Term
| Consumer Confidence Index |
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Definition
| measurement of consumer’s confidence in the economy today and for the future. |
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Term
| What product did I show in class to show stimulus generalization? |
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Definition
| Progresso soup (& Safeway soup) |
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Definition
| Bland Automated Consumer Notification |
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Definition
| you can measure this, experiences that get talked about add up to conversations, what are people talking about, they can gain momentum (find out what consumers care about?, what do they find talk worthy?, will customers recommend you? what would customers say about you?) |
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Term
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Definition
Peoples’ feelings for a certain brand fall between inertia (people who don’t care) to passion (people who care way too much)
[An example of this people writing reviews that are happy or angry are very passionate] Another example is when he talked about GAP clothes. They changed their logo a couple of years ago and a lot of people complained. The people that had a problem with the new logo would fall under Inertia to Passion. They recognized this and changed the logo back |
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Term
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Definition
| Customers and potential customers who share a common need that can be satisfied by a specific product AND who are willing, able, and have the authority to make the exchange. |
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Term
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Definition
time, place, possession, form, info
· The sum of usefulness or benefits we receive when we use a good or service.
· Ensures that people have the type of product they want, when and where they want it.
· Time, Place, Possession, Form, Information.
· Time: (Immediately if online).
· Form: (When raw goods made to finished product).
· Possession: (Store gives you credit so you can pay back later).
· Information: (Best buy is knowledgeable).
· Place: (Location). |
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Term
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Definition
he benefits a customer receives from buying a good or service
Benefit-Cost=Value
Increase value by increasing benefits; decreasing cost
- doesnt have to be monetary |
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Definition
Benefits – Costs = Value
· To increase value, raise benefits or lower costs.
· Cost include not just $$, but also time, opportunity costs, etc.
· Benefits include not just usage, but also image, feeling, etc. |
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Term
| Societal marketing orientation (New Era) |
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Definition
| Emphasis on satisfying broader needs of society. (Employees, stockholders) This is like market orientation but there is a little something more. (donating-NBA w/NBA cares) Building long term relationships more than any other orientation. |
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| Marketing (customer) orientation |
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Definition
| A company that practices the marketing concept. Determine need first and then satisfying consumer needs and wants at a point. |
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Definition
| getting the product out the door! Reducing inventories, product supply is greater than demand. It’s usually a one time purchase that doesn’t’ establish relationship with customer. Ex is Iphone 3, they are trying to get rid of all the extra inventory because low demand and with launch of new product. |
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Definition
Focus is on competitor’s intelligence. Learning and reactions to what the competition is doing.
(Tullys to Starbucks) |
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Term
| Production orientation- Is this really correct |
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Definition
or called product orientation- emphasis is on making the product better. (production efficiencies) Best when demand surpasses supply. Shows customers what they want and produces product you know they will love.
*you are not concerned w/ consumers wants- produce only black cars because they are a quality product. |
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Term
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Definition
A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants. It results in the failure to see and adjust to the rapid changes in their markets
having too narrow of a vision and making your company 1 dimensional. (usually not seen as a good thing) only branding to one product
why Starbucks coffee changed slogan |
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Term
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Definition
| Analyzing what’s happening. Assessment of organizations internal and external environments. Internal environments= strengths and weaknesses in firms employees, technologies, facilities and finances. External environment= opportunities and threats to firm from consumers, competitors and economy. External and internal threats can happen at same time |
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Term
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Definition
1. Leverage- strengths and opportunities. Ex apple with their Iphone. They can make a good product that people want. They have capital and technology.
2. Vulnerability- strengths and threats. Ex. Threat for Apple is blackberry phones.
3. Constraint- weaknesses and opportunities. Weakness for Apple may be not having ability to make better product.
4. Problem- weaknesses and threats |
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Term
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Definition
| a management tool for re-evaluating a firm’s business mix and assessing the potential of its SBU’s. SBU= individual unit within a firm, each having its own mission, objectives, resources, manager. Ipad, Imac, iphone each have their own SBU |
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Definition
| Analyzes the potential of products to generate cash for a firm. Tells managers which products they should grow or get rid of. |
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Term
| Star; Dog; Question Mark; Cash Cow |
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Definition
1. Star- high industry growth, high relative market share, requires much investment, generates relatively high revenues, build-increase market share.
2. Cash Cow- low industry growth, high relative market share, economies of scale and high profit margins, requires less investment, generates relatively high revenues, supports other businesses, holds-preserves market share, generates revenue and don’t have to sell or advertise.
3. Question Marks- high industry growth, low relative market share, potentially a star, requires much investment, generates relatively low revenues, focus of short term profits, making money quickly. Ex snuggie
4. Dogs- low industry growth, low relative market share, generates little profits, divest- get rid of SBU |
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Term
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Definition
| To prefer products or people of one’s own culture over those from other countries. Thoughts that our own norms are superior then others. We use our own cultural reference to judge others. |
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Definition
| Statistics that measure observable aspects of a population including size, age, gender, ethnic group, income, education, occupation and family structure |
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Term
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Definition
| Rules that specify what is ok and what is not, what is right and wrong and what is acceptable or not acceptable in a society. |
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Definition
| A society's’ deeply held beliefs about right and wrong ways to live |
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Term
| Product standardization vs. localization |
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Definition
Standardization Strategy: Use strategies from home market in foreign areas. keep the same message globally.
Localization Strategy: Customize marketing mix for a new location. Making small alterations to accommodate different locations
** Each strategy carries with it pros and cons. Think Coca Cola and McDonalds
i.e. McDonalds- Indian restaurants omit beef from menus because of Hindu beliefs. The Hindus believe cows are sacred, and not to be eaten. Selling beef would be grossly ineffective in an area with that dominant belief. |
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Term
| Advantages/disadvantages of primary data collection techniques |
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Definition
Advantages:
· Respondents feel anonymous, low cost, flexibility of questioning.
· Disadvantages:
· May take a long time for questionnaires to be returned, low rate of response, unclear who is responding, no assurance of honest answers. |
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Term
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Definition
| Process in which analysts sift through data to identify unique patterns of behavior among different customer groups |
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Term
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Definition
| Customer Relationship Management- is a business strategy designed to optimize profits, revenue and customer satisfaction. In short helps manages your business relationships |
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Term
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Definition
| As marketers, we must determine which part of the market we are going to focus on. To do this, marketers divide up the entire market into groups based on some shared characteristics These groups are called market segments- Consumers who respond in a similar way to a given set of stimuli |
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Term
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Definition
Undifferentiated: Appeals to a broad spectrum of people. If successful, takes advantage of economies of scale. i.e. Wal-Mart
Differentiated: Develops one or more products for each of several customer groups with different product needs. i.e. L’Oreal. Several product lines at variety of prices
Concentrated: Offer one or more products to a single segment. Generally smaller firms who do not have resources to develop and maintain several products at once and would rather specialize on a few things.
Customized: Offer products that exactly meet unique needs of each individual or firm. |
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Term
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Definition
Step 1: Problem recognition
Consumer sees significant differences between his current state of affairs and some desired state of affairs.
Step 2: Information Search
Consumer searches for appropriate information to make a reasonable decision. person may search for the info via memory, tv commerical, friends recommendations, brochures.
Step 3: Evaluation of Alternatives
Consumer chooses from a set of alternatives by employing an ‘evaluative criteria’ which are the dimensions consumers use to compare competing product alternatives.
Evoked set - group of relevant brands a consumer associates with a certain product.
Step 4: Product choice- purchase intention-desired to buy most preferred brand by...
-heuristics, mental rule of thumb for quick buying
-In general, higher cost means higher quality
-Brand loyalty
Step 5: Post purchase evaluation
Consumer’s expectations of product quality and performance. Products perceived performance standard- are they satisfied with product or not. |
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Term
| Extended, Limited, Routine/habitual problem solving |
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Definition
Habitual/Routine: Low-risk decision making, where consumer skips multiple steps in decision making process. Low involvement. doesn’t want to change because brand trusted
Limited: We do some work to make a decision, use rules of thumb. low-Medium involvement/complexity. Consumer shops familiarity and low prices. (snowboard)
Extended: High risk, must go through all steps of decision making process. High involvement high complexity(car), usually for expensive items. |
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Term
| Opinion leader (Later discussed in an online context) |
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Definition
someone who influences others’ attitudes or behaviors
○We trust them and ask for their advice
○Knowledgeable about the product
○Among the first to buy new products
○Likely to tell both the positive and negative information about the product |
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Term
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Definition
generalize a stimulus from one stimulus to a new and similar stimuli. There is an existing SR relationship.ex. family brand and product line extensions.
Me too products: looks similar to another brand, like family brands and product line extensions. ex gatorade and vitamin water (his example not mine) |
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Term
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Definition
Small set of choices that you would even consider. (Step 3. evaluation of alternatives)
A group of products/companies that come to mind when considering purchase. Also called consideration set. example: nike reebok and adidas |
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Term
| Elaboration Likelihood Model; central/peripheral route to persuasion- |
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Definition
a model of how attitudes are formed and changed. Central to this model is the "elaboration continuum", which ranges from low elaboration (low thought) to high elaboration (high thought). The ELM distinguishes between two routes to persuasion: the central route and the peripheral route.
Central Route to Persuasion - high involvement (facts and information)- considered logically. uses left side of brain to persuade. This does not use emotion
Peripheral Route to Persuasion - low involvement (music, pictures), majority of ads today, attracted by shiny objects-- considers past experience and superficial qualities and is persuaded. uses right side of brain to persuade. This uses emotion |
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Term
| Types of buying, straight rebuy, modified rebuy, new-task buy |
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Definition
Straight rebuy: buying situation in which business buyers make routine purchases that require minimal decision making. Things you buy all the time. ex toilet paper and toothpaste
Modified (limited) rebuy: buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making. You have bought product before and want different quality.
New-task buy: A new business-to-business purchase that is complex or risky and that requires extensive decision making. Expensive and don’t typically buy. |
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Term
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Definition
-a process in which firms outsource marketing activities (such as selecting an ad) to a community of users. Using a “crowd” to “source” solution to business problems
-i.e. Having a contest for a new logo, a community of users will submit designs, company chooses design. |
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Term
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Definition
| The business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in-house. |
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Term
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Definition
-Anything tangible/intangible that through exchange process satisfies consumer/business customer needs.
-You want to create products that provide benefits sought by consumers. Products are viewed by marketers as bundles of attributes that include packaging,brand name, benefits, and features. |
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Term
| Types of consumer products: convenience, shopping, specialty, unsought, durable, non-durable |
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Definition
-Durable goods: long-term benefits (cars, appliances) (Higher level of involvement/ EPS)
-Non-durable goods: Short-term benefits (newspaper, food)
-Convenience products: non-durable, frequency purchase, little effort, low priced, convenient
-shopping products: time/effort in selection, moderately brand loyal, comparison shop, limited problem solving. (clothing, appliances, services)
-Specialty product: significant purchase efforts, brand loyalty, unique characteristics important to buyer, luxury goods.
-Unsought product: Little awareness/interest until need arises, require much advertising and personal selling. (retirement plans, insurance.) |
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Term
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Definition
| Process in which consumer or business consumer begins to buy and use good, service, idea. Adopters are: innovators, early adopters, early majority, late majority, and laggards |
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Term
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Definition
| Process in which consumer or business consumer begins to buy and use good, service or idea. |
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Term
| Six stages of product adoption |
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Definition
§ People drop out at every stage.
§ 1) Awareness:
· Advertising.
§ 2) Interest:
· Create a ‘buzz.’
§ 3) Evaluation:
· Provide information.
§ 4) Trial:
· Experience the product.
§ 5) Adoption:
· Choose a product.
§ 6) Confirmation:
· Determine the costs and benefits.
· Category of Adopters:
o Innovators: 2.5%
§ People in line for iPhone release.
o Early Adopters: 13.5%
§ Purchase in first couple weeks of release.
o Early Majority: 34%
§ Waits for kinks to be worked out.
o Late Majority: 34%
§ People who eventually get smart phone.
o Laggards: 16%
§ Forced to adapt, or no smart phone. |
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Term
| Product life cycle, what characteristics at each stage |
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Definition
-Product life cycle: A concept that explains how products go through four distinct stages from birth to death.
1.Introduction stage: Slow growth follows the introduction of a new product in the marketplace. No profits because the *company is recovering R&D costs. (question mark)
2. Growth stage: Consumers accept the product and sales rapidly increase. Profits increase sales and peak. Increase advertising to keep market share. (star)
3.Maturity stage: The longest stage in the product life cycle, during which sales peak and profit margins narrow. Spend less on advertising, consider expanding into new markets. (cash cow)
4.The decline stage: The final stage in the product life cycle, during which sales decrease as customer needs change. (dog) |
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Term
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Definition
| -The value of the brand to the organization. A brand’s value over and above the value of the generic version of the product. |
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Term
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Definition
| A marketing research method that measures the difference (gap) between a customer’s expectation of a service quality and what actually happened. |
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Term
| Forms of distribution channels |
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Definition
A distribution channel is the process of getting finished goods to the consumer. The functions are:
· Time, place, and ownership utilities
· transportation and storage functions
Facilitating functions- credit to buyers
Repair and Maintenance Functions
Risk Taking- credit risks. Apple doesn't care, Best Buy isn't getting their payment. Theft- manufacturer won't refund Best Buy. Shrinkage- when products disappear. How could manufacturer share in the responsibility of shoplifting? -Change packaging
Communications and transaction functions-
Efficiency creation
Breaking bulk- channel members purchase large quantities from manufacturers and sell smaller quantities to many customers
Creating assortment- channel members provide a variety of products on one location
Reduce transactions- Don't have to buy all groceries/products at different places. One is enough (Wal-Mart) |
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Term
| Types of distribution channels |
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Definition
Consumer Channels: Manufacturer to wholesaler to retailer to consumer
Business to business channels: Manufacturer to industrial distributor to business customer
Internet as a channel of distribution: |
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Term
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Definition
| The dominant firm that controls the channel. Channel leaders have some sort of power relative to other members, like economic power, resource control, legal authority, power to reward or punish channel intermediaries |
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Term
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Definition
Economic Power: Has ability to control resources
Legitimate Power: Has the legal authority to call the shots
Reward or coercive power: Has exclusive distribution, and can give profitable products to, and take them away, from intermediaries. |
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Term
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Definition
| Price is the value customers give up or exchange to obtain a desired product. Payment can be in the form of money, services, or anything else that has value to the other party. |
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Term
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Definition
| Break Even Analysis: how many units must I sell to break even? Not a penny leftover. BE= total fixed costs (which are costs that don’t vary, regardless of units produced) / unit price - unit variable costs (which is per unit cost of production that will fluctuate with number of units produced.) When you calculate, and breakeven is in units, so times units by unit cost. |
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Term
| Psychological pricing; price lining |
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Definition
Price lining: ($25, $50, $75 and no prices in between). These are groups of prices within your products to lessen consumer choices, consumers often pick the middle price; also caters to larger demographic of target audience (those who can afford nicer version can get it)
Psychological Pricing: Two kinds, Odd/even pricing and Price lining: Odd/even pricing: Pricing a product as X.99 because as consumers we tend to perceive the first whole number as actual price |
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