Card Set Information
Exam 2 Vocab
The marketing of goods and services to business customers that need them to produce other goods/services.
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.
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)
Group of people in an organization who participate in a purchase decision.
Demand for business (tires) caused by a demand for consumer goods of services (autos).
A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and other outside organizations.
: Wal-mart extranet
The federal, state, county, and local governments that buy goods and services to carry out public objectives
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)
One of the three buy classes.
A previously made purchase that involves some change and requires limited decision making to deal with the changes.
The business practice of buying a particular product from several different suppliers.
New Task Buy
One of three buy classes.
A new B2B purchase that is complex or risky and that requires extensive decision making.
The business buying process of obtaining outside vendors to provide goods of services that otherwise might be supplied in-house.
E-commerce systems that link an invited group of suppliers and partners over the web.
Product Specifications (specs)
A written description of quality, size, weight, and so forth required of a product purchase.
A trading partnership in which two firms agree to buy from one another
Request for Proposal (RFP)
A company asks suppliers to place bids (proposals) on a job.
Request for Quote (RFQ)
A company asks suppliers to provide
(prices) for off-the-shelf needed products.
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.
The business practice of buying a particular product from only one supplier. pretty risky.
one of the buy classes
A buying situation in which business buyers make routine purchases that require minimal decision making.
A marketing heuristic that claims that 20% of purchasers account for 80% of a product's sales.
A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service.
A distinctive image that captures a good's or service's character and benefit.
Concentration Targeting Strategy
Focusing a firm's efforts on offering one or more products to a single segment.
Custom Marketing Strategy
An approach that
tailors specific products
and the messages about them to individual customers.
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.
Stats that measure observably aspects of a population, including size, age, gender, ethnic group, income, etc
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.
Marketing to members of a generation, tend to share the same outlook and priorities.
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.
A segmentation technique that combines geography with demographics
Lifetime Value of a customer
An estimation of the potential profit one customer may provide over their lifetime
The creation of many consumer groups (segments) due to a diversity of distinct needs and wants.
An approach that modifies a basic good or service to meet the needs of an individual.
A vivid way to construct a picture of where products or brands are "located" in concumer's minds
Target Market Process Steps
1 - Segmentation
2 - Targeting
3 - Positioning
3rd step in Target Market Process
Developing a unique marketing strategy to persuade consumers over the competition.
The use of psychology, sociological, and anthropological factors to construct market segments.
segments are formed based on attitudes, interests, and opinions.
Updating a product's position to respond to new marketplace changes.
Description of the "typical" customer in a segment
1st step in target market process
The process of dividing a larger market into smaller, meaningful segments based on one or more shared characteristics
Dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences.
Segment should be..
Sustainable, Identifiable, Accessible, Responsive
Share of Costumer
Percentage of an individual customer's purchase of a product that is a single brand.
The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.
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.
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
Undifferentiated Targeting Strategy
Appealing to a broad spectrum of people
An indicator used in one type of market segmentation based on when consumers use a product most
The physical good or service that supplies the desired benefit (name)
The actual product
other supported features such as warranty, delivery, installation
The step in the Product Development Process in which marketers assess a product;s commercial viability
Final step in the product development process which a new product is launched into the market
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
extent to which a new innovation is consistent with the target market's existing cultural values, customs, and practices.
Degree to which consumers find a new innovation or its use difficult to understand, learn and use.
A change in an existing product that requires a moderate amount of learning or behavior change
A consumer good that is usually low-priced, widely available, or purchased frequently with minimum comparison or effort
Coming together of two or more technologies or industries to create a new system w/ greater benefits than its parts
all the benefits a product will provide for consumers or business customers.
The process by which the use of a product spreads throughout a population
Discontinuous (disruptive) Innovation
A totally new product that changes in the way we live.
Ex: PC's, refrigerators, email
Consumer products that provide benefits over a long period of time.
A measurement tool that gauges the difference between a customer's expectations or product or service quality and that level which actually occured
A tangible product that we can see, touch, smell, hear, or taste
First step of product development which marketers brainstorm for products that provide customer benefits.
A product that consumers perceive to be new and different from existing products.
Consumer products that provide benefit for a short time
Product Concept Development/ Screening
second step of product development which marketers test product ideas for technical and commercial success.
Process by which a consumer or business customer begins to buy and use a new good, service, or idea.
Test versions of a proposed product.
degree to which a consumer perceives that a new product provides superior benefits than existing products.
Basic or necessary items that are available almost everywhere
A good which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase.
Ex: coffee beans
The fee that retail vendors charge to a manufacturer, or wholesaler to ensure a good product placement
A type of good that has unique characteristics which often makes the consumer brand loyal.
Step in the product development process in which a new product is refined and perfected by company engineers
Testing the complete marketing plan in a small geographic area similar to the large market the firm hopes to enter.
The ease of sampling a new product and it's benefits
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
Product Life Cycle Stages
1 - Introduction stage
2 - Growth stage
3 - Maturity stage
4 - Decline stage
A name, symbol, or other unique element of a product that identifies one firm's product and sets it apart from the competition.
The financial value of a brand to an organization. based on sales projections
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.
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
Agreement between two brands to work together in marketing a new product (Ex: Eddie Bauer Ford)
Final stage in product life cycle, which sales decrease as customer needs change, and consumers lose interest.
A brand that a group of individual products or individual brands share. Ex: all microsoft products
A strategy in which products are not branded and are sold at the lowest possible price.
Second stage in product life cycle, which the product is accepted and sales rapidly increase
One company buys a license to incorporate the other brand in it's recipe or design.
First stage in product life cycle = the introduction of a new product in the market place. Equivalent to commercialization
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
Organizational employee who is responsible for developing and implementing the marketing plans for products sold to a particular customer group.
third and longest stage in the product life cycle, which sales peak and profit margins narrow as competition gets stiffer.
National or Manufacturer Brands
Brands that are owned by the manufacturer of the product. this is the normal case, Ex: ben n jerrys, ford
Brands that are owned and sold by a certain retailer of distributer. Ex: safeway selects
Product Category Managers
Individuals responsible for developing and implementing the marketing plan for all the branded products within one product line.
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)
A firm's total product offering designed to satisfy a single need or desire of target customers
Total set of all product lines a firm offers for sale.
A brand that has been on the market for a long time, such as Converse.
Total Quality Management (TQM)
A management philosophy that incorporates the ideals of continuous improvement and myriad of performance measures
The legal term for a brand name, brand mark, or trade character
groups of people within an organization who work together and focus exclusively on the development of a new product.