marketing test 2

market research

the process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions

research objectives

specific, measurable goals the decision maker seeks to achieve in conducting the marketing research

measures of success

criteria or standards used in evaluating proposed solutions to the problem

constraints

in research, restrictions placed on potential solutions to a problem- often time or money

concepts

ideas about products or services

observational data

facts and figures obtained by watching how people behave, using personal observation, mechanical methods, or neuromarketing techniques

questionnaires

research that asks people about their attitudes, awareness, intentions, and behaviors

sampling

the process of selecting elements from a population, collecting data from them, using it as a representative of all those a researcher is interested in

statistical inference

using statistical methods to generalize the results from a sample to the population of interest

secondary data

facts and figures recorded prior to the research project

primary data

facts and figures newly collected for the research project

ethnography

systematic observation of people in their natural settings

neuromarketing

field of marketing research that focuses on understanding how the brain responds to nonconscious, marketing stimuli

questionnaire data

facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

focus group

a qualitative research method that involves bringing together a small group of individuals-typically 6 to 10 participants for a structures discussion led by a moderator

open-ended questions

questions that allow respondents to express opinions and ideas or describe behaviors in their own words

closed-end (or fixed alternative questions)

questions that require respondents to select one or more response options from a set of predetermined choices

dichotomous questions

questions that have only two possible response options - usually yes or no

semantic differential questions

questions that measure the perceptions associated with a concept using pairs of opposing adjectives

likert scale questions

questions that measure respondents’ attitudes, opinions, or perceptions by asking them to rate segments on a scale from “strongly agree” to “strongly disagree”

big data

vast amounts of data collected from various sources and analyzed with an increasingly sophisticated set of technologies

data mining

the practice of examining large databases to dins statistical relationships between consumer purchasing patterns and marketing actions

predictive modeling

based on statistical models that use data mining and probability analysis to foretell outcomes

sales forecast

the total sales of a product that a firm expects during a specified time period under specified conditions and its own marketing efforts

lost-horse forecast

a forecast made by starting with the last known value of the item, listing the factors that could cause changes in value, estimating the degree of impact that each of those factos would have, and adjusting the base level to arrive at the final amount

trend extrapolation

forecasting sales by extending a pattern observed in past data into the future. when the pattern is described with a straight line, it is linear trend extrapolation

market segmentation

involves aggregating prospective buyers into groups, or segments that (1) have common needs and (2) will respond similarly to a marketing action

product differentiation

a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products

multiple product branding

a branding strategy in which a company uses one name for all its products in a product class

mass customization

tailoring products or services to the tastes of individual customers on a high-volume

cannibalization

a decline in the sales of one of a company’s products resulting from an increase in the sales of another of its products

4 ways to segment markets

geography - where prospective customers live or work

demographics - physical characteristics, measurable characteristics, and other classification attributes or individuals and households

psychographics - subjective mental or emotional attributes or prospective customers

behaviors - observable actions (usage rates, 80/20 rule)

customer lifetime value

represents the financial worth of a customer to a company over the course of their relationship

market-product

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

product positioning

the place a product occupies in a customers’ minds relative to competitive products

head to head positioning

competing directly with competitors on similar product attributes in the same target market

differentiation positioning

targeting a less competitive, smaller market niche with unique product benefits

perceptual map

a means of displaying in two dimensions the location of its own and competing products or brands in the minds of consumers

product positioning statement

a succinct written statement derived from the company’s customer value proposition that directs the company’s overall marketing strategy.

product

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value

good

tangible product or physical item. can be durable or non-durable

service

intangible activity or benefit that an organization provides to satisfy consumers’ needs

convenience products

items that consumers purchase frequently with a minimum of shopping effort

shopping products

items that consumers compare several alternatives on selected criteria

specialty products

items that consumers make special efforts to seek out and buy

unsought products

items that consumers either do not know about to do not initially want

product item

a specific product with a unique brand, size, or price (SKU or stock keeping unit)

product line

a group of closely related products sold by one company that share similar characteristics and serve similar customer needs

product mix

all the product lines offered by an organization

four i’s of service

intangibility: services cant be experienced before purchase

inconsistency: the quality of services varies

inseparability: customers cannot distignuish the service provider from the service itself

inventory: can not be stored

idle production capacity

unused productive capacity that occurs when the service provider is available but there is no demand for the service

product line extension

addition of a new product to an existing product line

brand extension

using an existing brand name in a new product category

radical innovation

revolutionary new product

feature bloat

unnecessary product features or functions

product life cycle

describes the stages a new product goes through in the marketplace- intro, growth, maturity,

product trial

the initial purchase of a product by a customer

harvesting

retaining a product whole reducing marketing costs

divesting

selling a brand to another company

deletion

dropping a product from the company’s product line

product differentiation

using different marketing mix actions to help consumers perceive the product as being different and better than competing products

brand loyalty

a favorable attitude toward and consistent ourchase of a single brand over time

product modification

altering one or more of a product’s characteristics to increase the product’s value to customers and increase sales

marketing modification

strategies companies use to find new customers, increase a product’s use among existing customers, and create new use situations

product repositioning

changing the place a product occupies in a customer’s mind relative to competitive products

trading up

adding value to the product ot product line through additional features or higher-quality materials

trading down

reducing a product’s number of features, quality, or price

branding

using a name, phrase, design, symbol, or combination of these to identify a company’s products and distinguish them from those of competitors

brand name

a word, device, or combination of these used to distinguish a company’s products from those of competitors

brand personality

a set of human characteristics associated with a brand name

brand licensing

a contractual agreement where one company allows its brand name or trademark to be used with products offered by another company for a royalty or fee

label

an integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to used, and package contents and ingredients