MIDTERM Flashcards
Environmental scanning
researching opportunities and threats for businesses.
Businesses only adapt to external factors, they don’t create them.
basic research
not aimed at a specific problem
applied research
aims to develop specific/improved products
NEED RECOGNITION
the result of the imbalance between actual and derived states of the customer (hunger, thirst, etc)
WANT
recognition of an unfulfilled need, and a product that will satisfy it
- a need is recognized when a consumer is exposed to external/internal stimuli (hunger thirst or whatever)
- internal: experience of consumer (feeling hunger/thirst/etc)
- external: things like recommendations of product or product package design
INTERNAL INFO SEARCH
from memory
EXTERNAL INFO SEARCH
from outside environment
MARKETING CONTROLLED INFO SOURCE
info gained about the product from advertising
EVOKED/CONSIDERATION SET
research results in the customer having a choice of a few brands to go for to buy one product
COGNITIVE DISSONANCE
inner tension the consumer feels after recognizing an inconsistency between their own values, and their behaviour (eg an environmentalist buys plastic straws)
INVOLVEMENT
amount of time and effort the buyer invests in search, evaluation, and decision process
ROUTINE RESPONSE BEHAVIOUR
decision making based on buying frequently purchased (often cheaper) goods
LIMITED DECISION MAKING
requires moderate research about an unknown brand
EXTENSIVE DECISION MAKING
: used when buying expensive/infrequently used goods
REFERENCE GROUPS
groups we refer to
- primary (informal contact eg family friends)
- secondary (formal contact eg teachers employers etc)
indirect ref groups – indirectly touch our lives
- aspirational – groups we’d like to join
- non aspirational – groups we don’t want to associate with
MARKETING RESEARCH
the process of planning, collecting, & analyzing data relevant to a marketing decision
- provides info on the success of the firm’s marketing mix
3 ROLES OF MARKETING RESEARCH:
DESCRIPTIVE – gathering factual statements
DIAGNOSTIC – explaining data (determining impact on sales based on things like changed package design, literally DIAGNOSES the seen changes)
PREDICTIVE – “what if” questions (what if we change price/product/place/promotion)
MARKETING RESEARCH PROBLEM
determining what info is needed and how that info can be obtained efficiently and effectively
MARKETING RESEARCH OBJECTIVE
specific info needed to solve a marketing research problem; the objective is to provide insightful decision-making info
MANAGEMENT DECISION PROBLEM
a broad-based problem that uses marketing research for managers to take proper actions
MARKETING RESEARCH AGGREGATOR
a company that acquires, segments, and resells reports already published by marketing research firms
RESEARCH DESIGN
specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed
MALL INTERCEPT INTERVIEW
interviewing people in malls
COMPUTER-ASSISTED PERSONAL INTERVIEWING
a person reads the questions from a screen and enters interviewee’s answers into the computer
COMPUTER-ASSISTED SELF-INTERVIEWING
– an interviewer asks people to take a survey on a computer and they input their answers into the computer themselves
CENTRAL LOCATION TELEPHONE FACILITY
special phone room used to do phone interviews
EXECUTIVE INTERVIEW
interviews businesspeople at offices about a product or service
FOCUS GROUP
7-10 people that do a group discussion overseen by a moderator
OPEN ENDED QUESTIONS
a question that must be answered in the interviewee’s own words
SCALED-RESPONSE QUESTIONS
a close-ended question designed to measure the intensity of the respondent’s answers (eg a scale of 1-5 of “how much did you enjoy the product?”, 1 being very little, and 5 being a lot)
CLOSED-ENDED QUESTIONS
a question that must be answered by picking an answer from a limited set of responses
OBSERVATION RESEARCH (4)
- people watching people (eg observers watching customers select between different brands of the same product to see which brand gets bought the most)
- people watching an activity (eg an observer at an intersection counts which directions traffic moves)
- machines watching people (cameras)
- machines watching an activity (traffic counting machines monitoring traffic flow)
MYSTERY SHOPPERS
: researchers posing as customers who gather observational data about a store
BEHAVIOURAL TARGETING
a form of observation marketing research that combines a consumer’s online activity with psychographic and demographic profiles compiled in databases
ETHNOGRAPHIC RESEARCH
the study of human behaviour in its natural context – observation of behaviour in physical setting (eg the things people search for online while at home)
EXPERIMENT
method of gathering primary data, where a researcher alters variables and sees their effects on another variable (to prove/disprove a hypothesis)
SAMPLE
a subset from a larger population
UNIVERSE:
: the population from which a sample will be drawn
PROBABILITY SAMPLE
a sample where everyone in the population has an equal chance of being selected (a sample that will feature a lot of different people, that will represent the overall population accurately)
simple random sample
every member of the population has an equal chance of selection
stratified sample
the population is divided into mutually exclusive groups (eg gender), then random samples are drawn from each group
cluster sample
population is divided into mutually exclusive groups (eg geog. Location). A random sample of clusters is selected, the researcher collects a sample from each cluster randomly/nonprobable sampling way
RANDOM SAMPLE
people selected randomly
NONPROBABILITY SAMPLE
: a sample where there is no attempt made to make the selected people represent the overall population (opposite of probability sample)
CONVENIENCE SAMPLE
a type of nonprobability sampling where the samples (lol) are easily accessible to the researcher (eg friends and family)
judgement sample
selection criteria is based on researcher’s judgement that the people selected will give accurate info
quota sample
the researcher finds people in categories (gender age occupation etc) to represent members of those categories
snowball sampling
additional respondents are selected by shared interest with selected respondents (eg it’s hard to find people who do bungee jumping, so you ask the people you already know do bungee jumping if they know someone who does, because they’re likely to be part of a community)
MEASUREMENT ERROR
difference between info wanted by researchers and info provided by research
SAMPLING ERROR
sample doesn’t represent the larger population
FRAME ERROR:
sample drawn from population differs from the target population
RANDOM ERROR
imperfect representation of the overall population
FIELD SERVICE FIRM
– firm that specializes in interviewing respondents
CROSS TABULATION
data analysis where the analyst can look at the responses in relation to other responses (eg what is the association with gender and the brand of macaroni bought most frequently?)
CONSUMER GENERATED MEDIA:
media that consumers make and share among themselves
SCANNER BASED RESEARCH
: a way to gather info from a group of people by monitoring the advertising, prices they get expose to, and the things they buy
BEHAVIOUS SCAN
a scanner program that tracks the purchases of 3000 households through store scanners through each research market
INFOSCAN
a sales tracking scanner for packaged goods
NEUROMARKETING
studies body’s responses to marketing stimuli
COMPETITIVE INTELLIGENCE
intelligence system that assesses competition in order to help companies become more efficient
SEGMENTATION BASES
characteristics of individuals/groups/organizations
PSYCHOGRAPHIC SEGMENTATION
segmentation on the basis of personality/lifestyles/values
GEODEMOGRAPHIC SEGMENTATION
segmenting potential customers into neighbourhood lifestyle categories
BENEFIT SEGMENTATION
grouping customers into segments based on the benefits they seek from the product
USAGE-RATE SEGMENTATION
dividing a market by the amount of product bought/consumed
80/20 PRINCIPLE
20 percent of all customers generate 80% of demand
SATISFICERS
business customers who contact the first familiar supplier they can, to buy needed supplies
OPTIMIZERS
business customers who research thoroughly between suppliers before careful selection
TARGET MARKET
the market the brand aims to appeal to
UNDIFFERENTIATED TARGETING STRAT
: marketing approach that sees the whole market as one big market without individual segments, and makes no effort to appeal to individual segments
CONCENTRATED TARGETING STRAT
: a strat used to select one segment of a market to market to
NICHE
one segment of a market
MULTISEGMENT TARGETING STRAT
strat where 2+ segments are chosen to appeal to
CANNIBALIZATION
when sales of a new product cut into sales of a firm’s existing products
- apple iphones are bought so much, they overshadow apple computers
POSITIONING
strat to change the marketing mix to affect the product’s position
POSITION
the place the product occupies in the consumers’ minds
PRODUCT DIFFERENTIATION
: a positioning strat used to distinguish the firm’s product from competition
PERCEPTUAL MAPPING
a way to graph/display the product’s position in the consumers’ minds
CONVENIENCE PRODUCT
relatively inexpensive item that merits little shopping effort
SHOPPING PRODUCT
required comparison shopping (usually more expensive, found in more specialized stores)
SPECIALTY PRODUCT
: very specific product that consumers don’t search for substitutes for
UNSOUGHT PRODUCT
an unknown product or product that buyers don’t actively seek (eg coffins <3)
PRODUCT ITEM
a specific version of a product that can be seen as a distinct offering by a specific brand, eg Heinz ketchup/baked beans
PRODUCT LINE
a group of closely related product items (eg different sizes of coca cola bottles/different flavours)
PRODUCT MIX
all products an organization sells
PRODUCT MIX WIDTH
the number of product lines an organization offers
PRODUCT LINE DEPTH
the number of product items in a product line
PRODUCT MODIFICATION
changing one or more of the product’s characteristics
PLANNED OBSOLESCENCE
: modifying products so that those that have already been sold become obsolete before they need to be replaced
PRODUCT LINE EXTENSION
adding more products to the existing product line in order to compete better
BRAND
a name/symbol/design that differentiates a product from competitors
BRAND NAME: can be spoken
BRAND MARK: can’t be spoken
BRAND EQUITY: the value of the company & brand names
GLOBAL BRAND
: earns at least a third of its earnings outside its home country, and is recognizable to countries outside its home country
BRAND LOYALTY
consistent consumer preferences for one brand over others
MANUFACTURER’S BRAND
the brand name of a manufacturer
PRIVATE BRAND
brand name owned by a wholesaler or retailer
CAPTIVE BRAND
a brand that is owned and sold only by a retail chain without mentioning that in the packaging or advertising (NOT GENERIC BRAND, generic brands are cheap alternatives, whereas captive ones are a strat to sell exclusive/premium products by a retailer)
INDIVIDUAL BRANDING
using different brand names for different products (eg iphone, ipad)
FAMILY BRANDING
: marketing several different products under the same brand name (eg Nesquik)
CO-BRANDING
placing 2 or more brand names on packaging
TRADEMARK
the exclusive right to use a brand
SERVICE MARK
trademark but for a service
GENERIC PRODUCT NAME
a product’s brand name being used generally to refer to a wide range of products, usually because the owners of the brands didn’t trademark their properties (eg. kerosene, cellophane, thermos)
PERSUASIVE LABELING
focuses on persuading customers to buy product
INFORMATIONAL LABELING
: aims to inform customers of the contents/dimensions/qualities of the product to help them make better purchasing decisions
UNIVERSAL PRODUCT CODES
bar codes
WARRANTY
a confirmation of the product’s quality
EXPRESS WARRANTY: a written guarantee
IMPLIED WARRANTY: unwritten warranty
NEW PRODUCT
a product new to the market/producer/seller/a combination of all those
NEW PRODUCT STRAT
a plan that links the new product development process with the marketing department and other units of a company
PRODUCT DEV
: a marketing strat that creates new products. From idea to product
BRAINSTORMING
thinking of unlimited ways a product can solve a problem
SCREENING
filters out unnecessary ideas from the new product strategy
CONCEPT TEST
a test to evaluate the new product idea, before a prototype has been made
BUSINESS ANALYSIS
second stage of screening, where things like demand, cost, sales, profit are calculated
DEVELOPMENT
a prototype is developed and a marketing strategy is outlined
SIMULTANEOUS PRODUCT DEVELOPMENT
all the departments of the company working at the same time to make the development process faster
TEST MARKETING
: simulation of the marketing process for the new product to predict customer reactions
SIMULATED MARKET TESTING
faster way to test market, in a controlled environment
COMMERCIALISATION
: the decision to market a product
PRODUCT LIFE CYCLE
: traces the stages of a product’s acceptance by the public
PRODUCT CATEGORY
all brands that satisfy a particular type of need
INTRODUCTORY STAGE
proper launch of new product into the marketplace
GROWTH STAGE
second stage of product life cycle. Sales are increasing rapidly, many competitors enter the market
MATURITY STAGE
a period when sales increase at a decreasing rate
DECLINE STAGE
a long-run drop in sales
Innovation
A product new to potential adopters/consumers
Diffusion
Process of adoption of innovation
5 categories of adopters
Innovators
Early adopters
Early majority
Laggards
These are ranked from most to least adaptive consumers to new products
Steps to new product creation
Idea generation
Idea screening
Business analysis
Development
Test marketing
Commercialisation
