Marketing Exam 2

Alibaba

A Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology, Alibaba facilitates consumer-to-consumer, business-to-consumer, and business-to-business sales through its online platforms.

Jack Ma

Founder of Alibaba Group and a prominent entrepreneur in e-commerce and technology.

ACSI

(American Customer Satisfaction Index) is a national economic indicator that measures customer satisfaction across various sectors and industries in the United States.

Qualtrics

a software company providing tools for experience management, including customer, employee, product, and brand experience.

Amazon Mechanical Turk

a crowdsourcing marketplace that connects businesses with individuals willing to perform microtasks, such as data entry and survey participation.

VALS

(Values and Lifestyles) is a market research tool used to segment consumers based on their psychological characteristics and lifestyles, helping companies understand consumer behavior and preferences.

Marketing Research

process of designing, gathering, analyzing, and reporting information that may be used to solve a marketing problem

Primary Data

information that has been gathered specifically for the research objectives at hand

Secondary Data

information that has been collected for a purpose other than the research data at hand

Approaches to Market Research Study

Exploratory, descriptive, experimental

Exploratory Market Research

describes less structured data collection methods (ex. focus groups)

Descriptive Market Research

describes the characteristics of a population (ex. surveys)

Experimental Market Research

identifies cause and effect between variables

Types of Marketing Research Studies

Applied vs. Basic

Applied Marketing Research

solves a specific immediate problem for a specific company or organization

Basic (Pure) Research

expands the overall boundaries of marketing knowledge and theory, focusing on general principles and broader consumer behavior trends rather than immediate commercial application

Marketing Research Process

1. Problem Definition

2. Research Design

3. Sampling

4. Data Gathering

5. Data Analysis

6. Report Preparation

Correlation

a statistical relationship between two variables where they tend to move or change together. C

Causation

a direct cause-and-effect relationship where a change in one variables forces or results in a change in the other variable

Market Segmentation

the process of dividing up a market into smaller groups (segments)

Types of Market Segmentation

demographic, psychographic, geographic, behavioral

Undifferentiated Marketing

a strategy where a company ignores differences between market segments and targets the entire market with a single product, price, and promotional message

Segment of One (Mass Customization)

marketing strategy that treats each individual customer as their own unique market

Niche Marketing

a highly targeted form of advertising for a small, specific, and well-defined audience

Cluster Analysis

statistical technique, used to see types of customers and the size of segments. The x-axis shows competitive advantage and the y-axis shows segment attractiveness. Firms can then plot the segments against their core competencies and target groups with most sales potential.

Demographics

Gender, age, ethnicity, education, religion

Geographics

Region, city size, urban/rural, (ex. McDonalds serving different things in different countries)

Psychographics

personality, lifestyle, motivations

Behavioristic

usage/volume, benefits, loyalty, price sensitivity

Sales Forecast

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

Regression Analysis

a way of predicting sales based on finding a relationship between past sales and one or more independent variables (can’t use on new products)

Perceptual Map

a visual diagram that shows how target consumers view and compare competing brands or products based on key attributes

Test Market

make a product available to buyers in one or more areas and measuring purchases and consumer responses

Repositioning

a marketing strategy that changes how a target market perceives an established product, service, or brand (sketchers→skateboard shoes to walking shoes)

Anchoring

mental shortcuts that restrict how much companies can charge for similar products

Endowment Effect

people value objects they own more than the same object if they don’t own it

Framing

change consumers frame of reference (Wendy’s triple burger)

High Involvement Products

purchased only after careful consideration, tend to be visible to others, risky/expensive

Low Involvement Products

mindless purchases (socks and toothpaste)

Problem Solving Strategies

routinized response behavior, limited problem solving, extended problem solving, impulse buying

Routinized/Habitual Decision Making

Buying products out of habit with little to no thought or effort because of previous experience.

Limited Problem Solving

buying products after doing a small amount of research or considering a few alternatives.

Extended Problem Solving

making a purchase requires significant research and careful evaluation of many alternatives internal and external sources

Consumer Decision Making Process

a series of stages that an individual goes through when they consider buying a product or service

Problem Recognition-Decision Making Process

when a buyer becomes aware of a difference between a desired state and an actual condition

Information Search-Decision Making Process

Internal (memory) and external (info from advertisements) research

Evaluation of Alternatives- Decision Making Process

identification and product selection

Consideration/Evoked Set

products already in memory plus those prominent in the retail environment

Purchases-Decision Making Process

aren’t immune to exogenous shocks like the pandemic

Post-Purchase Evaluation-Decision Making Process

where consumers evaluate whether a product or service met their expectations after buying and using it

Cognitive Dissonance

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

Maslow’s Hierarchy of Needs

a theory that people are motivated to satisfy five levels of needs physiological, safety, social, esteem, and self-actualization

Adaptation

modifying elements of the marketing program to accommodate specific customer requirements in individual foreign markets (when the market has unique characteristics based on language, culture, regulations, income level, economic conditions, and infrastructure)

Standardization

efforts to make marketing program elements uniform in an effort to target entire countries, or even the global marketplace with a similar product or service

Gray Marketing

buying something in a country for super cheap and selling it in a different country for way more

Relevant Forces in Global Marketing

political, economic, technological, sociocultural, ethical and social responsibility, competitive

Balance of Trade

the difference between the value of a country's exports (goods sold to other countries) and imports (goods purchased from other countries)

Five Characteristics of E-Marketing

addressability, interactivity, accessibility, connectivity, control

Addressibility

a marketer’s ability to identify customer needs before the customer makes a purchase

Interactivity

creates a conversation between the customer and firm

Accessibility

ability to obtain info about a company or product/service

Connectivity

ability to connect customers, businesses, and online communities

Control

Customers can control what information they view and interact with

Net Promoter Formula

Promoters-Detractors (as a percentage)

BRICS

Brazil, Russia, India, China, South Africa

Big Data

data sets that are too large or complex to be dealt with by traditional data-processing application software

Applied Research

Any research which is used to answer a specific question, determine why something failed or succeeded, solve a specific, pragmatic problem or to gain better understanding.

Segmentation Process

1. Segment

2. Target

3. Position

4. Reposition

Trend Analysis

Using aggregate sales data from many years to determine general trends.C

Cycle Analysis

Analyzing sales for three to five years to assess consistent fluctuations.

Seasonal Analysis

Analyzing daily, weekly, or monthly sales to assess seasonal influences.