MK 3010 Exam 2

Marketing research

procedures that develop and analyze new information about a market

Marketing information system (MIS)

an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make on going decisions

Big data

data sets too large and complex to work with typical database management tools

The four V's Dimensions of big data

1. Volume
2. Variety
3. Velocity
4. Veracity

data warehouse

A place where databases are stored so that they are available when needed

marketing dashboard

displays up-to-the-minute marketing information in an easy to read format

marketing model

a statement of relationships among marketing variables

personal data

information that can be used by itself or in combination with other information to identify someone

informational privacy

anything that limits others access to personal data that people consider sensitive or confidential

General data protection regulation (GDPR)

A set of laws on data protection and privacy for all individuals within the EU

Scientific method

a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them

hypotheses

educated guesses about the relationships between things or about what will happen in the future

marketing research process

1. Defining the problem
2. analyzing the situation
3. getting problem specific data
4. interpreting the data
5. solving the problem

Qualitative research

seeks in depth, opened-ended responses. Not yes or no answers

customer journey map

the story and graphic diagram of a customers experience in the buying process from need awareness through the purchase process and post purchase relationship

focus group interview

involves simultaneously interviewing 6-10 people in an informal group setting using open ended questions

quantitative research

seeks structured responses that can be summarized in numbers, such as percentages, averages, or other statistics

response rate

the percentage of people contacted who complete the questionnaire

experimental method

when researchers compare the response of two (or more) groups that are similar except on the characteristic being tested (A/B Testing)

statistical packages

easy to use computer programs that analyze data

population

the total group marketing managers are interested in

sample

part of the relevant population

confidence intervals

the range on either side of an estimate that is likely to contain the true value for the whole population

Validity

concerns the extent to which data measure what they are intended to measure

Product

the need satisfying offering of a firm

quality

a product's ability to satisfy a customer's needs or requirements

warranty

explains what the seller promises about its product

individual product

a particular product within a product line

product line

a set of individual products that are closely related

product assortment

the set of all product lines and individual products that a firm sells

product line length

the number of individual products in a product line

service

an intangible offering involving a deed, performance, or effort

Augmented reality

overlays a computer-generated image, sound, text, or video on a user's view of the physical world

Branding

the use of a name, term, symbol, or design -- or a combination of these -- to identify a product

brand name

a word, letter, or group of words or letters

trademark

includes only those words, symbols, or marks that are legally registered for use by a single company

Service mark

same as trademark except that it refers to a service offering

Brand familiarity

how well customers recognize and accept a company's brand

5 Levels of brand familiarity

1. Rejection
2. Nonrecognition
3. recognition
4. preference
5. insistence

Brand rejection

potential customers won't buy a brand unless its image is changed -- or if the customers have no other choice

Brand nonrecognition

final consumers don't recognize a brand at all-- even though intermediaries may use the brand name for identification or inventory control

Brand recognition

customers remember the brand. this doesn't mean they like it

brand preference

target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience

brand insistence

customers insist of a firm's branded product and are willing to search for it.

brand equity

the value of a brand's overall strength in the market

Lanham act (1946)

spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them

family brand

the same brand name for several products

licensed brand

a well known brand that sellers pay a fee to use

individual brands

separate brand names for each product

generic products

products that have no brand at all other than identification of their contents and the manufacturer or intermediary

manufacturer brands

brands created by producers. sometimes called national brands

dealer brands

also called private brands are brands created by intermediaries

battle of the brands

the competition between dealer brands and manufacturer brands

packaging

involves promoting, protecting, and enhancing the product

Federal fair packaging and label act

requires that consumer goods be clearly labeled in easy to understand terms to give consumers more information

consumer products

products meant for the final user

business products

products meant for use in producing other products

convenience products

products a consumer needs but isn't willing to spend much time or effort shopping for

Staples

products that are bought often, routinely, and without much thought

impulse products

products that are bought quickly --as unplanned purchases-- because of a strongly felt need

emergency products

products that are purchased immediately when the need is great

Types of convenience products

1. Staples
2. impulse products
3. emergency products

Shopping products

products that a customer feels are worth the time and effort to compare with competing products. They can be divided into 2 types. Homogenous/heterogenous

Homogenous shopping products

items that customers see as basically the same and wants at the lowest price

ex. gas, televisions

Heterogenous shopping products

items that the customer sees as different and wants to inspect for quality and suitability

ex. furniture, clothing, memberships

speciality products

consumer products that the customer really wants and makes a special effort to find

Unsought products

products that potential customers dont yet want or know they can buy, so they don't search for them

New unsought products

products offering really new ideas that potential customers don't yet know about

regularly unsought products

items that stay unsought but not unbought forever. (gravestones, life insurance, nursing homes)

derived demand

the demand for business products derives from the demand for final consumer products

expense item

a product whose total cost is treated as a biz expense the year its purchased

capital item

a long-lasting product that can be used and depreciated for many years

installations

important capital items such as buildings, land rights, and major equipment

accessories

short lived capital items -- tools and equipment used in production or office activities

raw materials

unprocessed expense items

farm products

grown by farmers -- oranges, sugarcane, and cattle

natural products

products that occur in nature, such as timber, iron ore, oil, and coal

components

processed expense items that become part of a finished product

supplies

expense items that do not become part of a finished product

1. maintenance
2. repair
3. operating

professional services

specialized services that support a firms operation

product life cycle

describes the stages a new-product idea goes through from beginning to end

4 main stages of product life cycle

1. Market introduction
2. market growth
3. market maturity
4. sales decline

market introduction stage

sales are low as a new idea is first introduced to a market, consumers aren't looking for the product. informative promotion is needed

market growth stage

industry sales grow fast, but industry profits rise and then start falling

market maturity stage

occurs when industry sales level off and competition gets tougher

sales decline stage

new products replace the old. price competition from dying products becomes more vigorous

fashion

the currently accepted or popular style

new product

an item that is new in any way for the company concerned

can only be new for 6 months

continuous innovations

new products that don't require customers to learn new behaviors.

dynamically continuous innovations

new products that require minor changes in customer behavior

Discontinuous innovations

new products that require customers adopting the innovation significantly change their behavior

Federal Trade Comission

The federal gov agency that policies antimonopoly laws

patent

grants the inventory the ability to "excludes others from making, using, offering for sale, or selling the invention

Consumer product safety act (1972)

set up the consumer product safety commission to encourage safety in product design and better quality control

product liability

the legal obligation of sellers to pay damages to individuals who are injured by defectives or unsafe products

concept testing

getting reactions from customers about how well a new product idea fits their needs

prototype

an early sample or model built to test a concept

product/brand managers

those who manage specific products--often taking over the jobs formerly handled by an advertising manager

total quality management (TQM)

The philosophy that everyone in the organization is concerned about quality.

continuous improvement

a commitment to constantly make things better one step at a time