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75 Cards in this Set
- Front
- Back
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Business-to-business (B2B) e-commerce
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Commerce conducted using Internet-based exchanges. Businesses or organizations locate each other’s goods and services via e-commerce forums.
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B2B marketing
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The marketing of goods and services to business customers that need them to enable their production of goods and services. A business my purchase goods and services that are:
1) part of the products/services they make and sale (i.e., BMW buying auto engines), or raw materials such as shoe leather 2) resold such as when Ford purchases Nissan cars and puts their name plate on them. Value-added resellers take a product and modify it for a customer (i.e., IT consultants buy software then modify it for resale, such as Protiviti buying SAP software and customizing it for resale 3) in support of their operations (i.e., consumables such as copy paper and hand soap) |
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B2B markets
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The group of customers that include manufacturers, wholesalers, retailers, and other organizations. In comparison to B2C, are characterized as a relatively small # of players, yet a huge $$ amount.
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Buy Class
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Business purchases are classified as being one of three types. The three classifications are based on the degree of time and effort required to make a decision. The three categories are straight re-buy, modified re-buy, new task buy).
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Buying center
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The group of people in an organization who participate in a purchase decision. Can include purchasers, legal, engineering, and other advisors. These can be full-time purchasing dept. employees or called in as needed.
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Derived Demand
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Demand for business or organizational products (tires) caused by demand for consumer goods of services (autos).
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Inter-organizational system (IOS)
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A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization. An example is the Wal-mart extranet that suppliers have to use to communicate order info or a system built on SAP’s Enterprise Resource Planning (ERP system)
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Government markets
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The federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations.
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Inelastic demand
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Demand in which changes in price have little or no effect on the amount demanded. For example a coffee shop's demand for coffee beans is inelastic - (unaffected by price). A company hopes the demand for their product’s (tires) is relatively inelastic (demand is impervious -uneffected by price changes).
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Joint Demand
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a kind of demand that occurs when the demand for two or more products (or services) are interdependent, normally because they are used together.
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Modified re-buy
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One of the three buying situation classifications used buy business buyers. A previously made purchase that involves some change and that requires limited decision making to deal with the changes is called a modified re-buy. For example instead of buying a fleet of rental cars, Avis buys a fleet of hybrid vehicles.
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Multiple Sourcing
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The business practice of buying a particular product from several different suppliers. Doing this can keep the price down as companies compete for your business
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New-task buy
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A new business-to-business purchase that is complex or risky and that requires extensive decision making. This occurs when you have no experience buying the product or service. For ex: a small business buying a we-hosting service.
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Private exchanges
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E-commerce systems that link an invited group of suppliers and partners over the web. These are industry groups organized around the production of, for example, meat, steel, ceramics, etc.
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Product Specs
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A written description of the quality, size, weight, and so forth required of a product purchase. When creating an RFP, a business defines the specs they need the requested products/services to meet. The more detailed the specs, the higher the product/service quality will be.
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Reciprocity
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A trading partnership in which two firms agree to buy from one another.
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Request for proposal (RFP)
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a company asks suppliers to place bids (proposals) on a job (such as to build a building or provide component parts or services). Proposals are needed as the job specs are unique (ex: construction job).
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Single Sourcing
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The business practices of buying a particular product from only one supplier. This is pretty risky. Many technology companies (computers, software, or equipment like cat scan machines) try to lock a customer in by using proprietary technologies.
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Straight re-buy
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A buying situation in which business buyers make routine purchases that require minimal decision making. re-buy the same product from a pre-approved vendor. The choice of vendor, delivery specs, and price may change though, but not the product.
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80/20 rule
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A marketing heuristic that claims that 20% of purchasers account for 80% of a product’s sales.
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Concentration targeting strategy
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Focusing a firm’s efforts on offering one ore more products to a single segment
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Custom marketing strategy
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An approach that tailors specific products and the messages about them to individual customers.
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Customer relationship management (CRM)
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A philosophy that sees marketing as a process of building long-term relationships with customers to keep them satisfied and to keep them coming back. Involves systematically tracking consumers’ preferences and behaviors over time in order to tailor the value of proposition as closely as possible to each individual’s unique wants and needs.
Said another way, the purpose of CRM is to increase revenues, profits, and customer service by understanding customer preferences and catering to them in such a way that they choose to spend additional dollars with your firm. Its the use of information to change behaviors that makes the difference. If you understand customer preferences than you can segment them and use different promotions to talk to them. |
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Demographics
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Statistics that measure observably aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure
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Differentiated targeting strategy
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Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace
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Geocoding
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Customizing advertising (Web, print ads, Radio ads, TV ads, etc.) so that people who live or log on in different places will be exposed to advertising for local businesses
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Geodemography
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A segmentation technique that combines geography with demographics. You map demographic consumer segments to neighborhoods/regions.
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Mass customization
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An approach that modifies a basic good or service to meet the needs of an individual.
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Perceptual Map
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A vivid way to construct a picture of where products or brands are “located” in consumer’s minds
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Positioning
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eloping a marketing strategy aimed at influencing how a particular market segment (persuading consumers) perceives a good or service in comparison to the competition.
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Psychographics
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The use of psychology, sociological, and anthropological factors to construct market segments. Segments are formed based on attitudes, interests and opinions
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Repositioning
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Updating a product's position (such as the promotional materials) to respond to new marketplace changes.
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Share of customer
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The percentage of an individual customer’s purchase of a product that is a single brand.
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Target market strategy
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Dividing the total market into different segments on the basis of consumer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments.
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Undifferentiated targeting strategy
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Appealing to a broad spectrum of people
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Usage occasions
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An indicator used in one type of market segmentation based on when consumers use a product most.
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Three steps in targeting
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Evaluate, develop, choose
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Four steps in positioning
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evaluate (competition), create, develop, measure
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Augmented product
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The actual product plus other supported features such as warranty, credit, delivery, installation, bundled services, and repair service after the sale.
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Business analysis
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The step in the product development process in which marketers assess a product’s commercial viability.
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commercialization
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The final step in the product development process in which a new product is launched into the market.
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compatibility
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The extent to which a new innovation is consistent with the target market’s existing cultural values, customs, and practices. For example the IPOD was compatible with people's desire to control the music they carried around and listened to.
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Continuous innovation
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A change (an improvement) in an existing product that requires no consumer learning (ie., ipod’s change from using hard-drives to flash memory).
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Dynamically continuous innovation
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A change in an existing product that requires a moderate amount of learning or behavior change (i.e., switching to hydrogen cars from gas cars)
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convenience product
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A consumer good or service that is usually low-priced, widely available, or purchased frequently with a minimum of comparison or effort.
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convergence
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The coming together of two or more technologies or industries to create a new system with greater benefits than its parts. Ex: iPhone or G3 phone which can download songs, make/play videos, do email, and Internet browsing.
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Diffusion
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The process by which the use of a product spreads throughout a population.
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Discontinuous (disruptive) innovation
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A totally new product that creates major changes in the way we live. Some examples are PC’s, refrigerators, and email.
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gap analysis
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is a measurement tool that gauges the difference between a customer’s expectations of product or service quality and that level which actually occurred
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Idea Generation
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The first step of product development in which marketers brainstorm for products that provide customer benefits and are compatible with the company mission.
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Product concept development and screening
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The second step of product development in which marketers test product ideas for technical and commercial success.
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Staples
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Basic or necessary items that are available almost everywhere.
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Shopping product
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A good or service for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase. Consumers have enduring involvement for shopping products (ex: coffee beans).
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Slotting allowance
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the fee that retail vendors charge to a manufacturer, or wholesaler to ensure a good product placement. For example the products are placed near the front of the store, at the end of each aisle, or at eye-level on the shelves.
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Specialty product
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A type of good or service that has unique characteristics which often makes the the consumer brand loyal. There are probably not any 'generics' for the product
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Test marketing
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Testing the complete marketing plan in a small geographic area that is similar to the large market the firm hopes to enter
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Trialability
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The ease of sampling a new product and its benefits. For example test driving a car.
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Unsought products
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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.
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Brand Equity
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Based on sales projections, brand equity is the financial value of a brand to an organization. The value of a product line is greatly increased when the product line is branded (ask Pillsbury).
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Brand manager
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Organizational employee whom is responsible for developing, implementing and refining the marketing plan for a single brand. This person makes sure the marketing communications and 4p's are consistent across the product line, so that the product synergistically fit together. Over time the brand manager runs marketing research studies to discover what the brand means to consumers.
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Cannibalization
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When a company's product sells a lot and 'eats' the sales of the current product line. The loss of sales of an existing brand or product line when a new item in a product line or product family is introduced. For example sales of coke classic dropped when coke zero was introduced. This can be a problem if the profit margin for the new product is lower than the (cash cow) existing product.
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Co-branding
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An agreement between two brands to work together in marketing a new product. (Ex: Eddie Bauer Ford, Morgan Pepsi).
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Family Brand
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A brand that a group of individual products or individual brands share. Ex: All Microsoft products have the word Microsoft in their product name or advertising, ditto Disney. The opposite to this is individual branding where consumer don't know the brands are from the same manufacturer (ex: did you know Proctor & Gamble sells Tide Soap, Pringles and Pampers diapers? Each of those is its own family brand, but P&G does not leverage its brand name on any of these products.)
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Generic branding
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No brand = product is a commodity (see large bins at Winco). A strategy in which products are not branded and are sold at the lowest possible price.
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Ingredient branding
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One company buys a license to incorporate the other brand in its recipe or design. Branded materials are used as ingredients or component parts of other branded products (M&M's Blizzard's at Dairy Queen). Or a company (Intel) pays another (MSFT, or Dell) to highlight the fact that it is part of the product.
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Licensing
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An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time. (Ex: licensed toys). There is approval of usage of brand name but there is no working together (co-design). Think generic manufacturing company licensing Spiderman logo to create new set of toys.
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National or manufacture brands
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Brands that are owned by the manufacturer of the product. This is the normal case, ex: ford, Ben & Jerry's, etc.
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Package
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The covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication (such as usages, benefits, instructions for usage, etc.)
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Private-label brands
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Brands that are owned and sold by a certain retailer of distributor (ex: Safeway's Select or Costco's Kirkland)
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Product category managers
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individuals who are responsible for developing and implementing the marketing plan for all the branded products within one product line
(Ex: all Tide detergents for P&G, all trousers for Dockers) |
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Product line
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A firm’s total product offering designed to satisfy a single need or desire of target customers (ex: all the different types of Starbucks Roasted Whole Bean Coffee)
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Product mix
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the total set of all product lines a firm offers for sale. The product mix can be one product line or many (referred to as narrow or wide).
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Retro brand
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This is a brand that has been on the market for a long time, such as Converse Chuck Taylor sneakers or SPAM. The marketing strategy is to rejuvinate (reposition) the brand to resonate with the current generation (ex: this is not your fathers shaving cream)
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Total quality management (TQM)
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A management philosophy that incorporates the ideals of continuous improvement and a myriad of performance measures. TQM measures indiacate whether in fact business performance is improving, stagnant, or declining
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Trademark
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The legal term for a brand name, brand mark, or trade character; trademarks need to be legally registered by a government to obtain protection for exclusive use in that country or territory.
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