Term
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Definition
| “activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” |
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Term
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Definition
1.Marketing is the exchange that takes place between sellers and buyers.
2.Marketing creates, communicates, and delivers value to facilitate exchanges.
We add a third component to the definition, often referred to as the marketing concept:
3.By delivering value, marketing satisfies customer needs and wants, at a profit. |
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Term
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Definition
| The customer is the central point of the model. The company and the competition seek to sell products and services to the customer by creating value for the customer. The value equation is benefits minus costs.Overall, it is better to focus on creating and delivering exceptional value to customers, rather than benchmarking and copying successful competitors |
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Term
| Marketing within the firm creates value for what end purpose? |
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Definition
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Term
| Marketing managers create value by meeting customers |
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Definition
| Functional needs and emotional needs |
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Term
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Definition
| What businesses should we be in? At the corporate level, the firm considers the types of business to include in its portfolio,specialists perform better than generalists. |
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Term
| Strategic Business Unit (SBU) Strategy |
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Definition
| How do we compete effectively in a given business? Once the firm decides which businesses to include in the portfolio, the next decisions focus on how to perform and compete in the given business categories |
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Term
| The Boston Consulting Group’s portfolio model (SBU) study model in 1.3 |
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Definition
Stars. SBUs in the high-growth and high-share quadrant represent the company’s shining businesses. These businesses are dominant players in fast-growing markets. They may require significant cash investment to support their rapid growth. Often, these financial investments come from cash cows. As the market growth rate slows, these businesses generally become cash cows.
2.Cash cows. Cash cows dominate in slow growth markets. They typically generate more cash than they need. This allows the company to allocate resources to other SBUs.
3.Question marks. SBUs in this quadrant, high growth and low market share, pose investment dilemmas for the company. Which businesses should the company invest in and try to move to star status and which businesses should the company eliminate? Generally, significant investment, from cash cows, is required to develop these businesses.
4.Dogs. Dogs have little hope of becoming stars or cash cows. They are in slow-growth industries with relatively low market share. They may generate enough cash to support themselves, but the company may elect to drop these businesses in order to allocate resources to more promising SBUs.
BCG Portfolio Model
Figure 1-2: BCG Portfolio Model |
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Term
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Definition
| How do we orchestrate the marketing mix to deliver value to a particular market segment? At this level, each functional area of the company—finance, human resources, marketing, and supply chain—has a strategy that is consistent with the SBU strategy and the corporate strategy. Marketing strategy addresses a specific target market with a cohesive marketing mix of product, place, price, and promotion. |
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Term
| Microsoft reinvented themselves in 2013. The first questions they addressed in a board meeting was, “How should we define Microsoft in 2013 and what businesses should we delete or add to our portfolio”? Microsoft was asking questions pertaining to what level of strategy? |
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Definition
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Term
| Apple Inc. is the market share leader in the portable music players. However, iPod sales growth has considerably slowed down in recent years due to consumers using smartphones as music players. According to the Boston Consulting Group Model, under which category would the iPod be? |
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Definition
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Term
| In 1996, McDonald’s launched the Arch Deluxe with a $100 million ad campaign. It was similar to McDonald’s Quarter Pounder but with a different bun, peppered bacon, and a mustard-mayonnaise sauce. The burger was meant to be the leadoff product in a line of new adult-themed menu items. However, it was discontinued after failing to become popular. McDonald’s dropped the Arch Deluxe because the burger was which of the following? |
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Definition
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Term
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Definition
| price, product, promotion, place |
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Term
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Definition
| Product refers to products or services. A product is a bundle of features in which each feature and combination of features creates value for customers. Demand for a product is generated by customer needs. |
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Term
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Definition
| Place refers to where products are purchased. Place can be a wide variety of sales outlets such as a physical brick and mortar store, a kiosk in a shopping mall, a counter in a movie theater, or a website on the Internet. |
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Term
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Definition
| Price refers to the amount paid for a product. In many ways, price is the most difficult element to get right in the marketing mix. Manufacturers are concerned with cost, whereas consumers are concerned with price. Being focused on cost can lead to prices that are either too high, squelching demand; or prices that are too low, shrinking profitability. |
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Term
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Definition
| Promotion refers to many different marketing activities such as advertising, public relations, sales promotions, trade promotions, and personal selling |
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Term
| brand extension and line extension |
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Definition
extend the brand into a new category,
extend the line with a broader set of options |
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Term
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Definition
| customers who love the firms product and then advocate it or champion it to others. Easy rule of thumb is to always market through brand champions |
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Term
| Advertising, Public Relations, Sales Promotions, Trade Promotions, and Personal Selling are examples of what marketing mix? |
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Definition
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Term
| The add-on sales of fries and a drink at McDonald’s is an example of which profitability driver |
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Definition
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Term
| Instead of having employees bag groceries, Winco requires customers to bag their own. This is an example of which profitability driver? |
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Definition
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Term
| Allie is starting a new elbow-jewelry business and is thinking about her target market, her USP and her cost to attract new customers. She is in the ____________ phase of the Marketing Strategy Process. |
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Definition
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Term
| Marketing strategy addresses a specific target market with a cohesive marketing mix of |
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Definition
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Term
| Riding a Wave vs. Filling a Gap |
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Definition
| We recommend riding a wave as an alternative to filling a gap. Riding a wave means looking for a complementary product or service to introduce, which rides a wave of interest for another product or service. Brand champions will be interested in enhancing their consumption experience by using complementary products,marketers have looked to fill gaps in the marketplace when developing products and services. If one believes the statistics, this is a high-risk approach. Less than one out of ten new products succeeds in today’s increasingly competitive marketplace. |
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Term
| Since data suggests that only one in ten new products succeeds in today's competitive marketplace, marketing managers must do what in order to persuade potential consumers of the benefits of the new products? |
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Definition
| Market through the eyes of band champions |
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Term
| Brita GmbH had been selling water-purification pitchers in Germany for about 10 years. In the 1990s they licensed the right to use the Brita name and sell Brita filters to The Clorox Company who wanted to offer an alternative to bottled water. This is an example of: |
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Definition
| Old product to an unfamiliar market |
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Term
| In 1997 Saehan Information Systems introduced the Eiger MPMan F10 and F20, the world’s first mass-market MP3 players, which offered 32MB of digital music storage. This is an example of launching a(n): |
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Definition
| New product to an unfamiliar market |
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Term
| Options for Growing a Business |
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Definition
Market Penetration—selling more of the existing products in existing markets.
2.Product Development—introducing new products to existing markets.
3.Market Development—introducing existing products to new markets.
4.Diversification—introducing new products to new markets. |
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Term
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Definition
| Target Market + Marketing Mix |
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Term
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Definition
| Adding an itemized budget and a time schedule to a marketing strategy generates the marketing plan |
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Term
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Definition
| how firm monetizes its products and services...how it makes money |
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Term
| Building a Successful Revenue Model |
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Definition
| Customer Acquisition,Customer Retention,Sales per Customer,Margin |
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Term
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Definition
| Margin is the difference between price and cost |
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Term
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Definition
| If customer acquisition costs are high, then sales per customer must be high. Customers will need to purchase frequently and remain loyal customers for a long time. The sales per customer are impacted by the type of product. Consumable products are frequently purchased and are often habitual |
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Term
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Definition
| Repeat purchases on many brands are only about one in three. Converting a person from trying the product to becoming a loyal product user |
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Term
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Definition
| Which customers are targeted? How will they be made aware of the product? What is your unique selling proposition? How much will it cost to acquire a customer? |
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Term
| Marketing strategy can be defined as |
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Definition
| A target market & marketing mix with a budget and time schedule |
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Term
| A Marketing plan can be defined as |
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Definition
| A target market & marketing mix with a budget and time schedule |
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Term
| How Do I Come up with a Killer Product Idea? |
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Definition
| Focus on Solving Customers' Problem,Chase Customers, Not Competitors,Raising the Relevance Bar |
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Term
| Henry Ford thought like a marketer because he saw that people needed a quicker, more convenient, and comfortable way to get from Point A to Point B. What did Henry Ford “have an eye for” in order to think like a marketer? |
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Definition
| Customer Pain and Problems |
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Term
| Segway had problems selling its futuristic scooter because: |
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Definition
| They had the wrong target market |
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Term
| What Venture Capitalists Look For |
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Definition
| (1) a product that will be competing in a market generating hundreds of millions of dollars in revenue, (2) a product that demands a price far exceeding its cost, and (3) a management team that has a history of turning a profit |
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Term
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Definition
| Production Orientation,Sales Orientation,Market Orientation,Societal Orientation |
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Term
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Definition
| Build it and they will come. An orientation based on the belief that supply generates its own demand. Mass production, economies of scale, and uniform products and services are employed to lower costs and increase distribution |
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Term
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Definition
| Sell ice to the Eskimos. An orientation based on the belief that marketing’s only role is to sell products once they are made. ex: door to door salesman |
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Term
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Definition
| Customer is king. An orientation based on the belief that every product or service should be focused on meeting customer needs from the outse |
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Term
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Definition
| Do well by doing good. An orientation based on the belief that every product or service should provide value to the customer as well as to society as a whole |
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Term
| Southwest Airlines was created based on understanding the pain experienced by business travelers waiting in lines. Trying to meet the customer’s needs Southwest created a low cost, customer friendly airline service. Southwest most likely employed which type of Marketing Philosophy |
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Definition
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Term
| Super Genius Electronics hires only the most brilliant engineers and programmers. Its employees have created amazingly complex, unique products. The company’s CEO says, “We don’t even care what our competitors are doing because our products are so innovative. Our customers don’t know what they want. Therefore we invent cool products for the future. This is an example of which type of marketing philosophy |
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Definition
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Term
| Selling pest control door-to-door is an example of which marketing philosophy? |
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Definition
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Term
| “How do I come up with a killer product idea?” |
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Definition
| Ask, “What problems are people trying to solve |
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Term
| Marketing strategy addresses a specific target market with a cohesive marketing mix of: |
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Definition
| Product, price, place, promotion |
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Term
| Marketing creates, communicates, and delivers value to the firm’s chosen customers. This enables the firm to attract and keep customers. Attracting and keeping customers drives ____________________ for the firm. |
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Definition
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Term
| For every pair of Toms shoes purchased, the company donates a pair of shoes to a child in need. Which marketing philosophy does Toms use? |
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Definition
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Term
| The path to profitability starts with |
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Definition
| Understanding customers within the context of the marketing environment |
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Term
| External Forces on Marketing Environment |
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Definition
| Social Forces,Economic Forces,Technological Forces,Competitive Forces,Regulatory Forces |
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Term
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Definition
Social forces affect people's attitudes, beliefs, and lifestyle. For marketers, this is important information, because these forces shape consumers' behavior. Social forces influence what we buy, where we buy, how we buy, how much we buy, and when we buy
Culture
A group's shared values, attitudes, and practices that shape human behaviors are known as culture. Culture exerts the broadest and deepest influence on consumer buying patterns
Demographics
Statistical data of a population, known as demographics, provide marketers with important information about age, gender, income, race, and ethnicity of particular populations. Changes and shifts in demographics can affect consumption behavior and ultimately demand for products and services |
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Term
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Definition
| people born during the same period and who share common life experiences |
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Term
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Definition
| Changes in the economy affect consumer spending and thus have a broad impact on marketing strategies |
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Term
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Definition
| represents the total amount of money received by a person, household, or family during a particular period of time, usually one year |
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Term
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Definition
| is the money available after paying taxes |
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Term
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Definition
| money available after paying for taxes and necessities |
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Term
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Definition
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Term
Competitive Forces
Five Forces Model |
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Definition
Competitive rivalry. Rivalry among existing companies in a particular industry varies in intensity based on the type and number of competitors and on the basis of competition—price discounting, advertising, new product offerings, and service quality. High competitive rivalry drives down industry profits.
2.Power of suppliers. Powerful suppliers can drive down industry profits by charging higher prices and/or reducing product and service quality.
3.Power of buyers. Powerful buyers (customers) can use their clout to demand and receive lower prices, increased product quality, and more services.
4.Threat of entrants. New entrants can shake up an industry and cause increased competition as they seek to take market share from existing companies in the industry.
5.Threat of substitutes. Substitute products have the potential of replacing existing products because they perform a similar function. As a result, industry profits suffer. |
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Term
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Definition
| Marketers compete within the constraints of government regulation. The objective of regulation is to protect consumers and businesses. For the consumer, regulation seeks to ensure safety and fair trade practices. Regulation protects businesses by promoting competition and fair business practices |
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Term
| For the United States, people born during the same time period and who share common life experiences represent |
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Definition
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Term
| __________ represents the total amount of money received by a person, household, or family during a particular period of time, usually one year. __________ is the money available after paying taxes. This is the focus of companies offering necessity products such as food, housing, clothing, and transportation. Finally, the money available after paying for taxes and necessities is __________. |
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Definition
| Gross income, Disposable income, discretionary income |
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Term
| Which type of external force exerts the broadest and deepest influence on buying patterns? |
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Definition
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Term
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Definition
| A useful tool to assess the firm's internal abilities and capacities along with forces in the external environment. provides the firm actionable direction for competing in the marketplace. Play to strength. Moderate weakness. Make the most of opportunities. Manage or better yet eliminate threats. |
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Term
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Definition
Play to Strength
Strength refers to the firm's core competencies, abilities, and capacities that provide an advantage when meeting the needs of target customers. For example, production costs, marketing skills, brand image, technology, design, and financial resources represent potential strengths for a firm. Strengths are meaningful, but only through the eyes of customers. Strengths that create value for the firm's chosen customers provide competitive advantage for the firm. Nike, for example, creates value for target customers by playing to strengths of image and product performance.
Moderate Weakness
Weaknesses refer to the limitations a firm faces when seeking to deliver value to customers. Like strengths, weaknesses are only meaningful when viewed through the eyes of customers. In this case, marketers must moderate the weakness. In 2008, Domino's Pizza struggled to stay relevant among customers. Although the company dominated price and convenience, it performed poorly in taste. Loyal customers were leaving Domino's for competitor products. In a major effort to win back customers, Domino's moderated this weakness by pursuing an extensive reinvention initiative.
Make the Most of Opportunities
Favorable conditions and trends in the external environment represent opportunities for marketers. For the company to benefit, these opportunities must be exploited. Skullcandy recognized an opportunity with the trend of digital audio, commonly referred to as MP3 players. The company exploited this opportunity with a unique line of headphones, earbuds, and docks.
Manage or Eliminate Threats
Conditions, trends, and barriers in the external environment that hinder firm performance represent threats. Marketers manage threats by acting upon them or avoiding them. For example, Walmart, the world's largest retailer, faces the threat of consumer perceptions that the big company is not sensitive to environmental issues. To counter this threat, Walmart launched aggressive sustainability initiatives by seeking to use 100% renewable energy, creating zero waste, and selling products that help people and the environment. |
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Term
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Definition
| Strengths, Weaknesses, Opportunities, and Theats |
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Term
| Which of the following could represent a threat for Freschetta, a brand of frozen pizza? |
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Definition
| Increasing competition from hot-and-ready pizza like Little Caesar's |
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Term
| Wal-Mart launched a sustainability campaign to show customers that the company was sensitive to environmental issues. What part of the SWOT analysis did Wal-Mart overcome by doing this? |
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Definition
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Term
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Definition
| set of external forces that influence lives of customers and thus the firm |
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Term
| Old Navy sells fashionable clothing for a relatively low price. What type of income is used to purchase clothing and other necessities? |
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Definition
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Term
| Andrew, a research analyst for Nestle, has been gathering information about age, gender, and income for the Scandinavian market. Andrew is gathering |
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Definition
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Term
| Bulgari sells fashionable and expensive jewelry, watches, and leather goods. What type of income is used to purchase expensive jewelry and other luxury products? |
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Definition
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Term
| For the United States, people born during the same time period and who share similar life experiences represent: |
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Definition
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Term
| Claire is marketing manager for a new line of Italian food. The company wants to launch this new line in Latin America. Claire knows that social forces affect consumers’ attitudes, beliefs, lifestyle and ultimately consumption behavior. Which social force has the most influence on Claire’s product line—affecting what people eat? |
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Definition
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Term
| Eco Tech, Inc. takes advantage of its ability to mass-produce water filters at relatively low costs, which its competitors cannot replicate. This is an example of which part of the SWOT analysis? |
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Definition
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Term
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Definition
| Manufacturing products requires (1) people, (2) knowledge, and (3) resources.the majority of the people with the capability of buying a given product live in other countries. For example, it is estimated that 90% of the buyers for Japanese products live outside Japan. |
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Term
| _____________ products reduces manufacturing efficiency and increases costs. ______________ products forces features and solutions on people that may be a mismatch with culture. |
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Definition
| Customizing, Standardizing |
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Term
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Definition
| Domestic marketing focuses on customers in the home country. No thought is given to customers beyond domestic borders |
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Term
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Definition
| International marketing refers to exporting products to one or more countries outside the domestic market and remaining invested solely in the domestic country. Generally, there is little or no investment outside the home country. Company headquarters and production facilities remain in the home country. International marketers participate in joint ventures with companies in other countries |
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Term
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Definition
| Global marketing refers to selling or licensing products for sale across the world. Coca-Cola is marketed globally. Coca-Cola sells soft drinks around the world. Definitions of global marketing offer the possibility of adapting services and product characteristics to local markets. In practice, global marketing looks a great deal like “production orientation” marketing carried out on a global scale. |
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Term
| Which type of Geographic marketing refers to exporting products to one or more countries while remaining invested in the local country |
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Definition
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Term
| Should the Firm Market Abroad Questions |
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Definition
1.Should the firm market abroad?
2.Which foreign markets are most attractive? Where should the firm start?
3.What are the potential risks and rewards?
4.How should the firm enter a particular market?
5.Will buyers in foreign markets respond favorably to the same marketing mix (product, pricing, promotion, and distribution) as do domestic customers?
6.If not, to what extent must the offering be customized to fit the preferences and requirements of the foreign market? |
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Term
| Foreign Market Attractiveness |
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Definition
| Criteria for evaluating the attractiveness of particular foreign markets include customer needs, customer purchasing power, market size, market growth rate, and market access. Will customers in the foreign market respond favorably to the firm’s products and services? Do customers have the financial resources to purchase the firm’s products? Is the foreign market large enough to make the product offering profitable? Is the foreign market growing? Can customers in the foreign market be reached through the firm’s promotion and distribution channels? |
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Term
| Risks of Global Market Expansion |
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Definition
Competitive Risk
Competitive risk results from competitors’ responses to the new product’s entry into the local market. When L’Oreal introduced Plenitude, a skin-moisturizing product, to the United States, the company was ill prepared for the strong response from Procter and Gamble’s Oil of Olay, the market leader. After eight years of poor performance in the US market, L’Oreal repositioned Plenitude to compete at the high end, moving away from Procter and Gamble’s core market.
Economic Risk
Economic risk considers the potential mismanagement of a country’s economy, exhibited in inflation and government debt. Pizza Hut’s venture in Brazil in the early 1990s was met with significant economic risk because of high inflation. Pizza prices increased daily. Each morning, managers were scrambling to make pricing decisions. In 1994, the new currency helped stop price increases, minimizing the economic risk for companies doing business in Brazil.
Legal Risk
Legal risk includes inadequate protection of contracts and intellectual property. Without appropriate legal safeguards, the probability of broken contracts and stolen intellectual property increases significantly. For example, companies in the business of producing and selling music, books, software, and pharmaceuticals must ensure that their intellectual property is protected in each country where they conduct business.
Political Risk
Political risk, associated with demonstrations, strikes, civil strife, abrupt government changes, violence, or terrorism, influences business performance. For example, McDonald’s and KFC stores in Pakistan were targets of terrorists' attacks after the US entered Afghanistan in 2001. |
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Term
| Syria is currently unstable with strikes and demonstrations. What is the major risk Fortune 500 firms face expanding into Syria? |
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Definition
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Term
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Definition
| 1) exporting, (2) licensing, (3) joint venture, and (4) foreign direct investment |
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Term
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Definition
| Exporting can be as straightforward as shipping goods produced in the home country to a distributor and/or retailer in the foreign market. Financial risk is relatively low because the distributor or retailer takes on the risk of selling the product. Once shipped, however, the exporting company has little control over the product. The exporting company may complement product distribution with a communications message to teach new customers to love the product. |
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Term
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Definition
| With licensing, a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how, patent, or some other skill or value. Licensing affords a measure of control to the licensor when writing a contract. It also puts the burden of risk for developing the product on the back of the licensee. The downside is that in most cases, the licensor only receives a sales royalty, that is, a small portion of the sales revenue. In addition, the licensor does not have close control over manufacturing quality or marketing, and may quickly lose control of technological know-how |
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Term
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Definition
| Joint ventures share expenses and risk across companies located in the home country and in other countries |
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Term
Foreign Direct Investment
(Wholly Owned Operation) |
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Definition
| companies will decide to make direct investments in building up wholly owned operations in other countries |
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Term
| Starbucks announced that it will be opening cafes across India, as a combined effort with the Indian company Tata Global Beverages Limited. Each company will own 50% of the undertaking, called TATA Starbucks Limited. This is an example of which global market entry strategy? |
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Definition
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Term
| Cherry Mash is an American candy bar with cherry, peanuts, and chocolate. If Cherry Mash were to consider expanding into Switzerland and did not mind taking on more risk for the highest return possible, which option should they choose? |
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Definition
| Build and operate a manufacturing facility in Switzerland. Foreign Direct Investment |
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Term
| In 1968, U.S. Electronic Industries Association (EIA) filed a lawsuit, claiming that several Japanese manufacturers were selling televisions in the US at prices lower than in Japan, causing U.S. manufacturers to record severe losses. This is an example of: |
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Definition
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Term
| Which Global Market-Entry Strategy potentially offers the greatest profits? |
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Definition
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Term
| GoExpert a US based company makes highly versatile video cameras that is waterproof. Voltrix an Australian company wants to help GoExpert sell their cameras in Australia by storing them and marketing GoExpert cameras to the Australian people for a percentage of the profits. This is known as? |
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Definition
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Term
| The pricing of goods at less than their cost of production or less than the price in the home market is considered |
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Definition
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Term
| In 2002 Mattel decided to manufacture all of its toys such as Barbie, Fisher-Price, Sesame Street, and Disney overseas in self owned and operated factories. In doing so, Mattel is utilizing which market entry strategy? |
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Definition
| Foreign Direct Investment |
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Term
| To enter global markets, Harley Davidson exports their products, BMW develops foreign based manufacturing facilities, McDonalds joins investors to create a local business, and Coca-Cola enters foreign markets through licensing agreements. Which of the four companies will receive the highest return while having the highest risk factor as well? |
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Definition
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Term
| What is the order of entry strategies from lowest risk and return to the highest risk and return? |
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Definition
| Exporting, licensing, joint venture, wholly owned operation |
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Term
| Corning Glass sold Pyrex in both France and the United States. The same product was marketed differently in the two countries, according to culture. Which type of market entry strategy was used in this scenario? |
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Definition
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Term
| What are two attributes of a foreign direct investment |
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Definition
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Term
| When The Clorox Company purchased the right to manufacture and sell products under the Brita name in the United States without, Clorox entered into a ___________ with Brita GmbH. |
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Definition
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Term
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Definition
| With standardization, the firm uses the same standardized marketing mix in the foreign market as it uses in the domestic market. Product, price, promotion, and distribution are standardized across countries |
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Term
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Definition
| Conversely, firms using a customization approach adapt or modify the marketing mix to suit the local market |
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Term
| Why has glocalization recently come under fire? |
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Definition
| The developing world no longer wants modified products of the rich world, but rather desire rich world quality in their own products |
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Term
| Which global marketing strategy is most focused on market fit and suitability? |
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Definition
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Term
| McDonald's does not sell beef products at their restaurants in India. This is an example of McDonald's acting |
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Definition
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Term
| McDonald’s maintains its Golden Arches worldwide along with several menu items. However, in Japan a Ebi Fillet Burger made of shrimp is sold that is not available in America. McDonald’s employs which global marketing strategy? |
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Definition
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Term
| In Paris, McDonalds offers its standard staple, french fries, but offers a unique dipping sauce that can only be found in France. In this example, McDonald's: |
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Definition
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Term
| An Italian designer purse is exported to the U.S. and put on the market. It is expected the price of this purse will be |
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Definition
| Higher than it is in Italy, its home market |
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Term
| On a trip to China, you notice that there are many fast food chains that you recognize. Specifically, there are McDonalds restaurants every few blocks. You feel comfortable eating at these restaurants because they are very similar to the restaurants in the United States. McDonalds is a ____________ company |
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Definition
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Term
| What does it mean if a company is "glocal |
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Definition
| They market globally and act local |
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Term
| Company X decides to start marketing their product across borders. After great consideration, Company X decides on the prices for both the foreign and domestic market. Company X finds out that their foreign prices will probably be _______ their domestic prices for company products as a result of marketing across borders. |
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Definition
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Term
| Many years ago, the European Community Commission accused five different Japanese companies of ________ because the companies were pricing the goods at less than their cost of in the home market. |
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Definition
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Term
| Kraft recently launched the Oreo cookie in China, hiring a consultant to help them develop the product. The consultant conducted focus groups that evaluated hundreds of recipes to find the right taste for the Chinese market, which made the Oreo one of the most successful cookies in Chinese history. By adapting the Oreo for China, Kraft was avoiding the shortsightedness that comes with ________. |
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Definition
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Term
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Definition
| This strategy is based on a standard platform (global) combined with some modification for the market (local) |
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Term
| When P&G entered Eastern Europe with household care products and beauty products, the company changed the packaging and pricing for many products to adapt to Eastern European customers. This is an example of: |
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Definition
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Term
| The global marketing strategy based on a standard platform combined with some modification for the market is called: |
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Definition
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Term
| When Nestle entered India with package goods products, the company changed the packaging and pricing for many products to adapt to the Indian customers. This is an example of: |
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Definition
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Term
| The overall attractiveness of a foreign market depends on the risks and rewards of conducting business in the country. Inadequate protection of intellectual property in a number of developing counties has caused some U.S. companies to avoid certain foreign markets because of the ____________ risk. |
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Definition
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Term
| Kentucky Fried Chicken, a U.S. based company, entered the China market by combining efforts with two Chinese organizations--Beijing Corporation of Animal Production, Processing, Industry, and Commerce and Beijing Travel and Tourism Corporation. Each company owns shares in the new business called Beijing Kentucky, Ltd. This is an example of which global market entry strategy? |
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Definition
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Term
| When The Clorox Company purchased the right to manufacture and sell products under the Brita name in the United States, Clorox entered into a(n) __________ agreement with Brita GmbH. |
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Definition
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Term
| Starbucks announced that it plans to open cafes across India, as a combined effort with the Indian company Tata Global Beverages Limited. Each company will own 50% of the undertaking, called TATA Starbucks Limited. This is an example of which global market entry strategy? |
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Definition
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Term
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Definition
| derived from greek word "ethos" which means character |
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Term
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Definition
| Latin for “let the buyer beware,” suggests that buyers must perform their due diligence when purchasing products and services |
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Term
| American Marketing Association 3 pronged ethics thing |
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Definition
Do no harm—consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.
Foster trust in the marketing system—striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery of distribution.
Embrace ethical values—building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency, and citizenship. |
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Term
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Definition
| (1) "prevent business practices that are anticompetitive or deceptive or unfair to consumers," (2) "enhance informed choice and public understanding of the competitive process," and (3) "accomplish this without unduly burdening legitimate business activity." The FTC is the first line of defense protecting consumers from bad products, deceptive practices, and false advertising |
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Term
| Federal Drug Administration |
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Definition
| responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation's food supply, cosmetics, and products that emit radiation." |
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Term
| Last year, you decided to purchase a new laptop. You purchased Laptop X because marketing campaign guaranteed that they would do any necessary repairs for free. After two months, your laptop stops functioning because of a problem with the motherboard. The marketing campaign had been dishonest—repairing the motherboard costs the same as purchasing another laptop. Which ethical norm was not followed? |
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Definition
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Term
| Myths of Unethical Marketing |
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Definition
Myth #1: Marketers push products consumers don't want to buy
Myth #2: Consumers are no match for the power of marketing.
Myth #3 Marketing is deceptive and not truthful or honest. |
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Term
| What is the number one reason new product ideas fail |
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Definition
| Firms fail to understand opportunity or potential |
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Term
| What is the least important reason why firms fail? |
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Definition
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Term
| Let's say, you go to the Apple Store and purchase a brand new MacBook Air computer. During the initial use of your computer, it malfunctions and is displeased with your product and regret your purchase. As a consumer you are angry with Apple’s marketing department for making this new computer appear fashionable yet functional. You are displaying which type of reaction to marketing? |
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Definition
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Term
| Before Susan bought a new laptop, she did some research. She went to Best Buy and talked with a sales representative about the many different features. As convincing as the representative’s argument was, Susan held off buying the preferred laptop. Instead she wanted to go home and look at some reviews regarding it before making her decision. This example provides an argument against which myth? |
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Definition
| Consumers can't resist the power of marketing |
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Term
|
Definition
| President Kennedy said that consumers have the following four rights: (1) to safety, (2) to information, (3) to choice, and (4) to be heard |
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Term
| Your next door neighbor tells you that you must buy a new car every 4 years because after 4 years of working the engines break down. He feels that car manufacturers design cars this way on purpose to trap consumers into constantly buying new vehicles. Your neighbor believes in what Myth of Unethical Marketing? |
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Definition
| Marketers believe in planned obsolescence |
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Term
| JJ’s Southern Barbeque has started to lose customers. JJ is worried about the future of his business. What would be the best way for him to handle dissatisfied customers? |
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Definition
| Offer an easy way for customers to voice their complaints |
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Term
| Sam is under a lot of stress at his job. His position is on the line and he needs to get a sales transaction to go through. He tells himself it is okay to possibly break the rules because he is trying to make enough money to support his family. According to the fraud triangle, which aspect is missing from this situation? |
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Definition
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Term
| The Fraud Triangle figure 4.5 |
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Definition
The fraud triangle, developed by famed criminologist Donald Cressey, is a useful tool for explaining and predicting fraudulent behavior. We extend the tool to unethical behavior. Three elements represent the sides of the fraud triangle: opportunity, motivation, and rationalization
Opportunity is the condition or situation that allows fraudulent behavior to occur. To commit fraud, a person must have access to information or assets. Generally, managers have the most control over opportunity because they have the ability to limit access to information and assets.
Motivation is the pressure or need felt by the person who commits fraud. Motivators can be financial (need to pay high bills or debts or desire for material goods) and/or non-financial (pressure to increase work performance or cover up poor performance).
Rationalization is the process of reconciling or justifying fraudulent behavior. The person seeks excuses or justification for the behavior. For example, an embezzler of company funds may convince himself that he will pay back the money one day or that the company doesn’t need the money or that he is underpaid and deserves the money. |
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Term
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Definition
| He believed that people learn what is right from wrong starting with Punishment and Obedience from parents ending with Universal Ethical Principles from society. In the last stage of development, people buy into universal society beliefs such as the (1) belief in human dignity, (2) respect for justice for all, and (3) respect for human life. |
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Term
| Framework for Ethical Strength |
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Definition
Personal ethical understanding. Understanding right and wrong, fairness, honesty, personal integrity, and having respect for others.
Applications of ethics to business situations. Taking action against fraudulent practices, misleading advertising, and unfair and/or manipulative business practices.
Ethical courage. Willingness to pay the personal price for standing up against unethical practices.
Ethical leadership. Providing support in helping others apply ethics and develop ethical courage. |
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Term
| John was offered a position at Zoogle Corporation—it was his dream job! Shortly after beginning work, John realized that many of his co-workers were not following the ethical policies put in place by Zoogle. Instead of participating in unethical behavior, John confronts his co-workers, who then work together to get him laid off. Which level of ethical strength had John achieved because of this problem? |
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Definition
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Term
|
Definition
| Social responsibility suggests that businesses and organizations are part of a larger society and they are accountable to that society for their actions |
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Term
|
Definition
| Green marketing is the ability of marketing firms to enhance their brand image, and perhaps increase their profitability, by adding a “green” feature to their products. |
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Term
|
Definition
| With a sustainability strategy, companies make marketing decisions by considering consumers’ wants, the company’s requirements, and society’s long-term interests. In essence, the belief is that firms can “do well by doing good.” |
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Term
| Honeywell, a major commercial and consumer product manufacturer, decides that it will produce all of its thermostats with an eco-friendly material that does not emit dangerous gases during production. Honeywell is following what concept? |
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Definition
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Term
| SunChips® snacks are currently made in 8 cities across the US. In 2008, their plant in Modesto, California, began using solar energy, instead of fossil fuel, to help make SunChips® snacks. SunChips® highlights this feature as a competitive advantage when selling their chips to consumers. This is an example of SunChips® efforts to |
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Definition
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Term
| Your family decides to take a vacation in Key West, Florida. You rent a two-bedroom house on the website VacationsRUs.com. Your experience is terrible. The house is dirty and in need of repair. You complain to the local property manager, but he says there is nothing he can do. You return home and write a negative review on Trip Advisor, a travel rating website. This is an example of: |
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Definition
|
|
Term
| Sam is under a lot of stress at his job. His position is on the line and he needs to get a sales transaction to go through. He tells himself it is okay to possibly break the rules because he is trying to make enough money to support his family. According to the fraud triangle, which aspect is missing from this situation? |
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Definition
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Term
| For marketers, the three components of sustainability are: |
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Definition
| Consumers’ wants, the company’s requirements, and society’s long-term interests |
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Term
| The number one reason new products fail is because |
|
Definition
| They don’t deliver any functional or emotional benefits to consumers |
|
|
Term
| Your next-door neighbor tells you that you must buy a new car every four years because after four years, the engines break down. He feels that car manufacturers design cars this way on purpose to trap consumers into constantly buying new vehicles. Your neighbor believes in which Myth of Unethical Marketing? |
|
Definition
| Marketers believe in planned obsolescence |
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Term
| You and a friend go out to dinner at an expensive restaurant. The service is terrible. Your food is cold so you ask the waiter to take it back and he says there is nothing he can do. You and your friend go home and write a negative review on Yelp, a restaurant rating website. This is an example of? |
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Definition
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Term
|
Definition
moral principles and values
that govern the actions and decisions of an
individual or group. |
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Term
|
Definition
Permit the middle group to behave as if they were
the dishonest employees. |
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Term
|
Definition
Organizations will focus on
the world’s social problems and view them
as opportunities to build profits and help the
world. |
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Term
| Companies market their products globally to: |
|
Definition
1. Expand internationally to “reach more customers”
2. Gain higher profit opportunities
3. Balance sales across countries to hedge business
4. Compete with other brands that are expanding internationally
and with global firms in their home markets
5. Sell more products/services in foreign markets vs own country
• Rising Standard of living in developing world
• Especially BRIC countries (i.e. Brazil, Russia, India, China)
• 80 percent of the world’s population lives in emerging-market countries
• Firms in mature economies of the West are attracted by the potential for doubledigit
growth in emerging markets |
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Term
|
Definition
System of interdependent firms who facilitate movement of the product
from the producer to the final end consumer |
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Term
|
Definition
| consists of just the producer and the consumer |
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Term
|
Definition
contains one or more intermediaries between the
consumer and the producer |
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Term
| Marketing Across Borders: Distribution |
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Definition
| Seller, Channels between nations, Channels within nations,Customer |
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Term
| What is the primary driver of household income |
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Definition
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Term
|
Definition
1.The research questions are interesting and important to the client.
2.The data sample consists of decision-makers, product users, and influencers.
3.The analytical methods give clear answers to marketing issues; that is, they provide deep insight.
4.The recommendations give strategic direction and how-to marketing tactics.
5.The research report is flavored with "voice of the customer" quotations and references. |
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Term
| Which is the first step or first element for conducting good marketing research? |
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Definition
| The research questions are interesting and important to the client |
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Term
| Marketing Research Process |
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Definition
Define the marketing problem, the research objectives, and the decisions to be made.
2.Design the research project. Review all relevant secondary research and related studies for insight and direction. Write a screener to identify an appropriate sample of decision-makers, users, and influencers. Write questions that address goals and/or decisions; the questions may come from qualitative pre-work or prior studies.
3.Collect the data. Select data collection and analysis methods that will provide simple, clear, unambiguous answers. Collect data as quickly as possible using reliable, representative sources.
4.Analyze the data. Use appropriate analysis methods to provide information and insight for answering the research question.
5.Take action. Answer the research question and make specific recommendations. |
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Term
When beginning a survey a good manager looks for data previously
collected through sources such as the US Census Bureau and other industry
associations. This manager is in which part of the Marketing Research
Process using which type of data? |
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Definition
| Design Research Project - Secondary Data |
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Term
| Mark and his brother want to start a new Mexican restaurant in New York but they do not know if there is enough demand. In order to find out, Mark and his brother send out surveys and ask people around town if they would like a new restaurant. Mark and his brother are collection what kind of research? |
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Definition
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Term
| Design the Research Project |
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Definition
| The starting point for most marketing research is reviewing the relevant secondary data—information that already exists. Major advantages of secondary data are the time and money savings.Although primary data collection can be expensive and time consuming, the research targets a specific problem, whereas secondary data may not provide sufficient information or may not be on target with the research problem. |
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Term
|
Definition
Ad tracking
• Concept testing
• Marketing effectiveness
• Segmentation research
• Test marketing
• ZMET |
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Term
|
Definition
The function that links consumers, customers, and the public
to the marketer through information. |
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Term
| Why do marketing research |
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Definition
| Specifically, illuminate customers’ needs |
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Term
|
Definition
describes tendency for managers to
over-estimate how many people are similar to them. |
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Term
| Avoid the “golden gut” problem |
|
Definition
relying on your own
intuition for big decisions. |
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Term
| Why not do marketing research |
|
Definition
Research is often costly
• “What would I do without this information?”
--Maybe it doesn’t matter!
--Perhaps I can use an assumption
• “What if my assumption is wrong?”
If the cost of a wrong assumption is less than
the cost of research, don’t do the research! |
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Term
|
Definition
A causes B
Causality does lead to correlation (typically |
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Term
|
Definition
A and B occur
simultaneously
correlation does not lead to causality |
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Term
|
Definition
Personal interviews
• Focus group interviews
• Observation
• Web, email, mail surveys
• Scanner |
|
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Term
|
Definition
Sampling Error-Drawing small samples from large populations
• Increase the sample size
Measurement Error-Asking questions which don’t measure what we
hope to measure
• Ask appropriate questions
Coverage Error-Sample does not represent the population of
interest
• Screen for representative sample
Non-response Error-Obtained sample differs from the original
selected sample
• Compare non/late respondents and respondents |
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Term
| AD Tracking primary research |
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Definition
| Determining whether an ad is being seen and remembered. Usually, we want to know how fast awareness is building for the media dollars being spent, if advertising is making positive impressions, and if key benefits are cutting through. |
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Term
| Concept testing primary research |
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Definition
| Marketing managers must sort through multiple concepts when trying to identify promising brand extensions, line extensions, and messaging. Concept tests, usually in the form of focused group discussions, allow researchers to quickly filter out poor concepts and enhance strong concepts |
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Term
| Marketing effectiveness primary research |
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Definition
| These studies aim to measure the dollar-by-dollar effectiveness of marketing expenditures. Measuring effectiveness is achievable with direct marketing campaigns, online marketing campaigns, and sales promotions in which sales leads and sales can be traced back to dollars invested. |
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Term
| Segmentation research primary research |
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Definition
| Dividing a market into segments may help marketing managers identify new opportunities. There are many different ways to divide markets into groups. We can use demographic factors, consumer attitudes, benefits sought, and many other bases of segmentation. |
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Term
| Test marketing primary research |
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Definition
| Sometimes, marketing managers do not trust survey data to determine the potential success of a new product. In this case, test markets are selected around the country to determine the potential success of a new product, work out any issues, and optimize a marketing mix before making a national launch. Competitors have been known to run sales promotions and extra advertising in test markets to confound test results. |
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Term
|
Definition
| Zaltman Metaphor Elicitation Technique is a research method developed and patented by Gerald Zaltman. It uses imagery and other sensory information to understand brands, the buying process, and consumption experience. |
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Term
| When conducting a survey, Bob found that there were many people who were choosing not to participate. What consequence does a non-response error have on the results? |
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Definition
| It creates a bias in the data |
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Term
|
Definition
| Cross tabulations,Analysis of variance,Regression,Factor analysis,Cluster analysis,Discriminant analysis,Max-Diff analysis,Conjoint analysis |
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Term
|
Definition
Frequency counts
• Conditions, attitudes, and/or behaviors that occur most often |
|
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Term
|
Definition
| Analysis of variance is based on averages and variability around an average. Researchers are looking for averages that differ well beyond what their variability would suggest |
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Term
|
Definition
| Regression divides variables into predictors and outcomes. The method estimates how the changes in a predictor variable impact changes in an outcome variable. |
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Term
|
Definition
| Factor analysis groups together highly correlated variables. Researchers use factor analysis to simplify a data set by indentifying highly correlated variables and grouping them into factors. |
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Term
|
Definition
| Cluster analysis groups together respondents that answer survey questions in similar ways, have similar demographic profiles, or have similar behaviors. Researchers use cluster analysis to divide markets into segments. |
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Term
|
Definition
| Discriminant analysis combines traits of factor analysis and cluster analysis. It groups together highly correlated variables. For example, discriminant analysis can be used to group together similar brands or, in some instances, similar people. Researchers use discriminant analysis to generate perceptual maps depicting the relationships between brands and brand attributes |
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Term
|
Definition
| Max-Diff analysis presents a set of attributes or alternatives for which respondents indicate most/least important or most/least appealing. Researchers use the analysis to determine choice preferences. Max-Diff also may be used for TURF analysis (Total Unduplicated Reach and Frequency). TURF analysis provides information for allocating media spending for optimal reach and frequency. |
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Term
|
Definition
| Conjoint analysis is an analysis system that first deconstructs products into component attributes, next estimates the value of each component attribute, and then reconstructs existing and potential products in a way that allows researchers to estimate the value of each product. Researchers use conjoint analysis to aid product development and pricing choices as well as build market simulations to measure the impact of those choices. |
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Term
| Which technique deconstructs products into its basic components or features and estimates their consumer value? |
|
Definition
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|
Term
| Which technique is best for classifying credit card users into various segments based on how they respond to the survey? |
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Definition
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Term
| The best way to present research findings is to |
|
Definition
| Begin by highlighting the initial marketing research questions |
|
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Term
|
Definition
Purpose of the research--decisions to be made
• Sample--people relevant to the decision
• Questions--reinforce the survey questions
• Answers--present clear and concise answers to survey questions
• Recommendations--make action-oriented recommendations
• Appendix--use the appendix for details about the research |
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Term
|
Definition
Blindly listening to research
2. Blindly ignoring research
3. Bias from: |
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|
Term
| When a product does not live up to the promise of the concept, generally marketers will use: |
|
Definition
| Focus group concept testing or frustration/satisfaction drivers testing |
|
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Term
| Marketing Research Issues |
|
Definition
Marketing Issue #1: Product sales have slowed due to new category competitors chipping away at the product's value proposition. Marketing managers want to position the product to highlight distinctions that minimize the impact of competitors and refresh the product's value proposition. Marketing managers use "consumption situation" research to better understand all the consumption situations and associated experiences that drive sales in the product category. Values studies as well as ethnographic studies including participant observation and in-depth questioning often are useful in providing insight into the consumption experiences that need to be stressed to strengthen the product's value proposition.
Marketing Issue #2: Marketing managers have a variety of new product concepts to explore. They want to determine among a whole host of selling propositions or marketing ideas, with which they should move forward. Research should identify the concept with the best potential and suggestions for moving the concept from product idea to successful product. Focus group concept testing is typically used to filter and build on new product concepts. Focus groups using Edward de Bono's Six Thinking Hats methodology are particularly effective.
Marketing Issue #3: Once a product moves through concept testing, marketing managers want to optimize and make a final thumbs up / thumbs down decision for launching a new product. The goal is to launch a product that will meet sales forecasts and achieve a return that beats investment hurdles. To make these decisions, marketing managers use the Max-Diff procedure as well as conjoint analysis. Conjoint analysis generates probabilities of product purchase in the context of competitive reaction. Marketing managers can project sales and profitability when combining conjoint analysis results with cost data and a funnel model. A funnel model is a simple forecasting model taking into account size of market, awareness, distribution, and probability of purchase.
Marketing Issue #4: Often, there are concerns that the brand messaging is not connecting with current and potential customers. Sales have leveled off and may have dropped since changing messaging campaigns. Marketing managers want to identify messages that connect with consumers, build brand equity, and generate improved sales. Researchers can use one-on-one depth interviews, values research, as well as quantitative ad testing such as ARS pre-post testing.
Marketing Issue #5: With new products, marketing managers want to know how to position the brand relative to the competition. They want to find a unique, memorable, relevant, and defensible brand positioning. Marketing managers use consumer and need-state segmentation, perceptual mapping, ethnographic deep dives, competitive brand perception quantitative studies, and product usage testing.
Marketing Issue #6: Which illustrations and/or visual cues convey quality to the customer? It is important to identify memorable and meaningful clues that make product distinctions, benefits, and competitive angles personally relevant and memorable. Marketing managers often use one-on-one depth interviews and quantitative ad testing.
Marketing Issue #7: Does the final product live up to the promise of the concept? Marketing managers must ensure the product lives up to the brand promise and/or make it live up to the brand promise. Researchers often use focus group concept testing as well as frustration/satisfaction drivers testing.
Marketing Issue #8: How many unit sales of a new product will I have if I distribute a product at Y price and invest $X allocated across a given media plan? Marketing managers must match a new product to an optimal distribution and media plan. Proprietary research products such as BASES or MARC Assessors are often used to address these issues.
Marketing Issue #9: How do marketing managers allocate their marketing budget across various media? They want to identify and use the most effective and efficient forms of media for their business. Researchers address these questions with viewership/readership studies, ad level tests, and TURF analysis. The analysis is also used to determine the optimal variety of a product line to stock in stores to achieve maximum penetration. For example, if a manufacturer of snack chips has 15 varieties of chips but can stock only 5 varieties in any particular retail store, they can use TURF analysis to pick the top 5 varieties to stock in each region of the country so they can maximize their sales.
Marketing Issue #10: How should the marketing budget be allocated across the marketing mix? In addition to allocating dollars across a media mix, marketing managers must also decide how to allocate dollars across an entire marketing mix. They want to identify the point of diminishing returns for each element in the marketing mix. Said another way, they want to know how many dollars in return they will get for spending each additional dollar on advertising, publicity, sales promotion, trade promotion, expanding distribution channels, reducing price, etc. This is the toughest issue and understandably has the fewest good answers. Researchers may use test markets, regression studies, or proprietary research products to address these questions. |
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Term
| The CEO at ZTaco recently decided he wanted to start selling Chinese food with his Mexican menu without doing any market research before implementing the new change. This is an example of what? |
|
Definition
|
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Term
|
Definition
| Market research helps us understand the demographics of a marketplace, that is, how many people buy, how much people buy, how much people pay, what kind of people buy, which brands perform the best, and what the potential is for new growth or new brands |
|
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Term
|
Definition
| tells us how to effectively position, promote, design, distribute, and price our products once we've decided on a market. Startup businesses most often are interested in market research and not marketing research |
|
|
Term
| _________ helps us understand the demographics of a marketplace, while _________ tells us how to position, promote, design, distribute, and price the products |
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Definition
| Market research, marketing research |
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|
Term
| McDonalds decides to do research on its hamburgers. They collect data on how many people purchase the BigMac, how many BigMac’s they buy, what kind of people typically buy BigMacs, and how old they are. McDonalds performed what kind of research on the BigMac |
|
Definition
|
|
Term
| Start-up businesses want to find a marketplace that has potential for the growth of their product. What type of research are start-up companies interested in? |
|
Definition
|
|
Term
|
Definition
| (1) advertising first and foremost must highlight the product promise and explain how the product delivers on that promise, and (2) the fewer the sales leads, the fewer the sales. |
|
|
Term
| The Commerce Department reported this week that single-family home starts surged 7.0 percent to an annual rate of 628,000 units last month, the highest level in six months. If Home Depot used this report as a factor in their expansion plans, they would be using: |
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Definition
|
|
Term
| Often the reason research results are invalid is because the data sample is irrelevant—coverage error. To minimize this error, marketing researchers should |
|
Definition
Qualify or screen respondents for the study |
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|
Term
| In short, the primary purpose of marketing research is to |
|
Definition
| Support marketing decisions |
|
|
Term
| Frito-Lay produces more than 20 varieties of chips. Suppose a retail store offers to stock five or Frito-Lay chips products in each store across the country. Which marketing research technique would you recommend Frito-Lay use to determine the optimal variety of chips to stock in each store? |
|
Definition
| TURF analysis--Total Unduplicated Reach and Frequency |
|
|
Term
| Suppose Home Depot is planning a TV advertising campaign to target do-it-yourselfers who do maintenance projects on their house, condo, or other dwelling unit they own. To find such information, the Home Depot marketing research team begins by using data from the U.S. Census Bureau. This is an example of: |
|
Definition
|
|
Term
| Suppose your brand team decides to conduct research to understand consumers’ perceptions of brands and brand attributes. Specifically, you want to generate perceptual maps to show the relationships among brands and brand attributes in your industry. Which analytical method is most useful for this research project? |
|
Definition
|
|
Term
| Marketing employs some of the most sophisticated analytical methods used in business. Suppose your client provides you a data set of survey responses from credit card users and asks you to identify market segments based on the data. Which method is most useful for classifying credit card users into various segments based on how they respond to demographic and behavioral questions? |
|
Definition
|
|
Term
|
Definition
| process of grouping customers into relatively homogeneous sets or groups, so that customers within a segment are similar to one another in the way they respond to the marketing effort directed toward them |
|
|
Term
| 3 Benefits of Market Segmentation |
|
Definition
| First, market segmentation provides an effective means for reaching customer groups. Second, market segmentation helps in allocating marketing resources. Finally, market segmentation identifies market opportunities for the company. |
|
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Term
|
Definition
| Grouping based on differences in geographic regions, population density, population size, and climate. |
|
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Term
|
Definition
| Grouping based on differences in age, gender, income, level of education, social class, family composition, religion, and ethnicity. |
|
|
Term
| Psychographic segmentation |
|
Definition
| Grouping based on differences in personality, motives, or lifestyle |
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Term
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Definition
| Grouping based on differences in the core benefits customers seek, usage situations, brand loyalty, usage rate, and price sensitivity |
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Term
| Brand-loyal shoppers (behavioral segmentation) |
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Definition
| high brand sensitivity and low price sensitivity.Products like toothpaste, cigarettes, coffee, and soda have a high percentage of brand-loyal shoppers. |
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Term
| Deal shoppers (behavioral segmentation) |
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Definition
| high brand sensitivity and high price sensitivity. That is, they purchase leading brands at a discount. They will purchase their favorite brand only when it is on promotion. Products like diapers, hand and body soap, and pet food have a high percentage of deal shoppers. |
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Term
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Definition
| low brand sensitivity and high price sensitivity. That is, they purchase lowest-price products regardless of brand. Products like plastic food bags, frozen pizza, and detergents have a high percentage of price shoppers. |
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Term
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Definition
| low brand sensitivity and low price sensitivity. That is, these shoppers maximize their velocity through shopping environments, buying products without regard to brand or price. Products like energy drinks, junk food, eggs, dairy products, and over-the-counter medications have a high percentage of convenience shoppers. |
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Term
| You present your market segmentation research to your boss and discuss the different ways to segment your market. Which one of the following would be the best way to segment a market? |
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Definition
| Divide segments by the benefits they get from shopping at your store |
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Term
| Customers within a distinct _____________ will respond similarly to marketing efforts directed at them |
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Definition
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Term
| Segmentation is grouping customers into relatively homogeneous sets such that customers within a segment are similar to one another in _________________. |
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Definition
| The way they respond to the marketing effort directed at them |
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Term
| Of the four ways to segment the market, which way is based on the personalities and lifestyles of people? |
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Definition
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Term
| At the store, Brooke is shopping for some hand and body soap. As a deal shopper, she has brand sensitivity and price sensitivity |
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Definition
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Term
| Becky and Hannah decide to have a party at their apartment. They want to feed 30 people without spending very much money, so they decide to buy the cheapest frozen pizzas in the store. What kind of shoppers are Becky and Hannah? |
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Definition
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Term
| A segment is a homogeneous group of potential customers. What of the following is the most useful way to segment a market? |
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Definition
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Term
| Complexity should be kept to a minimum because |
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Definition
| (1) company resources are limited, (2) brands with schizophrenic multiple personalities do not survive, and (3) companies cannot cope with moving in a hundred different directions all at the same time. |
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Term
| good segmentation plan 5 characteristics |
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Definition
Measurable: Individuals can be assigned to a segment and the number of individuals in the segment can be counted.
Accessible: Individuals in the segment can be reached through the company's promotion and distribution channels.
Durable: Segment membership and its size is relatively constant over time.
Substantial: The segment is large enough to make products profitable.
Unique needs: The needs and/or benefits-sought of the segment membership are homogeneous within each segment and heterogeneous across the segments. |
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Term
| XYZ Company has just recently launched a new product to a specific market segmentation. However, the market segment only consists of a small town of farmers. Marketers are worried that the segment size is not large enough to make this product profitable. Which characteristic of good segmentation plans is lacking? |
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Definition
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Term
| Grow Old With Me specializes in providing discounts for seniors (over the age of 65) across a variety of activities (restaurant gift cards, movie tickets, etc.). This company’s only promotion/distribution channel is via the Internet. Advertising online doesn’t seem to be reaching nearly as many seniors as expected, and revenue has been extremely low. Based on this information, which criteria for segmentation is lacking? |
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Definition
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Term
| While reviewing customer service reports, the brand manager for Extra Sugarfree Gum noticed a small handful of comments from customers saying that they are allergic to artificial sweeteners—and that Extra should launch a gum made with real sugar instead. The brand manager is worried that segmenting customers based on allergies would fail which criteria for segmentation? (Choose the most correct answer) |
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Definition
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Term
| Political Models that break voters into three groups: Love, Swing, and Hate Group. This segmentation approach is called? |
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Definition
| Brand Champion Segmentation |
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Term
| relevant buying situations 7 questions |
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Definition
| (1) Who are the buyers or product users? (2) What are the benefits, both functional and emotional, the buyers are looking for? (3) When is the decision made? That is, is it planned or impulsive? (4) Where do buyers expect to find the product; that is, is it a convenience purchase or does it warrant a trip to a special destination? (5) What is the buying behavior; that is, where do buyers seek information and is something special about the purchasers or purchasing process? (6) What are the key decision drivers for selecting one alternative over another? (7) How do buyers consume or use the product; that is, which key consumption experiences drive sales in the product category? |
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Term
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Definition
| used to assign potential customers to different segments |
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Term
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Definition
| A segment profile may describe the demographic characteristics, geographic factors, attitudinal scores, and behavioral tendencies of the segment members. The profile delineates the similarities among potential customers within the segment and explains the differences in potential customers between segments |
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Term
| General Motors divided the car market using sensitivity to price. Miller Lite (a sin beverage J) divided the beer market using sensitivity to calories. Gillette divided the safety razor market using sensitivity to gender. These methods fall under which term in the marketing strategy process? |
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Definition
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Term
| Which of the following are used for behavioral segmentation? |
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Definition
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Term
| Selecting Segments (4 things) |
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Definition
Market size. Is the market large enough to deliver expected profits for the company?
Expected growth. Is the market growing?
Competitive position. What is the level of competitive rivalry/intensity in the segment? Is your company’s differentiated product offering valued by the segment?
Cost to reach. Is the market economically accessible? |
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Term
| When Kraft wanted to launch a liquid water enhancer, it initially considered launching it as an extension of its brand Crystal Light, primarily sold to soccer moms. Instead, Kraft decided to launch the product as Mio and successfully marketed it to Millennials, who embrace individuality and customization. In deciding whom they should exchange with, Kraft was: |
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Definition
| Selecting the target market |
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Term
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Definition
| the act of designing the company’s product offering so that it occupies a distinct and valued place in the target customers’ minds |
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Term
| Value Positioning Matrix (4 types) |
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Definition
I’m willing to pay more for more benefits. Luxury brands focus on this value positioning strategy by offering consumers more benefits than competitors, but also charging higher prices. Companies like Rolls Royce, Rolex, Mont Blanc, and Bottega Veneta use this positioning. Often, the price exceeds the incremental product quality, but consumers of these products are buying much more than quality products. They are buying prestige.
I’m willing to pay the same for more benefits. Japanese auto manufacturers used this value positioning strategy when entering the high-end car market with Accura (Honda), Infiniti (Nissan), and Lexus (Toyota). The vehicles were offered at similar prices as those of US manufacturers, yet claim more benefits.
I’m willing to pay less for the same benefits. Store brands (or private label brands) like Costco’s Kirkland brand, Walmart’s Great Value brand, and Kroger’s Big K brand offer products with national brand quality at store brand prices. Hyundai uses this same value positioning in an attempt to steal market share away from Honda and Toyota. The company promotes Hyundai cars with Honda quality at lower prices.
I’m willing to pay much less for fewer benefits. Consumers attracted to this value positioning strategy are willing to give up some quality for much lower prices. Aldi, a discount supermarket, specializes in staple products such as food, beverages, paper products, and inexpensive household products. Customers willingly accept small product assortment and limited service for lower prices. Capsule hotels in Japan offers extremely small rooms, actual capsules (7 feet by 4 feet by 4 feet), stacked side by side and two units high, with communal washrooms at 25% of the cost of a traditional hotel room. Consumers are willing to pay much less for fewer benefits. |
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Term
| What is the most useful way to position? |
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Definition
| Show how you deliver what is most valued |
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Term
The marketing manager for Little Ceaser’s releases the following statement: “Little Ceaser’s Pizza competes in the Fast Food category and provides affordable, family-loving, one-stop meals to busy parents when they are looking for a quick, filling meal that everyone enjoys. Little Caeser’s Pizza unlike Domino’s Pizza or Pizza Hut is unique because it provides two pizzas for the price of one.”
This marketing manager is doing what? |
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Definition
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Term
| USP (Unique Selling Proposition) 3 things |
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Definition
1.Each advertisement must make a proposition to the customer. Not just words, not just product puffery, not just show-window advertising. Each advertisement must say to the reader, "Buy this product, and you will get this specific benefit."
2.The proposition must be one that the competition either cannot, or does not, offer. It must be unique -- either a uniqueness of the brand or claim not otherwise made in that field of advertising.
3.The proposition must be so strong that it can move the masses, that is, pull new customers over to the product.
A USP brings a brand's positioning into focus by forcing marketing managers to answer pointed questions. Who is the customer in terms of their identity and buying situation? How does the product's biggest benefit solve a compelling pain-point that the customer has? Who is the main competitor and what differentiates this product making it unique? Answers to these questions define the product's position and consequently should drive decisions about the marketing mix. |
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Term
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Definition
simple method for getting a feel for how customers perceive brands. This research method allows researchers to view consumers’ perceptions of brands on one or a series of spatial maps such that relationships between brands can be easily seen. Perceptual maps also provide insight about differentiating benefits and opportunities for new products
figure 7-4 |
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Term
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Definition
| compares brands based on the importance and performance of their differentiating features and benefits. Whereas perceptual mapping only asks customers to make judgments regarding the performance of a brand's features and benefits, gap analysis also asks customers to make judgments regarding the importance of a brand's features and benefits to the buying decision.Gap analysis is displayed in a two-by-two format in which the bottom left quadrant is low importance and low performance; the bottom right quadrant is high importance and low performance; the top left quadrant is low importance and high performance; and the top right quadrant is high importance and high performance |
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Term
| Hierarchical Values Analysis |
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Definition
| It is a three-step research process that consists of (1) eliciting distinctions, (2) pyramiding down, and (3) laddering up |
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Term
| Which of the following positioning methods asks customers to make judgments regarding the importance of a brand’s features and benefits to the buying decision? |
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Definition
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Term
| The most useful way to position a product is to |
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Definition
| Deliver what is most valued |
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Term
| Sprite and 7-up are very close together on a perceptual map of the soft-drink market. This means that they are: |
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Definition
| Direct competitors with each other |
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Term
| Various brands of soda (Coke, Pepsi, Root Beer, and Sprite) are rated on a scale from 0 to 10. A rating of 10 means the attribute perfectly describes the brand. Then the brands are displayed in a vertical and horizontal dimension, revealing that Pepsi and Coke are near each other. This is an example of which positioning method? |
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Definition
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Term
| Various hotel brands (Marriott, Hyatt, and Hilton) are evaluated based on their importance and performance of beds, pricing, amenities, bonus programs, and location. These results are displayed in a two-by-two format where the top right quadrant is high importance and high performance. This is an example of which positioning method? |
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Definition
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Term
| For Scott, they take a three-step research process that consists of eliciting distinctions, pyramiding down, and laddering up in order to analyze which brand of cereal he consumes most often in various situations. This is an example of which positioning method? |
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Definition
| Hierarchical values analysis |
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Term
| Market segmentation is the process of grouping customers into relatively homogeneous sets or segments such that customers within a segment are similar to one another in: |
|
Definition
| the way they respond to the marketing effort directed toward them |
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Term
| Wells Lamont recently launched a new work glove for farmers. However, the market segment consists of a few rural towns. Marketers are worried that the segment size is not large enough to make this product profitable. Which characteristic of effective segmentation is lacking? |
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Definition
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Term
| What is product positioning? |
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Definition
| The place a product offering occupies in the target customers' minds |
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Term
| Perceptual maps show the judgments customers make regarding the performance of a brand’s features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding: |
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Definition
| The importance of a brand's features and benefits to the buying decision |
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Term
| Why doesn’t “me too” positioning work as a value positioning strategy? |
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Definition
| The positioning approach does not give consumers a reason to change |
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Term
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Definition
| markets represent the aggregate of individuals and/or organizations that have: (1) needs and wants and (2) the ability, willingness, and authority to purchase products and services that satisfy their needs and wants. All markets, ultimately, are people. The two general classifications of markets are business and consumer. |
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Term
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Definition
| a deep understanding of consumer attitudes and beliefs that has the power to shape consumer behavior. A marketing insight regarding bug spray is that consumers hate ants and roaches in the home, and must see them suffer and struggle when sprayed before they believe they are really dead |
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Term
| The processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods/services is know as? |
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Definition
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Term
| black box model of consumer behavior |
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Definition
| It is called the black box model because it concedes that consumer decisions are not entirely understandable or predictable. That is, there is no mathematical formula that can accurately describe an individual's choice process. The black box model is built around three elements: stimuli influencing the buyer, the buyer's black box, and the buyer's response. |
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Term
| Stimuli Influencing the Buyer |
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Definition
| two different types of stimuli that influence buyers. First, there are general stimuli in the environment, such as the health of the economy, political environment, technological change, natural surroundings, social context, and culture. Marketing managers have little control over these stimuli. Next, there are marketing stimuli in the environment, such as competing marketing mixes consisting of various products, prices, places, and promotions. Marketing managers control these stimuli |
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Term
|
Definition
| The buyer's black box is filled with the buyer's characteristics. Buyers have different attitudes, interests, and opinions. They have different motivations, values, and perceptions of the world. They are different in terms of life stage, lifestyle, and education. In addition, buyers find themselves in different buying situations |
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Term
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Definition
| The buyer's black box interacts with the environmental and marketing stimuli to create a response. The buyer's response comes down to some sort of choice, such as when to purchase, where to purchase, how to purchase, how much to purchase, as well as which product and brand to purchase. The consumption experience also plays a role in the buyer's response. Will the buyer purchase again? Will the buyer recommend the product to family, friends, and others? Will the buyer be dissatisfied and start looking for an alternative? |
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Term
| Which of the following is an example of a product that requires routine problem solving |
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Definition
| Cleaning supplies for your new apartment |
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Term
| Rebecca lives in a small town with only one grocery store. When she goes grocery shopping, Rebecca does not try to shop for the best deal because she really only has one option. What part of the black box model is having an effect on her decision? |
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Definition
| Stimuli influencing the buyer |
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Term
| Blaine has decided to buy a new exotic sports car and has begun the Consumer Behavior Process. What kind of decision is Blaine involved in? |
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Definition
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Term
| While grocery shopping, Ted remembered that he was out of toothpaste and promptly put a tube of his favorite brand of toothpaste in the shopping cart. To Ted, toothpaste purchases are what kind of decision? |
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Definition
|
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Term
| Low-Involvement Decisions |
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Definition
| Low-involvement purchases rely on a do-feel learning model in which the customer does (consume) then feels (reinforce the positive attitudes toward the brand). Reinforcing habitual buying decisions is easy. Marketers use television, radio, or social media to show brand champions consuming and having a great consumption experience. On the other hand, disrupting habitual buying decisions in order to replace a preferred brand with a new brand can be difficult. |
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Term
| How to disrupt habitual buying (3 things) |
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Definition
Disrupt Habitual Buying with Technology
Disrupt Habitual Buying with Product Sampling
Disrupt Habitual Buying with Advertising |
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Term
| Bob is out of milk and goes to the store to buy more. This example would fall under which problem-solving continuum section? |
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Definition
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Term
| peripheral route in advertising |
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Definition
| entertains rather than providing logic....ex: kiss marketing dr pepper cherry |
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Term
| What is an example of changes in a consumer’s current state? |
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Definition
| The consumer is out of toothpaste |
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Term
| After taking her car in to get a flat tire fixed, the mechanics told Kayla there was a serious problem with her car and that it would cost $200 to get fixed. Kayla did her research and decided to get the car fixed. After the car was fixed, Kayla drove home and received a text message from the mechanic store, thanking her for her business. What phase of the high-involvement decision process was done to try and insure Kayla would return if she has more car problems in the future? |
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Definition
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Term
| Bryce just graduated from college and landed a great job. He owns a Honda Accord but would prefer an Audi and can finally afford it. What phase of the consumer behavior process is Bryce in? |
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Definition
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Term
| Consumer Behavior Process (5 steps) |
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Definition
| (1) problem recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) post-purchase evaluation |
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Term
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Definition
| The zero moment-of-truth is gathering information about a product. The first moment of truth is comparing the products at the point of purchase. The second moment of truth is evaluating the product while using it |
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Term
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Definition
| considering their own experiences with the brand, the product category, or substitute products |
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Term
| elimination by aspects (evaluation of alternatives) |
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Definition
| rule in which alternatives missing an important aspect or attribute are eliminated from purchase consideration.The process then continues attribute by attribute and alternative by alternative until only one alternative remains |
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Term
| compensatory rule (elvaluation of alternatives) |
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Definition
| poor performance on one aspect or attribute can be compensated for by superior performance on another aspect or attribute |
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Term
| lexicographic rule (evaluation of alternatives) |
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Definition
| all product attributes are ordered by importance, and the product that performs best on the most important attribute is selected. |
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Term
| Factors Influencing Consumer Behavior |
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Definition
| Culture, social factors, psychological drivers, individual differences, the buying situation, and the marketing mix of competing companies impact purchasing decisions |
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Term
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Definition
| culture means the values, norms, attitudes, behaviors, and beliefs people learn from being members of society. Cultural factors refer to concepts like being a good parent, striving for self-improvement, seeking peace of mind, knowing that resources are being used wisely, and other values that motivate an individual's core behavior. When a Nike commercial says, “Just Do It,” the brand is tapping into the cultural value of striving for self-improvement and sense of accomplishment. |
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Term
|
Definition
| Family, reference groups, and opinion leaders, are social factors influencing consumer behavior |
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Term
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Definition
| perception, motivation, learning styles, beliefs, and attitudes can influence a person’s buying behavior. |
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Term
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Definition
| a process whereby people pay attention to only messages that are immediately useful Selective attention plays a big role in advertising effectiveness. People will ignore advertising that is not entertaining or provides information they are not searching for |
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Term
|
Definition
| process whereby people change what they hear or see to fit with what they already believe. |
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Term
|
Definition
| people only remember information that is immediately useful |
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Term
|
Definition
| consumer’s perceptions of how well a brand performs on particular attributes. Beliefs may be based on personal experience, opinions of others, or hope |
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Term
| How to change an attitude |
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Definition
| (1) changing beliefs about how the brand performs on certain attributes, (2) changing the relative importance of beliefs about the attribute, and (3) adding a new belief |
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Term
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Definition
| Gender, age, stage of life, economic condition, occupation, and region of country are some of the individual factors that influence how people make purchasing decisions.Finally, elements of personal style, such as self-confidence, sociability, assertiveness, independence, and adaptability are influential. |
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Term
|
Definition
| Needs and wants change depending on the situation. The purpose a person has for making a purchase makes all the difference in understanding their purchase decision. |
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Term
| GoGadget made an exciting new helicopter toy that is controlled by a smart phone and is marketed to 18-40 year olds. Bill, a 52 year old thinks this product is of no use and decides he will never buy this product. This is due to what? |
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Definition
|
|
Term
| Which type of factor influences consumer behavior the greatest? |
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Definition
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|
Term
Business 2 Business decisions (5 roles)
also called the buying center |
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Definition
| influencers, gatekeepers, users, deciders, and buyers |
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Term
|
Definition
| share knowledge and expertise to provide information for evaluating products and services |
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Term
|
Definition
| influence the buying decision by controlling the flow of information between the selling firm and the buying firm Purchasing agents, administrative assistants, and secretaries are examples of gatekeepers |
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Term
|
Definition
| the individuals who use or work with the product or service |
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Term
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Definition
| usually selects the vendor with the lowest bid, but will sometimes select a vendor with a higher bid if influencers and/or users apply pressure |
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Term
|
Definition
| purchasing agents that write contracts, push for the lowest costs, and ensure the terms of the contract are honored |
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Term
| 3 types of business purchase decisions |
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Definition
| A straight rebuy is routine ordering of products that are purchased over and over again. A modified rebuy is for routinely purchased products, generally with some modification in product specifications, price, terms, or suppliers. A new task purchase is a first-time purchase decision. |
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Term
| In Sam’s family, his mom does all the grocery shopping. His younger siblings usually accompany his mom to the store and they always beg for various items that they like. But in end, his mom is the one to put the items in the cart and purchase them. In this situation what role does Sam’s mom best play? |
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Definition
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|
Term
| Jeremy is participating in a business-to-business buying decision. After meeting with the involved parties multiple times, Jeremy writes the contract and makes sure they get the lowest price possible. Which part of the buying center is Jeremy? |
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Definition
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Term
| A marketing insight is a deep understanding of consumer attitudes and beliefs that has the power to shape consumer behavior. Marketing insights have limitations because: |
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Definition
1)People make decisions based on the situation 2)People are not all the same |
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Term
| While grocery shopping, Tom remembers that he is almost out of toothpaste. Out of habit, he promptly puts a tube of his favorite brand of toothpaste in his shopping cart. To Tom, toothpaste purchases represent what kind of decision? |
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Definition
|
|
Term
| In the consumer behavior process, problem recognition is caused by: |
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Definition
| A discrepancy between a person’s actual state and desired state |
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Term
| While on a trip to Hollywood, California, Samantha saw Selena Gomez, the actress and recording artist, buying a jacket from H&M. As soon as she had the chance, Samantha purchased the same style jacket from H&M. Which factor influenced Samantha’s buying behavior? |
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Definition
|
|
Term
| While economists view markets as structures that allow buyers and sellers to engage in exchange, marketers focus on: |
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Definition
| People of the exchange—buyers and sellers |
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Term
|
Definition
Coke and popcorn at a movie. People feel forced into it...but they aren't.People want to believe in subliminal advertising
because of dissonance (conflicting beliefs/attitudes
towards something…e.g. I shouldn’t eat popcorn, but
I’m going to because they are forcing me to) |
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Term
|
Definition
result of information and experience that
affects a person’s thought process and/or behavior |
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Term
| How to facilitate learning? |
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Definition
Marketers can facilitate learning by providing opportunities for consumers
to obtain information about and use their products and services |
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Term
|
Definition
A group of people similar in status who regularly
socialize among themselves and share behavioral norms. |
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Term
|
Definition
Describes how potential customers learn about new
products, try them, and adopt or reject them. |
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Term
| Strong Targeting helps guide organizational activities by |
|
Definition
clarifying
who the consumer truly is. |
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Term
| The only sustainable source of competitive advantage is |
|
Definition
| Superior knowledge of the customer |
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Term
|
Definition
| the generation born between 1946 and 1964, because this group has the greatest buying power of the generational cohorts at $1-2 trillion a year |
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Term
|
Definition
| children born between 1965 and 1978, approximately 40 million. As Gen Xers enter their 40s, their earning potential increases significantly. Historically, people ages 40-59 outearn other age groups. At the same time, competing demands for necessities like food, housing, and transportation are significantly higher than for other generational cohorts. Generation X has the second highest purchasing power at $1 trillion |
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Term
| Generation Y (Millenials) |
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Definition
| born between 1979 and 1994. Because most Gen Yers are children of Baby Boomers, they are also referred to as "Echo Boomers." Although this group is larger than Generation X, they spend less at $200 billion per year |
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Term
|
Definition
| 29 million Americans ages 8-14 with purchasing power at $39 billion per year |
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Term
|
Definition
| [Product name] competes in [product category] and provides [biggest benefits] to [customer identity] when they are [buying situation]. [Product name] unlike [main competitors] is unique because it provides [element of differentness]. Let's complete the sentences for Little Caesar's Pizza. |
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Term
| Maslow's hierarchy of needs |
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Definition
|
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