Marketing Exam 2- Imported from Quizlet

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.

psychographic segmentation

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

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.

Income Segmentation

Dividing a market into different income segment

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 (cross-market segmentation)

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

Measurable

The size, purchasing power, and profiles of the segments can be measured

Accessible

The market segments can be effectively reached and served.

Substantial

The market segments are large or profitable enough to serve. A segment should be the largest possible homogeneous group worth pursuing with a tailored marketing program. It would not pay, for example, for an automobile manufacturer to develop cars especially for people whose height is greater than seven feet.

Differentiable

The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs

Actionable

Effective programs can be designed for attracting and serving the segments

target market

a set of buyers who share common needs or characteristics that a company decides to serve

Undifferentiated (mass) 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 (segmented) marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Concentration (niche) 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; 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 the product 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.

product differentiation

brands can be differentiated on features, performance, or style and design

services differentiation

speedy, convenient, or careful delivery

channel differentiation

gain competitive advantage through the way they design their channel's coverage, expertise, and performance

image differentiation

A company or brand image should convey a product's distinctive benefits and positioning

unique selling proposition (USP)

Each brand should pick an attribute and tout itself as "number one" on that attribute.

Important

The difference delivers a highly valued benefit to target buyers.

Distinctive.

Competitors do not offer the difference, or the company can offer it in a more distinctive way.

Communicable.

The difference is communicable and visible to buyers.

preemptive.

Competitors cannot easily copy the difference.

Affordable.

Buyers can afford to pay for the difference.

Profitable.

The company can introduce the difference profitably.

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: To (target segment and need) our (brand) is (concept) that (point of difference).

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 sale that is essentially intangible and does not result in the ownership of anything.

pure tangible good

such as soap, toothpaste, or salt - no services accompany the product

pure services

or which the market offer consists primarily of a service

consumer products

A product bought by final consumers for personal consumption.

convienence products

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.

Speciality Products

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 products

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.

Three groups of industrial products and services

materials and parts, capital items, and supplies and services.

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 line filling

adding more items within the present range of the line

product line length

the number of items in the product line

Product line stretching

occurs when a company lengthens its product line beyond its current range

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 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 service firm profits with employee and customer satisfaction.

service profit chain links

internal service quality,

satisfied and productive service employees, greater service value,

satisfied and loyal customers,

healthy service profits and growth

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 (private) brand

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.

Stages of New Product Development

1. Idea generation

2. Idea screening

3. Concept development and testing

4. Marketing strategy development

5. Business analysis

6. Product development

7. Test marketing

8. Commercialization

idea generation

The systematic search for new product ideas.

Croudsourcing

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 (PLC)

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

PLC stages

product development,