Business Foundations Unit 5: Vocab Terms

Consumer behavior

refers to the ways individuals or organizations search for, evaluate, purchase, use, and dispose of goods and services

Behavioral segmentation

is market segmentation based on certain consumer behavior characteristics

Customer relationship management (CRM)

is the process of establishing long-term relationships with individual customers to foster loyalty and repeat business

Demographic segmentation

is market segmentation according to age, race, religion, gender, ethnic background, and other demographics

Geographic segmentation

is market segmentation according to geographic characteristics

Market research

is the process of gathering and analyzing market information for making marketing decisions

Market segment

is a subgroup of potential customers who share similar characteristics and, therefore, similar product needs and preferences

Marketing mix

is the combination of four factors—product, price, promotion, and place—designed to serve a targeted market

Marketing plan

is a written document that specifies the marketing activities that will take place to achieve organizational objectives

4 P's

price, product, place, promotion (explain further)

Positioning

is the process of developing a unique marketing mix that best satisfies a target market

Psychographic segmentation

is market segmentation based on lifestyles, personality traits, motives, and values

Target market

is a specific group of potential customers on which a firm focuses its marketing efforts

Product life cycle

is a theoretical model describing a product's sales and profits over the course of its lifetime

Product differentiation

is the process of distinguishing a product from its competition in real or perceived terms to attract customers

Product line

is a group of similar products marketed to one general market

Product mix

is the combination of all product lines offered for sale by a company

Branding

creative and media based planning and buying; based in advertising options and online selling of ad space.

Brand equity

is the overall value of a brand's strength in the market

Packaging

How the product is packaged: size, colors, claims, displays etc.

Cost-based pricing

is based on covering costs and providing for a set profit

Demand-based pricing

is pricing a good or a service based on the demand for a product or its perceived value

Target costing

estimates the value customers receive from a product and, therefore, the price they are willing to pay and then subtracts an acceptable profit margin to obtain a desired cost

Price segmentation

changing or offering different prices depending on the customer's willingness to pay

Competition-based pricing

is a pricing strategy based on what the competition is charging

Price skimming

involves charging a high price for a product initially and then lowering the price over time

Penetration pricing

is a strategy of charging the lowest possible price for a new product

Psychological pricing

(odd or fractional pricing) is the practice of charging a price just below a whole number to give the appearance of a significantly lower price

Loss leader

is a product that is priced below its cost

Reference pricing

refers to listing an inflated price (the regular retail price or the manufacturer's suggested retail price) that is then discounted to appear as if it is a good value

Price adjustment strategies

how you set the price and adjust them; market based price strategies, value based, cost based, psychological etc.

Advertising

is paid, impersonal mass communication from an identified sponsor to persuade or influence a targeted audience

Public relations

is a management function that establishes and maintains mutually beneficial relationships between an organization and its stakeholders

Personal selling

is direct communication between a firm's sales force and potential buyers to make a sale and build good customer relations

Direct marketing

strategy where businesses communicate directly with target customers without using intermediaries, aiming to prompt a specific, measurable response

Promotional mix

is the strategic combination of promotional tools used to reach targeted customers to achieve marketing objectives

Product placement

is a technique of prominently displaying products in television shows, movies, and video games, where they will be seen by potential customers

Distribution channel

is a set of marketing intermediaries who buy, sell, or transfer title (or ownership) of products as they are passed from producer to consumer or business user

Marketing intermediary

are businesses or persons that move goods and services between producers and consumers or between business users

Retailer

are intermediaries that buy products for resale to consumers