PRINCIPLES OF MARKETING NOTES Chapters 4-6

BUS 270 Principles of Marketing, Chapters 4-6 through Cengage

Marketing Research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Exploratory Research

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific

Customer Advisory Boards

Small groups of actual customers who serve as sounding boards for new-product ideas and offer insights into their feelings and attitudes toward a firm’s products and other elements of its marketing strategy

Focus Group

A small group of 8 to 12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept

Primary Data

Data observed and recorded or collected directly from respondents

Secondary Data

Data compiled both inside and outside the organization for some purpose other than the current investigation

Online Survey

A research method in which respondents answer a questionnaire via e-mail or on a website

Crowdsourcing

Combines the words crowd and outsourcing and calls fortaking tasks usually performed by a marketer or researcher and outsourcingthem to a crowd, or potential market, through an open call

Marketing Analytics

The use of databases, big data, and measurement methods enabled by technology to interpret the effectiveness of a firm’s marketing functions

Big Data

Involves massive structured and unstructured data sources that can be used by marketers to discover unique insights and make strategic decisions

Data Silo

A file of fixed data that is in one department isolated from the rest of the organization

Database

A collection of information arranged for easy access and retrieval

Marketing Decision Support System (MDSS)

Customized computer software that aids marketing managers in decision making

Marketing Information System (MIS)

A framework for managing and structuring information gathered regularly from sources inside and outside the organization

Consumer Market

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits or serve an organizational need

Business Market

Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations

Undifferentiated Targeting Strategy

A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product

Homogeneous Market

A market in which a large proportion of customers have similar needs for a product

Heterogeneous Markets

A market made up of individuals or organizations with diverse needs for products in a specific product class

Market Segmentation

The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs

Market Segment

Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs

Concentrated Targeting Strategy

A market segmentation strategy in which an organization targets a single market segment using one marketing mix

Differentiated Targeting Strategy

A strategy in which an organization targets two or more segments by developing a marketing mix for each segment

Segmentation Variables

Characteristics of individuals, groups, or organizations used to divide a market into segments

Market Density

The number of potential customers within a unit of land area

Geodemographic Segmentation

A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information

Micromarketing

An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets

Benefit Segmentation

The division of a market according to benefits that consumers want from the product

Market Potential

 The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity

Sales Forecast

The amount of a product a company expects to sell during a specific period at a specified level of marketing activities

Executive Judgement

A sales forecasting method based on the intuition of one or more executives

Customer Forecasting Survey

A survey of customers regarding the types and quantities of products they intend to buy during a specific period

Sales Force Forecasting Survey

A survey of a firm’s sales force regarding anticipated sales in their territories for a specified period

Expert Forecasting Survey

Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors

Delphi Technique

A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts

Time Series Analysis

A forecasting method that uses historical sales data to discover patterns in the firm’s sales over time and generally involves trend, cycle, seasonal, and random factor analyses

Trend Analysis

An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales

Cycle Analysis

An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner

Seasonal Analysis

An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales

Random Factor Analysis

An analysis attempting to attribute erratic sales variations to random, nonrecurrent events

Regression Analysis

A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income

Market Test

Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts

Buying Behavior

The decision processes and actions of people involved in buying and using products

Customer Buying Behavior

The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes

Consumer Buying Decision Process

A five-stage purchase decision process that includes: Problem Recognition, Information Search, Evaluation of Alternatives Purchase Post, and Purchase Evaluation

Internal Search

An information search in which buyers search their memories for information about products that might solve their problem

External Search

An information search in which buyers seek information from sources other than their memories

Consideration Set (evoked set)

A group of brands within a product category that a buyer views as alternatives for possible purchase

Evaluative Criteria

Objective and subjective product characteristics that are important to a buyer

Cognitive Dissonance

A buyer’s doubts shortly after a purchase about whether the decision was the right one

Routinized Response Behavior

A consumer problem-solving process used when buying frequently purchased, low-cost items that require very little search-and-decision effort

Limited Decision Making

A consumer problem-solving process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category

Extended Decision Making

A consumer problem-solving process employed when purchasing unfamiliar, expensive, or infrequently bought products

Impulse Buying

An unplanned buying behavior resulting from a powerful urge to buy something immediately

Level of Involvement

An individual’s degree of interest in a product and the importance of the product for that person

Enduring Involvement

Ongoing and long-term involvement with a product or product category

Situational Involvement

Temporary and dynamic involvement resulting from a particular set of circumstances

Situational Influences

Influences that result from circumstances, time, and location that affect the consumer buying decision process

Psychological Influences

Factors that in part determine people’s general behavior, thus influencing their behavior as consumers

Information Inputs

Sensations received through sight, taste, hearing, smell, and touch

Selective Exposure

The process by which some inputs are selected to reach awareness and others are not

Selective Distortion

An individual’s changing or twisting of information that is inconsistent with personal feelings or beliefs

Selective Retention

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

Motivation

The inner driving forces or reasons behind an individual’s actions and behaviors

Maslow’s Hierarchy of Needs

The five levels of needs that humans seek to satisfy, from most to least important

Learning

Changes in an individual’s thought processes and behavior caused by information and experience

Attitude

An individual’s enduring evaluation of feelings about and behavioral tendencies toward an object or idea

Attitude Scale

A means of measuring consumer attitudes by gauging the intensity of individuals’ reactions to adjectives, phrases, or sentences about an object

Personality

A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations

Self-Concept

A perception or view of oneself

Lifestyle

An individual’s pattern of living expressed through activities, interests, and opinions

Social Influences

The forces other people exert on one’s buying behavior

Roles

Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons

Consumer Socialization

The process through which a person acquires the knowledge and skills to function as a consumer

Reference Group

A group that a person identifies with so strongly that they adopt the values, attitudes, and behavior of group members, regardless of group membership

Culture

The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations

Subculture

A group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture

Customer Misbehavior

Behavior that violates generally accepted norms of a particular society, includes shoplifting, organized retail crime, consumer fraud, piracy, abusive, customers