| Chapter 5 | |
| Marketing Research | The process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness |
| Marketing intelligence | Information about a firm's external environment, which allows marketers to monitor conditions that affect demand for existing products or create demand for new products |
| Research design | A plan that specifies what information marketers will collect and what type of study they will do |
| Exploratory research | Technique that marketers use to generate insights for the future |
| Consumer interviews | One-on-one discussions between a consumer and a researcher |
| Focus group | A product-oriented discussion among a small group of consumers led by a trained moderator |
| Projective techniques | Tests that marketers use to explore people's underlying feelings about a product, especially appropriate when consumers are unable or unwilling to express their true reactions |
| Case Study | A comprehensive examination of a particular firm or organization |
| Ethnography | A detailed report based on observations of people in their own homes or communities |
| Descriptive research | Tool that probes more systematically into the problem and bases its conclusions on large numbers of observations |
| Cross-sectional design | Type of descriptive technique that involves the systematic collection of quantitative information |
| Longitudinal design | Technique that tracks the responses of the same sample of respondents overtime |
| Survey | A questionnaire that asks participants about their beliefs of behaviors |
| Casual research | Techniques that attempt to understand cause-and-effect relationships |
| Experiments | Techniques that test prespecified relationships among variables in a controlled environment |
| Single-source data | Information that is integrated from multiple sources, to monitor the impact of marketing communications on a particular customer group over time |
| Data mining | Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available |
| Validity | The extent to which research actually measures what it was intended to measure |
| Reliability | The extent to which research measurement techniques are free of errors |
| Representativeness | The extent to which consumers in a study are similar to a larger group in which the organization has an interest |
| Sampling | The process of selecting respondents who statistically represent a larger population of interest |
| Marketing Information system (MIS) | Procedure developed by a firm to continuously gather, sort, analyze store, and distribute relevant and timely marketing information to its managers |
| Scenarios | Possible future situations that futurists use to assess the likely impact of alternative marketing strategies |
| Chapter 6 | |
| Consumer behavior | The process individuals or groups go through to select, purchases, or use goods, services, ideas, or experiences to satisfy their needs and desires |
| Involvement | The relative importance of perceived consequences of the purchase to a consumer |
| Perceived risk | The belief that use of a product has potentially negative consequences, either financially, physical, or social |
| Problem recognition | The process that occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state. This recognition initiates the decision -making process |
| Information search | The process whereby a consumer searches for appropriate information to make a reasonable decision |
| Evaluative criteria | The dimensions that consumers use to compare competing product alternatives |
| Heuristics | A mental rule of thumb that leads to a speedy decision by simplifying the process |
| Brand loyalty | A pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand, which is based on the belief that the brand makes products superior to its competition |
| Consumer satisfaction/dissatisfaction (CS/D) | The overall feelings or attitude a person has about a product after purchasing it |
| Perception | The process by which people select, organize, and interpret information from the outside world |
| Motivation | An internal state that drives us to satisfy needs by activating goal-oriented behavior |
| Hierarchy of needs | An approach that categorizes motives according to five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top |
| Learning | A relatively permanent change in behavior caused by acquired information or experience |
| Behavioral learning theories | Theories of learning that focus on how consumer behavior is changed by external events or stimuli |
| Classical conditioning | The learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on its own but will cause a similar response over time because of its association with the first stimulus |
| Operant conditioning | Learning that occurs as the result of rewards or punishments |
| Stimulus Generalization | Behavior caused by a reaction to one stimulus occurs in the presence of other, similar stimuli |
| Cognitive learning theory | Theory of learning that stresses the importance of internal mental processes and that views people as problem solvers who actively use information from the world around them to master their environment |
| Attitude | A learned predisposition to respond favorably or unfavorably to stimuli based on relatively enduring evaluations of people, objects, and issues |
| Personality | The psychological characteristics that consistently influence the way a person responds to situations in the environment |
| Self-concept | An individual's self-image that is composed of a mixture of beliefs, observation, and feelings about personal attributes |
| Family life cycle | A means of characterizing consumers within a family structure based on different stages through which people pass as they grow older |
| Lifestyle | The pattern of living that determines how people choose to spend their time, money, and energy and that reflects, their values, tastes, and preferences |
| Psychographics | The use of psychological, sociological, and anthropological factors to construct market segments |
| Culture | The values, beliefs, customs, and tastes that a group of people value |
| Subculture | A group within a society whose members share a distinctive set of beliefs, characteristics, or common experiences |
| Social class | The overall rank or social standing of groups of people within a society according to the value assigned to such factors as family background, education, occupation, and income |
| Status symbols | Products that consumers purchase to signal membership in a desirable social class |
| Reference group | An actual or imaginary individual or group that has a significant effect on a n individual's evaluations, aspirations, or behavior |
| Conformity | A change in beliefs or actions as a reaction to real or imagined group pressure |
| Sex roles | Society's expectations regarding the appropriate attitudes, behaviors, and appearance for men and women |
| Opinion leader | A person who is frequently able to influence others' attitudes or behaviors by virtue of his or her active interest and expertise in one or more product categories |
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Chapter 7 |
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Business to business Marketing |
Marketing of those goods and services that business and organizational customers need to produce other goods and services for resale or to support their operations. |
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Derived Demand |
Demand for business or organizational products derived from demand for consumer goods or services. |
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Inelastic demand |
Demand for products that does not change because of increases or decreases in price. |
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Acceleration Principle (Multiplier Effect) |
A marketing phenomenon in which a small percentage change in consumer demand can create a large percentage change in business-to-business demand. |
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Joint Demand |
Demand for two or more goods that are used together to create a product. |
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North American Industry Classification System (NAICS) |
The numerical coding system that the United States, Canada, and Mexico use to classify forms into detailed categories according to their business activities and shared characteristics. |
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Producers |
The individuals or organizations that purchase products for use in the production of other goods and services. |
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Resellers |
The individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations. |
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Government Markets |
The federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations. |
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Competitive Bids |
A business buying process in which two or more suppliers submit proposals (including price and associated data) for a proposed purchase and the firm providing the better offer gets the bid. |
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Not-for-profit Institutions |
The organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members. |
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Buy Class |
One of three classifications of business buying situations that characterize the degree of time and effort required to make a decision in a buying situation. |
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Straight Rebuy |
A buying situation in which business buyers make routine purchases that require minimal decision making. |
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Modified Rebuy |
A buying situation classification that business buyers use to categorize a previously made purchase that involves some change and that requires limited decision making. |
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New- Task Buy |
A new business-to-business purchase that is complex or risky and that requires extensive decision making. |
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Centralized Purchasing |
A business buying practice in which an organization's purchasing department does the buying for all company's facilities. |
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Buying Center |
The group of people in an organization who influence and participate in purchasing decision. |
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Electronic Commerce |
The buying and selling of products electronically, usually via the internet. |
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Intranet |
Internal computer connections that organizations use to distribute information among a company's different offices and locations. |
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Just in Time (JIT) |
Inventory management and purchasing process that manufactures and resellers use to reduce inventory to very low levels and ensure that delivers from suppliers arrive only when needed. |
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Single Sourcing |
The business practice of buying a particular product from only one supplier. |
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Multiple Sourcing |
The business practice of buying a particular product from many suppliers. |
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Reciprocity |
A trading partnership in which two firms agree to buy from one another. |
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Outsourcing |
The business buying process of obtaining outside vendors to provide good services that otherwise might be supplied in house. |
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Reverse marketing |
A business practice in which a buyer firm shapes a supplier's products and operations to satisfy needs. |
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Chapter 8 |
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Market Fragmentation |
Creation of many consumer groups due to diversity or distinct and wants in modern society. |
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Target Marketing Strategy |
Dividing the total market into different segments based on customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments. |
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Segmentation |
The process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristics. |
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Segmentation Variables |
Divide the total market into fairly homogenous groups, each with different needs and preferences. |
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Generation X |
The group of consumers between the ages of 18-29. |
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Baby boomers |
Segment of people who are in their 30's and 40's. |
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Geodemography |
Segmentation technique that combines geography with demographics. |
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VALS ( Values and Lifestyles) |
Psychographic system that divides the entire US population into eight segments. |
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Behavioral Segmentation |
Technique that divides consumers into segments on the basis of how they act toward, feel about, or use a product service. |
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80/20 Rule |
A marketing rule of thumb that 20% of purchasers account for 80% of a products sales. |
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Usage Occasions |
Indicator used in one type of market segmentation based on when consumers use a product most. |
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Operating Variables |
the production technology used, the business customer's degree of technical, financial, or operations expertise, and whether or not the prospect is a current user or nonuser of the product. |
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Target Market |
Group or groups that affirm selects to turn into customers as a result of segmentation and targeting. |
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Segment Profile |
A description of the "typical" customer in a segment. |
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Market Potential |
The maximum demand expected among consumers in a segment for a product or service. |
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Undifferential Targeting Strategy |
Appealing to a broad spectrum of people. |
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Differentiated targeting strategy |
Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace. |
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Concentrated Targeting Strategy |
Focusing a firm's efforts on offering one or more products to a single segment. |
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Custom Marketing Strategy |
Approach that tailors specific products and the messages about them to individual customers. |
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Mass Customization |
Approach that modifies a basic product or service to meet the needs of an individual. |
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Positioning |
Developing a marketing strategy aimed at influencing how a particular market segment perceives a product or service in comparison to the competition. |
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Repositioning |
Redoing a product's position to respond to marketplace changes. |
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Brand personality |
A distinctive image that captures a product or service's character and benefits. |
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Perceptual Map |
A vivid way to construct a picture of where products or brands are "located" in consumers' minds. |