MKTG 351 CSUF Exam #2

Consumer Product

Satisfies a want or a need

business product

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

content marketing

a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant and consistent

Relationship Marketing

a strategy that focuses on keeping and improving relationships with current customers

Kerietsu

a network of interlocking corporate affiliates

Producers

Often called OEM's company that buys goods to incorporate them in their final products.

Governments

biggest purchasers, selling to and marketing to is very difficult.

Characteristics of Business Demand

Derived, Inelastic, Joint, And fluctuating

Derived

organizations buy products to be used in production, the demand for parts comes from demand for final product. (timber demand related to new houses)

Inelastic

business market goods are not price sensitive

Joint Demand

When two or more items are used together in a final product.

Fluctuating Demand

the demand for any given business product can change in response to consumer demand changes

Types of Business Products

major equipment, accessory equipment, raw materials, component parts, processed materials, supplies, business services.

major equipment

large tools and machines used for production purposes

accessory equipment

goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

Raw Materials

the basic material from which a product is made. unprocessed

component parts

either finished items ready for assembly or products that need very little processing before becoming part of some other product

Processed Materials

products used directly in manufacturing other products. they have had some processing.

Suppliers

consumable items that do not become part of the final product

Business Services

expense items that do not become part of a final product.

buying center

all the individuals and units that play a role in the purchase decision-making process. I

Roles in the Buying Center

Initiator, Influencers, gatekeepers, decider, purchaser, users.

buying situations

new buy, modified rebuy, straight rebuy

New buy

a situation requiring the purchase of a product for the first time.

Modified Rebuy

a situation in which the purchaser wants some change in the original good or service

straight rebuy

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

Market Segment

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

purpose of market segmentation

enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Criteria of Segmentation

substantial, identifiable, accessibility, responsiveness.

Bases for Segmenting Consumer Markets

geographic segmentation, demographic segmentation, psychographic segmentation, behavioral segmentation

Geographic Segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

Demographic Segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

pyschographic segmentation

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics

Benefit Segmentation

the process of grouping customers into market segments according to the benefits they seek from the product

usage rate segmentation

divides a market by the amount of product bought or consumed

80/20 principle

a principle holding that 20 percent of all customers generate 80 percent of the demand

Steps in Segmenting a Market

1. select a market or product category for study

2. choose a basis or bases for segmenting the market

3. select segmentation descriptors

4. profile and analyze segments

5. select markets

6. design, implement, and maintain appropriate marketing mixes

Target Market Strategies

Undifferentiated Targeting Strategy, Concentrated targeting strategy, Multisegment Targeting Strategy.

Undifferentiated Targeting Strategy

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

Concentrated Targeting Strategy

Selects one market, A niche, can focus on need and wants and motives of that singular market more effectively. Specialized Marketing Mix.

multisegment targeting strategy

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each. Risks market cannibalization.

positioning

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general.

position

the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings

product differentiation

a positioning strategy that some firms use to distinguish their products from those of competitors

Positioning Bases

1. attribute

2. price and quality

3. use or application

4. product user

5. product class

6. competitor

7. emotion

attribute

a product is associated with an attribute, product feature, or customer benefit

Price and quality

this position strategy may stress high price as a sign of quality, or emphasize low price as an indication of value.

Use or application

Stressing unique uses or applications

Product User

Positioning base focuses on a personality or type of user.

Product Class

refers to the entire product category or industry

Competitor

Positioning against competitors is a part of any positioning strategy.

Emotion

Positioning that focuses on how the product makes customers feel.

Repositioning

changing consumers' perceptions of a brand in relation to competing brands

marketing research

the process of planning, collecting, and analyzing data relevant to a marketing decision

Roles of marketing research

1. Descriptive

2. Diagnostic

3. Predictive

Descriptive Marketing Research

gathering and presenting factual statements

Diagnostic Marketing Research

explaining data

Predictive Marketing Research

addressing "what if" questions

Management Uses of Marketing Research

-Improve the quality of decision making

-Trace problems

-Focus on keeping existing customers

-Understand the marketplace

-Alert them to marketplace trends

-Gauge the value of goods and services, and the level of customer satisfaction

Internet of Things

describes a system in which everyday objects are connected to the internet and in turn are able to communicate information throughout an interconnected system

Steps in marketing research project

Marketing research problem, marketing research Objective, Management decision problem.

marketing research problem

determining what information is needed and how that information can be obtained efficiently and effectively

Marketing research objective

the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information

management decision problem

a broad-based problem that uses marketing research in order for managers to take proper actions

Marketing Research Process

(1) Identification of the problem and statement of the research objectives,

(2) Plan the research design and gather secondary data

(3) specify the sampling procedures

(4) Collect Primary Data

(5) analyze the data.

(6) Prepare and Present the report

(7) Follow up

Big Data

the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data

research design

specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed

primary data

information that is collected for the first time; used for solving the particular problem under investigation

survey research

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

Observation Research

a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity

Universe

the population from which a sample will be drawn

Probability sample

a sample in which every element in the population has a known statistical likelihood of being selected

random sample

a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample

nonprobability sample

any sample in which little or no attempt is made to get a representative cross section of the population

convenience sample

a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives

Measurement Error

an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process

Sampling Error

an error that occurs when a sample somehow does not represent the target population

nonresponse error

a sampling error that occurs when the sample actually interviewed differs from the sample drawn

frame error

an error that occurs when a sample drawn from a population differs from the target population

random error

an error that occurs when the selected sample is an imperfect representation of the overall population

Cross-tabulation

a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions

Advantages of Internet Surveys

1. rapid development, real time reporting

2. dramatically reduced costs

3. personalized questions and data

4. improved respondent participation

5. contact with the hard-to-reach

Advantages of Online Focus Groups

-better participation rates

-cost-effectiveness

-broad geographic scope

-accessibility

scanner-based research

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

InfoScan

a scanner-based sales-tracking service for the consumer packaged-goods industry

Neuromarketing

a field of marketing that studies the body's responses to marketing stimuli

Competitive Intelligence

an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors

Product Definition

everything, both favorable and unfavorable, that a person receives in an exchange

First stage in marketing mix

Product

Business Product

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

Consumer Product

a product bought by final consumers for personal consumption (needs and wants)

convience products

Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort

Shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores

specialty Product

a particular item for which consumers search extensively and are very reluctant to accept substitutes

Unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek

Product Item

a specific version of a product that can be designated as a distinct offering among an organization's products

product line

a group of closely related product items

Product mix

all products that an organization sells

benefits of product lines

1. advertising economies

2. package uniformity

3. standardized components

4. efficient sales and distribution

5. equivalent quality

Brand Name

that part of a brand that can be spoken, including letters, words, and numbers