MARK 3000 UGA Grantham Test 2

marketing research

a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas

marketing research process

1. Defining the objectives and research needs

2. Designing the research

3. Data collection process

4. Analyzing data and developing insights

5. Action plan and implementation

secondary data

pieces of information that have already been collected from other sources and usually are readily available

primary data

data collected to address specific research needs

sample

a group of customers who represent the customers of interest in a research study

data

raw numbers or facts

information

organized, analyzed, interpreted data that offer value to marketers

syndicated data

Data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.

scanner data

a type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters

panel data

information collected from a group of consumers

data warehouses

large computer files that store millions and even billions of pieces of individual data

data mining

the use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables

churn

the number of consumers who stop using a product or service, divided by the average number of consumers of that product or service

big data

data sets that are too large and complex to analyze with conventional data management and data mining software

qualitative research

informal research methods, including observation, following social media sites, in-depth interviews, focus groups, and projective techniques

quantitative research

structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data

observation

an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny

virtual community

online networks of people who communicate about specific topics

sentiment mining

data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter

in-depth interview

an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue

focus group interview

A research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry.

survey

a systematic means of collecting information from people that generally uses a questionnaire

questionairre

a form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives; structured or unstructured answers

unstructured questions

open-ended questions that allow respondents to answer in their own words

structured questions

closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

experimental research

A type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables

facial recognition software

Software that can automatically identify or verify individuals from video or digital images

neuromarketing

the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies

product

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

core customer value

the basic problem solving benefits that consumers are seeking

actual product

the physical attributes of a product including the brand name, features/design, quality level, and packaging

associated services (augmented product)

the non-physical attributes of the product including product warranties, financing, product support, and after-sale service

consumer product

products and services used by people for their personal use

specialty products

products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers

shopping products

products or services for which consumers will spend a fair amount of time comparing alternatives, such as apparel, fragrances, and appliances

convenience products

products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase

unsought products

products or services consumers either do not normally think of buying or do not know about

product mix

the complete set of all products offered by a firm

product line

group of associated items, such as those that consumers use together or think of as part of a group of similar products

product breadth

number of product lines offered by a firm; also known as variety

depth

the number of categories within a product line

cannibalize

from a marketing perspective, it is the negative impact on a firm's sales, profits, or market share when one product competes closely with a similar product offered by the same company

predictive analysis

The use of statistics on data to determine patterns and predict future outcomes and trends

brand equity

the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service

brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers

perceived value

the relationship between a product's or service's benefits and its cost

brand association

the mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality

brand loyalty

occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category

manufacturer brands (national brands)

brands owned and managed by the manufacturer

retailer/store brands

Products developed by retailers; also called private-label brands

private-label brands

Brands developed and marketed by a retailer and available only from that retailer; also called store brands.

family brand

a firm's own corporate name used to brand its product lines and products

individual brands

the use of individual brand names for each of a firm's products

brand extension

the use of the same brand name for new products being introduced to the same or new markets

line extension

the use of the same brand name within the same product line and represents an increase in a product line's depth

brand dilution

occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

co-branding

the practice of marketing two or more brands together, on the same package or promotion

brand licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee

brand repositioning

a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences

primary package

the packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption

secondary package

the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package

sustainable packaging

Product packaging that has less of a negative impact on the environment

innovation

the process by which ideas are transformed into new products and services that will help firms grow

diffusion of innovation

the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters

pioneers

New product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; also called breakthroughs.

first movers

product pioneers that are the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead

innovators

those buyers who want to be the first to have the new product or service

early adopters

the second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review

early majority

A group of consumers in the diffusion of innovation model that represents approximately 34 percent of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products and services can be profitable until this large group buys them.

late majority

the last group of buyers to enter a new product market; when they do, the product has achieved its full market potential

laggards

Consumers, representing approximately 16 percent of the population, who like to avoid change and rely on traditional products until they are no longer available; sometimes never adopt a product or service

the product development process

1. idea generation

2. concept testing

3. product development

4. market testing

5. product launch

6. evaluation of results

R&D consortia

a group of firms and institutions that explore new ideas or obtain solutions for developing new products

licensing

a method used in developing new products in which a firm buys the rights to use a technology or idea from another firm

brainstorming

a group activity used to generate ideas

outsourcing

a practice in which the client firm hires an outside firm to facilitate some aspect of its business. In the context of new product development, the outsourced firm helps its client develop new products or services

reverse engineering

Taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.

lead users

innovative product users who modify existing products according to their own ideas to suit their specific needs

concept

brief written description of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy

concept testing

the process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions

product development (product design)

entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features

prototype

the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually

alpha testing

An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) department.

beta testing

having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use

premarket test

conducted before a product or service is brought to market to determine how many customers will try and then continue to use it

test marketing

A method of determining the success potential of a new product; it introduces the offering to a limited geographical area prior to a national launch.

product life cycle

defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning

introduction stage

stage of the product life cycle when innovators start buying the product

growth stage

stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category

maturity stage

stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

decline stage

stage of the product life cycle when sales decline and the product eventually exits the market

price

the overall sacrifice a consumer is willing to make - money, time, energy - to acquire a specific product or service

profit orientation

a company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing

target profit pricing

A pricing strategy implemented by firms when they have a particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a certain profit per unit.

maximizing profits

A profit strategy that relies primarily on economic theory. If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized.

target return pricing

A pricing strategy implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments; designed to produce a specific return on investment, usually expressed as a percentage of sales.

sales orientation

a company objective based on the belief that increasing sales will help the firm more than will increasing profits

premium pricing

a competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter

customer orientation

a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs

status quo pricing

a competitor-oriented strategy in which a firm changes prices only to meet those of competition