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168 Cards in this Set
- Front
- Back
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Economic Buyers
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People who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money.
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Economic Needs
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which are concerned with making the best use of a consumers' time and money--the consumer judges it (economic buyers)
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Examples of Economic Needs
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1. economy of purchase or use
2. Efficiency in operation or use 3. Dependability in use 4. Improvement of EArnings 5. Convenience |
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Needs
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basic forces that motivate a person to do something
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Wants
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"needs" that are learned during a person's life
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Drive
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a strong stimulus that encourages action to reduce a need
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Physiological Needs
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concerned with biological needs--food, liquid, rest, and sex
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Safety Needs
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Concerned with protection and physical well-being (perhaps involving health, financial security, medicine, and excersicse)
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Social Needs
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Concerned with love, friendships, status, and esteem--things that involve a person's interaction with others
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Personal Needs
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Concerned with an individual's need for personal satisfaction--unrelated to what others think or do. Ex. accomplishment, fun, freedom, and relaxation--make the world a better place
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Perception
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How we gather and interpret information from the world around s.
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Selective Exposure
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Our eyes and minds seek out and notice only information that interests us.
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Selective Perception
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We screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
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Selective Retention
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We remember only what we want to remember
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Learning
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A change in a person's thought processes caused by prior experience
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Cues
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products, signs, ads, and other stimuli in the environment
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Response
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An effort to satisfy a drive. Response depends on the cues and persons past experiences.
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Reinforcement
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occurs when the response is followed by satisfaction --reduction of the drive. strengthens the relationship between the cues and the response
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Attitude
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a person's point of view toward something.
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Belief
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a person's opinion about something
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Expectation
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An outcome or event that a person anticipates or looks forward to.
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Trust
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the confidence a person has in the promises or actions of another person, brand, or company.
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Psychographics or lifestyle analysis
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the analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions
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Social Class
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a group of people who have approximately equal social position as viewed by others in the society
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Reference Group
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the people to whom an individual looks when forming attitudes about a particular topic
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Opinion Leader
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A person who influences others.
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Culture
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the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people
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Extensive Problem Solving
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when they put much effort into deciding how to satisfy a need--as is likely for a completely new purchase or to satisfy an important need.
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Limited Problem Solving
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Used by consumers when some effort is required in deciding the best way to satisfy a need. Some previous experience with the product but isn't quite sure which choice to make at the moment.
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Routinized Response Behavior
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When he or she regularly selects a [articular way of satisfying a need when it occurs. When a consumer has considerable experience in how to meet a specific need and requires no new information.
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Low-Involvement Purchases
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purchases that have little importance or relevance for the customer.
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Dissonance
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A feeling of uncertainty about whether the correct decision was made.
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Adoption Process
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the steps individuals go through on the way to accepting or rejecting a new idea.
1. awareness 2. interest 3. evaluation 4. trial 5. decision 6. confirmation |
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Awareness
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the potential customer comes to know about the product but lacks details. consumer may not even know how it work or what it will do
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Interest
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if the consumer becomes interested, he or she will gather general info and facts about the product
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Evaluation
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a consumer begins to give the product a mental trial, applying it to his or her personal situation
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Trial
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the consumer may buy the product or experiment with it in use.
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Decision
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the consumer decides on either adoption or rejection.
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Confirmation
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the adopter continues to rethink the decision and searches for support for the decision.
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Business and Organizational Customers
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any buys who buy for resale or to produce other goods and services
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Producers of goods and services
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including manufacturers, farmers, real estate developers, hotels, banks, even doctors and lawyers
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Government Units
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federal agencies in the Us and other countries as well as state and local levels
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Nonprofit Organizations
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national organizations such as the red cross and girl scouts as well as local organizations like museums and churches
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Purchasing Specifications
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a written or electronic description of what the firm wants to buy
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ISO 9000
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a way for a supplier to document its quality procedures according to internationally recognized standards
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Purchasing managers
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buying specialists for their employers.
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Multiple buying influence
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means that several people--perhaps even top management--play a part in making a purchase decision.
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Buying Center.
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all the people who participate in or influence a purchase.
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Vendor Analysis
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a formal rating of suppliers on all relevant areas of performance
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Requisition
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a request to buy something
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New-task buying
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occurs when a customer organization has a new need and wants a great deal of information.
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Straight Rebuy
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A routine purchase that may have been made many times before.
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Modified Rebuy
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the in-between process where some review of the buying situation is done--though not as much as in new-task buying.
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Competitive bid
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the terms of sale offered by the supplier in response to the purchase specifications posted by a buyer.
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Negotiated Contract Buying
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agreeing to the contracts that allow for changes in the purchase arrangements
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Outsource
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contract with an outside firm to produce goods or services rather than to produce them internally
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North American Industry Classification System (NAICS) codes
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groups or firms in similar lines of business. the number of establishments, sales volumes, and number of employees--broken down by geographic areas--are given for each NAICS code.
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Open to Buy
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the buyers have budgeted funds that can be spent during the current period
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Resident Buyers
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independent buying agents who work in central markets (NYC, Paris, Rome, Hong Kong, Chicago, LA) for several retailer or wholesaler customers based on outlying areas or other countries. They buy new styles and fashions and fill-in items as their customers run out of stock during the year.
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Foreign Corrupt Practices Act
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passed by the US Congress in 1977, prohibits Us firms from paying bribes to foreign officials.
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Marketing Research
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procedures that develop and analyze new information about a market
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Marketing Information System (MIS)
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an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decision.
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Intranet
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a system for linking computers within a company
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Data Warehouse
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a place where databases are stored so that they are available when needed
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Decision Support System (DSS)
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a computer program that makes it easy for a marketing manager to get and use information as he or she is making decisions
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Search Engine
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a computer program that helps a marketing manager find information that is needed.
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Marketing Dashboard
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displays up-to-the-minute marketing data in an easy-to-read format. usually customized to a manager's areas for responsibility.
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Marketing Model
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is a statement of relationships among marketing variables. helps select best marketing mix
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Scientific Method
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a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them.
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Hypotheses
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educated guesses about the relationships between things or about what will happen in the future.
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Marketing Research Process
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a 5 step application of the scientific method that includes:
1. defining the problem 2. analyzing the situation 3. getting problem specific-data 4. interpreting the data 5. solving the problem |
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Situation analysis
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an informal study of what information is already available in the problem area
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Secondary Data
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information that has been collected or published already
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Primary Data
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information, specifically collected to solve a current problem.
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Research proposal
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a plan that specifies what information will be obtained and how--to be sure no misunderstandings occur later. May include info about costs, what data will be collected, how it will be collected, who will analyze it, and how long the process will take.
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Qualitative Research
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Seeks in depth, open-ended responses, not yes or no answers
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Focus Group Interview
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involves interviewing 6-10 people in an informal group setting. Uses open-ended questions.
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Quantitative Research
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which seeks structured responses that can be summarized in numbers, like percentages, averages, or other statistics.
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Response Rate
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the percentage of people contacted who complete the questionnaire
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Consumer Panels
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a group of consumers who provide information on a continuing basis.
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Experimental Method
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researchers compare the responses of two (or more) groups that are similar except on the characteristic being tested.
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Statistical Packages
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easy-to-use computer programs that analyze data
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Population
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the total group they are interested in
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Sample
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a part of the relevant population
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Confidence Intervals
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the range on either side of an estimate that is likely to contain the true value for the whole population
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Validity
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concerns the extent to which data measure what they are intended to measure.
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Product
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the need-satisfying offering a firm
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Quality
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a product's ability to satisfy customer's needs or requirements
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Product Assortment
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the set of all product lines and individual products that a firms sells
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product line
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a set of individual products that are closely related
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Individual Product
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a particular product within a product line. Ex. each size and flavor of a brand of soap is an individual product.
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Branding
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the use of a name, term, symbol, or design--or a combination of these--to identify a product. It includes the use of brand names, trademarks, and practically all other means of product information.
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Brand Name
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a word, letter, or a group of words or letters.
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TRademark
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includes only those words, symbols, or marks that are legally registered for use by a single company.
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Service Mark
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the same as a trademark except that it refers to a service offering
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Brand Familiarity
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How well customers recognize and accept a company's brand.
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Brand Rejection
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potential customers won't buy a brand unless its image has changed.
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Brand Nonrecognition
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final customers don't recognize a brand at all--even though intermediaries may use the brand name for identification and inventory control. Ex. dinnerware
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Brand Recognition
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customers remember the brand.
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Brand Preference
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which means that target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience.
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Brand Insistence
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customers insist on a firm's branded product are willing to search for it.
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Brand Equity
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The value of a brand's overall strength in the market
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Lanham Act (1964)
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spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them.
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Family Brand
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the same brand name for several products. Ex. Keebler
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Licensed Brand
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a well-known brand that sellers pay a fee to use. Ex. Sunkist
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Individual Brands
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separate brand names for each product--when it's important for the products to each have a separate identity
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Generic Products
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products that have no brand at all other than the identification of their contents and the manufacturer or intermediary
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Manufacturer Brands
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brands created by producers Ex. MasterCard, McDonalds , Colgate
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Dealer Brands/ Private Brands
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brands created by intermediaries. Ex. Craftsman and Kenmore (Sears)
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Battle of the Brands
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the competition between dealer brands and manufacturer brands, what brand will be more popular and who will be in control
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Packaging
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involves promoting protecting, and enhancing the product.
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Universal Product Code (UPC)
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identifies each product with marks readable by electronic scanners.
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Federal Fair Packaging and Labeling Act (1966)
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requires that consumer goods be clearly labeled in easy-to-understand terms to give consumers more information
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Warranty
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explains what the seller promises about its product
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Magnuson-Moss Act (1975)
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producers must provide a clearly written warranty if they choose to offer any warranty.
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Consumer products
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products meant for the final consumer
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Business Products
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products meant for use in producing other products
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convenience products
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products a consumer needs but isnt willing to spend much time or effort shopping for. Products are bought often, require little service or selling, dont cost much, may even be habit.
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Staples
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products that are bought often, routinely, and without much thought ex. breakfast cereal, packaged foods
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Impulse Products
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products that are bought quickly--as unplanned purchases--because of a strongly felt need. Hadn't planned to buy, decides to buy on sight, may have bought the same way many times before, and wants right now.
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Emergency Products
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products that are purchased immediately when the need is great.
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Shopping Products
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products that a customer feels are worth the time and effort to compare with competing products. 2 types 1_ homogenous 2) heterogenous
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Homogenous Shopping Products
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shopping products the customer sees as basically the same and wants at the lowest price. Ex. tvs
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Heterogeneous Shopping Products
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shopping products the customer sees as different and wants to inspect for quality and suitability. Ex. clothing, furniture, spa membership
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Specialty Products
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consumer products that the customer really wants and makes a special effort to find.
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Unsought Products
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products that potential customers don't yet want or know they can buy.
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New Unsought Products
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products offering really new ideas that potential customer don't know about yet
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Regularly Unsought Products
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products--like gravestones, life insurance, and encyclopedias--that stay unsought but not unbought forever.
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Derived Demand
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the demand for business products derives from the demand for final consumer products. Ex. car manufacturers buy about 1/5 of all steel products. If demand for cars drops they'll buy less steel.
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Expense Item
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product whose total cost is treated as a business expense in the year it's purchased
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Capital Item
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long-lasting product that can be used and depreciate for many years
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Installations
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such as buildings, land rights, and major equipment--are important capital items.
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Accessories
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short-lived capital items--tools and equipment used in production or office activities--like Canon's small copy machines.
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Raw Materials
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unprocessed expense items--such as logs, iron ore, and wheat--that are moved to the next production with little handling. Expense Items. 1) farm products 2) natural products
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Farm Products
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grown by farmers--examples are oranges, sugar cane, and cattle
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Natural Products
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products that occur in nature--such as timber, iron ore, oil, and coal
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Components
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processed expense items that become part of a finished product.
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Supplies
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expense items that do not become part of a finished product. 3 types: 1) maintenance 2) repair 3) operating
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Professional Services
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specialized services that support a firm's operations. Usually expense items.
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Product Life Cycle
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describes the stages a really new product idea goes through from beginning to end. 4 major stages:
1. market introduction 2. market growth 3. market maturity 4. sales decline |
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Market Introduction
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sales are low as a new idea is first introduced to a market. Customer's aren't looking for the product.
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Market Growth
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industry sales grow fast--but industry profits rise and then start falling. competitors enter the mkt.
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Market Maturity
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industry sales level off and competition gets tougher. industry profits go down b/c promotion costs rise and some competitors cut prices to attract businesses.
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Sales Decline
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new products replace the old. price competition from dying products becomes more vigorous--but firms with strong brands may make profits until the end because they have successfully differentiated their products.
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Fashion
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the currently accepted or popular style
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Fad
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an idea that is fashionable only to certain groups who are enthusiastic about it. more short lived than fashion
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New Product
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one that is new in any way for the company concerned
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Federal Trade Commission (FTC)
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the federal government agency that polices antimonopoly laws.
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New Product Development Process
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1. idea generation
2. screening 3. Idea evaluation 4. development 4. commercialization |
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Consumer Product Safety Act (1972)
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set up the Consumer product safety commission to encourage safety in product design and better quality control
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Product Liability
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the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products
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Product Managers/Brand Managers
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manage specific products--often taking over the jobs formerly handled by an advertising manager
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Total Quality Management (TQM)
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the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs
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Continuous Improvement
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a commitment to constantly make things better one step at a time.
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Pareto Chart
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a graph that shows the number of times a problem cause occurs, with problem causes ordered from most frequent to least frequent
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Fishbone Diagram
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a visual aid that helps organize cause-and-effect relationships for "things gone wrong"
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empowerment
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giving employees the authority to correct a problem without first checking with management
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Lands End Film
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-catalogs.
-managed from Wisconsin headquarters -merchant-->consumer organizational mkt -buy merchandise office supply, equipment -purchases vary upon consumer demand -gives a competitive advantage -mkter works with buyer= relationships (longterm) -keeping up/staying ahead of technological developments-->quick response system (forecast info, stock, purchase, order info) -crate & barrel= intermediary buyers -lands end designs products-->not buying off someone elses line -geographically--southwest suppliies -rely more on personal selling than advertising -straight rebuys (boxes) -modified rebuys (unfamiliar) ( much of merchandise) -new task purchases (extensive info search/decision process) -buying criteria: 1)economic criteria 2) quality & service criteria 3) vendor criteria -direct merchant |
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the top ____ % of households receive almost half of the total income in the US
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20
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SUP ATX
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- nick matazorkis founder
-new product development -started 17 companies -early on music industry -peoplesearch on the internet (1990s) -from Cali -moved to Malibu -found out best fiberglass (sabine, tx), epoxy (az) -us raw materials -china assembled -us owned shipping companies -launched co around product. |
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brand is the use of a:
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name, term, symbol or deign to identify a product
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Summer 2008 Colt McCoy
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- selling colt mccoy
-building brand name (heisman candidate, humanitarian, student, football player) -espn appearances -public speaking skills -pursue own interests |
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BMW
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-ultimate driving machine
-3rd most recognizable brand -origins: 20th century, vital, pwn mini & rols royce, largest premium country, grow interesting new products, sell to females and minorities -managing life cycle: manage series, stagger start of each new life cycle, intro; growth, maturity, decline, 7 yr product life cycle, science, technology, keep coming back to product-->optimization= stability, revenues increase through life cycle, 1 series-->competes internal mkts, employment of product advocates Branding: numerical naming system= clear and easy understand world, series of short films, website advanced: create own cars Growth Strategy: -innovation attracts competition -monopolistic comp. develops |
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L' Oreal Speaker
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- founded 100 years ago, birth of company with hair dyes. they're still here--people use cosmetics daily. ralph lauren is part of l'oreal.
-patrick jones: manager, global marketing. about 900 fragrance launches every year-and of those, about 99% fail. -young college age mkt was a good target mkt during this recession - launching a collection is very risky in fragrance bus -bloomingdales, dillards, macys- one fragrance might not do as well as the other - new sampling methods, targeted media buys- a lot of unnormal things in industry - avg customer was about 10 years younger, a happy success and result. younger audience introduced a new way to wear a fragrance - polo also did body spray for this line-to expand the reach of this brand, sold $15 price point. succeeded in reaching customers as young as 10 yrs old. |
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Vermont Teddy Bear Company
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- named best small company in america
-people want more than just the teddy bear product- it's the bear delivered in the special box with candy, a message, etc -you get bear dressed for specific holiday, occasion, etc - consumers who purchase vermont teddy bears want to be appreciated for giving a special gift - telling someone you love them, happy bday, get well soon, etc - gentleman who has waited until the last minute- a target -department and toy stores consumer decision process: -problem recognition: they need to buy a gift, they head about the teddy bears while they're driving their car on the radio, etc. news personalities to do live reads - information search: we sell 85% of products to customer who have never seen them. they;ll help you solve a problem or a need, talk to a "bear counselor" - evaluation of alternatives: it's the bear counselors goal to expediate evaluation adn committment -lifetime guarantee- if someone isnt happy they can return it -purchase decision: type of bear, date of delivery, etc. sometimes challenging for bear counselors-people wont know what to put on the card, how to monogram, etc. -Post Purchase Behavior: Customers will want to track their purchases. Maybe the bear didn't arrive on time, the card said the wrong thing, etc. Positive scenario: right bear arrives on time. - in the box there's an air hole for the bear- humanizing it - you can get bears in any race to meet peoples needs - they are listening to their customer to find out what they want - miller got his daughter a RN bear when she graduated from nursing school 0 they have dynamic and diverse demographic. they listen to their customers so they can satisfy them all. - they have latin lover bears, gay bears, redneck bears, playboy bears... |
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USA Today Article: Hungry for a deal? try fast food
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people looking at individual needs and addressing them.
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Lands End Party 2
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reliable delivery in Good quality. uality is more important to them than price. review of vendor references. share their sales forecast with vendors. quick response relationship. collaborative, long-term relationships b/w lands end and their suppliers.
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Branding Kobe in China (article)
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- 300 million bball players in China.
-gov will install 800,000 baskets and backboards in villages throughout china - NBA now has 50 diff deals to televise games throughout China - Nike China launched reality TV show called "Kobe discuples" -for the 2nd consecutive season, Bryant's Lakers jersey was the top-selling NBA jersey in China - this means even after losing endorsement deals due to his legal troubles, Bryant has been successful in his image rehabilitation by recognizing an untapped opportunity |
