Marketing exam 2

Marketing Segments

Diving or segmenting people into different groups of potential buyers with similar characteristics.

Targeting Segments

Selecting market segments to pursue with plans.

Positioning

Creating a preferred position for the company’s products in the minds of consumers.

Targeted Marketing

Differentiated marketing for selected groups of customers.

Mass Marketing

Undifferentiated marketing, selling the same products to everybody.

Customer Lifetime Value (CLV)

The financial worth of a customer to a company over the course of their relationship.

Customer Acquisition Cost (CAC)

The cost to acquire a customer.

Segmentation Bases

Criteria used to classify and divide buyers into different groups.

Demographic Segmentation

Segmenting based on age, gender, income, race, and ethnicity.

Psychographic Segmentation

Segmenting based on lifestyle and values.

Product Dominant Marketing

Focus on lower cost products with economies of scale.

Service Dominant Marketing

Integrates product, price, and services of an offering.

Brand Name

The spoken part of a brand's identity.

Brand Extension

Utilizing an existing brand name for a new product category.

Cannibalization

When a firm’s new offering eats into sales of its older offerings.

Packaging

Communicates brand benefits and protects the product.

Product Life Cycle

Helps marketers manage the stages of a product's acceptance in the marketplace.

Introduction Stage

First stage of PLC after a product is launched.

Growth Stage

The stage where the product is accepted by the market.

Maturity Stage

The stage where products level off in growth.

Decline Stage

The stage where product sales decrease.

Breaking Even Point

Where total costs equal total revenue.

Price Elasticity

People's sensitivity to price changes, affecting demand.

Robinson-Patman Act

Limits price discrimination among customers.

Predatory Pricing

Setting excessively low prices to drive competitors out of business.

Bait and Switch

Baiting customers with low prices and then switching to higher prices; illegal in many states.