Marketing Chapters 7-12

Front 1

Marketing research

Back 1

: process of
-defining a marketing problem and opportunity,
-collecting/ analyzing information
-recommending actions
-reduces risk of and improves decisions

Front 2

5 Steps of Marketing Research

Back 2

5 Steps:
1. Define Problem
a. Set Objectives
b. Identify possible marketing actions
2. Develop Research Plan
a. Specify Constraints
b. Identify Data needed
c. How to collect Data
i. concepts-ideas about products
ii. methods- approaches that can be used to collect
3. Collect Relevant Information
a. Secondary Data
i. Internal-marketing inputs/marketing outcomes.
ii. External-Published data from outside organization. US CENSUS
4. Develop Findings
a. Analyze the Data
b. Present the Findings
5. Take Marketing Actions
a. Make recommendations (Target market)
b. Implement recommendation.
c. Evaluate results

Front 3

PRIMARY DATA

Back 3

Facts and figures newly collected for project
Observational
Questionnaire
Social media
Data mining

Front 4

SECONDARY DATA

Back 4

-Facts and figures that have already been recorded prior to the project at hand
internal data

Front 5

Market Segmentation

Back 5

- dividing prospective buyers into groups that
1. have common needs
2. Will respond similarly to a marketing action.

Front 6

3 Types of Segmentation Strategies

Back 6

1. One Product Multiple Market Segments
Different magazine covers for certain areas

2. Multiple Products and Multiple Market Segments
Ford’s different line of cars aimed towards different consumers.

3. Segments of one, or mass customization
Internet ordering
BUild to Order (BTO)-manufacturing a product only when there is an order
Costumers have good choice/quick delivery. (APPLE)^

Front 7

5 Steps to Segment and Target Markets

Back 7

1. Group Potential Buyers
Simplicity/ Cost effectiveness
Potential for increased profit
similarity of needs
Differences of needs
Potential of marketing action to reach a segment.

2. Group Products to Be Sold into Catagories
3. Develop Target Market Grid/ Estimate market size
framework to relate the market segments of potential buyers to offered products and potential marketing actions by an organization.

4. Select Target Markets
Market size
Expected Growth
Competitive Position
Cost of reaching segment
Compatibility with Organizations objectives and resources

5. Take Marketing Actions to Reach Target Markets
Develop and execute an action plan in form of Marketing Program

Front 8

Marketing program strategy used to sell a single product or service to multiple market segments?

Back 8

ONE PRODUCT MULTIPLE MARKET SEGMENT STRATEGY

Front 9

Nondurable Good

Back 9

A good which is immediately used by a consumer or which has an expected lifespan of three years or less. Examples of non-durable goods include food and clothing

Front 10

Which type of products will consumers readily accept substitutes??

Back 10

-Convenience Product
Toothpaste
Cake mix
Hand soap

Front 11

Empathy

Back 11

Ability to understand how consumers feel and willingness of organization to accommodate for their needs. Product Quality/Service

Front 12

PRICE

Back 12

the money or other considerations exchanged for the ownership or use of a product or service
Strategies

1. Skimming Pricing*** -setting highest initial price that costumers really desiring the product are willing to pay. Once initial costumers are satisfied, firm will lower price to attract more price sensitive consumers.
2. Loss Leader Pricing***- Retail stores (WALMART) deliberately sell a product below customary price to attract attention to it. Not to increase sales but to attract costumers in hopes they buy other products as well.

Front 13

Barriers to the adoption of new products???

Back 13

1.Not listening to voice of the consumer
2. Skipping stages in new product process
3. Pushing a poorly conceived product into market to generate quick revenue
4. Note learning critical lessons from past failures
5. Avoiding NIH problem (Not Invented Here)

Front 14

3 Basic functions performed by intermediaries

Back 14

Intermediary: purchase itmes from seller, store them, resell to buyers. OR like brokers and agents, they bring a seller and buyer together.
1.Transaction function- when they buy and sell products or services.
2.Logistical function- Gathering sorting and dispersing products
3.Facilitating function- Make transactions easier for consumers (JCPenny credit card)

Front 15

Electronic Marketing Channels-

Back 15

Employ the internet to make products and services available for consumption or use by consumers or organizational buyers.

Front 16

Focus Group-

Back 16

Informal sessions of 6-10 past, present, or prospective customers in which a discussion leader asks their opinions about the firms and its competitors products.

Front 17

Sampling-

Back 17

When a company selects a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are interested.

Front 18

Market Segmentation

Back 18

- Aggregates potential buyers into groups that have common needs and will respond similarly to marketing actions.
-One Product and Multiple Market Segments
i. When an organization produces only a single product or service and attempts to sell it to two or more market segments.
- Multiple Products and Multiple Market Segments
i. When a company has more than one product being sold to more than one market segment.
Ex. Ford manufactures many different types of cars for many different types of consumers.

Front 19

Cannibalization

Back 19

A critical problem to businesses where in trying to expand by adding products or stores they steal customers and sales from the older, existing products and stores.

Front 20

Services

Back 20

Intangible activities or benefits that an organization provides to satisfy consumers needs in exchange for money or something else of value.

Front 21

For which type of products will consumers NOT accept substitutes?

Back 21

Consumers will not accept specialty products substitutes

Front 22

Characteristics of the growth stage in the product life cycle

Back 22

- Characterized by rapid growth in sales. It is also in this stage where competitors appear.

Front 23

Examples of a Price

Back 23

-Business specific for example hospitals= charges, lawyers= fees, airlines= fares, and hotels= rates.

Front 24

Penetration pricing is intended to appeal to which market?

Back 24

-It is intended to appeal to the mass market because the price is so low.

Front 25

When does an inelastic demand exist?

Back 25

- An inelastic demand means that a slight increase or decrease in a product will not change the demand of the product. This happens with products that are considered necessities like gasoline.

Front 26

Logistical function activities

Back 26

-Assorting: Creating product assortments from several sources to serve customers.
-Storing: Assembling & protecting products at a convenient location.
-Sorting: Purchasing in large quantities and selling at smaller quantities.
-Transporting: Physically moving a product to customers

Front 27

Franchising

Back 27

- The most visible variation of contractual systems in which a contractual agreement is made between a parent company and an individual or firm that allows the franchise to operate a certain type of business under an established name with certain rules.

Front 28

Sources of Primary data

Back 28

• Observational data(watching ppl)
• Questionnaire data(asking ppl)
• Other(social media, panels and experiments, data mining)

Front 29

Likert Scale?

Back 29

respondent indicates the extent to which he or she agrees or disagrees with a statement

Front 30

The purpose of market segmentation

Back 30

• refers to subdividing a market along some commonality, similarity, or kinship

Front 31

Geographical segmentation variables

Back 31

• based on where prospective costumers live and work(region, city size)

Front 32

Types of Consumer products

Back 32

• Convenience product
• shopping product
• specialty product
• unsought product

Front 33

What is the “intangibility” element of a service?

Back 33

• services tend to be based on performance so markets try to show the benefits of using the service

Front 34

What is the marketing objective for the growth stage of the product life cycle?

Back 34

• to broaden distribution for the product

Front 35

Harvesting

Back 35

• when a company retains the product but reduces marketing costs
o the purpose is to maintain the ability to meet customer requests

Front 36

Instead of demand, cost or profit factors, what can a price setter stress?

Back 36

• Competition orientated pricing

Front 37

Middleman

Back 37

• anyone between the manufacturer and end user markets

Front 38

Facilitating function activities

Back 38

• make transactions easier for buyers (ex. jcpenny issues credit cards to consumers so they can buy now and pay later)

Front 39

Today, the most common form of distribution intensity that is used

Back 39

• firm places its products and services in as many outlets as possible
o used for convenience products/services such as candy, fast food, newspaper etc