marketing principles final

Marketing research
Analyzing markets to determine challenges and opportunities, and finding the information needed to make good decisions.
Hypothesis
A testable prediction, often implied by a theory
Focus groups
A group interview technique that obtains data through discussion between research participants in a group setting.
Scientific method
A series of steps followed to solve problems including collecting data, formulating a hypothesis, testing the hypothesis, and stating conclusions.
Market research process
define the problem, analyze the situation, get problem specific data, interpret data, solve the problem; application of the scientific method
Marketing dashboard
displays up-to-the-minute marketing data in an easy-to-read format
Primary data
Data that you gather yourself (not from secondary sources such as books and magazines).
Secondary data
Data previously collected for any purpose other than the one at hand
Products
Goods and services
Quality
How good something is
Product lines
Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
Assortments
The number of different items in a merchandise category, a selection of something
Individual products
product within a product line, each product may have a different target or strategy
Brand preferences
The degree of brand loyalty in which a customer prefer one brand over competitive offering
Brand recognition
A customer’s awareness that the brand exists and is an alternative purchase
Lanhan act
Law passed in 1964 that established procedures for protecting trademarks that allows private parties to obtain a search a seizure for counterfeit items
Magnuson-moss act
a 1975 law requiring that producers provide a clearly written warranty if they choose to offer any warranty
Warranties
Promise to repair or replace a faulty product
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Convenience
anything that makes life easier or more comfortable
Unsought
a product unknown to the potential buyer or a known product that the buyer does not actively seek
Impulse
A sudden, involuntary urge to do something
Business
Fluctuations in economic activity, such as employment and production
Shopping
Products that a customer feels are worth the time and effort to compare with competing products.
Staples
Basic or necessary items that are available almost everywhere
Specialty
A featured item or attraction
Product life cycle
Four stages that product goes through over its life: introduction, growth, maturity, and decline.
Introduction
– New product brought to market
Growth
A change in the output of the economy between one year and another
Maturity
During the maturity stage of a products life cycle, sales revenues continue to rise but at a much slower rate. Economics of scale will give the firm a competitive advantage. Promotional activities tend to focus on remaining customers.
Decline
Occurs when an item (property) is becoming less desirable, and exhibits increasing market resistance.
New development process
the stage that the new product process defines the role for a new product in terms of firms overall objectives
Product liability
The producer’s responsibility for any injury that the business’s products may cause.
Brand management
the actions of a firm intended to maintain the differentiation of a product over time
Continuous improvement
A commitment to constantly make things better one step at a time.
Pareto charts
Graphics that identify the few critical items as opposed to many less important ones
Fishbone diagrams
a method that can be used to aid in brainstorming and isolating the causes of a problem
Empowerment
Giving employees the authority to correct a problem without first checking with management.
Channel of distribution
The network of organizations and processes that links producers to consumers
Four p
product, place, promotion, and price, which together make up the marketing mix
Selling
Communicating directly with potential customers to determine and satisfy their needs.
Types of sales position
order taker, order getter, support personell
Order-taking
the routine completion of sales made regularly to target customers
Order-getting
means seeking possible buyers with a well-organized sales presentation designed to sell a good, service, or idea
Customer service
Activities and programs a business provides its customers to satisfy them
Discrepancies of quantity
difference b.w amount of product produced and the amount an end user wants to buy
Bulk breaking
involves dividing larger quantities into smaller quantities as products get closer to the final market
Sorting
separating products into grades and qualities desired by different target markets
Price
A value that will purchase a finite quantity, weight, or other measure of a good or service
Advertizing
any form of paid, non-personal communication that uses mass media to deliver a message to an audienve
Pricing objectives
Goals a company hopes to accomplish through its pricing strategies
Target return
Pricing strategies designed to produce a specific return on their investment
Profit maximization
a method of setting prices that occurs when marginal revenue equals marginal cost
Sales-oriented
seeks some level of unit sales, dollar sales, or share of market–without referring to profit
Status quo
Latin: The current state of things
One-price
offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities
Flexible-price
offering the same product and quantities to different customers at different prices
Skimming pricing policy
setting the highest initial price that customers rally desiring the product are willing to pay