BA 223 Principles of Marketing - Exam 2 Study Guide

Comprehensive vocabulary flashcards covering key marketing concepts, strategies, metrics, and channel structures from Chapters 9, 11, 12, 13, 15, and 16.

Segmentation, Targeting, and Positioning (STP)

Process that identifies customer groups, selects which groups to serve, and establishes how customers should perceive the offering.

Geographic Segmentation

Segmenting markets based on location, such as country, region, city, or neighborhood.

Demographic Segmentation

Segmenting markets by measurable traits, including age, income, education, and gender.

Psychographic Segmentation

Segmenting markets based on lifestyle, self-values, and self-concept.

Benefit Segmentation

Segmenting markets based on the benefits sought by customers, such as convenience, savings, prestige, or durability.

Behavioral Segmentation

Segmenting markets based on purchase occasion, loyalty, frequency, and usage.

Self-values

Long-term goals and beliefs that guide a person's life.

Self-concept

How people see themselves.

Lifestyle

How people live.

Market Basket Analysis

A technique that finds products commonly purchased together.

Identifiable (Attractiveness Criterion)

The segment criterion requiring that customers can be recognized and distinguished.

Substantial (Attractiveness Criterion)

The segment criterion requiring enough market size and purchasing power.

Reachable (Attractiveness Criterion)

The segment criterion requiring that the firm can communicate with and serve the customers.

Responsive (Attractiveness Criterion)

The segment criterion requiring that customers respond to a distinct offering.

Profitable (Attractiveness Criterion)

The segment criterion requiring that the segment generates sufficient financial return.

Undifferentiated Targeting Strategy

A targeting strategy that uses one marketing approach for the overall market.

Differentiated Targeting Strategy

A targeting strategy that uses distinct approaches for several segments.

Concentrated Targeting Strategy

A targeting strategy focusing on one or a few narrow segments.

Micromarketing

Tailoring offerings to individuals or small local groups.

Positioning

Creating a distinct place for a brand in customers' minds.

Value Proposition

The benefits offered to customers relative to costs and alternatives.

Positioning Statement

A statement that specifies the target, benefits, and point of difference for a brand.

Perceptual Map

A chart displaying perceived brand positions.

Ideal Point

A specific segment's preferred position on a perceptual map.

Core Customer Value

The fundamental problem-solving benefit that customers buy.

Actual Product

The physical features, design, and brand of a product.

Associated Services

The extra support and value provided with a product, such as a warranty or maintenance.

Convenience Products

Products bought frequently with low effort and low comparison, widely distributed across outlets.

Shopping Products

Products for which consumers compare price, quality, and features across selective outlets.

Specialty Products

Products associated with strong customer preference, special effort, and low price sensitivity, sold in exclusive outlets.

Unsought Products

Products not normally considered or known by consumers, requiring promotion and personal selling.

Product Mix

The entire set of a firm's products and services.

Product Line

A related group of products within a firm's offerings.

Breadth

The number of product lines offered by a firm.

Depth

The number of products offered within a specific product line.

Cannibalization

A situation where one of a firm's products takes sales away from another of its own products.

Brand Equity

The value added to an offering by a brand name and customer perceptions.

Brand Associations

The ideas, feelings, and memories linked to a brand in a consumer's mind.

Brand Extension

Using an existing brand name for a new product category to expand breadth.

Line Extension

A new variation introduced within an existing product category to expand depth.

Brand Dilution

The weakening of a brand's identity caused by poorly fitting brand extensions.

Co-branding

The marketing of two brands together.

Brand Licensing

Granting contractual permission to another firm to use a brand for a fee.

Alpha Testing

Internal product testing conducted within the firm before customer exposure.

Beta Testing

External testing that allows potential users to evaluate a prototype or early product version.

Test Marketing

A limited real-market launch used to test actual products before full commercialization.

Innovators

The first adopter group to buy a new product; characterized as risk-tolerant experimenters.

Early Adopters

Early users of an innovation who act as influential opinion leaders.

Early Majority

Adopters who adopt a new product once its benefits are demonstrated.

Late Majority

Skeptical adopters who wait to purchase until a product is widely adopted.

Laggards

The last consumer group to adopt an innovation; typically resist change.

Service

An intangible deed, performance, or effort that cannot be physically possessed.

Intangibility

The service characteristic describing that services cannot be touched or inspected beforehand, requiring physical cues.

Inseparability

The service characteristic describing that services are produced and consumed simultaneously.

Heterogeneity

The service characteristic indicating that quality varies by provider and situation.

Perishability

The service characteristic indicating that unused capacity cannot be stored for the future.

Knowledge Gap

A service gap occurring when a firm misunderstands customer expectations.

Standards Gap

A service gap occurring when a firm fails to set service standards matching customer expectations.

Delivery Gap

A service gap occurring when actual service delivery falls short of established standards.

Communication Gap

A service gap occurring when promotional promises and actual service delivery do not match.

Zone of Tolerance

The range between desired service and minimum adequate service.

Cognitive Dissonance

Postpurchase doubt or tension experienced after making a buying decision.

Voice-of-Customer (VOC)

A program that systematically collects and uses customer feedback to improve offerings.

Supply Chain Management

Coordinating the production and distribution of the right quantities to the right locations at the right times.

Direct Channel

A marketing channel where the manufacturer sells directly to the consumer without intermediaries.

Indirect Channel

A marketing channel containing one or more intermediaries between the manufacturer and the consumer.

Disintermediation

The removal of intermediaries from a marketing channel.

Vertical Conflict

Disagreement between channel members situated at different levels of the marketing channel.

Horizontal Conflict

Disagreement between channel members situated at the same channel level.

Distribution Center

A facility that stores and redistributes merchandise to businesses.

Fulfillment Center

A facility that processes orders shipped directly to individual customers.

Intensive Distribution

A distribution strategy placing goods in as many outlets as possible, prioritizing coverage over control.

Selective Distribution

A distribution strategy using a chosen group of retailers to maintain moderate control.

Exclusive Distribution

A distribution strategy granting very few outlets the rights to sell, giving high control but low coverage.

Category Specialist (Category Killer)

A retailer offering a narrow merchandise category with deep assortment, often in a big-box format.

Atmospherics

The controllable physical elements of a store such as lighting, music, layout, color, and mood designed to influence customers.

Co-op Advertising

An arrangement where a manufacturer and retailer share the costs of advertising.

Share of Wallet

The proportion of category spending captured by a single firm from a customer.

Omnichannel

Connecting store, web, mobile, and other sales channels to provide a consistent customer experience.