Exam 2 Flashcards
The process of defining a marketing problem or opportunity, systematically collecting and analyzing information and recommending actions to improve its marketing activities
Marketing Research
The process for gathering information not currently known by decision makers. Marketers must define the nature and scope of the situation by probing beneath the superficial symptoms and formulating a hypothesis and then determining what type of research is most appropriate for testing the hypothesis to ensure the results are reliable and valid.
Research Development
An informed guess or assumption about a certain problem or set of circumstances.
hypothesis
Consistency of test scores over time and across alternative measurements vs. assessing the accuracy of the selection test.
Reliability vs. Validity
Research conducted to gather more information about a problem or to make a tentative hypothesis more specific.
Exploratory Research
Research designed to verify insights through objective procedures and to help in making decisions.
Conclusive Research
Clarifies the characteristics of certain phenomena to solve a particular problem.
Descriptive Research
Allows marketers to make causal inferences about relationships
experimental research
Research previously performed and recorded prior to the project at hand vs.research newly performed or collected by you (organization)
Primary vs. Secondary data
Size of the Pool
Make-up of the Pool
Cost of the Research
Timeliness of the Data
Quality of Answers
Data Considerations
Large amount of data collected from a variety of sources
Big Data
Characteristics (4Vs) of Big Data
Volume , Variety , Velocity, Veracity
Includes all of the computing resources that collect, store, and analyze data.
Information Technology
Graphic Representation of Data
data visualization
Examining large databases to find statistical relationships that enables predictive modeling for probability analysis
data mining
The selection of a subset of individuals from within a statistical population to estimate characteristics of the whole population.
sampling
Refers to 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
Simple Random Sample, Cluster Sample , and Stratified Random Sample are what type of samples
Probability Samples
Convenience Sample, Quota Sample, and Judgment Sample are what type of samples?
non-probability samples
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
market segmentation
A 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
Substantial Identifiable Measurable Accessible Responsive
The 5 Criteria for Successful Market Segmentation
Name the Multiple Market Segments
Single Product Multiple Product Mass Customization
The increased customer value achieved through performing organizational functions such as marketing and manufacturing more efficiently.
synergy
The reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.
cannibalization
Which market segment includes: Localizing products, advertising, promotion, and sales efforts to fit individual regions and even cities.
geographic segmentation
Which market segment describes a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
demographic segmentation
Which market segment is based on a segment’s preferences, interests, values, and lifestyles.
Psychographic segmentation
Which market segment is based on Benefits Sought (the kinds of people who look for a certain benefit and the main benefit they seek) and Usage (the quantity consumed or patronage during a specific period of time).
Behavioral Segmentation
A concept that suggests 80% of a firm’s sales are obtained from 20% of its customers.
80/20 rule
Product class - entire category or industry
Product form - variations within the class
Product item - a specific product
Product line - related items
Product considerations
A framework to relate the segments of a market to products offered or potential marketing actions by the firm.
Market-Product Grid
Refers to the place an offering occupies in consumers’ minds on important attributes relative to competitive offerings.
product positioning
A 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 and then take marketing actions.
perceptual map
Changing the place an offering occupies in consumers’ minds
repositioning
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies customers’ needs and is received in exchange for money or something else of value.
product
Capable of being perceived especially by the sense of touch
tangibility
goods that can be used several times
durable goods
goods that are typically meant for single use only.
non-durable goods
Name the 4 I’s of service
Intangibility Inconsistency Inseparability Inventory (Idle Capacity)
What are the 2 types of business products
support (installation, accessories, suppliles, services) and production (labor, materials)
Convenience - Shopping - Specialty - Unsought
4 types of consumer goods
Profit/non-profit – Government – People – Equipment
4 delivery classification
What are the 3 new product perspectives
company, government, consumers
Continuous innovations–Dynamically continuous innovations–Discontinuous learning innovations
Degree of Learning
The result of packing too many features and functionalities into a product.
feature bloat
A tendency for consumers to shy away from products that appear to be feature-rich.
feature fatigue
Not listening - Marketing too quickly - Groupthink - Not learning - NIH problem
Organizational problems and new product failure
Insignificant point of difference, Bad timing, Too little market attractiveness , Poor marketing mix execution , Poor product quality or insensitivity to needs, No economical access to buyers, Incomplete market product definition
Reasons new products fail
The stages a new product goes through in the marketplace.
product life cycle
Any word, “device” (design, sound, shape, or color) or combination of these to distinguish a seller’s goods or services
brand
The added value a brand name gives to a product beyond the functional benefits provided.
brand equity
A set of human characteristics associated with a brand name.
brand personality
The practice of using a current brand name to enter a new market segment in its product class.
line extension
The practice of using a current brand name to enter a completely different product class.
brand extension
What are the 4 stages/details of the product life cycle
Introduction, growth, maturity, decline
Modify the product, Modify the market, Reposition
3 Methods of Managing the Product Life Cycle
Multi product branding, Multi branding, Private branding, and Mixed branding are types of
branding strategies
Competence - Ruggedness - Excitement - Sincerity - Sophistication
5 Brand Personalities
True/False - creating customer value involves communication, functional and perceptual benefits
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True/False - challenges and responses of packaging/labeling include customer connection, environmental concerns, health, cost reduction
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The money or other considerations, including other goods and services, exchanged for the ownership or use of a product.
price
Products must be priced right so that customers are willing to pay for it and so that it generates enough sales dollars to pay for the cost of offering it while earning a profit for the company.
principle of exchange
Graph relating quantity sold and price. Shows how many units will be sold at a given price.
demand curve
Measures the responsiveness of a change in quantity demanded (Qd) for a good or service to a change in price. – % Change Qd / % Change P
price elasticity of demand
The total money received from the sale of a product; equals the unit price (P) times the quantity sold (Q) TR = P x Q
revenue
The total expense incurred by a firm in producing and marketing a product; equals the sum of fixed cost (FC) and variable cost (VC) - TC = TFC + (UVC * Q)
total cost
The sum of the expenses of the firm that are stable and do not change with the quantity of the product that is produced and sold.
fixed cost
The sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold.
variable cost
The quantity at which Total Revenue and Total Cost are equal.
break even
Reductions from the list price that a seller gives a buyer.
discounts and allowances
The buyer or seller that is responsible for freight costs
Free on Board (FOB)
An itemized financial statement of the income and expenses of a company’s operation.
income statement (profit/loss statement)
Total Revenue – Total Cost
profit
Penetration pricing, Skim pricing, Odd even pricing, Prestige pricing, Bundle pricing, Target pricing, Yield management pricing
7 Demand Oriented Approaches to pricing
Pricing approach that is dictated by the market
competitition
pricing approach that looks at consumers taste and preferences
demand
pricing approach that looks at production/marketing plus markup
cost
pricing approach that looks at a firms required margin
profit
True/False - demaind curve movement is caused by consumer tastes, consumer income and price availability of similar products
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