Marketing Final

Market Segmentation

Dividing a market into smaller segments with distinct needs [1]

Market Targeting

Evaluating and selecting which market segments to enter [1]

Differentiation

Distinguishing the market offering to create superior value [1]

Positioning

Placing a product in a clear, desirable place in consumers' minds [1]

Geographic Segmentation

Dividing a market into nations, states, or neighborhoods [2]

Demographic Segmentation

Dividing based on age, gender, income, or education [2]

Psychographic Segmentation

Dividing based on social class, lifestyle, or personality [3]

Behavioral Segmentation

Dividing based on consumer knowledge, attitudes, or responses [3]

Occasion Segmentation

Segmenting based on when buyers get the idea to buy or use [4]

Benefit Segmentation

Segmenting based on the major benefits consumers look for [4]

Measurable

Requirement that segment size and purchasing power can be measured [5]

Accessible

Requirement that market segments can be effectively reached and served [5]

Substantial

Requirement that segments are large or profitable enough to serve [5]

Differentiable

Requirement that segments respond differently to marketing mixes [5]

Actionable

Requirement that effective programs can be designed for segments [5]

Undifferentiated Marketing

Ignoring segments and targeting the whole market with one offer [6]

Differentiated Marketing

Targeting several segments with separate offers for each [7]

Concentrated Marketing

Targeting a large share of one or a few niche segments [7]

Micromarketing

Tailoring products and programs to specific locations or individuals [8]

Local Marketing

Tailoring brands and promotions to local customer groups [8]

Individual Marketing

Tailoring products and programs to individual preferences [8]

Value Proposition

The full mix of benefits on which a brand is positioned [9]

Core Customer Value

The basic level answering "What is the buyer really buying?" [10]

Actual Product

The physical product's features, design, and brand name [10]

Augmented Product

Additional services and benefits built around the product [10]

Convenience Product

Frequently bought with minimal comparison effort [11]

Shopping Product

Less frequent purchase compared on quality, price, and style [12]

Specialty Product

Unique characteristics with significant purchase effort [12]

Unsought Product

Products consumers don't know about or normally think of buying [13]

Product Mix Width

The number of different product lines a company carries [14]

Product Mix Length

Total number of items carried within product lines [14]

Product Mix Depth

Number of versions offered for each product in a line [14]

Service Intangibility

Services cannot be seen or felt before purchase [15]

Service Inseparability

Services cannot be separated from their providers [15]

Service Variability

Service quality depends on who provides them and when [15]

Service Perishability

Services cannot be stored for later sale or use [15]

Brand Equity

The effect knowing the brand name has on customer response [16]

Line Extension

Extending a brand name to new forms in an existing category [17]

Brand Extension

Extending a brand name to new product categories [17]

Price

Amount of money exchanged for product benefits [18]

Price Ceiling

Maximum price based on consumer perceptions of value [19]

Price Floor

Minimum price based on product costs [19]

Value-Based Pricing

Setting prices based on buyers' perceptions of value [19]

Good-Value Pricing

Offering the right quality and service at a fair price [20]

Everyday Low Pricing

Charging constant low prices with few temporary discounts [20]

High-Low Pricing

Higher everyday prices with frequent promotions [20]

Value-Added Pricing

Attaching features to support higher prices [21]

Cost-Based Pricing

Setting prices based on production and selling costs [21]

Fixed Costs

Costs that do not vary with production levels [22]

Variable Costs

Costs that vary directly with the level of production [22]

Cost-Plus Pricing

Adding a standard markup to the product's cost [22]

Break-Even Pricing

Setting price to break even or reach a target return [23]

Competition-Based Pricing

Setting prices based on competitors' strategies [24]

Pure Competition

Many buyers/sellers trading a uniform commodity [25]

Monopolistic Competition

Many buyers/sellers trading over a range of prices [25]

Oligopolistic Competition

Market consisting of only a few large sellers [26]

Pure Monopoly

Market dominated by one seller [26]

Price Elasticity

Measure of demand sensitivity to price changes [27]

Market-Skimming Pricing

High initial price to "skim" revenue layers [28]

Market-Penetration Pricing

Low initial price to attract many buyers quickly [29]

Product Line Pricing

Setting price steps between products in a line [30]

Optional Product Pricing

Pricing accessory products along with the main product [30]

Captive Product Pricing

Pricing products that must be used with the main product [31]

Product Bundle Pricing

Offering several products together at a reduced price [32]

Dynamic Pricing

Adjusting prices continually to meet individual needs [33]

Showrooming

Comparing prices online while in a physical store [33]

Price Fixing

Illegal practice of setting prices with competitors [34]

Predatory Pricing

Selling below cost to punish or drive out a competitor [34]

Upstream Partners

Firms supplying raw materials and parts [35]

Downstream Partners

Marketing channels that distribute products to customers [35]

Value Delivery Network

Company, suppliers, and customers partnering for performance [36]

Marketing Channel

Interdependent organizations making a product available [37]

Direct Marketing Channel

Marketing channel with no intermediary levels [38]

Indirect Marketing Channel

Channel containing one or more intermediary levels [38]

Channel Conflict

Disagreement among marketing channel members on goals [39]

Vertical Marketing System

Producers, wholesalers, and retailers acting as a unified system [40]

Corporate VMS

Single ownership of multiple distribution stages [40]

Contractual VMS

Independent firms joining together through contracts [40]

Administered VMS

Coordination through the size and power of one party [40]

Disintermediation

Cutting out intermediaries or displacing traditional resellers [41]

Intensive Distribution

Stocking products in as many outlets as possible [42]

Selective Distribution

Using more than one but fewer than all intermediaries [42]

Exclusive Distribution

Giving limited dealers exclusive rights in territories [42]

Retailing

Selling products directly to final consumers for personal use [43]

Specialty Store

Narrow product line with deep assortment [44]

Department Store

Wide variety of product lines in distinct sections [44]

Convenience Store

Small store carrying high-turnover convenience goods [45]

Superstore

Larger than supermarkets with large nonfood assortment [45]

Category Killer

Giant specialty store carrying very deep assortments [46]

Discount Store

Standard merchandise at lower prices via lower margins [47]

Off-Price Retailer

Buying below wholesale and charging less than retail [47]

Wholesaling

Selling goods in large quantities for resale or business use [48]

Merchant Wholesaler

Independently owned business that takes title to merchandise [49]

Broker

Brings buyers and sellers together and assists negotiation [49]

Promotion Mix

Specific blend of advertising, PR, and sales tools [50]

Advertising

Paid form of nonpersonal presentation by a sponsor [50]

Informative Advertising

Used primarily when introducing a new product category [51]

Persuasive Advertising

Building selective demand as competition increases [51]

Reminder Advertising

Maintaining relationships for mature products [52]

Madison & Vine

The merging of advertising and entertainment [53]