Marketing 10, 12-15 (Part Three)

Marketing Research
Collecting and using information for making decision making
Convenience Sample
Nonprobability sample selected from among readily available respondents.
quota sample
Nonprobability sample divided to maintain the proportion of certain characteristics among different segments or groups seen in the population as a whole.
population (universe)
Total group that researchers want to study.
test marketing
Marketing research technique that involves introducing a new product in a specific area and then measuring its degree of success.
controlled experiment
Scientific investigation in which a researcher manipulates a test group (or groups) and compares the results with those of a control group that did not receive the experimental controls or manipulations.
Quantitative forecasting
Use of statistical forecasting techniques such as trend analysis and exponential smoothing.
Data mining
Process of searching through customer databases to detect patterns that guide marketing decision making.
syndicated service
Organization that provides standardized data on a periodic basis to its subscribers.
Sampling
Process of selecting survey respondents or research participants.
full-service research supplier
Market research organization that offers all aspects of the marketing research process.
cluster sample
Probability sample in which researchers select a sample of subgroups (or clusters) from which they draw respondents; each cluster reflects the diversity of the whole population sampled.
exponential smoothing
Quantitive forecasting technique that assigns weights to historical sales data, giving the greatest weight to the most recent data.
simple random sample
Basic type of probability sample in which every individual in the relevant universe has an equal opportunity of being selected.
jury of executive opinion
Qualitive sales forecasting method that assesses the sales expectations of various executives.
research design
Master plan for conducting market research.
Qualitive Forecasting
Use of subjective techniques to forecast sales, such as the jury of executive opinion, Delphi technique, sales force composite, and surveys of buyer intentions.
sales forecast
Estimate of a firm’s revenue for a specified future period.
sales analysis
In-depth evaluation of a firm’s sales.
nonprobability sample
Sample that involves personal judgment somewhere in the selection process.
Delphi technique
Qualitative sales forecasting method that gathers and redistributes several rounds of anonymous forecasts until the participants reach a consensus.
focus group
A small group of individuals brought together to discuss a specific topic.
Secondary data
Previously published information
Primary data
Information collected for a specific investigation
interpretive research
Observational research method developed by social anthropologists in which customers are observed in their natural setting and their behavior is interpreted based on an understanding of social and cultural characteristics; also known as ethnography, or “going native.”
Trend analysis
Quantatitive sales forecasting method that estimates future sales through statistical analyses of historical sales patterns.
probability sample
Sample that gives every member of the population a chance of being selected.
stratified sample
Probability sample constructed to represent randomly selected subsamples of different groups within the total sample; each subgroup is relatively homogeneous for a certain characteristic.
installations
Major capital investments in the B2B market.
introductory stage
First stage of the product lifecycle, in which a firm works to stimulate sales of a new-market entry.
accessory equipment
Capital items such as, desktop computers and printers, that typically cost less and last for shorter periods than installations.
goods
Tangible products customers can see, hear, smell, taste, or touch.
industrial distributor
Channel intermediary that takes title to goods it handles and then distributes these goods to retailers, other distributors, or business or B2B customers; also called a wholesaler.
Specialty products
Product with unique characteristics that cause buyers to prize those particular brands.
Supplies
Regular expenses a firm incurs in its daily operations.
product
Bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs
product lifecycle
Progression of product through introduction, growth, maturity, and decline stages.
benchmarking
Method of measuring quality by comparing performance against industry leaders.
Service quality
Expected and perceived quality of a service offering.
goods—services continuum
Spectrum along which goods and services fall according to their attributes, from pure good to pure service.
services
Intangible tasks that satisfy the needs of consumer and business users.
line extension
Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.
marketing mix
Blending of the four strategy elements— product, distribution, promotion, and price—to fit the needs and preferences of a specific target market.
decline stage
Final stage of the product lifecycle, in which a decline in total industry sales occurs.
component parts and materials
Finished business products of one producer that become part of the final products of another producer.
unsought products
Products marketed to consumers who may not yet recognize a need for them.
product mix
Assortment of product lines and individual product offerings a company sells.
Convenience products
Goods and services consumers want to purchase frequently, immediately, and with minimal effort.
product line
Series of related products offered by one company.
Emergency goods and services
Products in response to unexpected and urgent needs.
service encounter
Point at which the customer and service provider interact.
maturity stage
Third stage of the product lifecycle, in which industry sales level out.
Impulse goods and services
Products purchased on the spur of the moment.
raw materials
Natural resources, such as farm products, coal, copper, or lumber that become part of a final product.
total quality management (TQM)
Continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world-class performance.
business services
Intangible products firms buy to facilitate their production and operating processes.
homeshoring
Hiring workers to do jobs from their homes.
business-to-business (B2B) product
Product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product.
business-to-consumer (B2C) product
Product destined for use by ultimate consumers
goods-services continuum
Spectrum along which goods and services fall according to their attributes, from pure good to pure service.
adoption process
Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again.
market penetration strategy
Strategy that seeks to increase sales of existing products in existing markets.
family brand
Single brand name that identifies several related products
trade dress
Visual components that contribute to the overall look of a brand.
product diversification strategy
Developing entirely new products for new markets.
individual brand
Single brand that uniquely identifies a product.
label
Branding component that carries an item’s brand name or symbol, the name and address of the manufacturer or distributor, information about the product, and recommended uses.
product development
Introduction of new products into identifiable or established markets.
market development strategy
Strategy that concentrates on finding new markets for existing products.
manufacturer’s brand
Brand name owned by a manufacturer or other producer.
private brands
Brand offered by a wholesaler or retailer.
generic products
Products characterized by plain labels, no advertising, and the absence of brand names.
brand manager
Marketer responsible for a single brand.
diffusion process
Process by which new goods or services are accepted in the marketplace.
trademark
Brand for which the owner claims exclusive legal protection.
brand licensing
Practice that expands a firm’s exposure in the marketplace.
Concept testing
Method for subjecting a product idea to additional study before actual development by involving consumers through focus groups, surveys, in-store polling, and similar strategies.
Product liability
Responsibility of manufacturers and marketers for injuries and damages caused by their products.
venture team
Group of associates from different areas of an organization who work together in developing new products.
product manager
Marketer responsible for an individual product or product line; also called a brand manager.
Brand insistence
Consumer refusal of alternatives and extensive search for desired merchandise.
universal product code (UPC)
Numerical bar code system used to record product and price information.
brand name
Part of a brand,consisting of letters, numbers, or words, that can be spoken and that identifies and distinguishes a firm’s offerings from those of its competitors.
brand preference
Consumer choice of a product on the basis of a previous experience.
Brand equity
Added value that a respected, well-known brand name gives to a product in the marketplace.
category management
Product management system in which a category manager—with profit and loss responsibility—oversees a product line.
brand
Name, term, sign, symbol,design, or some combination that identifies the products of one firm while differentiating them from those of the competition.
Product positioning
Consumers’ perceptions of a product’s attributes, uses, quality, and advantages and disadvantages relative to competing brands.
captive brands
National brand sold exclusively by a retail chain.
line extensions
Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.
cannibalization
Loss of sales of an existing product due to competition from a new product in the same line.
brand extension
Strategy of attaching a popular brand name to a new product in an unrelated product category.
consumer innovators
Someone who purchases a new product almost as soon as the product reaches the market.
captive brand
National brand sold exclusively by a retail chain.
consumer innovator
Someone who purchases a new product almost as soon as the product reaches the market.
containerization
Process of combining several unitized loads into a single, well-protected load for shipment.
closed sales territories
Exclusive geographic selling region of a distributor.
channel captain
Dominant and controlling member of a marketing channel.
marketing channel
Definition:
System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user.
Contract carriers
For-hire transporters that do not offer their services to the general public.
marketing intermediary
wholesaler or retailer that operates between producers and consumers or business users.
gray goods
Products manufactured abroad under license from a U.S. firm and then sold in the U.S. market in competition with that firm’s own domestic output.
Backward integration
Process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials.
Dual distribution
Network that moves products to a firm’s target market through more than one marketing channe
corporate marketing system
VMS in which a single owner operates the entire marketing channel.
radio-frequency identification (RFID)
Technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance.
wholesaler
Channel intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or business or B2B customers.
retail cooperative
Group of retailers that establish a shared wholesaling operation to help them compete with chains.
Physical distribution
Broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer.
Suboptimization
Condition that results when individual operations achieve their objectives but interfere with progress toward broader organizational goals.
Supply chain management
Control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers.
selective distribution
Distribution of a product through a limited number of channels.
logistics
Process of coordinating the flow of information, goods, and services among members of the distribution channel.
manufacturers’ representative
Agent wholesaling intermediary that represents manufacturers of related but noncompeting products and receives a commission on each sale.
Downstream management
Controlling part of the supply chain that involves finished product storage, outbound logistics, marketing and sales, and customer service.
Third-party (contract) logistics firms
Company that specializes in handling logistics activities for other firms.
supply chain
Complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise.
intensive distribution
Distribution of a product through all available channels.
vertical marketing system (VMS)
Planned channel system to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain
forward integration
Process through which a firm attempts to control downstream distribution.
direct channel
Marketing channel that moves goods directly from a producer to the business purchaser or ultimate user.
tying agreements
Arrangement that requires a marketing intermediary to carry items other than those they want to sell.
Upstream management
Controlling part of the supply chain that involves raw materials, inbound logistics, and warehouse and storage facilities.
reverse channels
Channel designed to return goods to their producers.
enterprise resource planning (ERP) system
Software system that consolidates data from among a firm’s various business units
materials handling system
Set of activities that move production inputs and other goods within factories, warehouses, and transportation terminals.
contractual marketing system
VMS that coordinates channel activities through formal agreements among participants.
franchise
Contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser.
Distribution
Movement of goods and services from producers to customers.
direct selling
Strategy designed to establish direct sales contact between producer and final user.
Common carriers
Businesses that provide transportation services as for-hire carriers to the general public.
intermodal operations
Combination of transportation modes, such as rail and highway carriers (piggyback), air and highway carriers (birdyback), and water and air carriers (fishyback), to improve customer service and achieve cost advantages.
Private carriers
Transporters that provide service solely for internally generated freight.
exclusive distribution
Distribution of a product through a single wholesaler or retailer in a specific geographic region.
administered marketing system
VMS that achieves channel coordination when a dominant channel member exercises its power.
closed sales territory
Exclusive geographic selling region of a distributor.
reverse channel
Channel designed to return goods to their producers.
third-party (contract) logistics firm
Company that specializes in handling logistics activities for other firms.
tying agreement
Arrangement that requires a marketing intermediary to carry items other than those they want to sell.
Commission merchants
Agent wholesaling intermediary that takes possession of goods shipped to a central market for sale, acts as the producer’s agent, and collects an agreed-upon fee at the time of the sale.
planned shopping center
Group of retail stores planned,coordinated, and marketed as a unit.
wholesalers
Channel intermediary that takes title to goods it handles and then distributes those goods to retailers, other distributors, or B2B customers.
Direct marketing
Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or website visits
Scrambled merchandising
Retailing practice of combining dissimilar product lines to boost sales volume.
mass merchandiser
Store that stocks a wider line of goods than a department store, usually without the same depth of assortment within each line.
Retail convergence
Situation in which similarmerchandise is available from multiple retail outlets, resulting in the blurring of distinctions between types of retailers and merchandise offered.
stock-keeping unit (SKU)
Offering within a product line, such as a specific size of liquid detergent.
selling agent
Agent wholesaling intermediary for the entire marketing program of a firm’s product line.
Retailing
Activities involved in selling merchandise to ultimate consumers.
Specialty retailers
Stores that combines carefully defined product lines, services, and reputation to persuade shoppers to spend considerable shopping effort there.
mail-order wholesaler
Limited function merchant wholesaler that distributes catalogs instead of sending sales personnel to contact customers.
rack jobber
Full-function merchant wholesaler that markets specialized lines of merchandise to retail stores.
wheel of retailing
Hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge, the result of reducing or eliminating services.
General merchandise retailers
Store that carries a wide variety of product lines, stocking all of them in some depth.
manufacturers’ representatives
Agent wholesaling intermediary that represents manufacturers of related but noncompeting products and receives a commission on each sale.
merchant wholesaler
Independently owned wholesaling intermediary that takes title to the goods it handles; also known as an industrial distributor in the business goods market.
limited-line store
Retailer that offers a large assortment within a single product line or within a few related product lines.
Wholesaling intermediaries
Comprehensive term that describes wholesalers as well as agents and brokers.
Convenience retailers
Store that appeals to customers by having an accessible location, long hours, rapid checkout, and adequate parking.
markup
Amount a retailer add to the cost of a product to determine its selling price.
drop shipper
Limited-function merchant wholesaler that accepts orders from customers and forwards those orders to producers, which then ship directly to the customers who placed the orders.
markdown
Amount by which a retailer reduces the original selling price of a product.
Brokers
Agent wholesaling intermediary that does not take title to or possession of goods in the course of its primary function, which is to bring together buyers and sellers.
hypermarkets
Giant one-stop shopping facility offering wide selections of grocery items and general merchandise at discount prices, typically filling up 200,000 or more square feet of selling space.
department store
Large store that handles a variety of merchandise, including clothing, household goods, appliances, and furniture.
atmospherics
Combination of physical characteristic and amenities that contribute to a store’s image.
truck wholesaler
Limited-function merchant wholesaler that markets perishable food items.
discount house
Stores that charges low prices but may not offer services such as credit.
supercenters
Large store, usually smaller than a hypermarket, that combines groceries with discount store merchandise.
category killer
Store offering huge selections and low prices in single product lines.
broker
Agent wholesaling intermediary that does not take title to or possession of goods in the course of its primary function, which is to bring together buyers and sellers.
commission merchant
Agent wholesaling intermediary that takes possession of goods shipped to a central market for sale, acts as the producer’s agent, and collects an agreed-upon fee at the time of the sale.
convenience retailer
Store that appeals to customers by having an accessible location, long hours, rapid checkout, and adequate parking.
general merchandise retailer
Store that carries a wide variety of product lines, stocking all of them in some depth.