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MKTG 250 exam 2
| Term | Definition |
|---|---|
| Business-to-business-marketing (B2B) | marketing of products and services to companies, governments, or nonprofit organizations for use in the creation of products and services that they can produce and market to others |
| Organizational buyers | manufacturers, wholesalers, retailers, service companies, nonprofit organizations and government agencies that buy products for own use or resale |
| Derived demand | the demand for industrial products and services is driven by, or derived from, demand for consumer products and services |
| Example of derived demand | FIDGET SPINNER |
| 3 markets of organizational buyers | industrial, reseller, government |
| Industrial market of organizational buyers | reprocess a product before selling it again (buy a car and fix it to sell it) |
| reseller market of organizational buyers | wholesalers and retailers - reselling without doing anything to them (John's market selling lays chips) |
| government market of organizational buyers | federal, state and local agencies that buy goods and services for the constituents they serve |
| The characteristics of organizational buying behavior | Market characteristic, product or service characteristic, buying process characteristics, marketing mix characteristics |
| dimension of market characteristic | DEMAND IS DERIVED, fewer customers buy MORE (kstate buying a lot of toilet paper) |
| dimension of product or service characteristic | more technical in nature (raw) and semi finished |
| dimension of buying process characteristic | reciprocal arrangements and NEGOTIATION between buyers and sellers is commonplace, online buying is widespread |
| dimension of marketing mix characteristic | DIRECT SELLING IS THE RULE, advertising, why you should choose this over this, PRICE IS OFTEN NEGOTIATED |
| organizational buying behavior | decision making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers |
| reciprocity | when two organizations agree to buy from each other |
| supply partnership | buyer and supplier adopt mutually beneficial objectives |
| sustainable procurement | integrates environmental considerations (are they taking care of the environment?) |
| buying center | a group that shares common goals, risks and knowledge important to a purchase decision |
| do people in buying center change? | YES |
| organizational buying criteria (7) | Price Ability to meet QUALITY Ability to meet DELIVERY schedules Technical capability Warranties and claim policies Past performance Production facilities and capacity |
| buy classes | 3 types of buying situations |
| the 3 types of buy classes | new buy, straight rebuy, modified rebuy |
| new buy | many people involved in decision, long decision time, new/present suppliers considered |
| straight rebuy | one person involved in decision, buying exact same thing again, low price, present suppliers considered |
| modified rebuy | two to three people involved in decision , buying same thing but changing something about it, moderate decision time |
| E-marketplace | online trading communities for buyers and supplier organizations to make exchange of info and money and other things |
| traditional auction | a seller puts up an item for sale and would be BUYERS are invited to bid in competition with each other |
| reverse auction | in an e marketplace, a buyer communicates a need for a product or service and would be SUPPLIERS are invited to bid in competition with each other |
| leaders in combo of imports and exports | US, China, Germany |
| countertrade | using barter rather than money for making global sales |
| balance of trade | difference between the monetary value of a nation's exports and imports |
| protectionism | SHIELDING one or more industries within a country's economy from foreign competition through the use of tariffs or quotas |
| globalization | the focus on creating economic, cultural, political, and technological INTERDEPENDENCE among individual national institutions and economies |
| tariffs | government TAXES on products or services entering a country that primarily serve to raise prices on imports |
| quotas | restriction placed on the AMOUNT of a product allowed to enter or leave a country (set number) |
| global competition | exists when firms originate, produce, and market their products and services worldwide |
| 3 global companies | international firm, multinational firm, transnational firm |
| international firm | markets in other countries the SAME as home country |
| multinational firm | markets DIFFERENTLY to each country (multidomestic marketing strategy) |
| transnational firms | emphasize UNIVERSAL consumer needs - standardized market activities when cultures are similar and different when cultures differ |
| multidomestic marketing strategy | strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business (global marketing strat and global brand) |
| global marketing strategy | used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when culture differ |
| global brand | brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs |
| Economic espionage | clandestine collection of trade secrets or proprietary information about a company's competitors |
| Cross cultural analysis | the study of similarities and differences among consumers in two or more nations or societies |
| Customs | what is considered normal and expected about the way people do things in a specific country |
| Cultural symbols | things that represent ideas and concepts in a specific culture |
| Back translation | practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors |
| cultural ethnocentricity | belief your culture is superior to another |
| Consumer ethnocentrism | tendency to believe that it is inappropriate, indeed immoral, to purchase FOREIGN made products |
| 4 marketing entry strategies (least risky to most) | exporting, licensing, joint venture, direct investment |
| currency exchange rate | the price of one's country currency expressed in terms of another countries currency |
| exporting (marketing entry strat) | a global market entry strategy in which a company produces products in one country and sells them in another |
| licensing (marketing entry strat) | right to a trademark, patent, or trade secret |
| joint venture (marketing entry strat) | a foreign company and local firm invest TOGETHER to create a local business in order to SHARE ownership, control, and profits of the new company |
| direct investment (marketing entry strat) | own a foreign subsidiary - you do it yourself by going into the foreign country |
| product and promotion strategies | product extension, product adaptation, product invention |
| product extension | same product sold in different countries (nike, coke) |
| product adaptation | change product for different countries |
| product invention | new product for different countries |
| dumping | selling below cost |
| gray market (parallel importing) | products are sold through UNAUTHORIZED channels |
| which Flavor do you prefer? | Soda challenge |
| Marketing research | PROCESS of defining a marketing problem and opportunity systematically collecting and analyzing information and recommending actions |
| First step (5 Steps of marketing research) Define problem | define problem - self research and identifying possible marketing actions |
| Second step (5 Steps of marketing research) | develop research plan - specify constraints and identify data needed for marketing |
| Third step (5 Steps of marketing research) | collect relevant information - obtain secondary data and primary data |
| Fourth step (5 Steps of marketing research) | develop findings - analyze data and present findings |
| Fifth and last step (5 Steps of marketing research) | table marketing actions - make action recommendations, and implement action recommendations and evaluate results |
| Measures of success | CRITERIA or STANDARDS used in evaluating proposed solutions to the problem |
| measure of success for Lego | playtime |
| Constraints | RESTRICTIONS placed on potential solutions to a problem - limitations on time and money available to solve problem |
| data | FACTS and FIGURES related to the project, divided into two main parts : secondary and primary data |
| Primary data | NEWLY collected facts and figures for the project - observational and questionnaire |
| secondary data | ALREADY recorded facts and figures - internal and external |
| advantages of secondary data | low cost and time savings |
| disadvantages of secondary data | out of date, definitions and categories are not right and are not specific enough |
| advantages of primary data | flexible and more specific |
| disadvantages of primary data | high time and cost |
| Observable data | facts and figures collected by WATCHING how people actually behave, using mechanical (electronic), personal, or neuromarketing methods |
| Questionnaire data | facts and figures obtained by ASKING people about their attitudes, awareness, intentions and behaviors |
| ethnographic research | watch people in home use environment (primary data) |
| trend hunting | paying attention to what is coming up |
| test markets | offer a product for sale in a small geographical area to help evaluate potential marketing actions |
| information techonology | all of the computing resources that collect, store, and analyze the data |
| data mining | examining large databases to find statistical relationships between consumer purchasing patterns and marketing actions |
| predictive modeling | based on statistical models that use data mining and probability analysis to FORETELL outcomes |
| sales forecast | total sales of a product that a firm EXPECTS to sell during a specific time |
| Market segmentation | involves aggregating prospective buyers into groups, or segments, that have 1. Common needs and 2. Will respond similarly to a marketing action |
| Product differentiation | marketing strategy that involves a firm using different MARKETING MIX actions to help consumers perceive a product as being DIFFERENT and better than competing products |
| What does segmentation and targeting markets link to | the marketing needs of customers to an organizations marketing program by identifying market needs and executing marketing program actions |
| Market-product-grid | framework to relate the market segments of potential buyers to products offered or potential marketing actions |
| three segmentation strategies | one product and multiple market segments, multiple products and multiple market segments, and segments of one or "mass customization" |
| One product with multiple market segments (segmentation strat) | books and magazines |
| multiple products with multiple market segments (segmentation strat) | automobiles |
| segments of one or a "mass CUSTOMIZATION" (segmentation strat) | build to order only when there is an order - going to chipotle and building your own burrito |
| cannibalization | stealing sales from oneself - Ann Taylor Loft store made a lower and a higher priced store to appeal to lower class but lost their customers from higher priced store and stole their own sales |
| Tiffany/Walmart strategy | selling to high end and low end segments |
| market segmentation links what | market needs to an organizations marketing program |
| if its not simple cost effective and give you profit should you do segmentation | no |
| geographic segmentation | where customers live or work |
| demographic segmentation | objective - age, race, gender, income |
| Personas | character descriptions of a typical customer in the form of fictional character narratives |
| 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 consumers mind relative to competitive products |
| Perceptual map | 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 |
| Product | a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers needs and is received in exchange |
| Goods | Things that are TANGIBLE |
| Durable good | meant to last - laptop, water bottle |
| Nondurable good | meant to be consumed - food, drink, soap |
| services | INTANGIBLE activities or benefits that an organization provides to satisfy consumers needs in exchange - hotel stay, flight, dr appt |
| idea | THOUGHTS that lead to action - freedom, health |
| Consumer products | products purchased by ULTIMATE consumer |
| Convenience products | items the consumer purchases frequently, conveniently, and with a minimum shopping effort - gas station vibes - AWARENESS stressed |
| Shopping products | items the consumer compares several alternatives on criteria such as price, quality or style - camera, tv, airline ticket - STRESS DIFFERENTIATION |
| Specialty products | items consumer makes a special effort to search out and buy - ROLLS ROYCE |
| Unsought products | items consumer does not know about or knows about but does not initially want - insurance - AWARENESS ESSENTIAL |
| Business products | products ORGANIZATIONS buy that assist in providing other products for resale (B2B products or industrial products) |
| product item | specific product that has a UNIQUE brand, size or price - anything with a barcode or SKU (stock keeping unit) |
| Product line | group of product or service items that are CLOSELY RELATED because they satisfy a class of needs, are used together, sold to the same customer group, distributed through same outlets or fall within a given price range - nike basketball gear |
| Product mix | ALL the product lines offered by an organization |
| SKU | stock keeping unit (barcode) |
| New product | FUNCTIONALLY DIFFERENT from existing products |
| continuous innovation | consumers DO NOT need to learn new behaviors - normal toothbrush to battery powered one - awareness |
| dynamically continuous innovation | DISRUPTS consumers normal routine but does not require totally new learning - new phone , updates |
| discontinuous innovation | requires NEW learning and consumption patterns by consumers - HORSE AND BUGGIE TO CAR |
| term limited to SIX months | new |
| protocol (3 things) | statement that, BEFORE product development begins identifies : (1) a well defined target market, (2) specific customers needs, wants and preferences, and (3) what the product will be and do to satisfy customers |
| marketing reasons for new product failures | insignificant point of difference, incomplete market and product protocol, failure to satisfy customer needs on critical factors, bad timing , no economical access to buyers |
| Marketing reasons for new product failures | poor product quality, poor execution of the marketing mix, too little market attractiveness, |
| New product development process | seven stages an organization goes through to identify opportunities and convert them into salable products or services |
| New product strategy development (stage one of NPDP) need to know | stage of new product development process that defines the role for a new product in terms of firms overall objectives - SWOT analysis, write protocol |
| Idea generation (stage two of NPDP) | get ideas from competition and universities |
| Screening and evaluation (stage three of NPDP) | prototypes |
| Business analysis (stage 4 of NPDP) need to know | specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections |
| Development (stage 5 of NPDP) | develop |
| Market testing (stage 6 of NPDP) | smaller group testing |
| Commercialization (stage 7 of NPDP) need to know | positions and launches a new product in full scale production and sales - MOST EXPENSIVE |
| JCPenny | buys paper for newspaper inserts and direct mail pieces |
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