BA355 Exam 2 Marketing Study Guide

Comprehensive vocabulary flashcards covering marketing research, segmentation, targeting, positioning, new product development, packaging psychology, and branding architecture based on BA355 lecture notes.

A/B Testing

A research method where different consumers are exposed to different circumstances, such as seeing different versions of an advertisement.

Cross-tabulation

A technique used for identifying heavy users and developing marketing actions to reach them by examining relationships across categories.

Questionnaire Data

Data obtained from focus groups, surveys, and individual in-depth 1-on-1 interviews in order to identify problems and generate ideas.

Dependent Variable

The output being measured in an experiment, such as the number of people who choose to purchase after seeing an ad.

Independent Variable

The input that is intentionally varied or manipulated by the researcher, such as which advertisement is shown.

Operationalization

The process of using actual measurable metrics, such as KPIs or reach, to determine if a marketing idea is effective or ineffective.

Primary Data

Data collected firsthand from asking people, observing people, or conducting experiments (e.g., questionnaires, social media, observational data, experiments, data mining).

Secondary Data

Data and reports recorded prior to the start of the current project (e.g., census data, firm financial data, industry reports, and databases).

Random Assignment

A requirement in A/B testing where each participant has an equal chance of being assigned to each group to ensure a truly random sample.

Correlation

The identification of relationships between two different variables in a dataset.

T-test

A statistical hypothesis test used to determine whether the difference between the means of two groups is statistically significant or merely due to random chance.

Open-ended Question

A survey question format in which respondents write in their own answers, providing in-depth, specific insights and unexpected ideas.

Dichotomous Question

A survey question offering only two possible response options, making it simple and quick to analyze, but lacking intensity measurement.

Multiple Choice / Fixed Alternative Question

A question format where respondents select an answer from a predetermined list, which aids quantitative comparison but limits respondent choices.

Attitudinal Question

A survey question designed to measure opinions, beliefs, or feelings about a brand or product (e.g., rating importance from indifferent to very important).

Semantic Differential Scale

A rating scale where respondents evaluate a concept between two bipolar opposite descriptors (e.g., rating between "expensive" and "cheap").

Likert Scale

A rating scale indicating the degree of agreement or disagreement with a statement (e.g., strongly agree to strongly disagree).

$80/20$ Rule

The principle stating that approximately $80\%$ of a firm's sales are generated by $20\%$ of its customers, highlighting the necessity to identify and target heavy users.

Buyer Persona

A semi-fictional mock-up or profile representing a target market member.

Estimated Market Size

The calculation of total potential revenue that can be acquired from a selected target market.

Mass Customization

Providing personalized products tailored to individual customer preferences on a mass production scale (such as customizing colors).

Market-Product Grid

A framework that displays all potential target segments against existing or new product categories to evaluate attractiveness using scores from $0$ to $3$.

Market Segmentation

The process of identifying characteristics and factors that create meaningfully distinct customer segments to satisfy different needs.

Pain Points

Specific problems, frustrations, or inconveniences experienced by target market customers (e.g., financial, emotional, physical, productivity, or process-based).

Perceptual / Positioning Map

A visual two-dimensional graph showing how consumers perceive competing brands across key dimensions (such as price and quality) to identify market gaps.

Product Positioning

The act of designing a brand's offering and image to occupy a distinct, appealing place in the minds of the target market using points of difference (PoDs).

Unique Value Proposition

The direct pairing of a customer's specific pain point with a distinct feature of a product to deliver unmatched value.

Product Positioning Statement Formula

A structured template: "For [target segment], our [brand] is a [concept] that [PoD for need]."

Concept Test

A brief written or visual description of a new product presented to potential customers to solicit initial feedback and evaluate demand.

Convenience Sample

A non-probability sampling technique relying on readily accessible subjects, such as friends, family, or internal R&D staff, to generate preliminary product ideas.

Feature Bloat

The unnecessary addition of extra features that most customers do not need or want, resulting in increased product cost and complexity.

Prototype

A preliminary, tangible version of a product that consumers can physically interact with and test.

Stage-Gate Method

A structured 7-step process for new product development that evaluates progress at specific checkpoints before moving to the next stage.

Time to Market

The total duration elapsed between the initial start of product development and the commercial launch for sale.

Continuous Innovation

A product innovation involving low consumer risk and requiring minimal behavioral changes, where marketing strategy focuses on maximizing awareness (e.g., pre-cut cheese).

Dynamically Continuous Innovation

A moderate-risk product innovation requiring some new learning or change, where marketing highlights points of difference and testimonials (e.g., a water flosser).

Discontinuous Innovation

A high-risk product innovation representing a completely new-to-the-world offering that requires significant consumer education, clear instructions, and support.

Informational Benefits (Packaging)

Packaging value provided via label facts, nutrition information, origin stories, and explicit product usage instructions.

Functional Benefits (Packaging)

Packaging value delivered through structural convenience, protection, or ease of use (e.g., Heinz bottom-opening bottles, pocket-sized Tylenol vials).

Perceptual Benefits (Packaging)

Packaging value that communicates aesthetics, brand color identity, tactile textures, and emotional fun to the consumer.

Standard Test Market

A full-scale marketing campaign executed across a small number of representative test cities for a limited time to observe realistic market competition.

Simulated Test Market

A controlled laboratory setting that replicates a shopping environment to test customer purchase behavior with minimal competitive exposure.

Controlled Test Market

A test market program operating with contracted retail distribution (such as guaranteed end caps, displays, and demonstrations) to manage risks.

Brand Identity

The visual and verbal elements created by a company to represent itself, including logos, taglines, styling, and tone of voice.

Brand Strength Index (BSI)

A benchmark scored on a $0\text{--}100$ scale assessing emotional connection, financial performance, and sustainability to determine perceived consumer value.

Brand Value

The total financial worth of a brand measured by its economic market value.

Brand Image

The collective perception, thoughts, feelings, and impressions that consumers hold regarding a brand.

Brand Equity

The added value and perceived worth a brand name gives to a product beyond functional benefits, encompassing brand identity and image while influencing price tolerance.

Product Life Cycle

The four distinct sequential stages that a product passes through in the marketplace: introduction, growth, maturity, and decline.

Diffusion of Innovation

A model illustrating the rate and process by which different consumer groups adopt a new product or innovation over time.

Semantic Network Model

A cognitive thought map visually depicting a brand's image through primary associations and secondary branching nodes.

Multiproduct Branding

A branding strategy (or "branded house") in which a company uses one primary brand name across all of its products to capitalize on established brand equity.

Product Line Extension

The practice of using a current brand name to enter a new segment within an existing product class (e.g., releasing a new iPhone model).

Sub-branding

A branding variation combining a corporate brand name with a distinct sub-brand identifier to reach a specific market (e.g., FedEx Ground, FedEx Freight).

Brand Extension

Employing an established brand name to enter a completely different product class (e.g., Dyson branching from vacuums into hair care and toothbrushes).

Co-branding

A strategic partnership where two distinct brand names appear jointly on a single product offering for mutual commercial benefit.

Multibranding

A strategy (or "house of brands") where an enterprise assigns distinct, separate brand names to different products across its portfolio (e.g., Unilever, Procter & Gamble).

Private Branding

A manufacturing arrangement in which products are produced by a manufacturer but sold under a retailer's or reseller's own private label (e.g., Kirkland Signature).

Fivesso

A natural personal care brand formulated with five essential oils and organic coffee, founded with the tagline "Be natural. Feel natural."