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MKTG 250 Exam 2
| Term | Definition |
|---|---|
| Organizational Buyers divided into 3 markets | industrial, reseller, government |
| Derived demand | DEMAND for industrial products/services that is driven by/ DERIVED from the demand for consumer product/services |
| Organizational buying behavior | DECISION MAKING process that organizations use to establish the need for products/service and identify, evaluate, and choose among alternative brands and suppliers |
| Buying center | GROUP OF PEOPLE in an organization who participate in buying process and share common goals, risks, and knowledge important to a purchasing decision. |
| Reciprocity | 2 organizations agree to buy from eachother |
| Organizational buying criteria | price, ability to meet quality specifications required, ability to meet required delivery schedules, technical capability, warranties/claim policies in event of a poor performance, past performance on previous contracts, facilities and capacity |
| Market characteristics | demand for industrial products/services is derived FEW CUSTOMERS typically exist, PURCHASE ORDERS ARE LARGE |
| Product/service characteristics | many goods purchased are RAW and SEMIFINISHED |
| Buying process characteristics | reciprocal arrangements, negotiation between buyer/seller is common place, online buying over internet is widespread |
| Marketing mix characteristics | DIRECT SELLING to organizational buyer is RULE |
| Buy class | straight buy, new buy, modified buy |
| E-marketplace | ONLINE TRADING communities that bring together buyers and suppliers to make possible the real-time exchange of info, money, products, and services |
| Traditional auction | BUYER invited to BID and compete with other buyers |
| Reverse auction | SUPPLIERS invited to BID in competition with each other |
| Supplier Partnership | when buyer and supplier adopt MUTUAL beneficial objectives |
| Gross domestic product (GDP) | the monetary value of all products/services produced in a country in one year |
| Why does JC Penny buy 100,000 things of paper? | newspaper inserts and flyers |
| Straight buy | REORDERS existing product/service |
| New buy | FIRST-TIME buyer of product/service |
| Modified buy | Users want to CHANGE product specifications |
| Countertrade | practice of using BARTER rather than money for making GLOBAL sales |
| Protectionism | practice of SHIELDING one or more industries w/in a country's economy from foreign competition through tariffs or quotas |
| Tariffs | GOVERNMENT TAXES on products/services ENTERING a country that serve to raise prices on imports |
| Quota | RESTRICTION placed on the AMOUNT of a product allowed to enter or leave the country |
| Economic espionage | CLANDESTINE COLLECTION of trade secrets or proprietary information about company's competitors. |
| Cross-culture analysis | the study of SIMILARITIES and DIFFERENCES among consumers in two or more NATIONS/SOCIETIES. |
| Customs | what is considered NORMAL and EXPECTED about the WAY people do things in a specific country |
| Consumer ethnocentrism | tendency to believe that it is INAPPROPRIATE, IMMORAL to purchase FOREIGN MADE products. |
| Culture ethnocentrism | belief that one's culture is SUPERIOR to another |
| Currency exchange rate | the price of one country's CURRENCY expressed in terms of another country's CURRENCY |
| Exporting | company PRODUCES product in one country and SELLS IN ANOTHER |
| Licensing | right to TRADEMARK, PATENT, or trade SECRET |
| Joint venture | FOREIGN company and LOCAL firm INVEST TOGETHER to create a local business in order to share control, ownership, and profits of the new company |
| Direct investment | owning a FOREIGN SUBSIDIARY - big commitment big risk |
| Product extension | SAME product sold in different countries |
| Product adaption | CHANGE product for different countries |
| Product invention | NEW product for different countries |
| Dumping | selling BELOW cost |
| Grey market | parallel importing, products are sold through UNAUTHORIZED CHANNELS |
| International firm | extension of home marketing strategy |
| Multinational firm | different products, brands, and advertising |
| Transnational firm | standardized marketing activities when cultures are similar; different activities when cultures differ |
| Economic considerations | 1. an assessment of ECONOMIC INFRASTRUCTURE in these countries 2. measurement of CONSUMER INCOME in different countries 3. recognition of a country's CURRENT EXCHANGE RATE |
| Market entry strategies; lower to higher profit potential | exporting, licensing, joint venture, direct investment |
| 5 step marketing research approach | define the problem, develop the research plan, collect relevant info, develop findings, take marketing actions |
| Define the problem | set research objectives - identify possible marketing actions |
| Develop research plan | specify constraints - identify data needed for marketing - determine how to collect data |
| Collect relevant info | obtain secondary data - obtain primary data |
| Develop findings | analyze data - present findings |
| Take marketing actions | make action recommendations - implement actions - evaluate results |
| Constraints | in a decision, the restrictions placed on potential solutions to a problem |
| Measures of success | criteria or standards used in evaluating proposed solutions to the problem |
| Measure of success example; using focus groups on legos | assemble time |
| Data | facts and figures related to the project that are divided into 2 main parts: secondary and primary |
| Secondary data | facts and figures that have ALREADY been recorded PRIOR to the project at hand |
| Primary data | facts and figures that are NEWLY collected for the project |
| Questionnaire data | facts and figures obtained by ASKING people about their attitudes, awareness, intentions, and behaviors |
| Information technology | includes all of the computing resources that collect, store, and analyze data |
| Data mining | the extraction of hidden predictive info from large databases to find statistical links between consumer purchasing patterns and marketing patterns |
| Sales forecast | 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 |
| Advantages of secondary data | time saving, inexpensive |
| Disadvantages of secondary data | out of date, categories not right, not specific enough |
| Advantages of primary data | more flexible, specific to problem |
| Disadvantages of primary data | costly, time-consuming |
| Ethnographic research | researchers observe group in natural environment to understand culture behaviors |
| Neuromarketing methods | technologies used to study the brain |
| Mystery shopper | goes undercover to see environment and report back to headquarter |
| Test market | used in small geographies to evaluate marketing actions |
| Observational data | facts and figures obtained by watching people actually behave using mechanical, personal, or neuromarketing data collection methods |
| SKU | Stock Keeping Unit |
| Market segmentation | aggregating prospective buyers into groups//segments that 1. have common needs, 2. will respond similarly to marketing actions |
| Product differentiation | 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 | 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 | involves changing the place a product occupies in a consumers 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/brands and the firm's own product/brands |
| Personas | character descriptions of a brand's typical customers; brings target market data alive by creating fictional character narratives |
| Segmentation | the linking needs to action; only do when there is an opportunity to increase profits |
| 3 segmentation strategies | one product and multiple market segments; multiple products and multiple market segments; segments of one "mass customization" |
| Cannibalization | STEALING sales from YOURSELF |
| "Tiffany and Walmart" strategy | selling to HIGH end AND LOW end segments |
| Winnie the pooh plate example | getting both ends of the market |
| Steps in segmenting | group potential buyers into segments; group products to be sold into categories; develop market-product grid & estimate size of markets; select target markets; take market actions to reach target markets |
| Ways to segment consumer markets | geographic segmentation; demographic segmentation; psychographic segmentation; behavioral segmentation |
| Mass customization | build to order |
| Product | good, service, 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. |
| Product item | specific product that has a unique brand, size, or price |
| Service | intangible activities/benefits that an organization provides to satisfy consumers' needs in exchange for something of value |
| Convenience Products | items that the consumer purchases frequently, conveniently, and with a minimum shopping effort |
| Shopping products | items for which the consumers compares several alternatives on criteria such as price, quality, or style |
| Specialty products | items that a consumer makes a special effort to search out and buy |
| Unsought products | items that a consumer either does not know about or knows but does not initially want |
| Product line | a group of products/services that are closely related because they satisfy a class of needs, used together, sold to same customer group, distributed through the same outlets, fall within a given price range |
| Product mix | consists of all product lines offered by an organization |
| Protocol | a statement that, before product development begins, identifies 1. well-defined target market 2. specific customers' needs, wants, and preferences 3. what the product will be and do to satisfy users |
| Open innovation | practices and processes that encourage the use of external and internal ideas as well as internal and external collaboration when conceiving, producing, and marketing new products/services |
| New-product strategy development | the SEVEN stages an organization goes through to IDENTIFY opportunities and convert them to SALABLE products/services |
| Business analysis | stage of new-product process that specifies the features of the product and the marketing strategy needed to bring it to the market and make financial projections |
| Commercialization | stage of new-product process that positions and launches a new product in full-scale production and sales - most expensive |
| Ideas | thoughts that leads to action |
| Reasons for new product failures | insignificant point of difference, incomplete market and protocol, failure to satisfy needs, bad timing, no economical access, poor execution, too little market attractiveness, poor quality |
| Balance of trade | difference between the monetary value of a nation's exports and imports |
| Globalization | the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economies |
| B2B marketing | marketing of products/services to COMPANIES, GOVS, and NONPROFITS for use in the CREATION of goods produced and marketed to OTHERS |
| Organizational buyers | companies and agencies that buy products/services for own use/resale |
| Cultural symbols | things that represent ideas and concepts in a specific culture |
| Back translation | practice of translated words or phrase is translated into the original language by a different interpreter to catch errors |
Created by:
ogcraw