Principles of Marketing Chapters 6, 7, 8, & 9

need recognition
a result of an imbalance between actual and desired states
want
recognition of an unfulfilled need and a product that will satisfy it
stimulus
any unit of input affecting one or more of the five senses: sight, smell, touch, taste, hearing
internal information search
the process of recalling past information stored in the memory
external information search
the process of seeking information in the outside environment
nonmarketing controlled information source
a product information source that is not associated with advertising or promotion
marketing-controlled information source
a product information source that originates with marketers promoting the product
evoked set AKA consideration set
a group of brands resulting from an information search from which a buyer can choose
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision process of consumer behavior.
routine response behavior
the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time
limited decision making
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
extensive -decision making
the most complex type of consumer decision making, used when buying an unfamiliar expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information
culture
the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
value
the enduring belief that a specific code of conduct is personally or socially preferred to another mode of conduct
subculture
a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
social class
a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms
reference group
all of the formal and informal groups in society that influence and individuals’ purchasing behavior
primary membership group
a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends and coworkers
secondary membership group
a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group or religious group
aspirational reference group
a group that someone would like to join
norm
a value or attitude deemed acceptable by a group
non aspirational reference group
a group with which an individual does not with to associate with
Opinion Leader
an individual that influences the opinions of others
socialization process
how culture values and norms are passed down to children
personality
a way of organizing and grouping the consistencies of an individuals’ reactions to situations
self-concept
how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self evaluations
ideal self image
the way an individual would like to be perceived
real self image
the way an individual actually perceives himself or herself
perception
the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
select exposure
a process whereby a consumer notices certain stimuli and ignores others
selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings of beliefs
selective retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
motive
a driving force that causes a person to take action to satisfy specific needs
Maslow’s hierarchy of needs
a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization
learning
a process that creates changes in behavior, immediate or expected, through experience and practice
stimulus generalization
form of learning that occurs when one response is extended to a second stimulus similar to the first
stimulus discrimination
learned ability to differentiate among similar products
belief
an organized pattern of knowledge that an individual holds as true about his or her world
attitude
a learned tendency to respond consistently toward a given object
What are the individual influences on consumer buying decisions?
gender, age, family lifecycle, personality, self-concept, lifestyle
business to business electronic commerce
the use of the internet to facilitate the exchange of goods, services, and information between organizations
stickiness
a measure of a websites effectiveness
strategic alliance AKA strategic partnership
cooperative agreement between business firms
relationship commitment
a firms belief that an ongoing relationship with another is so important that the relationship warrants maximum efforts at maintaining it indefinately
trust
a condition that exists one party has confidence in an exchange partners reliability and integrity
keiretsu
a network of interlocking corporate affiliates
original equipment manufacturing AKA OEM’s
individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
North American Industry Classification Systems AKA NAICS
detailed numbering system developed by the united states, Canada, and Mexico to classify North American business establishments by their main production processes
derived demand
the demand for business products
joint demand
the demand for two or more items used together in a final product
multiplier effect AKA Accelerator principle
a phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
business to business online exchange
an electronic trading floor that provides companies with integrated links to their customers and suppliers
reciprocity
a practice by which a business purchasers choose to by from their own customers
major equipment and Installation
capital goods such as large expensive machines, mainframe computers, blast furnaces, generators, airplanes and buildings
accessory equipment
good such as portable tools and office equipment that are less expensive and shorter-lived than major equipment
raw materials
unprocessed extractive or agricultural products such as mineral ore, lumber, wheat, corn, fruit, vegetables, and fish.
component parts
either finished items ready for assembly or products that need very little processing before becoming part of the some other product
processed materials
products used directly in the manufacturing of other products, like corn syrup
supplies
consumable items that do not become part of the final product, like paper towels
business services
expense items that do not become part of the final product, like custodial work
buying center
all those people in an organization who become involved in the purchase decision
new buy
a situation requiring the purchase of a product for the first time
modified rebuy
situation in which the purchaser wants so change in the original good or service
straight rebuy
situation in which the purchaser reorders the same goods or services without looking for new information or investigation other suppliers
What are the four major categories of business customers? and an example of each.
Producers: manufacturing; Resellers: Wal-mart; Governments: housing; Institutions: Universities.
segmentation basis (variables)
characteristics of individuals, groups or organizations
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
demographic segmentation
segmenting markets by age, gender, income, ethics, background, and family life cycle
family life cycle
a series of stages determined by a combination of age, marital status, and presence or absence of children
psychographic segmentation
segmenting markets on the basis of personality, motives, lifestyles and geodemographic
geodemographic segmentation
segmenting potential customers into neighborhood lifestyle categories
benefit segmentation
the process of grouping customers into market segments according the benefits they seek from the product
usage-rate segmentation
dividing the market by the amount of product bought or consumed
80/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
satisficers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
optimizers
business customers who consider numerous suppliers both familiar and unfamiliar solicit bids, and study all proposals carefully before selecting one
target market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
undifferentiated targeting market strategy
a market approach that view the market as one big market with no individual segments and thus uses a single marketing matrix
concentrated targeting strategy
a strategy used to select one segment of the market for targeting market efforts
niche
one segment of a market
multi-segment targeting strategy
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
cannibalization
a situation that occurs when sales of a new product cut into sales of a firms existing products
positioning
developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
position
the pace a product, brand, or group of products occupies in consumers’ minds relative to competing offerings
product differentiation
positioning strategy that some firms use to distinguish their products from those of competitors
perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
repositioning
changing consumers’ perceptions of a brand in relation to competing brands
What is the importance of market segmentation?
process of identifying groups of people or organizations with different product needs and preferences
What is the four criteria for successful segmentation?
Substantiality, Identifiability and measurability, accessibility and responsiveness
substantiality
a segment must be large enough to warrant developing and maintaining a special marketing mix.
Identifability and measurability
Segments must be identifiable and their size measurable
accessibility
the firm must be able to reach members of targeted segments with customized marketing mixes.
Responsiveness
Markets can be segmented using any criteria that seems logical.
Marketing research
the process of planning, collecting, and analyzing data relevant to a marketing decision
Marketing research problem
determining what information is needed and how that information can be obtained efficiently and effectively
marketing research objective
the specific information needed to solve a marketing research problem; the objective should be to provide an insightful decision-making information
management decision problem
a broad-based problem that uses marketing research in order for managers to take proper actions
secondary data
data previously collected for any purpose other than the one at hand
research design
specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed
primary data
information that is collected for the first time; used for solving the particular problem under investigation
survey research
the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes
mall intercept interview
a survey research method that involves interviewing people in the common areas of shopping malls
computer-assisted personal interviewing
an interviewing method in which the person being interviewed reads questions from a computer screen and enters the respondent’s data directly into the computer
computer-assisted self interviewing
an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys in his or her answers into the computer
central location telephone facility AKA CLT
a specially designed phone room used to conduct telephone interviewing
executive interview
a type of survey that involves interviewing business people at their offices concerning industrial products and services
focus group
seven to ten people who participate in a group discussion led by a moderator
open-ended question
an interview question that encourages the responder to answer phrased in his or her own words
closed-ended question
an interview question that asks the respondent to make a selection from a limited list of responses
scale-response question
a closed-ended question designed to measure the intensity of a respondent’s answer
observation research
a research method that relies on four types of observations: people watching people, people watching an activity, machines watching people, and machines watching an activity
mystery shoppers
researchers that pose as customers who gather observational data about a store
behavioral targeting AKA BT
form of observational marketing research that combines a consumer’s online activity with psychographic and demographic profiles compiled in databases
social media monitoring
the use of automated tools to monitor online buzz, chatter, and conversations
big data
the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data
ethnographic research
the study of human behavior in its natural context; involves observation of behavior and physical setting
experiment
a method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable
sample
a subset from a larger population
universe
the population from which a sample will be drawn
probability sample
a sample in which every element in the population has a known statistical likelihood of being selected
random sample
a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample
nonprobability sample
any sample in which little or no attempt is made to get a representative cross selection of the population
convenience sample
a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher – for example, employees, friends, or relatives
measurement error
an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process
sampling error
an error that occurs when a sample somehow does not represent the target population
frame error
an error that occurs when a sample drawn from a population differs from the target population
random error
an error that occurs when a selected sample is an imperfect representation of the overall population
field service firm
a firm that specializes in interviewing respondents on a subcontracted basis
cross-tabulation
a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions
consumer-generated media
media that consumers generate and share amongst themselves
scanner-based research
a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy
BehavioralScan
a scanner-based research program that tracts the purchases of 3000 households through store scanners in each research market
InfoScan
a scanner-based sales tracking service for the consumer packaged-goods industry
neuromarketing
a field of marketing that studies the body’s responses to marketing stimuli
Name the three market research studies:
Descriptive AKA surveys, diagnostic AKA make a diagnosis of a problem, predictive AKA predict how changes will impact
What are the seven steps in the marketing research process?
Identify and formulate the problem / opportunity
Plan the research design and gather secondary data
specify the sampling procedures
collect primary data
analyze the data
prepare and present the report
follow up