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Flashcards in Exam 2 Deck (79):
1

Define marketing research

fresh understandings of customers and the marketplace derived from marketing information that become the basis for creative customer value and relationships

2

What is the difference between primary and secondary data?

Secondary data has already been collected

3

What are the advantages to secondary data?

cheap and fast

4

What are the disadvantages to secondary data?

may not be current
may not be relevant

5

What are the 5 steps for marketing research?

Define the problem
Develop the research plan
collect relevant information
develop findings
take marketing actions

6

What is exploratory research?

provides ideas about a vague problem

7

What is descriptive research?

trying to find the frequency in which something occurs on the extent of a relationship between two factors

8

What is causual research?

the extent in which one factor changes another one

9

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

10

What is a direct forecast?

without any intervening steps

11

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

12

What is trend extrapolation?

extending a pattern observed in past data into the future

13

What is ethnographic research?

researchers look at how people interact with a product in their natural environement

14

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

15

What are the different types of segmentation?

geographic
demographic
psychographic - persoanlity, values. lifestyle
behavioral - retail store type, direct marketing, product features, usage rate, user status, awareness

16

What are market synergies?

running horizontally across the grid, eacb row represents an opportunity for efficiencyin terms of a market segment

17

What are product synergies?

running vertically across the grid, each column represents an opportunity for efficiency in research and development and production

18

What is product repostioning?

changing the place a product occupies in consumer's mind relatives to competitve products

19

What is head to head positioning?

competing directly with competitors on similar product attributes

20

What is differentation positioning>

niche market

21

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

22

What is mass marketing?

same marketing mix to all customers

23

What is micro marketing?

suit the tastes of individuals

24

What is segment marketing?

different marketing to one or more segments

25

What is niche marketing

different marketing mixes to selective subgroups

26

What are convenience products?

purchased frequently with little thought

27

What are shopping products?

consumer compares several alternativeson criteria such as price, quality, or style

28

What are speciality products?

items that the consumer makes a special effort to seach out and buy

29

What are unsought products>

items that the consumer does not know about or knows about but does not initially want

30

What is dynamically continuous innovation?

requires minor changes in behavior

31

What is discontinous innovation

forces consumer to learn entirally new consumption patterns to use the product

32

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

33

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
market testing
commercialization

34

What are the 3 types of test markets?

standard
controlled - a service pays retailers for shelf space
simulated - often run in shopping malls to find consumers who are willing to use

35

What is the product life cycle?

describes the stages that product goes through in the marketplace

36

What are the stages in the product life cycle?

introduction stage
growth stage
maturity stage - competitors begin to leave market, sales begin to slow, many consumers have already bought this product
decline stage

37

What is harvesting?

company retains the product but stops marketing for it

38

What is product class?

refers to the entire product category or industry

39

What is prodcut form?

pertains to variations of a product within the product class

40

What is trading up?

adding value to the product or line through additional features or higher quality materials

41

What is trading down?

involves reducing a product's number of features, quality, or price

42

What are the four I's of services?

Intangible
Inconsistant
Inseperable
Idle production capacity - the service provider is available but there is no demand for the service

43

What is the service continuum?

the range of product dominant to service dominant

44

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

45

What is a customer contact audit?

a flow chart of the points of interaction between consumers and service providers

46

What are the 7 P's of services?

Place
Promotion
People
Physical environment
Process
Product P
PRice

47

What is customer experience management?

the process of managing the entire customer experience with thecompany

48

What is capacity management?

integrating the service componet of the marketing mix with efforts to influence customer demand

49

What is price?

the money or otber considerations exchanged for the ownership or use of a product or service

50

What is value (equation)?

value = perceived benefits / price

51

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

52

What are pricing objectives?

involve specifying the role of price in an organization's marketing and strategic plans

53

What is the equation for price elascity of demand?

percentage change in quantity demanded / percentage change in price

54

What does it mean when a product has elastic demand?

a 1% decrease in price produces more than 1% increase in quantity demanded

55

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

56

What is the final price of something>

list price - incentives - allowances + extra fees

57

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

58

What is skimming?

setting the highest initial price that customers who really desire the product are willing to pay

59

What is penetration pricing?

setting a low initial price to appeal immediatly to the makret

60

What is price lining?

setting the price of a line of prodcuts at a number of different specific pricing points

61

What is odd - even pricing?

setting prices a few dollars or cents under an even number

62

What is target pricing?

results in the manufacturer deliberately adjusting the composition and features of a prodcut to acheive target price to consumers

63

What is yield management pricing>

the charging of different prices to maximize revenue for a set amount of capacity at any given time

64

What is standard markup pricing?

adding a fixed percentage to the cost of all items

65

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

66

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

67

What is customary pricing?

setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive facots

68

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

69

What is a dynamic pricing policy?

setting different prices for products and services in real time in response to supply and demand conditions

70

What is a price war?

competitors keep slashing prices for a item

71

What is a noncumulative price discount?

based on the size of an individual's purchase order

72

What is a cumulative price discount?

apply to the accumulations of purchases over a given time period

73

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

74

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

75

What is uniform delivered pricing?

the price the seller quotes includes all transportation costs

76

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

77

What is price fixing?

a conspiracy among firms to set prices

78

What is price discrimination?

the practice of charging different prices to different buyers for products of like grade and quality

79

What is predatory pricing?

the practice of charging a very low price for a product with the intent of driving competitors out of business