Marketing Quiz 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

Actually differentiating the market offering to create superior customer value

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Geographic Segmentation

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

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

Gender Segmentation

Dividing a market into different segments based on gender

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 marketing 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

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Target Market

A set of buyers who share common needs or characteristics 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 offer

Differentiated Marketing

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

Concentrated Marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments of niches

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Local Marketing

Tailoring brands and marketing to the needs and wants of local customer segments--cities, neighborhoods, and even specific stores

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 Advantage

An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices

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

Product

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

Services

An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

Consumer Product

A product by final consumers for personal consumption

Convenience Product

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

Shopping Products

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

Specialty Product

A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Unsought Product

A consumer product that the consumer either does not know about or knows about but does not normally consider buying

Industrial Products

A product bought by individuals and organizations for further processing or for use in conducting a business

Social Marketing

The use of traditional business 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 satisfy stated or implied customer needs

Brand

A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

Packaging

The activities of designing and producing the container or wrapper for a product

Product Line

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, 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 particular seller offers for sale

Service Intangibility

Services 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 the 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 service firm profits with employee and customer satisfaction

Internal Marketing

Orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction

Interactive Marketing

Training service employees in the fine art of interacting with customers to satisfy their needs

Brand Equity

The differential effect that knowing the brand name has on customer response to the product or its marketing

Brand Value

The total financial value of a brand

Store Brands

A brand created and owned by a reseller of a product or service

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

New Product Development

The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts

Idea Generation

The systematic search for new product ideas

Crowdsourcing

Inviting broad communities of people--customers, employees, independent scientists and researchers, and even the public at large--into the new product innovation process

Idea Screening

Screening new product ideas to spot good ones and drop poor ones as soon as possible

Product Concept

A detailed version of the new product idea stated in meaningful consumer terms

Concept Testing

Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

Marketing Strategy Development

Designing an initial marketing strategy for a new product based on the product concept

Business Analysis

A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives

Product Development

Company growth by offering modified or new products to current market segments

Test Marketing

The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

Commercialization

Introducing a new product into the market

Customer-centered new product development

New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

Team-based new product development

New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

Product Life Cycle

The course of a product's sales and profits over its lifetime

Style

A basic and distinctive mode of expression

Fashion

A currently accepted or popular style in a given field

Fad

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Introduction Stage

The PLC stage in which a new product is first distributed and made available for purchase

Growth Stage

The PLC stage in which a product's sales start climbing quickly

Maturity Stage

The PLC stage in which a product's sales growth slows or levels off

Decline Stage

The PLC stage in which a product's sales fade away

Price

The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Customer value-based pricing

Setting price based on buyers' perceptions of value rather than on the seller's cost

Good-value Pricing

Offering just the right combination of quality and good service at a fair price

Value-added Pricing

Attaching value-added features and services to differentiate a company's offers and charging higher prices

Cost-based Pricing

Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Fixed Costs

Costs that do not vary with production or sales level

Variable Costs

Costs that vary directly with the level of production

Total Costs

The sum of fixed and variable costs for any given level of production

Cost-plus pricing

Adding a standard markup to the cost of the product

Break-even Pricing

Setting price to break even on the costs of making and marketing a product or setting price to make a target return

Competition-based Pricing

Setting prices based on competitors' strategies, prices, costs, and market offerings

Target Costing

Pricing that starts with an ideal selling price, then target costs that will ensure that the price is met

Demand Curve

A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged

Price Elasticity

A measure of the sensitivity of demand to changes in price

Market-skimming Pricing

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

Market-penetration Pricing

Setting a low price for a new product in order to attract a large number of buyers and a large market share

Product Line Pricing

Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices

Optional-product Pricing

The pricing of optional or accessory products along with a main product

Captive-product Pricing

Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console

By-product pricing

Setting a price for by-products to help offset the costs of disposing them and help make the main product's price more competitive

Product Bundle Pricing

Combining several products and offering the bundle at a reduced price

Discount

A straight reduction in price on purchases during a stated period of time or of larger quantities

Allowances

Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's product in some way

Segmented Pricing

Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs

Psychological Pricing

Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product

Reference Prices

Prices that buyers carry in their minds and refer to when they look at a given product

Promotional Pricing

Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales