Exam 2 Flashcards
the marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services they can produce and market to others
business-to-business marketing
those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or resale
organizational buyer
markets of organizational buyers
industrial, reseller, government
who makes the product?
industrial market
wholesalers and retailers are
reseller market
who buys equipment?
government market
industrial products and services; few customers with large purchases
market characteristics
products or services are technical and purchased on the basis of specifications. many goods are raw or semi finished (ex. lumber). emphasis on delivery time, technical assistance, and post-sale service
product or service characteristics
technically qualified buyers follow established purchase policies and procedures. objectives and criteria are spelled out. multiple buying influences, multiple parties, online buying is widespread
buying process characteristics
characteristics involving the four P’s. direct selling to organizational buyers, distribution is important
marketing mix characteristics
the demand for industrial products is derived from the demand of consumer products and services (ex. fidget spinners)
derived demand
objective buying attributes of the supplier’s products and services and the capabilities of the supplier itself
organizational buying criteria
the deliberate effort by organizational buyers to build relationships that shape supplier’s products, services, and capabilities to shape a buyer’s needs and those of its customers
supplier development
an industrial buying practice in which two organizations agree to purchase each other’s products and services
reciprocity
when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumers
supply partnership
the decision making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers
organizational buying behavior
the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision
buying center
consists of three types of organizational rebuy: straight, modified, and new buy
buy classes
online trading communities that bring together buyer and supplier organizations to make possible the real-time exchange of information, money, products, and services
e-marketplaces
in an e-marketplace, an online auction in which a seller puts up an item for sale and would-be buyers are invited to bid in competition with each other
traditional auction
in an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other
reverse auction
the practice of using barter rather than money for making global sales
countertrade
the monetary value of all products and services in a country during one year
gross domestic product (GDP)
who accounts for 2/3 of world trade?
US, China, Japan, Western Europe, and Canada
how much money does economic espionage cost US firms per year?
$600B
the difference between the monetary value of a nation’s exports and imports
balance of trade
the focus on creating economic, cultural, political, and technological interdependence among individual nation institutions and economies
globalization
the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs and quotas
protectionism
government taxes on products or services entering a country that primarily serve to raise prices on imports
tariff
a restriction placed on the amount of a product allowed to enter or leave a country
quota
types of companies
international, multinational, transnational
uses the same marketing strategy from their home country in others
international firm
utilizes different marketing strategies in different countries
multinational firm
mostly the same globally, with cultural tweaks based on the country
transnational firm
a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
global brand
the studies of similarities and differences among consumers in two or more nations or societies
cross-cultural analysis
the clandestine collection of trade secrets or proprietary information about a company’s competitors
economic espionage
personally or socially shared modes of conduct or states of existence that tend to persist over time
values
what is considered normal and expected about the way people do things in a specific country
customs
things that represent ideas and concepts in a specific culture
cultural symbols
the practice where a translated word or phrase is retranslated into the original translation by a different interpreter to catch errors
back translation
the belief that aspects of one’s culture are superior to another’s
cultural ethnocentricity
the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products
consumer ethnocentrism
assessment of economic infrastructure, measurement of consumer income, recognition of currency exchange rates
economic considerations
a country’s communication, transportation, financial, and distribution systems
economic infrastructure
the price of one country’s currency expressed in terms of another country’s currency
currency exchange rates
exporting, licensing, joint venture, direct investment
means of market entry
a global market-entry strategy in which a company produces products in one country and sells them in another country
exporting
when a firm sells its domestically produced products in a foreign country through an intermediary
indirect exporting
when a firm sells its domestically produced products in a foreign country without an intermediary
direct exporting
a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for royalty or fee
licensing
a global-market strategy in which a foreign company and local firm invest together to create a local business in order to share ownership, control, and profits of the new company
joint venture
entails a domestic firm actually investing in and owning a foreign subsidiary or division
direct investment
ways a product can be sold
product extension, product adaptation, product invention
in the same form as home market
product extension
in the same form as home market with adaptations
product adaptation
a totally new product from the one sold at the home market
product invention
when a firm sells a product in a foreign country below its domestic price or below its actual cost
dumping
a situation where products are sold through unauthorized channels of distribution
gray market
What question did we ask in class about the Pepsi Challenge?
Which one did you prefer?
the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
marketing research
define the problem, develop the research plan, collect relevant information, develop findings, take marketing actions
marketing approach
step one of the marketing approach
define the problem
types of research
exploratory, descriptive, casual
what happens in step one of the marketing approach?
have a clear research purpose, set objectives
criteria or standards used in evaluating proposed solutions to the problem
measures of success
step two of the marketing approach
develop the research plan
in a decision, the restrictions placed on potential solutions to a problem
constraints
what happens in step two of the marketing approach?
specify constraints, identify data needed, determine how to collect data
step three of the marketing approach
collect relevant information
the facts and figures
data
already exists
secondary data
newly collected
primary data
data coming from inside the organization needing research
internal secondary data
data coming from outside the organization needing research
external secondary data
time savings and inexpensive
pros of secondary data
out of date, definitions/categories not right, not specific enough
cons of secondary data
facts and figured obtained by watching how people actually behave, using mechanical, personal, or neuromarketing data collection methods
observational data
technologies used to study the brain
neuromarketing
the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors
questionnaire data
a sample of consumers or stores from which researchers take a series of measurements
panels
offer a product for sale in a small geographic area to help evaluate potential marketing actions
test market
a vague term generally used to describe large amounts of data collected from a variety of sources and analyzed with an extremely sophisticated set of technologies
big data
includes all of the computing resources that collect, store, and analyze data
information technology (IT)
the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions
data mining
more flexible, more specific to the problem
pros of primary data
expensive, time consuming
cons of primary data
step four of the marketing approach
develop findings
what happens in step four of the marketing approach?
analyze data, present findings in an understandable way
step five of the marketing approach
take marketing actions
what happens in step five of the marketing approach?
make action recommendations, implement action recommendations, evaluate results (the decision itself, the decision process)
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
sales forecast
involves aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action
market segmentation
a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive a product as being different and better than competing products
product differentiation
a framework to relate to the market segments of potential buyers to products offered or potential marketing actions
market-product grid
one product and multiple segments, multiple products and multiple segments, segments of one “mass customization”
market segmentation strategies
example of one product and mulitiple segments
harry potter
example of multiple products and multiple segments
cars
example of mass customization
nike shoes
all consumers get what they want
mass customization
the increased customer value involves adding new products or a chain of stores, but it takes customers away from the older stores
cannibalization
the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently
organizational synergy
geographic, demographic, psychographic, behavioral
ways to segment consumer markets
segmenting based on location
geographic segmentation
segmenting based on objective attributes
demographic segmentation
segmenting based on personality and lifestyle
psychographic segmentation
segmenting based on product features and usage rate
behavioral segmentation
character description of a typical customer in the form of fictional character narratives, complete with images that capture the personalities, values, attitudes, beliefs, demographics, and expected interactions with a brand
personas
identify and label the markets and product groupings
forming a market-product grid
in a market-product grid, what row is the markets
horizontal rows
in a market-product grid, what row is the product groupings
vertical rows
simplicity and cost-effectiveness, potential for profit, similarity of needs of buyers in segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment
criteria for forming segments
market size, expected growth, competitive position, cost of reaching the segment, organizational compatibility
criteria to select target market
the place a product occupies in consumers’ minds based on important attributes relative to competitive products
product positioning
changing the place a product occupies in a consumer’s mind relative to competitive products
product repositioning
a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand
perceptual map
how many products do most consumers buy consistently?
150
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received in exchange for money or something else of value
product
tangible attributes that a consumer’s five senses can perceive
good
an item consumed in one or a few uses
nondurable good
example of nondurable good
fuel, food
usually lasts over many uses
durable good
example of a durable good
car, smartphone
intangible activities or benefits than an organization provides to satisfy consumers’ needs in exchange for money or something else of value
services
a thought that leads to a product or action
idea
examples of an idea
telling people to vote
products purchased by the ultimate consumer
consumer products
the type of consumer product varies based on
the effort, the attributes, the frequency
items the consumer purchases frequently, conveniently, and with a minimum of shopping effort
conveinence products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
shopping products
items the consumer makes a special effort to search out and buy
specialty products
items the consumer does not know about or knows about but does not initially want
unsought products
products organizations buy that assist in providing other products for resale
business products
different forms within the product class
product forms
a specific item that has a unique brand, size, or price
product items
a group of product or service lines that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
product line
consists of all product lines offered by an organization
product mix
if a product is functionally different from existing products
newness
customers don’t need to know new behaviors
continuous innovation
minor changes in customer behavior
dynamically continuous innovation
making the consumer learn entirely new consumption patterns to use the product
discontinuous innovation
six months after the product enters regular distribution
legality of “new”
a statement that, before the product will be and do to satisfy customers identifies a well-defined target market, specific customers needs, wants, and preferences, and what the product will be and do to satisfy customers
protocol
protocol is the most important thing in…
new product failure
insignificant point of difference, incomplete market and product protocol, failure to satisfy customer needs on critical factors, bad timing, no economical access to buyers, poor execution of the marketing mix, too little market attractiveness, poor product quality
marketing reasons for new product failure
groupthink, avoiding “not invented here,” open innovation
organizational inertia in new product failures
the seven stages an organization goes through to identify opportunities and convert them to salable products or services
new product development process
new product strategy development, idea generation, screening and evaluation, business analysis, development, market testing, commercialization
steps to the new product development process
the stage of the new product development process that defines the role for a new product in terms of the firm’s overall objectives
new product strategy development
the stage of the new product development process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage’s results
idea generation
the stage of the new product development process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort
screening and evaluation
the process of managing the entire customer experience within the company
customer experience management (CEM)
the stage of the new product development process that specifies the features of the product or service and the marketing strategy needed to bring it to the market and make financial projections
business analysis
the stage of the new product development process that turns the idea on paper into a prototype
development
the stage of the new product development process that exposes actual products to prospective customers under realistic purchase conditions to see if they will buy
market testing
a company tries to sell a new product in normal distribution channels
standard market testing
contracting test program to an outside service
controlled market testing
replicates full-scale test markets
simulated market testing
the stage of the new product development process that positions and launches a new product in full-scale productions and sales
commercialization
example of business buyers
JCPenny’s
example of a cultural symbol
Parthenon
