Marketing 301 Exam 1 Umass

Random error

Factors that occur randomly and impact an observation/measurement.

Valid

No systematic or random errors

Reliable

When there are no random errors

Ways to obtain information

-Surveys/Questionnaires

-Experiments

-Observation

-Math Simulations

Constraints

Restrictions placed on potential solutions to the problem

Concepts

ideas about products or services

Methods

approaches that could be used to collect data or solve some or all of a problem

Data

The facts and figures related to the product

Published Data from outside organization

secondary data: External

- Relates to reports published by U.S. Census Bureau

-Syndicated Panels in a household

Mechanical Method

The People Meter in a household

Personal Method

Watching consumers in person

Neuromarketing Method

Studying a persons brain and how it reacts to products

Idea Generation Method

Primary Data: asking people

-Coming up with ideas

Types:

-one on one interviews

-focus groups (6-10 past, and present customers answering questions from one interviewer)

-depth interviews (researchers ask lengthy, free-flowing questions to probe for underlying ideas and feelings)

Open-ended question

allows respondents to express opinions, ideas, and behaviors in their own words

Closed or fixed alternative questions

requires respondents to select one or more response options from a set of predetermined choices

Dichotomous question

yes or no response

Scale

A fixed alternative question with three or more choices uses this

Likert scale

respondent indicates the extent to which they agree or disagree with a statement

Social Media

Primary Data: Other Sources

-Facebook, Twitter and other social media has revolutionized the way marketing research is done today

Data Visualization

Presentation of the results of the analysis

Data Mining

Primary Data: Other Sources

-The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions

Advantages of Primary Data

More flexible and specific to the problem

Disadvantages of Primary Data

far more time consuming and costly

Cross Tabulation

-method of presenting and analyzing data involving two or more variables to discover relationships in the data

-The most widely used technique for presenting and organizing marketing research data

Disadvantages of Cross Tabulation

-Misleading if the percentages are based on too few observations

-can hide some relationships because each cross tab typically shows two or three variables

Actions

Delivering the results in clear pictures, and if possible, one page

Judgements of the decision maker

Probably 99% of all sales forecasts are simply the judgement of the person who must act on the results of the forecast

-Direct Forecast (estimating the value to be forecast without any intervening steps)

-Lost Horse Forecast (starts with the last known value of item being forecast, listing factors that could affect the forecast, assessing whether they have a positive or negative effect, and making the final forecast)

Statistical Method

Trend Exploration-Best known statistical method of forecasting, which involves extending a pattern in past data into the future

Linear Trend Exploration- draw a line to fit the past sales data and project it into the future

Need

When a person feels deprived of basic necessities

Market

People with both the desire and ability to buy a specific offering

Controllable factors

Under the control of the marketing department of an organization

Customer Value Propisition

cluster of benefits that an organization promises customers to satisfy their needs

Environmental Forces

Forces that are beyond the organizations control that affect a marketing decision

Customer Value

benefits received by targeted buyers

Marketing Concept

the idea that an organization should strive to satisfy the needs of the customer while also trying to achieve it's organization's goals

Customer relationship era

started in the 1980's and occurs as firms continuously seek to satisfy the high expectations of the customer

Customer Relationship Management (CRM)

the process of identifying prospective buyers, understanding them, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them

Social Responsibility

the idea that organizations are accountable to a larger society

Product

good, service, or idea that satisfies consumers needs and is exchanged for money or some other value

Organizational Buyer

manufacturers, wholesalers, retailers, service companies, etc that buy products for their own use or resale

Organization

Legal entity that consists of people who share a common mission

Offerings

goods, services or ideas that create value for both the organization and its customers by satisfying their needs and wants

Industry

organizations that develop similar offerings

Strategy

an organization's long-term course of action designed to achieve a unique customer experience while achieving its goals

Core values

the fundamental, passionate, and enduring principles that guide its conduct over time

Mission

a statement of the organizations function in society that often identifies its customers, markets, products, and technologies

Organizational Culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of the organization

Business

describes the clear, broad, underlying industry or market sector that an organization is offering

Business Model

the strategies an organization develops to provide value to the customers it serves

Marketing Dashboard

visual display of the essential information related to achieving a marketing goal

Marketing metric

a measure of the quantitative value or trend of a marketing action or result

Core Competencies

special capabilites

Star

SBU's with a high share of high growth markets that may need extra cash to finance their own rapid future growth

Dogs

SBU's with low shares of slow growth markets

Diversification

Marketing strategy to sell new products to new markets

Gantt Chart

graph of a program schedule

Marketing Tactics

day to day marketing actions

Culture

incorporate the set of values, ideas, and attitudes that are learned and shared among members of the group

Value Conciousness

the concern for obtaining the best quality, features, and performance of a product or service for a given price

Economy

pertains to the income, expenditures, and resources that affect the cost of running a business or household

Technology

refers to inventions or innovations from applied science or engineering research

Marketspace

an information and communication based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings

electronic commerce

activities that use electric communication in the inventory, promotion, distribution, purchase, and exchange or products

Internet of Things

network of products embedded with connectivity enabled electronics

Competition

refers to the alternative firms that could provide a product to satisfy a specific market's needs

Pure competition

Many sellers and each have a similar product

Monopolistic competition

many sellers compete with substitutable products within a price range

Oligopoly

When a few firms control the majority of the industry

Pure monopoly

One firm sells the product

Regulation

restrictions state and federal laws place on business with regard to the conduct of its activities

Consumerism

A grass roots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions

Ethics

moral principles and values that govern the action and decisions of an individual or group

caveat emptor

let the buyer beware

Consumer bill of rights

codified the ethics of exchange between buyer and seller

Economic Espionage

collection of trade secrets or information about a companies competitors

Code of Ethics

formal statement of ethical principles and rules of conduct

Whistle-blowers

employees who report unethical or illegal actions against their employers

Moral Idealism

personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

Utilitarianism

personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

Four Factors that affect ethical marketing behavior

1. Societal culture and norms

2. Business culture and industry practices

3. Corporate culture and expectations

4. Your personal ethical behavior and morals

Triple-bottom line

recognition for the need of organizations to improve the state of the people, planet, and profit simultaneously if they are to achieve long term growth

Sustainable Marketing

which seeks to meet todays economic, environmental, and social needs without compromising the oppurtunity for future generations to meet theirs

Green Marketing

Marketing efforts to produce, promote, and reclaim environmentally sensitive products

Three concepts of social Responsibility

1. Profit responsibility- companies have to maximize profits for their owners and stockholders

2. Stakeholder Responsibility- focuses on the obligations an organization has to those who can affect achievements of its objectives

3. Societal Responsibility- refers to obligations that organizations have towards the preservation of the ecological environment and the general public

Cause Marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

Social Audit

systematic assessment of a firms objectives, strategies, and performance in terms of social responsibility

Sustainable Development

involved conducting a business in a way that protects the natural environment while making economic progress

Purchase Decision Process

- The stages a buyer passes through in making choices about which product and service to buy

1. Problem Recognition- perceiving a difference between a persons ideal and actual situations big enough to pull the trigger

2. Information Search- Seeking value

3. Alternative Evaluation- Assessing value

4. Purchase Decision- Buying value

5. Postpurchase behavior- Realizing value

Involvement

the personal, social, and economic significance of the purchase to the consumer

Situational Influences that affect purchase decisions

1. The purchase task- reason for engaging in the decision

2. Social Surroundings- people present when the decision is made

3. Physical surroundings- decor, music, and crowding

4. Temporal Effects- Time of day or time available to make decision

5. Antecedent States- Consumers mood or how much cash on hand

Motivation

energizing force that stimulates behavior to satisfy a need

Five Need Classes

1. Physiological Need- basic to survival

2. Safety Needs- self preservation as well as physical and financial well-being

3. Social Need- love and friendship

4. Personal Need- the need for achievement, status, prestige and self respect

5. Self-actualization Need- personal fulfillment

Personality

refers to a persons consistent behaviors or responses to recurring situations

Key traits

enduring characteristics within a person

Self-Concept

the way people see themselves and the way they believe others see them

Perception

the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world

Selective Perception

a filtering of exposure, comprehension and retention

Selective Retention

consumers dont remember all the information they see, read, or hear

Selective Comprehension

interpreting information so that it is consistent with your attitudes and beliefs

Subliminal Pereption

seeing or hearing messages without being aware of them