Marketing ch 6-10

Business-to-business marketing

Marketing products/services to companies, governments, or not-for-profit organizations for use in creating goods/services they can produce and market to others.

Organizational buyers

Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy goods/services for their own use or resale.

Derived demand

Demand for industrial products/services derived from demand for consumer products/services.

Organizational buying behavior

Organizational decision-making to establish need and identify/evaluate/choose among brands and suppliers.

Buying center

Group in an organization participating in buying; shares goals, risks, and knowledge important to the decision.

Buy classes

Straight rebuy, modified rebuy, and new buy.

E-marketplaces

Online trading communities enabling real-time exchange among buyers and suppliers (B2B exchanges/e-hubs).

Traditional auction

Seller offers item; buyers bid against one another.

Reverse auction

Buyer states need; suppliers bid against one another

Countertrade

Using barter rather than money for making global sales.

Balance of trade

Monetary value of exports minus imports.

Globalization

Creating economic, cultural, political, and technological interdependence among national institutions/economies.

Protectionism

Shielding domestic industries from foreign competition through tariffs/quotas.

Tariffs

Government taxes on imports that raise prices on imports.

Quota

Restriction on amount of product allowed to enter/leave a country.

World Trade Organization (WTO)

Institution setting trade rules and resolving disputes with binding decisions.

Trade war

Countries try to damage each other's trade, usually via tariffs/quotas.

Global competition

Firms originate/produce/market products worldwide.

Multidomestic marketing strategy

Multinational firm uses many different product variations/brands/ads by country.

Global marketing strategy

Transnational firm standardizes where cultures are similar and adapts where cultures differ.

Global brand

Same brand name in multiple countries with similar, centrally coordinated programs.

Global consumers

Consumer groups across regions with similar needs/desired benefits.

Cross-cultural analysis

Study of similarities/differences among consumers in 2+ nations/societies.

Customs

What is normal/expected in a country's way of doing things.

Cultural symbols

Things representing ideas/concepts in a culture.

Back translation

Retranslate into original language (by different interpreter) to catch errors.

Consumer ethnocentrism

Belief it's inappropriate/immoral to buy foreign-made products.

Currency exchange rate

Price of one currency in terms of another.

Exporting

Produce in one country and sell in another.

Licensing

right to a trademark, patent, or trade secret; low risk/capital-free but less control.

Joint venture

Foreign company + local firm invest together to share ownership/control/profits.

Direct investment

own a foreign subsidiary; high commitment and risk.

Economic espionage

Clandestine collection of trade secrets/proprietary info about competitors.

Marketing research

Define problem/opportunity, systematically collect/analyze info, recommend actions.

Measures of success

Criteria/standards used to evaluate proposed solutions.

Constraints

Restrictions placed on potential solutions.

Data

Facts/figures for the project; includes secondary + primary.

Secondary data

Facts/figures already recorded prior to the project.

Primary data

Newly collected facts/figures for the project.

Observational data

Facts/figures from watching actual behavior (mechanical/personal/neuromarketing).

Questionnaire data

Facts/figures from asking about attitudes/awareness/intentions/behaviors.

Data mining

Examine large databases to find statistical relationships between purchasing patterns and marketing actions.

Predictive modeling

Use statistical models + data mining + probability to foretell outcomes.

Sales forecast

Expected total sales in a time period under specified conditions and marketing efforts.

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.

Market-Product Grid

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

Usage Rate

the quantity consumed or patronage (store visits) during a specific period. Frequency marketing focuses on usage rates.

80/20 Rule

a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers.

Customer Lifetime Value (CLV)

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

Product Positioning

the place a product occupies in consumers' minds based on important attributes relative to competitive products.

Product Repositioning

involves changing the place a product occupies in a consumer's mind relative to competitive products.

Perceptual Map

a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm's own product or brand.

Personas

are character descriptions of a brand's typical customers. Personas bring target market data alive by creating fictional character narratives.

Product

Good, service, or idea (bundle of tangible + intangible attributes) satisfying needs in exchange for value.

Services

Intangible activities/benefits provided to satisfy needs in exchange for value.

Consumer products

Products purchased by the ultimate consumer.

Convenience products

Bought frequently, conveniently, minimal shopping effort.

Shopping products

Consumer compares alternatives on price/quality/style.

Specialty products

Consumer makes special effort to search out and buy.

Unsought products

Consumer doesn't know about or doesn't initially want.

Business products

Products organizations buy to assist in providing other products for resale (B2B/industrial products).

Product item (SKU)

Specific product with unique brand/size/price.

Product line

Group of items closely related (need/use/customer group/outlets/price range).

Product mix

All product lines offered by an organization.

Protocol

Pre-development statement defining target market, needs/wants/preferences, and what the product will be/do.

Open innovation

Practices encouraging use of external + internal ideas and collaboration.

New-product development process

7-stage process to identify opportunities and convert them to salable products/services.

New-product strategy development

Stage defining the role of the new product in terms of firm objectives.

Idea generation

Stage building a pool of concepts (candidates) for new products.

Screening & evaluation

Stage evaluating ideas internally/externally to eliminate those not worth pursuing.

Business analysis

Stage specifying features + marketing strategy and making financial projections.

Development

Stage turning the idea into a prototype.

Market testing

Stage exposing products to prospective consumers under realistic conditions.

Commercialization

Stage positioning/launching product into full-scale production and sales.