CLEP MARKETING - ALL

Product

Anything that can be offered to satisfy a need or want

Service

Any service or benefit that can be offered, but doesn't result in the ownership of anything

Experiences

What buying the product/service will do for the costumer

Durable Products

Long lasting, generally expensive products

Nondurable Products

Products that don't last for a long time; usually is food

Consumer Products

Products purchased by the ultimate consumer

Industrial Products

products purchased for further processing or for use in conducting a business

Convenience Products

Bought with little time/effort

Shopping Products

Bought with more thought, and with an extensive comparison

Specialty Products

For consumers that have a strong brand preference

Unsought Products

Unknown/Undesired products to the consumer

Product Attributes

What benefits will it offer?

Branding

A name or symbol used to identify a product from a different manufacturers

Packaging

involves designing and producing the container or wrapper for a product & will often protect the product

Labeling

identifies the product or brand, supports the brand's positioning, adds personality to the brand, and also includes required information about the product.

Product Support Services

services that augment actual products such as installation, repairs, warranties, etc.

Product Line

A group of closely related product items

Brand Positioning

Attributes, benefits, beliefs and values

Brand Name Selection

Suggests product benefits - easy to pronounce and recognizable

Brand Sponsorship

Manufacturer's brand, private brand, licensing, co-branding

Line Extensions

Similar products offered under the same brand name

Brand Extension

Extending an existing brand name to new product categories

Product Development

Developing the product concept into a physical product

Test Marketing

The process of testing products among potential users

Commercialization

Introducing a new product into the market

Fad

Something that is very popular for a short time, then forgotten

BCG Matrix

a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market

BCG Matrix: Stars

High Market Share

High Growth

Can be Leader in the market which gives alot of added benefits

Growth in Market>Growth in Share

Increases in Share> Increase Margins

High Margin

Will eventually become a cash cow

BCG Matrix: Cow

low growth, high market share

BCG Matrix: Dogs

have low growth, low market share - should be gotten rid of

BCG Matrix: Question Marks

Risky new ventures- some will become stars, some dogs

brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products; the company's promise to deliver value

Product Life Cycle (PLC)

a concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline

market modification strategies

When a company tries to increase consumption of the current product

marketing mix modification strategy

When a company changes one or more of the marketing mix elements

product line pricing strategies

establishing and adjusting prices of multiple products within a product line

optional product pricing

takes into account optional or accessory products along with the main product

captive product pricing

setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console

byproduct pricing

setting a price for by-products in order to make the main product's price more competitive

product bundle pricing

combining several products and offering the bundle at a reduced price

Rational Appeal (Logos)

Marketing appeals that are directed at the consumer's practical, functional need for the product or service.

emotional appeal (pathos)

aims to satisfy consumers' emotional desires rather than their utilitarian needs

informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

persuasive advertising

communication used to motivate consumers to take action

reminder advertising

communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

push strategy

directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product

pull strategy

a marketing strategy that stimulates consumer demand to obtain product distribution

Evaluating Marketing

From an individual firm's perspective, success means to satisfy the needs/wants of customer

Exploitation

Taking advantage of a weaker group

Inefficiency

using resources in such a way as not to maximize the desired output from them

Ethics in Marketing

The standards of marketing practice have shifted from an emphasis on the products' interest to the consumers'. Codes of Ethics have been created to assist managers in following this shift

Code of Ethics

A formal statement of ethical principles and rules of conduct

Not-For-Profit Organizations

Groups that do not pursue profit as a goal; they engage in charitable, educational, humanitarian, cultural, professional, or other activities, often with a social purpose

pervasive advertisement

When companies promote so often, customers tire of it.

Customer Buying Behavior

Behavior exhibited by buyers as they consider, select, and purchase goods and services

Consumer Market

consumers who purchase goods and services for personal use

Cultural Influences

Meanings that are shared by most people in a social group

Subcultures

subgroups within the larger, or national, culture with unique values, ideas, and attitudes

Social Factors

Influences purchase decisions and behavior

Norms

rules and expectations by which a society guides the behavior of its members

Status

the relative position an individual holds in social or organizational settings

reference group

a social group that serves as a point of reference in making evaluations and decisions

Brand Personality

set of traits people attribute to a product as if it were a person

Motivation

the reason or reasons one has for acting or behaving in a particular way.

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization

Perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

Selective attention

the focusing of conscious awareness on a particular stimulus

selective distortion

process by which consumers interpret information in ways that are biased by their previously held beliefs

selective retention

a process whereby a consumer remembers only that information that supports his or her personal beliefs

Buyer Decision Making Process

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision (Product Choice)

5. Post-purchase behavior (Outcomes)

Information Search

the stage of the buyer decision process in which the consumer is motivated to search for more information

external search

An information search in which buyers seek information from sources other than their memories

brand belief

a thought about a specific property or quality of the brand

Evaluation Process

Combining beliefs to form attitudes and preferences

postpurchase behavior

The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction

cognitive dissonance

a state of anxiety caused by the difficulty of choosing between different products

Segmentation

dividing a market into distinct groups of consumers who share common tastes and requirements

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Target Marketing

Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

market positioning

involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

positioning strategy

The key themes or concepts an organization features for communicating the distinctiveness of its product or service to the target segment.

marketing strategy

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

geographic segmentation

the grouping of consumers on the basis of where they live

Undifferentiated marketing

plan wherein the same basic product is offered to all customers

differentiated marketing

a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Concentrated (niche) marketing

firm goes after a large share of one or a few segments or niches

Micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

product position

the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

psychographic segmentation

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics

Behavioral Segmentation

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.

positioning map

A diagram of how consumers in a segment perceive brands based on specific elements they consider important

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

Repositioning

changing consumers' perceptions of a brand in relation to competing brands (rebranding)

Business Buying

Purchased goods/services used in production of other products/services that are sold, rented, or supplied to others

Buying Center Roles

users, influencers, buyers, deciders, gatekeepers

buying center roles: Users

- People who will actually use the purchased good or service

- Influence on purchase decision can be extensive or neglible

buying center roles: influencers

Affect the purchasing decision by providing information for the evaluation of alternatives or by setting buying specifications

buying center roles: deciders

- Make the decision on which products to buy

- The size and importance of the decision dictate who performs the role