Marketing Principles Terms Quiz by cdurg7791

Definition	Term	Extra
As household income increases: a smaller percentage of expenditures goes for food, the percentage spent on housing, household op. and clothing is constant and the percentage on oth		0
Situation in which similar merchandise is available from multiple retail outlets, resulting in the blurring of distincitions between types of retailers and merchandise offered		0
Selecting a target market and developing a retailing mix to satisfy that market		0
Information previously published or compiled sources		Has 2 Advantages-Less expensive and takes less time to use. Yet can quickly become obsolete, may not be relevant
Quick and inexpensive way to obtain a small quantity of impersonal info		Several Drawbacks-People refuse to participate, reluctance to giving away info over the phone, Called ID
Amount by which a retailer reduces the original selling price of a product		0
Segment must have measurable size and purchasing power, must offer profit potential, must be possible to effectively promote to and serve segment, should match the firms mkt capabi		0
Used to achieve superior performance that results in a competitive advantage in the marketplace		Identifying manufacturing or business processes that need improvement, comparing internal process of those of industry leaders, implement changes for quality improvement
Process of searching through computerized data files to detect patterns		Focuses on idnetifying relationships not obvious to marketers--answering questions that researches didnt even think to ask
Process of selecting survey respondents of research participants		Very important, study must involve consumers who accurately reflect the target market to yield leading conclusions
Introducing a new product in a specific area and then obseving the success		Expensive, reveals product to comp. and not good for all products(cars), alt includes regional launch or limiting to specific retailers
Progression of a product through introduction, growth, maturity and decline stages		0
Division of a population into groups having similar attitudes, values and lifestyles		Researched with large scale survey asking opinions, interests. Good supplement to geo/demographic segmentation
The Third Step in the Marketing Research Process		Hypothesis: tentative explanation, statement about relationship among variables with implications for testing this relationship--sets stage for more in depth research
A type of secondary data, includes govt. records, syndicated research services, industry publications		0
Division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, sexual orientation, household size, state in fam life c		Most common form of segmentation-Some distinctions blurry(gender), also called socioeconomic segmentation, can lead to stereotypes
Nonprobability sample divided to maintain the proportion of certain characteristics among different segments or groups seen in the pop. as a whole		Each worker assigned a quota that specifies number and characteristics of people to contact
Refers to the number of product lines the firm offers		0
Firms that conduct complete marketing research projects		The companys marketing research arm, performs all of the steps in the MR process
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 selllers		Takes fee from client
Marketing information system that links a decision maker with relevant databases and analysis tools		Allows managers to explore info such as state of market, consumer behavior, slaes forecasts. Four main characteristics(interactive, investigative, flexible, accessible)
Firms that specialize in a limited number of activites		Includes interviews or performing data processing
Process of gathering information and analyzing it to improve business strategy, tactics and daily operations		Tells firm how its own sales operations is doing or what its top competitors are up to--must be able to be made sense of
Broadening a customer's original purchase by adding related items, special promo products or seasonal merchandise		Salesperson tries to help a customer recognize true needs rather than unwanted
Emphasize societal issues and well-being		VALS
Focus on personal enjoyment and experiences		VALS
Continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world class performance		0
Scientific investigation in which a researcher controls or manipulates a test group and compares the results with those of a control group		0
Products with unique characteristics that cause buyers to prize those particular brands		High prices, well known brands--customers know what they want and are willing to pay--no substitutes---includes luxury cars and designer clothes
Strategy that focuses on producing a single product and marketing it to all customers		AKA mass marketing
Products consumers purchase after comparing competing offerings		Compare price, quality, styly--includes computers and furniture
Agent wholesaling intermediary that represents manufacturers of related buy noncompeting products and receives a commission on each sale		0

Definition	Term	Extra
Data provided by private organizations for marketing decision making		Ex. Trade associations, business and trade magazines; scanning technology
Defines the rate of the decline in value		Discount Factor= 1/(1+r)to the t-----t=time period, r=Discount Rate
Persuading customer to buy higher priced items than originally intended		Car salesman has buyer get more expensive model than initially considered
Refers to the number of different products a firm sells		0
Channel intermediary that takes title to goods it handles and then distributes thses goods to retailers, other distributers or B2B customers		Rarely sell to customers
Assortment of product lines and individual product offerings		The right blend allows firms to maximize sales opportunities with the limitations of its resources
Big percentage of a product's revenues comes from a relatively small, loyal percentage of customers		Praedos law
Develops forecasts for future sales by analyzing the historical relationship between sales and time		0
Series of related products offered by one company		Motivations include desire to grow, enhancing co. position, expoliting lifecycle, improve market position
Refers to expected and perceived quality of a service offering, and it has a huge effect on the competitiveness of a co.		Determined by 5 Variables: Tangibles, Reliability, Responsiveness, Assurances, Empathy
Sample that involves personal judgement somewhere in the selection process		Researches decide which groups to study--include convenience and quota
Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments		Raises production and promo costs, but increased satisfaction may lead to higher profits
Gauges repsonse under actual marketplace conditions		Allows for testing different marketing mix variables
Weighs each years sales data, giving greater weight to results from the most recent years		Considered the most commonly used quantitaive forecasting technique
Planned, computer-based system designed to provide decision makers with a continuous flow of info relevant to their areas of responsibility		Deals specifically with marketing data and issues
Practice of combining dissimilar product lines to boost sales volume		Ex. Drugstores--prescriptions as well as magazines, housewares and cameras.
Relies on subjective data that reports opinions rather than historical data		0
Process of collecting and using information for marketing decision making		Primary source for effective marketing decisions, used to understand customers, target segments, develop long term relations.
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		Once established, innovater adds more services, prices gradually rise
Contribution margin from customer, less costs of acquiring and retaining the customer, discounted to the present(NPV)		0
The First Step in the Marketing Research Process		Avoid confusing symptom with problem(loss of market share-symptom, reason for loss-problem), Evaluate firms mk mix and changes to the mkt environement
Study where researches view the actions of subjects being studied		Ex. Counting the number of cars passing by, checking license plates, Nielsen TV ratings
Targeting potential customers at very narrow, basic levels such as by zip code, specific occupation---possibly even individuals themselves		Facilitated by the internet--can make companys to lose sight of larger markets, may spend too much time/effort at a too small market
Tendency of members of a generation to be influenced and bound together by significant events occuring during their key formative years(17-22)		Help define the core values of the age group that eventually shape consumer preference and behavior
Activities involved in selling merchandise to ultimate consumers		Act as both customers and marketers in their channels--sell to consumers, buy from wholesalers
Refers to variations in each product the firm markets in its mix		0
Observation Research method in which customers are observed in their natural setting and their behavior is interpreted based on an understanding of social/cult characteristics		AKA ethonography, 'going native'- developed by social anthropologists
Gathers input through mail-in questionaires, online feedback, telephone polls and personal interviews to determining the purchasing intentions of a rep. group of present and potent		Suits firms that serve limited numbers of customers--proves impractical with firms with millions of customers
NMost important source of marketing data		Includes Census data, Tiger System(Topographically Integrated Geographic Encoding and Referencing System)-overlaps features such as railroads/highways/rivers with census data
Uses statistical computerations such as trend extension, computer simulations and econometric models		0
Nonprobability sample because those included just happen to be in the place where the sample is being conducted		Accidental sample--happen to be in the place the study is being conducted, mall intercept surveys
The Fifth Step in the Marketing Research Process		Includes both Primary and Secondary--choice between the two tied to cost, applicability and effectiveness

Definition	Term	Extra
Division of a population into homogeneous groups based on their relationship in a product		Segment using benefits sougt, usage rates(80/20), brand loyalty and multiple bases
Sample that gives every member of the population a chance of being selected		Include simple random, stratified, cluster samples
Increasingy the frequency of use and the number of users, finding new uses and changing package sized, labels or product quality		0
Tangible products that customers can see, hear, smell, taste or touch		0
Organization that regularly provides a standardized set of data to all customers		MR
The Fourth Step in the Marketing Research Process		Master plan/model for conducting research--must ensure it will measure what researchers intend to measure
Solicits opinions from several people, but it also gathers input from experts outside the firm, such as academic researchers, rather than relying completely on execs.		Qualitative-best for long term, predicts things such as technological breakthrougs, expensive and time consuming
Simultaneous personal interview of a small group of individuals that relies on group discussion about a certain topic		Encourage general discussion, quick and inexpensive-one to two hours-one way mirror
Intangible Tasks that satisfy the Needs		0
Company Resources, Product Homogeneity, Stage in Product Lifestyle, Competitors Strategies		0
VValue professional and material goals		VALS
A type of secondary data, includes sales records, product performance reviews, sales force productivity, marketing costs		0
Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or Web Site Visits		Mail, telemarketing, internet retailing, auto merchandising
Refers to goods and services consumers want to purchase frequently, immediately and with minimal effort		Milk, bread, soft drinks-includes both staples and impulse buys
Combines and averages the outlooks of top executives form such areas as marketing, finance, production, and purchasing.		Qualitative--works best in short term
Total group of people the researcher wants to study		Ex. Eligible voters for a campaign, women of a certain age
Comprehensive term that describes wholesalers as well as agents and brokers		0
Seek education, tech. and knowledge		VALS
The Sixth and Final Step of the Marketing Research Process		Presented in Format that facilitates managerial decision making, should minimize confusion due to differing backrounds, levels of knowledge and experience
Placing a product at a certain point or location within a market in the minds of prospective buyers		Emphasizes unique advantages of firms offerings and distinguish from those of competitors
The Second Step in the Marketing Research Process		Discuss marketing problem with informed sources within and outside firm and examine info from secondary sources
Develops forecasts based on the belief that organization members closest to the marketplace offer the best insights concerning short term sales		Works from the bottom up--district to regional to nationwide
Value duty and tradition		VALS
Division of an overall market into homogeneous groups based on location		Govt. now classifies urban data in several categories---core statistical area, metro stat area
The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted		Ex. Retailer buys good for $180, sells for $220---margin is $40, margin in % is 40/220=18%
Focusing marketing efforts on satisfying a single market segment		AKA niche marketing--may appeal to small or specialized firms
Bundle of physical, service and symbolic attributes designed to satisfy a customers wants and needs		Customers want satisfaction, not objects
Information collected for the first time specifically for a marketing research study		Ex. Customer Service Survey
Data gathered from cyberspace		Ex. Online Databases, research aggregators(companies that acquire, catalog, reformat, segment and resell premium research reports), chat rooms
Amount that a retailer adds to the cost of a product to determine its selling price		Results from services provided by the retailer(more services, higher markup) or inventory turnover rate(high TR leads to more profit and smaller markup)
Form of business Intelligence that focuses on finding info about competitors using published sources, interviews, observations by salespeople and suplliers, public filings, and oth		Its aim is to uncover the specific advantages a comp. has(new products, promo strategies, ads)

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