target market segments on which to focus. They then identify marketing mix actions—often in a marketing program—to reach the target market most efficiently.

Front 42

Explain how marketing managers position products in the marketplace.

Back 42

Marketing managers often locate competing products on two-dimensional perceptual maps to visualize the products in the minds of consumers. They then try to position new products or reposition existing products in this space to attain the maximum sales and profits.