Test2 Flashcards
What are the 5 steps in marketing research?
Define the Problem Develop the research plan Collect relevant information Develop findings Take marketing actions
Secondary Data vs Primary Data
Secondary is data that is already collected
Primary is data you collect on your own
Secondary Data varieties
External and Internal
What is external secondary data?
Government, Trade Association, Research Firms, Academic, and Public Documents
What is internal secondary data?
Scanning data (retailers) Information within the company
Primary Data collection issues:
Qualitative (Exploratory): focus groups and interviews
Quantitative (Conclusive): Samples, questions, and communication-email surveys
What is Segmentation?
Breaking down a large market into smaller segments
What is segmentation rationale?
Efficiency
4 ways to segment markets:
Demographics (facts), Usage rates (heavy vs light users), Buyer Behavior (Individual vs group), and Product Benefits (what kind of problem does the product solve)
Consumer vs Business markets
Demographics -
Consumer: Income, education, housholds, location
Business: Employee size, number of business, NAICS
Buyer Behavior-
Consumer: Life style research
Business: Purchasing based on employee or company needs
Usage-
Consumer: Who heavy users are-market to heavy over everyone
Business: Who requires it for their business
Benefits-
Consumers: Who will this help? Whats the reason for their purchase.
Innovation definition:
The process of translating an idea or invention into a good or service that creates value or for which customers will pay.
Product definition:
an article or substance that is manufactured or refined for sale.
What are the 7 stages in new product development
New product strategy development Idea Generation Screening and evaluation Business analysis Development Market testing Commercialization
Diffusion of Innovation (5)
Innovators(2.5%)-Venturesome; higher educated
Early Adopters(13.5%)-Leaders in social setting
Early Majority(34%)-Deliberate; many informal social contracts
Late Majority(34%)-skeptical; below average social status
Laggards(16%)-fear of debt; neighbors and friends are information source
What is branding?
Somebody’s intellectual property (usually a name but doesnt have to be, could be a logo, color, ect)
Branding examples:
Marriott Corporation Ritz Carlton-Luxury Marriott-Quality Residence Inn-Extended Stay(Sub Brand) Courtyard-Moderate(Sub Brand) Fairfield Inn-Economy(Sub Brand)
Branding Legal issues:
Intellectual Property protection
May not carry when going international
What is Multi-branding?
Uses different names for every product or product line: I.E. Tide, Crest
Requires separate marketing campaigns
Isolates the brands-if one gets hurts, doesnt affect other brands.
What are Sub-Brands?
Brand within a brand
What is blanket/family branding?
One brand for all lines
Undiversified approach
What is Co-branding?
More than on brands together
What is second (channel) branding?
Brand aimed at a particular channel
Ralph Lauren vs Polo brand
What are fighter brands?
Brands that fight in price wars
Sacrificial Brands
What are brand extensions
Take the existing brand and slap it on other related products
What is a supply chain?
Consists of a sequence of firms that perform activities required to create and deliver a product or services to consumers or industrial users
What are customer service factors?
Time
Dependability
Communication
Convenience
What are the 4 I’s of Services?
Intangibility (Performance rather than an object)
Inseparability (Services are produced and consumed simultaneously)
Inconsistency (Difficult to replicate, never the same)
Inventory (produced and consumed same time)
What are the 4 strategy issues? 4 P’s
Product: Commodity Like
Price: Yield Management
Promotion: Internal Marketing
Place: Franchising
How does franchising sold services problems?
Intangibility-promotion and branding Inseparability-standard operations and controls Labor Intensive/Quality-Training Discretionary-Multiple Locations Small Firms-Screening and assistance
What is Skimming vs Penetration
Skimming- High price + low volume: Pricing as high to see what the market will bear
Penetration- Low Price+ High Volume
What are FOB systems?
Free on Board
Origin: Title transfers at the shipping point and buyer pays for transportation
Destination: Title transfers at the destination and transportation is built into the cost of the product
What are experience curves?
Cost predictably decline do to more experience
Experience is defined as cumulative output
Experience curves imply…
penetration pricing strategies
Describe the channel flows:
Product Title- Title to the goods Negotiation- Buying and selling Promotion- Anything marketers do Information
What are the three types of VCM?
Administered-weak, informal vertical marketing system
Contractual- franchises, retailer co-op
Corporate-very strong and formal vertical marketing system
The Creston Winery Video Featured:
Transportation Issues
According to the text, what percentage of a products price goes to pay for packaging costs:
10-15%
A middleman takes title to goods, but not pysical possession, is called what?
Desk Jobber
Some classic auto industry marketing mistakes occurred due to:
Market segment instability
In product terminology, a distinct ordering code or item number is a:
Line number
The sales of private brands (and generics) seem to be somehwat sensitive to economic conditions
True
EDLP (every day low price) programs are run by:
Retailers and manufactures
Product Life Cycles:
Are the same as Family Life Cycles
When P and G uses different brands for different soap categories this is:
Multi-branding
The correct way to begin a market research project is:
Define the research problem and develop a research plan
An example of a “discontinuous” innovation is:
The first telephone
The first electronic calculator
The first personal computer
In FOB orgin pricing systems, the title to goods transfers:
At the shipping point
Segmentation that recognizes geographic variations in culture is called:
Regional marketing
The pricing of Arline seats is an example of yield management pricing?
True
