• Interactive
• Managers give simple instructions and see immediate results.  The process is under their direct control.  Managers don't have to wait for scheduled reports.
• Flexible
• A DSS can sort, regroup, total, average, and manipulate the data in various ways.  It will shift gears as the user changes topics, matching information to the problem at hand
• Discovery oriented
• Managers can probe for trends, isolate problems, and ask "what if" questions
• Accessible
• Managers who aren't skilled with computers can easily learn how to use a DSS.  Novice users should be able to choose a standard, or default, method of using the system.  They can bypass optional features so they can work with the basic system right away while gradually learning to apply its advanced features

• The creation of a large computerized file of customers' and potential customers' profiles and purchase patterns
• Key tool for successful one-to-one marketing

• The process of planning, collecting, and analyzing data relevant to a marketing decision
• Marketing research is the function that links the consumer, customer, and public to the marketer through information
• Is a main data source for both management information systems and DSS

1. Identify and formulate the problem/opportunity
2. Plan the research design and gather primary data
3. Specify the sampling procedures
4. Collect the data
5. Analyze the data
6. Prepare and present the report
7. Follow up

• Descriptive
• Gathering and presenting factual statements
• Diagnostic
• Explaining data
• Predictive
• To address "what if" questions

• Determining what information is needed and how that information can be obtained efficiently and effectively
• Is information oriented

• The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information

• A broad-based problem that uses marketing research in order for managers to take proper actions
• Is action oriented

• Data previously collected for any purpose other than the one at hand
• Save time and money if they help solve the researcher's problem
• Disadvantages stem mainly from a mismatch between the researcher's unique problem and the purpose for which the secondary data were originally gathered

• A company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms

• Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed

• Information that is collected for the first time; used for solving the particular problem under investigation
• Are current and researchers know the source
• Gathering primary data is expensive

• Gathering data on two different projects using one questionnaire

• The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes

• Often provide high-quality information, but they tend to be very expensive because of the interviewers' travel time and mileage costs
• They are rapidly disappearing from the American and European researchers' survey toolbox

• A survey research method that involves interviewing people in the common areas of shopping malls
• Drawback is that it is hard to get a representative sample of the population
• One advantage is the ability of the interviewer to probe when necessary
• Must be brief

• An interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer

• An interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into a computer

• A specially designed phone room used to conduct telephone interviewing

• Advantages
• Relatively low cost, elimination of interviewers and field supervisors, centralized control, and actual or promised anonymity for respondents
• Disadvantages
• Mail questionnaires usually produce low response rates because certain elements of the population tend to respond more than others

• Offer an alternative to the one-shot mail survey
• Consists of a sample of households recruited to participate by mail for a given period
• Panel members often receive gifts in return for their participation

• A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services

• A type of personal interviewing
• Is seven to ten people who participate in a group discussion led by a moderator
• Can be used to gauge consumer response to a product or promotion and are occasionally used to brainstorm new product ideas or to screen concepts for new products

• An interview question that encourages an answer phrased in the respondent's own words

• An interview question that asks the respondent to make a selection from a limited list of responses
• Dichotomous
• Yes or No
• Multiple Choice

• A closed-ended question designed to measure the intensity of a respondent's answer

• A research method that relies on four types of observation:
• People watching people
• People watching an activity
• Machines watching people
• Machines watching an activity

• Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions

• A form of observation marketing research that uses data mining coupled with identifying Web surfers by their IP addresses

• The form of BT that uses information that a member of MySpace or Facebook shares, in combination with his demographic and psychographic information

• The study of human behavior in its natural context; involves observation of behavior and physical setting

• A method a researcher can use to gather primary data
• The researcher alters one or more variables- price, package design, shelf space, advertising theme, advertising expenditures- while observing the effects of those alterations on another variable (usually sales)

• A subset from a larger population

• The population from which a sample will be drawn

• A sample in which every element in the population has a known statistical likelihood of being selected

• A sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample

• Any sample in which little or no attempt is made to get a representative cross section of the population

• A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher- for example, employees, friends, or relatives

• An error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process

• An error that occurs when a sample somehow does not represent the target population

• An error that occurs when a sample drawn from a population differs from the target population

• An error that occurs when the selected sample is an imperfect representation of the overall population

• A firm that specializes in interviewing respondents on a subcontracted basis

• Simple Random Sample
• Stratified Sample
• Cluster Sample
• Systematic Sample

• Convenience Sample
• Jedgment Sample
• Quota Sample
• Snowball Sample

• A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions

• Rapid development, real-time reporting
• Dramatically reduced costs
• Personalized questions and data
• Improved respondent participation
• Contact with the hard-to-reach

• Web Survey Systems
• Survey Design and Web Hosting Sites
• Online Panel Providers

• Better participation rates
• Cost-effectiveness
• Broad geographic scope
• Accessibility
• Honesty

• Engage customers in a space where they are comfortable, allowing clients to interact with them on a deeper level
• Achieve customer-derived innovations
• Establish brand advocates who are emotionally invested in a company's success
• Offer real-time results, enabling clients to explore ideas that normal time constraints prohibit

• Media that consumers generate and share among themselves
• Comes from various sources, such as blogs, message boards, review sites, podcasts, etc.
• Because it is consumer based, CGM is trusted more than traditional forms of advertising and promotion

• A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

• A scanner-based research program that tracks the purchases of 3,000 households through store scanners in each research market

• A scanner-based sales-tracking service for the consumer packaged-goods industry

• A field of marketing that studies the body's responses to marketing stimuli

• An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors

• Everything, both favorable and unfavorable, that a person receives in an exchange
• Tangible goods, services, and ideas are all products

• A product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

• A product bought to satisfy an individual's personal wants

• A relatively inexpensive item that merits little shopping effort

• A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
• homogeneous
• washers, dryers, refrigerators, televisions, etc.
• heterogeneous
• furniture, clothing, housing, universities, etc.

• A particular item that consumers search extensively for and are very reluctant to accept substitutes
• Brand name and quality are often very important

• A product unknown to the potential buyer or a known product that the buyer does not actively seek

• A specific version of a product that can be designated as a distinct offering among an organization's products

• A group of closely related product items

• All products that an organization sells

• The number of product lines an organization offers

• The number of product items in a product line

• Changing one or more of a product's characteristics

• Change in a product's dependability or durability

• Change in a product's versatility, effectiveness, convenience, or safety

• Aesthetic product change rather than a quality or functional change

• The practice of modifying products so those that have already been sold become obsolete before they actually need replacement

• Involves changing consumers' perceptions of a brand

• Adding additional products to an existing product line in order to compete more broadly in the industry

• A name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

• That part of a brand that can be spoken, including letters, words, and numbers

• The elements of a brand that cannot be spoken

• The value of company and brand names

• A brand that obtains at least a third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

• Consistent preference for one brand over all others

1. Product Identification
2. Repeat Sales
3. New-product Sales

• The brand name of a manufacturer

• A brand name owned by a wholesaler or a retailer

• A brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

• Using different brand names for different products

• Marketing several different products under the same brand name

• Placing two or more brand names on a product or its package
• Ingredient branding
• Cooperative branding
• Complementary branding

• The exclusive right to use a brand or part of a brand

• A trademark for a service

• Identifies a product by class or type and cannot be trademarked

1. Contain and protect products
2. Promote products
3. Facilitate the storage, use, and convenience of products
4. Facilitate recycling and reduce environmental damage

• A type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

• A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

• When a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly

• A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products

• One brand name everywhere
• Coca-Cola
• Adaptations and modifications
• Different brand names in different markets

• A confirmation of the quality or performance of a good or service

• A written guarantee

• An unwritten guarantee that the good or service is fit for the purpose for which it was sold

• A product new to the world, the market, the producer, the seller, or some combination of these

1. New-to-the-world products
2. New product lines
3. Additions to existing product lines
4. Improvements or revisions of existing products
5. Repositioned products
6. Lower-priced products

• A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

• New-product ideas come from many sources:
• Customers
• Employees
• Distributors
• Vendors
• Compeititors
• Research and development
• Consultants

• A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products

• The process of getting a group to think of unlimited ways to vary a product or solve a problem

• The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason

• A test to evaluate a new-product idea, usually before any prototype has been created

• The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

• The stage in the product development process in which a prototype is developed and a marketing strategy is outlined

• A team-oriented approach to new-product development

• The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

• The presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market

• The decision to market a product

• A history of listening carefully to customers
• An obsession with producing the best product possible
• A vision of what the market will be like in the future
• Strong leadership
• A commitment to new-product development
• A project-based team approach to new-product development
• Getting every aspect of the product development process right

• A product perceived as new by a potential adopter

• The process by which the adoption of an innovation spreads

1. Innovators
1. The first 2.5% of all those who adopt the product
2. Venturesome
2. Early adopters
1. The next 13.5% to adopt the product
2. The respect of others
3. Early majority
1. The next 34% to adopt
2. Deliberateness
4. Late majority
1. The next 34% to adopt
2. Skepticism
5. Laggards
1. The final 16% to adopt
2. Tradition

1. Complexity
1. The degree of difficulty involved in understanding and using a new product
2. Compatibility
1. The degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs
3. Relative advantage
1. The degree to which a product is perceived as superior to existing substitutes
4. Observability
1. The degree to which the benefits or other results of using the product can be observed by others and communicated to target customers
5. "Trialability"
1. The degree to which a product can be tried on a limited basis

1. Word-of-mouth communication
2. Communication directly from the marketer to potential adopters

• A concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death)

• All brands that satisfy a particular type of need

1. Introductory Stage
2. Growth Stage
3. Maturity Stage
4. Decline Stage

• The full-scale launch of a new product into the marketplace

• The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy

• A period during which sales increase at a decreasing rate

• A long-run drop in sales

• A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer

• All parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

• The difference between the amount of product produced and the amount an end user wants to buy

• The lack of all the items a customer needs to receive full satisfaction from a product or products

• A situation that occurs when a product is produced but a customer is not ready to buy it

• The difference between the location of a producer and the location of widely scattered markets

• A channel intermediary that sells mainly to consumers

• An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them

• Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

• Involve contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits

• The efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies

• Includes research and financing

• A distribution channel in which producers sell directly to consumers

• The use of two or more channels to distribute the same product to target markets

• A cooperative agreement between business firms to use the other's already established distribution channel

1. Market Factors
2. Product Factors
3. Producer Factors

• A form of distribution aimed at having a product available in every outlet where target customers might want to buy it

• A form of distribution achieved by screening dealers to eliminate all but a few in any single area

• A form of distribution that establishes one or a few dealers within a given area

• The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

• A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

• The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption

1. Sourcing and procurement of raw materials and supplies
2. Production scheduling
3. Order processing
4. Inventory control
5. Warehousing and materials handling
6. Transportation

• The link that connects all the logistics functions of the supply chain

• An entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer

Mass customization

(build-to-order)

• A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications

• A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the production line

• A system whereby orders are entered into the supply chain and filled

• Chasing happens when a buyer orders a small amount of product to test in stores, and if the product sells well, the buyer quickly places a larger order with the supplier and requires the new order to be delivered even faster

• Information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission

• A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand

• An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer

• An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer

• A real-time inventory system that triggers shipments only when a good is sold to the end user

• A method of moving inventory into, within, and out of the warehouse

1. Cost
1. The total amount a specific carrier charges to move the product from the point of origin to the destination
2. Transit time
1. The total time a carrier has possession of goods, including the time required for pickup and delivery, handling, and movement between the point of origin and the destination
3. Reliability
1. The consistency with which the carrier delivers goods on time and in acceptable condition
4. Capability
1. The ability of the carrier to provide the appropriate equipment and conditions for moving specific kinds of goods, such as those that must be transported in a controlled environment (e.g., under refrigeration)
5. Accessibility
1. A carrier's ability to move goods over a specific route or network
6. Traceability
1. The relative ease with which a shipment an be located and transferred

1. Advanced computer technology
2. Outsourcing of logistics functions
3. Electronic distribution

• A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing

• A distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals

• Involves the integration of environmentally conscious thinking into all phases of key supply chain management processes