Term
| What is Marketing Research? |
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Definition
| The process of defining a marketing problem, systematically collecting and analyzing information, and recommending actions. Goal: reduce risk, improve outcomes |
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Term
| What are 5 steps in Marketing Research Process? |
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Definition
Define problem: what issue will the research address?
Develop research plan: What data do you need to address the research problem? Research plan must include an analysis plan
Collect relevant information: Pilot study, Final data collection leads to lock in the methodology and project
Analyze + present findings: Do not torture data until it produces desired results, follow analysis plan
Take action: Make action recommendations, implement recommendations, evaluate results |
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Term
| What are 3 different research objectives? (Exp, Desc, Causal) |
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Definition
Exploratory: What are the issues involved?
Descriptive: How often does this occur?
Causal: How does changing one variable affect another variable? |
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Term
| What is data? 2 Kinds of data? (Primary, secondary) |
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Definition
| Factual information pertinent to problem. Primary: collected for project. Secondary: Already available. |
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Term
| Newest kind of data? (Neuromarketing) |
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Definition
| Measuring body’s reactions, brain, respiratory etc. to marketing stimuli, telling marketers what consumer reacts to. |
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Term
| Quantitative / Qualitative data? |
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Definition
Quantitative: statistics, financial statements.
Qualitative: mechanical, personal methods, idea evaluation, social network, experiments, customer letters, research reports |
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Term
| When to ‘lock-in’ methodology (when you start collecting data)? |
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Definition
| Lock in methodology during Final Data Collection (after pilot study) |
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Term
| What is the Analysis plan? Data is what it is. |
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Definition
| Decision to treat the data in a specific way to show a certain effect, decided upon before data is collected. Step 4: Only present findings in the context of that particular study. Graphs > table. Do not drown with math. |
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Term
| When evaluating decision, distinguish outcome (whether it worked or not) from decision process followed. |
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Definition
| Make sure the decision aligns with research. Evaluate the decision. |
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Term
| Definition of segmentation, targeting, and positioning. |
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Definition
Segmentation: aggregating prospective buyers into groups (segments)
Targeting: selecting one of these groups (segments) as the focus of marketing actions.
Positioning: The image of the offering in the target’s mind, relative to competition |
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Term
| Mobil’s 5 customer segments. Segment everything, including commodities like gasoline. |
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Definition
Road Warriors (16%): Premium products, quality service. Higher income.
True Blues (16%): branded products, reliable service. Loyal to a brand.
Generation F3 (27%): fast fuel, fast service, fast food. Under 25, on the go.
Home bodies (21%): convenience. Housewives.
Price Shoppers (20%): low price. No loyalty. |
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Term
| Segment size can vary from mass segments to even individual segments (customerization) |
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Definition
Mass market, niche, micro marketing, the individual.
Standardized marketing mix, niche, micro-marketing, personalization. |
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Term
| What are homogenous, diffused, and clustered preferences? |
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Definition
Homogenous: everyone has 1 preference.
Diffused: very spread out preferences.
Clustered: many separate preferences. |
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Term
| What are 4 segmentation bases? What is a basis? |
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Definition
Psychographics: Grouping customers based on their psychological profile. Powerful, but harder to see. Able to predict how people will react to presented stimula
Geographic: location variables
Demographic: Age, life stage, gender, income, generation, social class.
Behavior Roles: People buy things in a group: Initiator, Influencer, Decider, Buyer, User. Behavioral Variables: Occasions, Benefits, User Status, Usage rate, Buyer readiness, loyalty status, attitude |
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Term
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Definition
| Psychographics: Grouping customers based on their psychological profile. Powerful, but harder to see. Able to predict how people will react to presented stimula |
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Term
| How to assess a segmentation scheme (MADS criteria)? |
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Definition
Measurable: the size, purchasing power, and characteristics of the segment can be measured.
Accessible / Actionable: They are reachable with an appropriate marketing mix.
Differentiable: distinguishable, will respond differently to different marketing mix.
Substantial: large enough segment to be profitable. |
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Term
| What is a perceptual map? How is it used? |
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Definition
| A marketing tool used to illustrate the customer’s mind with regards to brands. |
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Term
| Repositioning based on perceptual mapping (got milk)? |
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Definition
| Perceptual map has 2 categories and 2 poles, change marketing mix to move to different category. |
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Term
| What are the 2 steps in the (re)positioning process? |
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Definition
| Establish Category: announce category benefits, compare to exemplars, rely on descriptor Choose: POP or POD |
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Term
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Definition
Points of Parity: Attributes of offering shared with other brands
Points of difference: Attributes or benefits that are truly unique to the brand, positively evaluated, and not found to a significant degree in competitors |
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Term
| What are 2 criteria of good POD’s? (Differentiators) |
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Definition
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Term
| Be careful with incongruous differentiators (what are these)? |
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Definition
| Product characteristics that tend to clash: low price vs high quality, good taste vs. low calories, nutritious vs. good taste, efficacious vs mild, powerful vs safe, strong vs refined, ubiquitous vs exclusive, varied vs simple |
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Term
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Definition
Deeds, performances, or processes...
Economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and provides added value in forms that are essentially intangible...
Application of knowledge and skills through deeds, performances, and processes for the benefit of another entity |
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Term
| Why is it important to study services? (2 reasons) |
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Definition
Services dominate US and worldwide economics.
Services have higher profit margins than manufacturing or packaged goods, and lead to customer retention and loyalty. |
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Term
| Current ‘state of services’? (hint: bad) |
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Definition
| We don’t know how to manage service businesses because services are different |
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Term
| What are 4 features that make services different from goods? (IHSP) |
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Definition
| Intangibility, Heterogeneity, simultaneity, perishability |
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Term
| What are each of the 4 IHSP variables, and what are the implications for services marketers? |
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Definition
Intangible: cannot be readily displayed or communicated. Cannot be patented. Pricing is difficult.
Heterogeneity: Service quality depends on many uncontrollable factors, no way to ensure that service delivered matches plans and what was promoted (service providers must be reactive and adaptive)
Simultaneity: service production occurs at same time as consumption. Occurs if customers participate and affect transaction, employees affect service outcome, customers affect other customers.
Perishability: services cannot be saved, stored, resold, or returned. Therefore, difficult to synchronize supply and demand. |
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Term
| What are the additional 3 P’s in the services marketing mix? |
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Definition
People: front line service provider, customer co-production, other customers, alliance partners.
Processes: procedures outlined.
Physical Evidence: Environment in which service is delivered. Any tangible components that facilitate performance of the service. |
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Term
| What are search experience and credence attributes? |
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Definition
Experience Qualities: attributes a consumer can determine only after purchasing the service
Credence Qualities: characteristics that are difficult to evaluate even after purchase and consumption. |
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Term
| Risk and Uncertainty in services marketing? |
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Definition
Uncertainty: having limited knowledge about the outcomes, and thus unable to evaluate the service.
Risk: the possibility that the outcomes are undesirable. |
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Term
| Questions to ask in evaluating whether an ad is effective? |
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Definition
| Who is target? What are they trying to accomplish? How well are brand identity and positioning being communicated? |
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Term
What is the Hierarchy of Effects, generally, how do the different types of MarComm affect the Hierarchy?
Issues in message timing? |
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Definition
Unawareness, awareness, beliefs / knowledge, attitude, purchase intention, purchase. Message must reach the right customers at the right time with sufficient frequency.
Mass advertising, sponsorship, publicity for unawareness - awareness
Advertising, website, point of purchase for belief/knowledge - attitude
Personal selling, direct marketing for purchase intention - purchase |
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Term
| 3 principles to follow in designing effective ads? |
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Definition
| Message source credibility & likeability, tangible benefits, transformational communication |
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Term
| Commentary on the state of mass marketing communication? |
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Definition
| 5000 marketing messages per day, 80% feel inundated by marketing, 45% think marketing detracts from experience of everyday life, 61% marketing / ads are out of control, 70% tune out ads |
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Term
| Different types of new product offerings, but truly new products are rare |
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Definition
New product line: market exists, company is entering for the first tiem.
Additions to product line: new sizes, flavoring, types.
Improve / revise existing product
Repositioning: new target segment
Cost reduction: same performance at lower cost |
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Term
| Customer adoption of innovations and different patterns of adoption |
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Definition
Style: Up, then sin curve
Fashion: Up, reaches smooth max, dies
Fad: Sharp up, sharp down |
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Term
| Brand extensions and line extensions? |
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Definition
Brand Extension: A parent uses their brand to introduce a new product
Line Extension: Existing product with new twist or addition |
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Term
| Different ways of thinking about ‘newness’? |
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Definition
Structural vs. functional
Legal - 6 months ‘regular distribution’
Organizational perspective
Customer perspective: learn new behaviors- continuous: no new behaviors; discontinuous: must learn new behaviors |
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Term
| Why do new product and service introductions often fail? |
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Definition
| PoDs are not desirable, PoDs are not deliverable |
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Term
| Some challenges of converting products into services? |
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Definition
Inadequate segment analysis: segment size inadequate, doing market analysis instead, no access to segment (entry barriers)
Lack of integration, inadequate investment, immature product, marketing incompetence |
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