Flashcards in Exam 2 Deck (79):
Define marketing research
fresh understandings of customers and the marketplace derived from marketing information that become the basis for creative customer value and relationships
What is the difference between primary and secondary data?
Secondary data has already been collected
What are the advantages to secondary data?
cheap and fast
What are the disadvantages to secondary data?
may not be current
may not be relevant
What are the 5 steps for marketing research?
Define the problem
Develop the research plan
collect relevant information
take marketing actions
What is exploratory research?
provides ideas about a vague problem
What is descriptive research?
trying to find the frequency in which something occurs on the extent of a relationship between two factors
What is causual research?
the extent in which one factor changes another one
What do you do when you develop the research plan?
specify your constraints
identify the data needed for marketing actions
determine how to collect data
What is a direct forecast?
without any intervening steps
What is a last horse forecast?
start with the last known value and list the factors that could positively or negatively affect the forecast and make the final forecast
What is trend extrapolation?
extending a pattern observed in past data into the future
What is ethnographic research?
researchers look at how people interact with a product in their natural environement
What are the five steps to market repositioning?
Group potential buyers into segments
group products to be sold into categories
develop a market product grid and estimate size of markets
select target markets
take marketing actions to reach target markets
What are the different types of segmentation?
psychographic - persoanlity, values. lifestyle
behavioral - retail store type, direct marketing, product features, usage rate, user status, awareness
What are market synergies?
running horizontally across the grid, eacb row represents an opportunity for efficiencyin terms of a market segment
What are product synergies?
running vertically across the grid, each column represents an opportunity for efficiency in research and development and production
What is product repostioning?
changing the place a product occupies in consumer's mind relatives to competitve products
What is head to head positioning?
competing directly with competitors on similar product attributes
What is differentation positioning>
What are the steps to product positioning using perceptual maps?
identify the important attributes for a product or brand class
discover how target customers rate competing products or brands with respect to these attributes
discover where the company's product or brand is on these attributes in the mind's of potential customers
reposition the company's product or brand on these attributes in the minds of potential consumers
What is mass marketing?
same marketing mix to all customers
What is micro marketing?
suit the tastes of individuals
What is segment marketing?
different marketing to one or more segments
What is niche marketing
different marketing mixes to selective subgroups
What are convenience products?
purchased frequently with little thought
What are shopping products?
consumer compares several alternativeson criteria such as price, quality, or style
What are speciality products?
items that the consumer makes a special effort to seach out and buy
What are unsought products>
items that the consumer does not know about or knows about but does not initially want
What is dynamically continuous innovation?
requires minor changes in behavior
What is discontinous innovation
forces consumer to learn entirally new consumption patterns to use the product
What is protocol?
a statement that identifies a well defined product market, specific customer needs/wants and what the product will do to satisfy customers
What are the seven stages of new product development?
new product strategy development - developing your strategy
idea generation - gathering ideas for new products
screening and evaluation - making sure that the product is still a good idea
business analysis- is this a good idea for the business?- make financial projections
development - make fully functioning prototype
What are the 3 types of test markets?
controlled - a service pays retailers for shelf space
simulated - often run in shopping malls to find consumers who are willing to use
What is the product life cycle?
describes the stages that product goes through in the marketplace
What are the stages in the product life cycle?
maturity stage - competitors begin to leave market, sales begin to slow, many consumers have already bought this product
What is harvesting?
company retains the product but stops marketing for it
What is product class?
refers to the entire product category or industry
What is prodcut form?
pertains to variations of a product within the product class
What is trading up?
adding value to the product or line through additional features or higher quality materials
What is trading down?
involves reducing a product's number of features, quality, or price
What are the four I's of services?
Idle production capacity - the service provider is available but there is no demand for the service
What is the service continuum?
the range of product dominant to service dominant
What is gap analysis?
a type of analysis that compares the differences between the consumer's expectations about experiences with a service based on dimension
What is a customer contact audit?
a flow chart of the points of interaction between consumers and service providers
What are the 7 P's of services?
What is customer experience management?
the process of managing the entire customer experience with thecompany
What is capacity management?
integrating the service componet of the marketing mix with efforts to influence customer demand
What is price?
the money or otber considerations exchanged for the ownership or use of a product or service
What is value (equation)?
value = perceived benefits / price
What are the six steps for pricing?
identify pricing constraints
estimate demand and revenue
determine cost, volume, and past relationships
select an approx price level
set list or quoted price
make special adjustments to list or quoted price
What are pricing objectives?
involve specifying the role of price in an organization's marketing and strategic plans
What is the equation for price elascity of demand?
percentage change in quantity demanded / percentage change in price
What does it mean when a product has elastic demand?
a 1% decrease in price produces more than 1% increase in quantity demanded
What does it mean when a product has inelastic demand?
a 1% decrease in price produces less than a 1% increase in quantity demanded, decreasing total revenue
What is the final price of something>
list price - incentives - allowances + extra fees
What are demand oriented pricing approaches?
weigh factors underlying expected customer tastes and preferences more heavily than such factors as cost, profit, and competition when selecting a price level
What is skimming?
setting the highest initial price that customers who really desire the product are willing to pay
What is penetration pricing?
setting a low initial price to appeal immediatly to the makret
What is price lining?
setting the price of a line of prodcuts at a number of different specific pricing points
What is odd - even pricing?
setting prices a few dollars or cents under an even number
What is target pricing?
results in the manufacturer deliberately adjusting the composition and features of a prodcut to acheive target price to consumers
What is yield management pricing>
the charging of different prices to maximize revenue for a set amount of capacity at any given time
What is standard markup pricing?
adding a fixed percentage to the cost of all items
What is cost plus pricing
invovles summing the total cost of providing a product or service and adding a specific amount to the rest to arrive at a price
What is experience curve pricing?
a method of pricing based on the learning effect which holds that the unit cost of many products and services decline by 10 - 30% each time a firm's experience at producing them and selling them doubles
What is customary pricing?
setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive facots
What is loss leader pricing?
deliberately selling a product below its customary price, not to increase sales but to attract customers attention to it in hopes of that they will buy other products with large markups as well
What is a dynamic pricing policy?
setting different prices for products and services in real time in response to supply and demand conditions
What is a price war?
competitors keep slashing prices for a item
What is a noncumulative price discount?
based on the size of an individual's purchase order
What is a cumulative price discount?
apply to the accumulations of purchases over a given time period
What are promotional allowances?
cash payments or an entire amount of free goods awarded to sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product
What is FOB origin pricing?
the free on board price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur
What is uniform delivered pricing?
the price the seller quotes includes all transportation costs
What is basing point pricing?
involves selcting one or more geographical locations from which the list prices for prodcution plus freight expenses are charged to the buyer
What is price fixing?
a conspiracy among firms to set prices
What is price discrimination?
the practice of charging different prices to different buyers for products of like grade and quality