Marketing Chapter 4, 5, 6Terms

market research ethics
taking an ethical and aboveboard approach to conducting market research that does no harm to the participant in the process of conducting the research
*privacy and confidentiality issues
database
an organized collection (often electronic) of data that can be searched and queried to provide information about contacts, products, customers, inventory, and more
marketing information system (MIS)
a process that first determines what information marketing managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users
*See figure in textbook
intranet
an internal corporate communication network that uses internet technology to link company departments, employees, and databases
market intelligence system
a method by which marketers get information about everyday happenings in the market environment
reverse engineering
the process of physically deconstructing a competitors product to determine how its put together
market research
the process of collecting, analyzing, and interpreting data about costumers, competitors, and the business environment in order to improve marketing effectiveness
syndicated research
research by firms that collect data on a regular basis and sell the reports to multiple firms
custom research
research conducted for a single firm to provide specific information its managers need
marketing decision support system (MDSS)
the data, analysis, software, and interactive software that allow managers to conduct analyses and find the information they need
data
raw, unorganized facts that need to be processed
information
interpreted data
customer insights
the collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain their customers
steps in the market research process
1. define the research problem
2. determine the research design
3. choose the method to collect primary data
4. design the sample
5. collect the data
6. analyze and interpret the data
7.prepare the research report
research design
a plan that specifies what information marketers will collect and what type of study they will do
secondary data
data that have been collected for some purpose other than the problem at hand
ex. costumer feedback
primary data
data from research conducted to help make a specific decision
exploratory research
a technique that marketers use to generate insights for future, more rigorous studies
-useful for gaining better understanding of problem and identifying new opportunites
focus group
a product oriented discussion among a small group of consumers led by a trained moderator
case study
a comprehensive examination of a particular firm or organization
ethnography
an approach to research based on observations of people in their own homes or communities
descriptive research
a tool that probes more systematically into the problem and bases its conclusions on large number of observations
cross sectional design
a type of descriptive technique that involves the systematic collection of quantitative information

**see Table 4.4 in book

longitudinal design
a technique that tracks the responses of the same sample of respondents over time
casual research
a technique that attempts to understand cause and effect relationships
-independent and dependent variables
experiments
a technique that tests predicted relationships among variables in a controlled environment
neuromarketing
a type of brain research that uses techniques such as functional magnetic resonance imaging to measure brain activity to better understand why consumers make the decisions they do
telemarketing
the use of the telephone to sell directly to consumers and business customers
mall intercept
a study in which researchers recruit shoppers in malls or other public areas

**See table 4.3 in textbook

unobtrusive measures
measuring traces of physical evidence that remain after some action has been taken
cookies
text files inserted by a website sponsor into a Web surfers hard drive that allows the site to track the surfers moves
-gathering info from online surfing
predictive technology
analysis techniques that use shopping patterns of large numbers of people to determine which products are likely to be purchased if others are
bounce rate
a marketing metric for analyzing website traffic. It represents the percentage of visitors who enter the site and “bounce” (leave the site) rather than continue viewing other pages within the same overall site
*marketers use this to determine whether an entry page effectively generates visitor interest
= total number of visitors viewing one page only / total entries to the web page
validity
the extent to which research actually measures what it was intended to measure
representativeness
the extent to which consumers in a study are similar to a larger group in which the organization has an interest
sampling
the process of selecting respondents for a study
probability sample
a sample in which each member of the population has some known chance of being included
nonprofability sample
a sample in which personal judgment is used to select respondents
convenience sample
a non probability sample composed of individuals who just happen to be available when and where the data are being collected
back-translation
the process of translating material to a foreign language and then back to the original language
customer relationship management (CRM)
a systematic tracking of consumers preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individuals unique wants and needs
one-to-one marketing
facilitated by CRM, allows for customization of some aspect of the goods or services that are offered to each customer
touchpoint
any point of direct interface between customers and a company (online, by phone, or in person)
share of customer
the percentage of an individual customers purchase of a product that is a single brand
customer equity
the financial value of a customer throughout the lifetime of the relationship
Big Data
a popular term to describe the exponential growth of data-both structured and unstructured- in massive amounts that are hard or impossible to process using traditional database techniques
Internet of Things
describes a system in which everyday objects are connected to the Internet and in turn are able to communicate information throughout an interconnected system
web scraping
the process of using computer software to extract large amounts of data from websites
sentiment analysis
the process of identifying a followers attitude toward a brand by assessing the context or emotion of the comments
scanner data
data derived from items that are scanned at the cash register when you check out with your loyalty card
information overload
a state in which the marketer is buried in so much data that it becomes nearly paralyzing to decide which of the data provide useful information and which do not
data mining
sophisticated analysis techniques to take advantage of the massive amounts of transaction information now available
data warehouse
a system to store and process the data that result from data mining
reality mining
the collection and analysis of machine sensed environmental data pertaining to human social behavior with the goal of identifying predictable patterns of behavior
data brokers
companies that collect and sell personal information about consumers
structured data
data that 1. are typically numeric or categorical 2. can be organized and formatted in a way that is easy for computers to read, organize, and understand and 3. can be inserted into a database in a seamless fashion
unstructured data
nonnumeric information that is typically formatted in a way that is meant for human eyes and not easily understood by computers
data scientist
an individual who searches through multiple, disparate data sources in order to discover hidden insights that will provide a competitive advantage
marketing analytics
a group of technologies and processes that enable marketers to collect, measure, analyze, and assess the effectiveness of marketing efforts
cost per click
an online ad purchase in which the cost of the advertisement is charged only each time and individual clicks on the advertisement and is directed to the Web page that the marketer placed within the advertisement
cost per impression
an online ad purchase in which the cost of the advertisement is charged each time the advertisement shows up on a page that the user views
search engine optimization (SEO)
a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business
predictive analytics
use large quantities of data within variables that have identified relationships to more accurately predict specific future outcomes
marketing metrics
specific measures that help marketers watch the performance of their marketing campaigns, initiatives, and channels and when appropriate, serve as a control mechanism
marketing control
the ability to identify deviations in expected performance, both positive and negative, as soon as they occur
click through
a metric that indicates the percentage of website users who have decided to click on an advertisement in order to visit the website or web page associated with it
conversion
signifies an event that occurs on a web page that indicates the meeting of a predefined goal associated with the consumers interactions with that page
cost per order
the cost of gaining an order in terms of the marketing investment made to turn a website visitor into a customer who has chosen to make a transaction
consumer behavior
the process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires
involvement
the relative importance of perceived consequences of the purchase to a consumer
perceived risk
the belief that choice of a product has potentially negative consequences, whether financial, physical, and/or social
problem recognition
the process that occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal state; this recognition initiates the decision making process
information search
the process whereby a consumer searches for appropriate information to make a reasonable decision
search marketing
marketing strategies that involve the use of internet search engines
search engine optimization (SEO)
a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business
search engine marketing (SEM)
search marketing strategy in which marketers pay for ads or better positioning
sponsored search ads
paid ads that appear at the top or beside the internet search engine results
comparison shopping agents or shopbots
web applications that help online shoppers find what they are looking for at the lowest price and provide customer reviews and ratings of products and sellers
evaluative criteria
the dimensions consumers use to compare competing product alternatives
heuristics
a mental rule of thumb that leads to a speedy decision by simplifying the process
brand loyalty
a pattern of repeat product purchase, accompanied by an underlying positive attitude toward the brand, based on the belief that the brand makes products superior to those of is competition
consumer satisfaction/dissatisfaction
the overall feelings or attitude a person has about a product after purchasing it
cognitive dissonance
the anxiety or regret a consumer may feel after choosing from among several similar attractive choices
perception
the process by which people select, organize, and interpret information from the outside world
exposure
the extent to which a stimulus is capable of being registered by a persons sensory receptors
subliminal advertising
supposedly hidden messages in marketers communications
attention
the extent to which a person devotes mental processing to particular stimulus
interpretation
the process of assigning meaning to a stimulus based on prior associations a person has with it and assumptions he or she makes about it
motivation
an internal state that drives us to satisfy needs by activating goal oriented behavior
hierarchy of needs
an approach that categorizes motives according to five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top
gamification
a strategy in which marketers apply game design techniques, often by awarding of points, badges, or levels, to non game experiences in order to drive consumer behavior
learning
a relatively permanent change in behavior caused by acquired information or experience
behavioral learning theories
theories of learning that focus on how consumer behavior is changed by external events or stimuli
classical conditioning
the learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on its own but will cause a similar response over time because of its association with the first stimulus
operant conditioning
learning that occurs as the result of rewards of punishements
cognitive learning theory
theory of learning that stresses the importance of internal mental processes and that views people as problem solvers who actively use information from the world around them to master their environment
observational learning
learning that occurs when people watch the action of others and note what happens to them as a result
attitude
a learned predisposition to respond favorably or unfavorably to stimuli on the basis of relatively enduring evaluations of people, objects, and issues
affect
the feeling component of attitudes; refer to the overall emotional response a person has to a product
cognition
the knowing component of attitudes; refers to the beliefs or knowledge a person has about a product and its important characteristics
behavior
the doing component of attitudes; involves a consumers intention to do something, such as the intention to purchase of use a certain product
personality
the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment
self-concept
an individuals self-image that is composed of a mixture of beliefs, observations, and feeling about personal attributes
family life cycle
a means of characterizing consumers within a family structure on the basis of different stages through which people pass as they grow older
lifestyle
the pattern of living that determines how people choose to spend their time, money, and energy that reflects their values, tastes, and preferences
psychographics
the use of psychological, sociological, and anthropological factors to construct market segments
AIOs (activities, interest, opinions)
measures of consumer activities, interests, and opinions used to place consumers into dimensions
subculture
a group within a society whose members share a distinctive set of beliefs, characteristics, or common experience
microcultures
groups of consumers who identify with a specific activity or art form
consumerism
a social movement that attempts to protects consumers from harmful business practices
social class
the overall rank or social standing of groups of people within a society according to the value assigned to factors such as family background, education, occupation, and income
status symbols
visible markers that provide a way for people to flaunt their membership in higher social classes (or at least to make others believe they are members)
mass class
the hundreds of millions of global consumers who now enjoy a level of purchasing power thats sufficient to let them afford high quality products- except for big ticket items like college educations, housing, or luxury cars
reference group
an actual or imaginary individual or group that has a significant effect on an individuals evaluations, aspirations, or behavior
opinion leader
a person who is frequently able to influence others attitudes or behaviors by virtue of his or her active interest and expertise in one or more product categories
gender roles
societys expectations regarding the appropriate attitudes, behaviors, and appearance for men and women
business to business markets (B2B)
the group of costumers that include manufacturers, wholesalers, retailers, and other organizations
organizational markets
another name for business to business markets
derived demand
demand for business or organizational products caused by demand for consumer goods or services
inelastic demand
demand in which changes in price have little or no effect on the amount demanded
joint demand
demand for two or more goods that are used together to create a product
producers
the individuals or organizations that purchase products for use in the production of other goods and services
resellers
the individuals or organization that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain the business operations
government markets
the federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations
North American Industry Classification System (NAICS)
the numerical coding system that the United States, Canada, and Mexico use to classify firms into detailed categories according to their business activities
buyclass
one of three classifications of business buying situations that characterizes the degree of time and effort required to make a decision
straight rebuy
a buying situation in which business buyers make routine purchases that require minimal decision making
modified rebuy
a buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that required limited decision making
new-task buy
a new business to business purchase that is complex or risky and that requires extensive decision making
buying center
the group of people in an organization who participate in a purchasing decision
product specifications
a written description of the quality, size, weight, and other details required for a product purchase
customer reference program
a formalized process by which customers formally share success stories and actively recommend products to other potential clients, usually facilitated through an online community
single sourcing
the business practice of buying a particular product from only one supplier
multiple sourcing
the business practice of buying a particular product from several different suppliers
reciprocity
a trading partnership in which two firms agree to buy from one another
outsourcing
the business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house
crowdsourcing
a practice in which firms outsource marketing activities (such as selecting an ad) to a community of users
reverse marketing
a business practice in which a buyer firm attempts to identify suppliers who will produce products according to the buyer firms specifications
business to business e-commerce
online exchanges between companies and individual consumers
intranet
an internal corporate communication network that uses internet technology to link company departments, employees, and databases
extranet
a private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization
malware
software designed specifically to damage or disrupt computer systems
firewall
a combination of hardware and software that ensures that only authorized individuals gain entry into a computer system
encryption
the process of scrambling a message so that only another individual with the right “key” can unscramble it
sensory marketing
marketing techniques that link distinct sensory experiences such as a unique fragrance with a product or service
sensory branding
the use of distinct sensor experiences not only to appeal to customers but also to enhance their brand
time poverty
consumers belief that they are more press for time than ever before
culture
the values, beliefs, customs, and tastes a group of people values
offshoring
a process by which companies contract with companies or individuals in remote places like China or India to perform work they used to do at home
reliability
the extent to which research measurement techniques are free of errors