Marketing Ch. 8

Total Flash Cards » 76
 
1. 

Marketing Research

 

is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions

 
2. 

Decision

 

is a conscious choice from among two or more alternatives

 
3. 

Decision Making

 

is the act of consciously choosing from alternatives

 
4. 

Exploratory Research

 

Provides ideas about a relatively vague problem.
Ex: General Mills discovered that the initial version of its Hamburger Helper wasn't satisfactory for many consumers, so it interviewed them to get ideas to improve the product

 
5. 

Descriptive Research

 

generally involves trying to find the frequency that something occurs or the extent of a relationship b/w two factors.
Ex: When General Mills wants to study how loyal consumers are to its Wheaties, it can obtain data on the number of households buying Wheaties and competitive products.

 
6. 

Causal Research

 

(the most sophisticated) Tries to determine the extent to which the change in one factor changes another one.
Ex: Fisher-Price decided changing the toy designs is related to changes in the amount of time children play with the toy. Experiments and test markets are examples of causal research.

 
7. 

Research Objectives

 

are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.

 
8. 

Measures of Success

 

criteria or standards used in evaluating proposed solutions to the problem.
Measures of Success are decided before the research begins

 
9. 

Constraints

 

restrictions placed on potential solutions to a problem.

 
10. 

Ex of Constraints

 

The limitations on the time and money available to solve the problem.
Fisher price might set 2 constraints on its decision to select either the old or new version of the the chatter telephone: decision must be made in 10 weeks, and no budget is available beyond collecting data in a nursery school.

 
11. 

Concepts

 

ideas about products or services

 
12. 

New Product Concept

 

a picture or verbal description of a product or service the firm might offer for sale

 
13. 

Methods

 

are the approaches that can be used to collect data to solve all or part of a problem

 
14. 

Sampling

 

a technique to select a group of distributors, customers, or prospects and treating the information they provide as typical of all those in whom they are interested

 
15. 

Statistical Inference

 

used to generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions

 
16. 

Data

 

facts and figures related to a problem

 
17. 

Secondary Data

 

facts and figures that have already been recorded before the project at hand

 
18. 

Internal Secondary Data

 

data that comes from inside the organization.
Sales breakdowns and order requests

 
19. 

External Secondary Data

 

data comes from outside the organization. data available from the US Census

 
20. 

Primary Data

 

facts and figures that are newly collected for the project

 
21. 

Internal Secondary Sales are often the....

 

starting point for a new marketing research study b/c using this info can result in huge time and cost savings

 
22. 

Syndicated Panel Data

 

answer economic questions that require consistent data collection over time. is a type of external secondary data.

 
23. 

Ex of syndicated panel data

 

how many times did our customers buy our products this year compared to last. Some companies pay households and business to record all this info.

 
24. 

Advantages of Secondary Data

 

time savings and low cost

 
25. 

Disadvantages of Secondary Data

 

data may be out of date, definitions/categories might not be right for a researcher's project, not specific enough

 
26. 

Primary data compared to secondary is more

 

time consuming and expensive, but may be more specific to the problem

 
27. 

Observational Data

 

facts and figures obtained by watching, either mechanically or in person, how people actually behave.
Type of primary data

 
28. 

Mechanical Methods of Observational Data

 

TV ratings using a people meter

 
29. 

People Meter

 

a box that is attached to TVs, satelite dishes, etc. It has a remote that records when a viewer begins and finishes watching a program and sends the info to Media Research.

 
30. 

Mystery Shopper

 

companies pay mystery shoppers to check on the quality and pricing of their products and customer service provided by their employees.
Type of Primary Observational Data

 
31. 

Ethnographic Research

 

a specialized observational approach in which trained observers seek to discover subtle behavior and emotional reactions as consumers encounter products in their "natural use environment", such as the home or car.
A type of Primary Observational Data

 
32. 

Observational data can reveal ___ people do, but it cannot easily determine ____ they do it.

 

what, why

 
33. 

Neuromarketing

 

uses brain scanning to analyze the buying process. 85% of consumers' thoughts, feelings, or preferences towards something are deep within the subconscious part of the brain and can't be understood using traditional techniques.

 
34. 

Questionnaire Data

 

facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
Type of primary data.

 
35. 

Idea Generation Method is? consists of?

 

coming up with ideas.
Individual Interviews, Depth Interviews, Focus Groups, Fuzzy Front End

 
36. 

Individual Interview

 

involves a single researcher asking questions of one respondent (most common way in the past)

 
37. 

Depth Interviews

 

researcher ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings

 
38. 

Focus Groups

 

informal sessions of 6-10 past, present, or prospective customers in which a discussion leader asks their opinions about the firm's and its competitors' products, how they use the products, and special needs they have that these products don't address.

 
39. 

Ex of using focus groups

 

3M used focus groups to hear consumer complaints about steel wool pads scratching their cookware, which led to the Scotch-Brite Never Scratch soap pads

 
40. 

Fuzzy Front End

 

wierd/different methods in which marketing researchers rely on to find "the next big thing"
Ex: trend hunting

 
41. 

Trend Hunting

 

the practice of identifying "emergent shifts in social behavior" which are driven by changes in pop culture that can lead to new products

 
42. 

Idea Evaluation Methods

 

the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions

 
43. 

Idea evaluation methods often involve...

 

conventional questionnaires using personal, mail, telphone, fax, and online surveys of a large sample

 
44. 

Mall Intercept Interviews

 

personal interviews of consumers visiting shopping centers

 
45. 

Open-Ended Questions

 

allows respondents to express opinions, ideas, or behaviors in their own words w/out being forced to choose among alternatives. Captures the "voice" of respondents

 
46. 

Close-end or Fixed Alternative Questions

 

require respondents to select one or more response options from a set of predetermined choices

 
47. 

Dichotomous Questions

 

simplest form of a fixed alternative question that allows only a "yes" or "no" response

 
48. 

a fixed alternative question with 3 or more choices uses a

 

scale

 
49. 

Semantic Differential Scale

 

5 point scale in which the opposite ends have one- or two- word adjectives that have opposite meanings.
Ex: how clean a person believes a restaurant is (can pick point 1 through 5)

 
50. 

Likert Scale

 

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

 
51. 

Social Networks

 

intimate and frequent contact among people who share a common interest- at a lower cost than other media

 
52. 

Panel

 

a sample of consumers or stores from which researchers take a series of measurements

 
53. 

the word regularly is

 

ambiguous

 
54. 

Experiments

 

involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, an example of causal research

 
55. 

Experiments want to determine...

 

if changing an independent variable (a cause) will change the behavior of the dependent variable that is studied (the result)

 
56. 

independent variables are also called

 

marketing drivers.

 
57. 

drivers

 

are often one or more of the marketing mix elements

 
58. 

test market

 

a marketing experiment to reduce risk.
Ex: food companies use test markets, which offer a product for sale in a small area to help evaluate potential marketing actions.

 
59. 

the dependent variable usually is a change in

 

purchases (incremental unit or dollar sales)

 
60. 

Information Technology

 

involves operating computer networks that can store and process data

 
61. 

Data Warehouse

 

databases that form the core, where the ocean of data is collected and stored

 
62. 

Sensitivity Analysis

 

used to query the database with "what if" questions to determine how a hypothetical change in a driver such as advertising can affect sales

 
63. 

Data Mining

 

extraction of hidden predictive information from large databases to find statistical links b/w consumer purchasing patterns and marketing actions.

 
64. 

RFID Technology

 

used a "smart tag" microchip on diapers and beer to tell whether they wind up in the same shopping bag at 10 in the evening

 
65. 

Managers are responsible for..

 

action, which is delivering the results in clear pictures, and if possible, in a single page.

 
66. 

Evaluating the Decision Itself

 

involves monitoring the marketplace to determine if action is necessary in the future. Are sales increasing to target segment? is new ad appealing to target group?

 
67. 

Evaluating the Decision Process Used

 

was the marketing research and analysis used to develop the recommendations effective? Was it flawed? Could it be improved for similar situations in the future?

 
68. 

Sales Forecast

 

total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts

 
69. 

___ % of all sales forecasts are simply the judgment of the individual decision maker who must act on the results of the forecast

 

99%

 
70. 

Direct Forecast

 

involves estimating the value to be forecast without any intervening steps.
Ex: how many quarts of milk should i buy? or How much money should I get out of the ATM?

 
71. 

Lost-Horse Forecast

 

involves starting with the alst known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and make the final forecast

 
72. 

Survey of Buyers' Intentions Forecast

 

involves asking prospective customers if they are likely to buy the product during some future time period

 
73. 

Salesforce Survey Forecast

 

involves asking the firm's salespeople to estimate sales during a coming period, b/c the people are in contact with customers and are likely to know what customers like and dislike

 
74. 

Trend Extrapolation

 

involves extending a pattern observed in past data into the future

 
75. 

Linear Trend Extrapolation

 

when the patter is described with a straight line

 
76. 

what is the best known statistical method of forecasting

 

trend extrapolation