Marketing exam 2 terms

product positioning

the strategic process of defining how a product stands out in the market and how it is perceived by target customers relative to competitors

product repositioning

Changing the place a product occupies in a consumers mind relative to a competitive products

perceptual map

A means of displaying in two dimensions the location of products of brands in the minds of consumers to enable a manger to see how they precise competing products or brands as well as the firms own product or brand

Market Segmentation

Involves aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action

product differentiation

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive a product of being different and better than competing products

usage rate

The quantity consumed or patronage (store visits) during a specific period

80/20 rule

A concept that suggests 80 percent of a firms sales are obtained from 20 percent of its costumers

Customer Life Time Value (CLV)

the total revenue a business can expect from a single customer over the entire period of their relationship.

= ($Average Purchase Value) x (Average Purchase Frequency) x (Average Customer Lifespan).  

product line

A group of product or service items that are closely related because they satisfy a class of needs are used together are sold to the same customer group are distributed through the same outlet or fall within a given price range

product mix

Consist of all the product lines offered by an org

open innovation

Practices/processes that encourage the use of external/internal collaboration/ideas when convincing, producing, and marketing new products and services

Product Life Cycle

Describes the stages a new product goes through in the market place introduction growth maturity and decline

product class

Refers to the entire product cat or industry

product form

Pertains to variations 3 of a product within the product class

product modification.

Involves altering one or more products characteristics such as its quality performance or appearance to increase the products values to costumers and increase sales

market modification

Strategies by which a company tries to find new customers, increase a products use amount among existing customers, or create new situations

trading up

adding value to the product or line thought additional features or higher quality materials

Trading down

Reducing a products number of features, quality, or price

Branding

A marketing decision in which an org uses a name phrase design symbols or combination of these to identify its products and distinguish them from those of competitors

Brand name

Any word device (design/sound/shape/color) or combination of these used to distinguish a sellers products or services

Brand personality

A set of human characteristics associated w a brand name

Brand equity

The added value a brand name gives to a product beyond the function benefits provided

Brand purpose

The reason why a brand exists; the solution/place it has in consumers lives; the brands role in making society better off

Brand licensing

A contractual agreement whereby one company allows its brand names or trademarks to be used w products or services offered by anther company for royalty or fee

Private branding

A branding strategy used when a company manufactures products but sells then under the brand name of a whole seller or retail see also called private label or reseller branding

Packaging

A component of a product that refers to any container in white it is offered for sale and in which label information in conveyed

Label

An integral part of the package that typically identifies the product or brand who made it where and when it was made how it's used and package contents and ingredients

Four Is of service

The 4 unique elements to services; intangibility, inconsistency, inseparability, and inventory

Sevens Ps of marketing

An expanded marketing mix concept to develop a marketing strategy for services that includes the 4Ps (product, price, place, promotion) + people, physical environment, and process

Price

The money or other considerations exchanged for the ownership of use of a product or service

Pricing objectives

Specifying the role of price in an org marketing and strategic plans

Demand curve

A graph that relates the quantity sold and price showing the max number of units that will be sold at a given price

Demand factors

Factors that detrime consumers willingness and ability to pay for products and services

Total cost

The total expense incurred by a firm producing and marketing a product total cost is the sum or fixed cost and variable cost

Fixed cost

The sum of the expenses of the firm that are stable and do not change with the quantity of product that is produced and sold

Variable cost

The sum of the expense of the firm that vary directly with the quantity of a product is produced and sold

Unit variable cost

Varbile cost expressed on per unit basis for a product

Contribution margin

expressed on a per unit basis as the difference between unit selling price and unit variable cost

Break even analysis

A technique that analyzes the relationship between total refund and total cost to determine profitability at various levels of output

Break even point

The quantity at which total revenue and total cost are equal

Break even chart

A graphic presentation of analysis that shows when total refund and total cost intersect to identify profit it loss for a given quantity sold

Skimming pricing

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovation

Penetration pricing

Setting a low initial price on a new product to appeal immediately to the mass market

Prestige pricing

Setting a high price so that quality or stats conscious consumers will be attracted to the product and buy it

Price lining

a pricing strategy where a company sets a limited number of fixed price points for a product line to make it easier for consumers to choose between different options. This strategy groups products at distinct price levels, such as basic, mid-range, and premium, to clearly communicate different levels of quality or features

Odd even pricing

Setting prices a few dollars or cents under an even number

Target pricing

a strategy where a company sets a price based on what customers are willing to pay and the desired profit margin, then works backward to determine the maximum cost to produce the product.

= Estimated Market Price - Desired Profit Margin

Bundle pricing

Marketing two or more products in a single package price

Standard makeup pricing

Adding a fixed percentage to the cost of all items in a specific product class

Cost plus pricing

a method where a company determines the selling price of a product by adding a fixed percentage, or markup, to the total cost of producing it.

= Total Cost + Markup

Above/at/below market pricing

a company's strategy of setting a product's price in relation to its competitors.

• Above-market pricing: higher price than competitors, signaling premium quality + target a niche market.

• At-market pricing: matches/similar to competitors' prices, suitable for common products.

• Below-market pricing: lower price than competitors, attract budget-conscious customers + gain market share. 

Loss lender pricing

Deliberately selling a product belows its customary price not to increase sales but to attract customers attention to it in hopes that they will buy others products with larger markups as well

Fixed price policy

Setting one price for all buyers of a product or service

Dynamic pricing policy

Setting different prices for products and services in real time in response to supply and demand conditions; also called flexible price policy

Product line pricing

Setting prices for all items in a product line to cover the total cost and produce for the complete line not necessarily for each item

Promotional allowance

Cash payments or an extra amount of free goods award sellers in the marketing channel for undertaking certain adverting or selling activities to promote a product

Everyday low prices

The orations of replacing promotional allowances w lower manufacturing list prices

Price fixing

A conspiracy amount firms to set prices for a product

company

A business or association usually formed to manufacture or supply products or services for profit.

Five C's of Marketing

Company, Customers, Collaborators, Competitors, Context

context

the circumstances that form the setting for an event, statement, or idea, and in terms of which it can be fully understood and assessed.

customer

someone who pays for goods or services

Competitors

companies in the same industry that sell similar products or services to customers

collaborators

firms that facilitate or provide one or more of the marketing functions other than buying or selling

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

market research

the action or activity of gathering information about consumers' needs and preferences.

Primary Research

original research conducted for a specific marketing situation

Secondary Research

past research which has already been performed and often already published

Insight

Deep truth relevant to your brand and audience that if solved has the power to move the customer to a desired future state (figuring out the why)

market segments

groups of customers within a large market who share common characteristics

target market

a set of buyers sharing common needs or characteristics that the company decides to serve

mass customization

tailoring products or services to the tastes of individual customers on a high-volume scale

build to order

manufacturing a product only when there is an order from a customer

Cannibalization

a situation that occurs when sales of a new product cut into sales of a firm's existing products

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

demographic segmentation

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

psychographic segmentation

dividing a market into different segments based on social class, 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

Personas

Charter descriptions of a brands typical customers.

Positioning statement

a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

product

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

nondurable good

an item used in one or few uses

durable good

last longer then a couple uses

Servcies

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

consumer products

Products purchased by the ultimate consumer

business/industrial products

Products organizations buy that assist in providing other products for resale; also called B2B products

convince products

Items that the consumer purchases frequently and with a minimum of shopping effort.

shopping products

Items for which the consumer compares several alternatives on criteria such as price, quality, or style.

specialty products

items that the consumer makes a special effort to search out and buy.

unsought products

Items that the consumer does not know about or knows about but does not initially want.

derived demand

The demand for industrial products and services that is driven by, or derived from, the demand for consumer products and services.

product line extension

adding additional products to an existing product line in order to compete more broadly in the industry

brand extension

extending an existing brand name to new product categories

stage gate

a project management technique that breaks a project into distinct phases, with a decision point at the end of each stage. At each _, key stakeholders evaluate the project's progress against specific criteria to decide whether to continue, hold, revise, or terminate it, ensuring projects stay on track and aligned with business objectives.

standard test market

a test market in which the company sells the product through its normal distribution channels in a number of test market citys

controlled test market

an entire test program conducted by an outside service in a market in which it can guarantee distribution

trial

the consumer's actual first purchase and use of the product or brand

repeat purchasers

people who tried the product, were satisfied, and bought again

deletion

dropping the product from the company's product line

harvesting

when a company retains the product but reduces marketing costs