M&S- Exam 2

Marketing Research

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

Measures of Success

criteria or standards used in evaluating proposed solutions to the problem

Constraints

in a decision, the restrictions placed on potential solutions to a problem (time/resources/money/information)

Data

the facts and figures related to the project that are divided into two main parts: secondary and primary

Secondary Data

the facts and figures that have already been recorded prior to the project at hand, cheaper, lots of data

Primary Data

the facts and figures that are newly collected for the project

Observational Data

the facts and figures obtained by watching, either mechanically or in person, how people actually behave

Questionnaire Data

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

Information Technology

involves operating computer networks that can store and process data

Sales Forecast

consists of total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts

Cross Tabulation

a method of presenting and analyzing data involving two or more variables to discover relationships in the data.

5 Steps of the Marketing Research

(1) define the problem, (2) develop the research plan, (3) collect relevant information, (4) develop data, (5) make recommendation

Exploratory Research

To clarify the exact nature of a problem, identify key variables, and generate research questions, rather than providing final answers. Used to understand the scope of the problem

Descriptive Research

a quantitative, structured method used to define market characteristics, consumer demographics, and behavior patterns—answering "who, what, where, when, and how" without determining "why"

Causal Research

often experimental, determine whether one thing causes another, cause-and-effect relationship

Concepts

ideas about products

Methods

approaches to collect data

Marketing Input Data

internal form of secondary data, measure how much effort is expended to make sales

Marketing Outcome Data

internal form of secondary data, measure results of 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

Product Positioning

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

Product Repositioning

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 product 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

Usage Rate

the quantity consumed or patronage (store visits) during a specific period (also called frequency marketing)

80/20 Rule

concept that suggests 80% of a firm’s sales are obtained from 20% of its customers

Customer Lifetime Value

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

Personas

character descriptions of a brand’s typical customers

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

Services

the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value

Consumer Products

products purchased by the ultimate consumer

Convenience Products

items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort

Shopping Products

items for which the consumer compares several alternatives on criteria such as price, quality, or styles

Specialty Products

items that a consumer makes a special effort to search out and buy

Unsought Products

items that the consumer iether does not know about or knows about but does not initially want

Business Products

products organizations buy that assist in providing other products for resale (also called B2B products or industrial products)

Product Item

a specific product that has a unique brand, size, or price

Product Line

a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a give price range

Product Mix

consists of all the product lines offered by an organization

Protocol

a statement that, before product development begins, identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; (3) what the product will be and do to satisfy consumers

New-Product Development Process

consists of the seven stages of organization goes through to identify opportunities and convert them to salable products or services

New-Product Strategy Development

the stage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives

Idea Generation

the stage of the new-product process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage’s results

Screening and Evaluation

the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort

Customer Experience Management (CEM)

the process of managing the entire customer experience within the company

Business Analysis

the stage of the new-product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections

Development

the stage of the new-product process that turns the idea on paper into a prototype

Market Testing

the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy

Commercialization

the stage of the new-product process that positions and launches a new product in full-scale production and sales

Open Innovation

consists of practices and processes that encourage the use of external as well as internal ideas, as well as internal and external collaboration when conceiving, producing, and marketing, new products and services

Product Life Cycle

the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

Branding

a marketing decision in which an organization uses a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those competitors

Brand Name

any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or services

Trade Name

a commercial, legal, name under which a company does business

Trademark

identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing other from using it

Brand Personality

a set of human characteristics associated with a brand name

Brand Licensing

a contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee

Brand Equity

the added value a brand name gives to a product beyond the functional benefits provided

Brand Purpose

the reason why a brand exists, the place it has in consumers’ lives, the solution it provides to consumers, and the brand’s role in making society better off

Multiproduct Branding

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

Multibranding

a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment

Prive branding (provate labeling or reseller branding)

when a manufacturer produces products but sells them under the brand name of a wholesaler or retailer

Mixed Branding

when a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market

Product Modification

involves altering one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value to customers and increase sales

Market Modification

strategies allow a company to try to find new customers, increase a product’s use among existing customers, or create new use situations

Trading Up

involves adding value to the product (or line) through additional features or higher-quality materials

Trading Down

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

Packaging

component of a product that refers to any container in which it is offered for sale on which label information is conveyed

Labeling

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