Marketing Exam 2

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Market Targeting

Evaluating each market segment’s attractiveness and selecting one or more segments to serve

Differentiation

Designing the market offering to create superior customer value that is distinct from that offered by competitors

Positioning

Creating a clear, distinctive, and desirable place for a marketing offer relative to competing products in the minds of target consumers

Geographic Segmentation

Dividing a market into different geographical units, such as nations, states, regions, countries, cities, or even neighborhoods

Hyperlocal Social Marketing

Location-based targeting to consumers in specific locations using digital, mobile, and social media technologies

Demographic Segmentation

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Age and Life-cycle Segmentation

Dividing a market into different age and life-cycle groups

Gender Segmentation

Dividing a market into different segments based on gender or gender identity

Income Segmentation

Dividing a market into different income segments

Psychographic Segmentation

Dividing a market into different segments based on lifestyle or personality characteristics

Behavioral Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

Occasion Segmentation

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

Benefit Segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product

Intermarket Segmentation

The process of identifying and targeting groups of consumers with similar needs, behaviors, or lifestyles across different countries or geographic regions

Target Market

The total set of targeted buyers across the market segments that a company decides to serve

Undifferentiated Marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offering

Differentiated Marketing

A market-coverage strategy in which a firm targets several market segments and designs separate offerings for each

Concentrated Marketing

A market-coverage strategy in which a 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; includes hyperlocal marketing and individual marketing

Local Marketing

Targets customers within a specific geographic radius to drive in-person traffic, boost brand awareness, and increase sales

Individual Marketing

Tailoring products and marketing programs to the needs and preferences of individual customers

Product Position

The way a product is defined by consumers on important attributes—the place it occupies in consumers’ minds relative to competing products

Competitive Marketing

A strategic approach that involves analyzing competitors’ strength, weaknesses, and tactics to differentiate a brand, improve positioning, and gain market share

Value Proposition

The full positioning of a brand—the full mix of benefits on which it is positioned

Positioning Statement

A statement that summarizes company or brand positioning using this form: “For(who), who(need), our product is(what), which provides(benefits). Unlike(competitor), our product(differentiation).”

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

Service

An activity, benefit, or satisfaction offered for consumption or sale that is essentially intangible and does not result in a customer’s ownership of anything

Total Product Experience

The holistic, end-to-end journey a customer has with a product, encompassing every interaction from discovery and purchase to usage, support, and advocacy

Consumer Product

Products bought by final consumers for personal consumption

Convenience Product

Consumer products that customers usually buy frequently, immediately, with low customer involvement, and with minimal comparison and buying effort

Shopping Product

Consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style

Speciality Product

Consumer products with unique characteristics or brand identifications for which buyers are willing to make a special purchase effort

Unsought Product

Consumer products that the consumer either does not know about or knows about but does not normally consider buying

Industrial Product

Products bought by individuals and organizations for further processing, use in conducting a business, or resale

Social Marketing

The use of traditional marketing concepts and tools to encourage behaviors that will create individual and societal well-being

Product Quality

The characteristics of a product or service that bear on its ability to consistently and reliably satisfy stated or implied customer needs

Branding

The strategic process of creating a unique name, image, and identity to build a distinct, positive, and lasting perception of a company, product, or service in the minds of consumers

Sub-brand

A secondary brand created by a parent company to target a specific market segment, offering a distinct identity while leveraging the credibility and reputation of the main brand

Packaging

Designing and producing the container or wrapper for a product

Logo

A graphic mark, symbol, or stylized text that serves as the visual face of a brand, used to foster immediate recognition, convey brand personality, and differentiate a company from competitors in marketing materials

Product Line

A group of products from a company that are closely related because they function in a similar manner, are sold to similar customer groups, serve similar customer needs, are marketed through the same types of outlets, or fall within given price ranges

Product Mix

The set of all product lines and items that a seller offers for sale

Service Intangibility

Services usually cannot be seen, tasted, felt, heard, or smelled before they are bought

Service Inseparability

Services are produced and consumed at the same time and cannot be separated from their providers

Service Variability

The quality of services may vary greatly depending on who provides them and when, where, and how they are provided

Service Perishability

Services cannot be stored for later sale or use

Service Profit Chain

The chain that links customer satisfaction and profits for service firms with employee satisfaction

Service Differentiation

The marketing process of distinguishing a company’s service offering rom competitors by highlighting unique features, superior quality, or exceptional customer experiences

Internal Marketing

The strategic promotion of a company’s goals, culture, products, and values to its own employees

Interactive Marketing

A dynamic, two-way strategy that uses customer data, behaviors, and preferences to create personalized engagement rather than passive, one-way messaging

Brand Equity

The differential effect that knowing the brand name has on a customer’s emotions, attitudes, and behaviors related to the product or its marketing

Brand Value

The total financial value of a brand

National Brand

A product distributed widely, often nationwide, under a brand name owned by the manufacturer or producer rather than a retailer

Store Brand

Brands created and owned by a reseller of a product or service

Licensing

Entering a global market by developing an agreement with an entity within that market to use the company’s brand, trademark, patent, trade secret, manufacturing process, or some other item of value in return for some payment

Co-branding

The practice of using the established brand names of two different companies on the same product

Line Extension

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

Brand Extension

Extending an existing brand name to new product categories

Multibrands

A marketing approach where a single company owns and manages two or more distinct, competing brands within the same product category

New Brands

Emerging brands that leverage generative AI, niche creator partnerships, and human-centric narratives to challenge established players