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2010-03-23 18:13:51

Exam 2 Vocab
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  1. B2B Marketing
    The marketing of goods and services to business customers that need them to produce other goods/services.
  2. B2B Markets
    The group of customers that include manufacturers, wholesalers, retailers, and other organizations. In comparison to B2C, B2B is small # of players yet a huge $$ amount.
  3. Buy Class

    Composed of three classifications based on the degree of time and effort required to make a decision. (straight re-buy, modified re-buy, and new task buy)
  4. Buying Center
    Group of people in an organization who participate in a purchase decision.
  5. Derived Demand
    Demand for business (tires) caused by a demand for consumer goods of services (autos).
  6. Inter-Organizational System
    • A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and other outside organizations.
    • EX: Wal-mart extranet
  7. Government Markets
    The federal, state, county, and local governments that buy goods and services to carry out public objectives
  8. Inelastic Demand
    Demand in which changes in price has little or no effect on the amount demanded.

    Ex: a coffee shop's demand for coffee beans in inelastic (unaffected by price)
  9. Modified re-buy
    • One of the three buy classes.
    • A previously made purchase that involves some change and requires limited decision making to deal with the changes.
  10. Multiple Sourcing
    The business practice of buying a particular product from several different suppliers.
  11. New Task Buy
    • One of three buy classes.
    • A new B2B purchase that is complex or risky and that requires extensive decision making.
  12. Outsourcing
    The business buying process of obtaining outside vendors to provide goods of services that otherwise might be supplied in-house.
  13. Private Exchanges
    E-commerce systems that link an invited group of suppliers and partners over the web.
  14. Product Specifications (specs)
    A written description of quality, size, weight, and so forth required of a product purchase.
  15. Reciprocity
    A trading partnership in which two firms agree to buy from one another
  16. Request for Proposal (RFP)
    A company asks suppliers to place bids (proposals) on a job.
  17. Request for Quote (RFQ)
    A company asks suppliers to provide quotes (prices) for off-the-shelf needed products.
  18. Resellers
    Individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations.
  19. Single Sourcing
    The business practice of buying a particular product from only one supplier. pretty risky.
  20. Straight re-buy
    • one of the buy classes
    • A buying situation in which business buyers make routine purchases that require minimal decision making.
  21. 80/20 Rule
    A marketing heuristic that claims that 20% of purchasers account for 80% of a product's sales.
  22. Behavioral Segmentation
    A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service.
  23. Brand Personality
    A distinctive image that captures a good's or service's character and benefit.
  24. Concentration Targeting Strategy
    Focusing a firm's efforts on offering one or more products to a single segment.
  25. Custom Marketing Strategy
    An approach that tailors specific products and the messages about them to individual customers.
  26. Customer Relationship Management (CRM)
    • A philosophy that sees marketing as a process of building long-term relationships with customers to keep them satisfied and coming back.
    • The purpose of CRM is to increase revenues, profits, and customer service.
  27. Demographics
    Stats that measure observably aspects of a population, including size, age, gender, ethnic group, income, etc
  28. Differentiated Targeting Strategy
    Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace.
  29. Generational Marketing
    Marketing to members of a generation, tend to share the same outlook and priorities.
  30. Geocoding
    Customizing advertising (web, TV ads, Radio ads) so people who live or log on in different places will be exposed to advertising for local businesses.
  31. Geodemography
    A segmentation technique that combines geography with demographics
  32. Lifetime Value of a customer
    An estimation of the potential profit one customer may provide over their lifetime
  33. Market Fragmentation
    The creation of many consumer groups (segments) due to a diversity of distinct needs and wants.
  34. Mass Customization
    An approach that modifies a basic good or service to meet the needs of an individual.
  35. Perceptual Map
    A vivid way to construct a picture of where products or brands are "located" in concumer's minds
  36. Target Market Process Steps
    • 1 - Segmentation
    • 2 - Targeting
    • 3 - Positioning
  37. Positioning
    3rd step in Target Market Process

    Developing a unique marketing strategy to persuade consumers over the competition.
  38. Psychographics
    The use of psychology, sociological, and anthropological factors to construct market segments.

    segments are formed based on attitudes, interests, and opinions.
  39. Repositioning
    Updating a product's position to respond to new marketplace changes.
  40. Segment profile
    Description of the "typical" customer in a segment
  41. Segmentation
    1st step in target market process

    The process of dividing a larger market into smaller, meaningful segments based on one or more shared characteristics
  42. Segmentation Variables
    Dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences.

    • Segment should be..
    • Sustainable, Identifiable, Accessible, Responsive
  43. Share of Costumer
    Percentage of an individual customer's purchase of a product that is a single brand.
  44. Target Market
    The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.
  45. Target Market Strategy
    Dividing the total market into different segments based on consumer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments.
  46. Targeting
    2nd step in target market process

    A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources
  47. Undifferentiated Targeting Strategy
    Appealing to a broad spectrum of people
  48. Usage Occasions
    An indicator used in one type of market segmentation based on when consumers use a product most
  49. Actual Product
    The physical good or service that supplies the desired benefit (name)
  50. Augmented Product
    The actual product plus other supported features such as warranty, delivery, installation
  51. Business Analysis
    The step in the Product Development Process in which marketers assess a product;s commercial viability
  52. Commercialization
    Final step in the product development process which a new product is launched into the market
  53. Product Development Steps
    • 1 - Idea generation
    • 2 - Product development/screening
    • 3 - Develop marketing strategy
    • 4 - Business analysis
    • 5 - Technical development
    • 6 - Test market the product in limited market
    • 7 - Commercialization
  54. Compatibility
    extent to which a new innovation is consistent with the target market's existing cultural values, customs, and practices.
  55. Complexity
    Degree to which consumers find a new innovation or its use difficult to understand, learn and use.
  56. Continuous Innovation
    A change in an existing product that requires a moderate amount of learning or behavior change
  57. Convenience Product
    A consumer good that is usually low-priced, widely available, or purchased frequently with minimum comparison or effort
  58. Convergence
    Coming together of two or more technologies or industries to create a new system w/ greater benefits than its parts
  59. Core Product
    all the benefits a product will provide for consumers or business customers.
  60. Diffusion
    The process by which the use of a product spreads throughout a population
  61. Discontinuous (disruptive) Innovation
    A totally new product that changes in the way we live.

    Ex: PC's, refrigerators, email
  62. Durable Goods
    Consumer products that provide benefits over a long period of time.
  63. Gap Analysis
    A measurement tool that gauges the difference between a customer's expectations or product or service quality and that level which actually occured
  64. Good
    A tangible product that we can see, touch, smell, hear, or taste
  65. Idea Generation
    First step of product development which marketers brainstorm for products that provide customer benefits.
  66. Innovation
    A product that consumers perceive to be new and different from existing products.
  67. Nondurable Goods
    Consumer products that provide benefit for a short time
  68. Product Concept Development/ Screening
    second step of product development which marketers test product ideas for technical and commercial success.
  69. Product Adoption
    Process by which a consumer or business customer begins to buy and use a new good, service, or idea.
  70. Prototypes
    Test versions of a proposed product.
  71. Relative Advantage
    degree to which a consumer perceives that a new product provides superior benefits than existing products.
  72. Staples
    Basic or necessary items that are available almost everywhere
  73. Shopping Product
    A good which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase.

    Ex: coffee beans
  74. Slotting Allowance
    The fee that retail vendors charge to a manufacturer, or wholesaler to ensure a good product placement
  75. Specialty Product
    A type of good that has unique characteristics which often makes the consumer brand loyal.
  76. Technical Development
    Step in the product development process in which a new product is refined and perfected by company engineers
  77. Test Marketing
    Testing the complete marketing plan in a small geographic area similar to the large market the firm hopes to enter.
  78. Trialability
    The ease of sampling a new product and it's benefits
  79. Unsought Products
    Goods which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention
  80. Product Life Cycle Stages
    • 1 - Introduction stage
    • 2 - Growth stage
    • 3 - Maturity stage
    • 4 - Decline stage
  81. Brand
    A name, symbol, or other unique element of a product that identifies one firm's product and sets it apart from the competition.
  82. Brand Equity
    The financial value of a brand to an organization. based on sales projections
  83. Brand Extensions
    A new branded product of service sold under the same brand name. can be an extension to the product line or an entirely new product line.
  84. Cannibalization
    When a company's product sells a lot and 'eats' the sales of the current product line.

    Ex: sales of coke classic dropped when coke zero was introduced
  85. Co-branding
    Agreement between two brands to work together in marketing a new product (Ex: Eddie Bauer Ford)
  86. Decline Stage
    Final stage in product life cycle, which sales decrease as customer needs change, and consumers lose interest.
  87. Family Brand
    A brand that a group of individual products or individual brands share. Ex: all microsoft products
  88. Generic Branding
    A strategy in which products are not branded and are sold at the lowest possible price.
  89. Growth Stage
    Second stage in product life cycle, which the product is accepted and sales rapidly increase
  90. Ingredient Branding
    One company buys a license to incorporate the other brand in it's recipe or design.
  91. Introduction Stage
    First stage in product life cycle = the introduction of a new product in the market place. Equivalent to commercialization
  92. Licensing
    An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time
  93. Market Manager
    Organizational employee who is responsible for developing and implementing the marketing plans for products sold to a particular customer group.
  94. Maturity Stage
    third and longest stage in the product life cycle, which sales peak and profit margins narrow as competition gets stiffer.
  95. National or Manufacturer Brands
    Brands that are owned by the manufacturer of the product. this is the normal case, Ex: ben n jerrys, ford
  96. Private-Label Brands
    Brands that are owned and sold by a certain retailer of distributer. Ex: safeway selects
  97. Product Category Managers
    Individuals responsible for developing and implementing the marketing plan for all the branded products within one product line.
  98. Product Life Cycle
    A concept that explains how products go through 4 distinct stages from birth to death. (not all die, they can be continually reinvented)
  99. Product Line
    A firm's total product offering designed to satisfy a single need or desire of target customers
  100. Product Mix
    Total set of all product lines a firm offers for sale.
  101. Retro Brand
    A brand that has been on the market for a long time, such as Converse.
  102. Total Quality Management (TQM)
    A management philosophy that incorporates the ideals of continuous improvement and myriad of performance measures
  103. Trademark
    The legal term for a brand name, brand mark, or trade character
  104. Venture Teams
    groups of people within an organization who work together and focus exclusively on the development of a new product.