Test 2 (chp 7,8,9,10) Flashcards
Marketing research
the process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions
Marketing Research process
- define the problem
- develop the research plan
- collect relevant information
- develop findings
- take marketing action
Research objectives
specific, measurable goals the decision maker seeks to achieve in conducing the marketing research
Measures of success
criteria or standards used in evaluating proposed solutions to the problem
explanatory research
study conducted at the early stages of a research project to gain a better understanding of a situation – typically qualitative
descriptive research
study conducted to provide a detailed, factual account of a specific phenomenon, market, or consumer group – typically quantitative
constraints
restrictions placed on potential solutions to a problem – often time or money
concepts
ideas about products or services
new-product concept
a picture or verbal description of a potential product
research methods
techniques and processes used to collect, analyze, and interpret data
observation
surveillance of behaviors in person or through mechanical means
questionnaires
asking people about their attitudes, awareness, intentions, and behaviors
sampling
selecting a group of research participants
statistical inference
using statistical methods to generalize the results from a sample to the population of interest
data
facts and figures related to the project
secondary data
facts and figures recorded prior to the project
primary data
facts and figures newly collected for the project
internal secondary data
internal records of a company
- valuable because it is really accessible cost-effective, and specific to the company’s operations
inputs
budget, customer databases, inventory records
outcomes
sales records, customer service logs
external secondary data
published data from outside the organization
observational data
facts and figures obtained by watching how people behave, using personal observation, mechanical methods, or neuromarketing techniques
mystery shoppers
trained researchers hired by companies to stop at their stores and the stores of competitors
ethnography
systematic observation of people in their natural settings
mechanical methods
people meter, ai-enabled video monitoring, GPS-enabled mobile apps
neuromarketing
field of marketing research that focuses on understanding how the brain responds to non conscious, marketing stimuli
neuromarketing techniques
eye-tracking, biometric monitoring, facial coding
focus group
a qualitative research method that involves bringing together a small group of individuals typically 6 to 10 participants for a structured discussion led by a moderator
experiments
testing cause and effect relationships by manipulating factors under tightly controlled conditions
open-ended questions
questions that allow respondents to express opinions and idea or describe behaviors in their own words
closed-end questions
questions that require respondents to select one or more response options from a set or predetermined choices
semantic differential scale
perception levels
likert scale
strongly disagree to strongly disagree
big data
vast amount of data collected from various sources and analyzed with an increasingly sophisticated set of technologies
data analytics
contains analytical tools use to organize, manipulate, and analyze the data to identify managerial insights that exist
data mining
the practice of examining large databases to find statistical relationship between consumer purchasing patterns and marketing actions
predictive modeling
based on statistical models that use data mining and probability analysis to foretell outcomes
sales forecast
the total sales of a product that a firm expects during a specified time period under specified conditions and its own marketing efforts
common sales forecasting techniques
- judgements of the decision-maker
- surveys of knowledgeable groups
- statistical methods
lost horse forecast
a forecast made by starting with the last known value of the item, listing the factors that could cause changes in that value, estimating the degree of impact that each of those factors would have, and adjusting the base level to arrive at the final moment
trend extrapolation
forecasting sales by extending a pattern observed in past data into the future
market segmentation
involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
product differentiation
a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products
steps in segmenting, targeting, and positioning
- Group potential buyers into segments
- group products into categories
- develop a market-product grid and estimate the size of markets
- select target markets
- determine product positioning
built to order
built at the time of the order
organizational synergy
increased value created through performing organization functions such as marketing or manufacturing more efficiently
cannibalization
a decline in the sales of one of a company’s products resulting from an increase in sales of another of its product
“Tiffany/Walmart” strategy
selling to high-end to low-end segments
geography
where prospective customers live or work
demographics
physical characteristics, measurable characteristics, and other classification attributes of individuals and households
psychographics
subjective mental or emotional attributes of prospective customers
- not used to segment organizational markets
usage rate
the quantity of a product consumed (or number of visits to a store) during a specific period
80/20 rule
concept that 80 percent of a firm’s sales are obtained from 20 percent of its customers
Customer Lifetime value
represents the financial worth of a customer to a company over the course of their relationship
Step 3 in segmentation, targeting, and positioning
develop a market-grid and estimate the size of markets
market product grid
a framework to relate the market segments of potential buyers to products offered or potential marketing actions
marketing synergy
efficiency by focusing efforts on one market segment
product synergy
efficiency by focusing efforts on one product
product positioning
the place a product occupies in consumers’ minds based on important attributes relative to competitive products
step 5 in segmentation, targeting, and positioning
determine product positioning
head-to-head positioning
competing directly with competitors on similar product attributes in the same target market
differentiation positioning
targeting a less competitive, smaller market niche with unique product benefits
perceptual map
visual representation of the locations of products in the minds of consumers relative to competing products
- identify important attributes for the product class
- determine how target customers perceive competing products on those attributes
product repositioning
changing the place a product occupies in a consumers’ minds relative to competitive products
product positioning statement
a succinct written statement derived from the company’s customer value proposition that directs the company’s overall marketing strategy
product
bundle of tangible and intangible attributes that satisfies customers’ needs and is received in exchange for money or something else of value
good
tangible product or physical item
durable good
emphasis on personal selling multiple use product
nondurable good
emphasis on consumer advertising a couple of time of use
types of consumer products
convenience product: items that consumers purchase frequently with a minimum of shopping effort
shopping product: items that consumers compare several alternatives on selected criteria
speciality product: items that consumers make special efforts to seek out and buy
unsought product: items that consumers either do not know about or do initially want
components
raw materials, parts, and assemblies that become part of the final product
product class
a broad category or group of related products that share similar characteristics, functions, or purposes
product form
variation or subcategories of products within the same class with distinct attributes or features
product item
a specific product with a unique brand, size, or price
product line
a group of closely related products sold by one company that share similar characteristics and serve similar customer needs
product mix
all the product lines offered by an organization
Four I’s of Services
intangibility: services cannot be experienced before purchase
inconsistency: the quality of service varies
inseparability: consumers cannot distinguish the service provider from the service itself
inventory(or perishability): services cannot be stored
idle production capacity
unused productive capacity that occurs when the service provider is available but there is no demand for the service
gap analysis
technique used to asses service quality by comparing customers’ expectations with their expierences
product line extension
addition of a new product to an existing product line
brand extension
using an existing brand name in a product category
degree of innovation
continuous: no new learning or behavior changes
dynamic: some learning and disruptions to normal routine
discontinuous: extensive learning and entirely new consumption patterns
protocol
a statement that identifies (1) well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers
feature bloat
unnecessary product features or functions
groupthink
psychological phenomenon that occurs when a group of people seeks consensus and harmony within the group at the expense of critical thinking and objective analysis
new-product development process
the seven stages an organization goes through to identify opportunities and conversations them into salable products
Step 1 in the new-product development process
new product strategy development
- defining the role for a new product in terms of the firm’s overall objectives (situation and SWOT analysis)
Step 2 in the new-product development process
idea generation
- developing a pool of concepts to serve as candidates for new products
- closed innovation
- open innovation
- crowdsourcing
- crowdfunding
closed innovation
relying primarily on its internal resources, research, and development teams to create new products and technologies
open innovation
collaborating with external stakeholders, including customers, suppliers, research institutions, startups, and even competitors, to access a broader pool
crowdsourcing
process of obtaining ideas, content, or solutions by soliciting contributions from a large group of people, typically via the internet
crowdfunding
a method of raising money for a project by obtaining small contributions from a group of people, typically via an online platform
step 3 in the new-product development process
screening and evaluation
- internal and external evaluation of new-product ideas to eliminate those that warrant no further effort
step 4 in the new-product development process
business analysis
- specifying the features of a potential product, developing the marketing strategy needed to bring it to market, and making financial projections
step 5 in the new-product development process
development
- turning a new-product idea into a prototype
prototype
full-scale operating model for the product
step 6 in the new-product development process
market testing
- stage of the new product development process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy
standard test markets
controlled test markets
simulated test markets
standard test markets
product is sold through normal distribution channels
controlled test markets
the company contracts the test program to an outside service
simulated test markets
the program somewhat replicates a full-scale test market
stage 7
commercialization
- the stage of the new-product development process that positions and launches a new product in full-scale production and sales
product life cycle
describes the stages a new product goes through in the marketplace - introduction, growth, maturity, and decline
skimming pricing
setting a high initial price to help the company recover development costs and capitalize on the price insensitivity of early buyers
penetration pricing
setting a low initial price to discourage competitive entry and build unit volume
brand loyalty
a favorable attitude toward and consistent purchase of a single brand over time
Strategies to reduce costs
- harvesting: decide to use cheaper materials
- divesting: ship products to another consumer(s)
- deletion: resources that will no be longer in use
Product level: product class
an entire product category or industry
product form
variations of a product within a product class
usage barriers
the product is not compatible with existing habits
value barriers
the product provides no incentive to change
risk barriers
physical, economic, or social risk of adopting a new product
psychological barriers
cultural differences or image of the product
managing the product life cycle
- Modify product
a. Product modification: altering one or more of a product’s characteristics to increase the product’s value to customers and increase sales - modify market
a. market modification: strategies companies use to find new customers, increase a product’s use among existing customers, and create new use situations - reposition the product
a. product repositioning: changing the place a product occupies in a customer’s mind relative to competitive products
Trading up
trading down
trading up
adding value to the product or product line through additional features or higher-quality materials
trading down
reducing a product’s number of features, quality, or price
branding
using a name, phrase, design, symbol, or combination of these to identify a company’s products and distinguish them from those of competitors
brand name
a word, device (design, sound, shape, or color), or combination of these used to distinguish a company’s products from those of competitors
