chapter 4

utility

A product’s ability to satisfy both functional needs and symbolic or psychological wants.

exchange

The trading of one thing of value for another thing of value. Sellers do it to grow there business and make a profit. Sometimes satisfaction sometimes is an issue

Target market

The market segment or group within the market segment toward which all marketing activities will be directed.

target audience

The specific group of individuals to whom the advertising message is directed.

business advertising

Advertising directed at people who buy goods and services for resale, for use in a business or organization, or for manufacturing other products

behavioristic segmentation

Method of segmenting consumers based on the benefits being sought.

user status

Six categories into which consumers can be placed, which reflect varying degrees of loyalty to certain brands and products. The categories are sole users, semisole users, discount users, aware nontriers, trial/rejectors, and repertoire users.

sole users

most brand loyal and require little to no advertising

semisole users

typically use brand A but has alternative selection if it is not available or if alternative is discounted

discount users

the Seminole users or competitive brand B. Won’t buy A at full price but will be tempted by a discount

aware nontriers

use competitive products but havn’t taken a liking to brand A, advertising could help but it doesn’t offer much potential

trial rejectors

tried brand A and didn’t like it, only a reformulation of brand A could bring them back

repertoire users

perceive two or more brands to have superior attributes and will pay full price, they are brand switchers and respond well to persuasive advertising

purchase occasion

A method of segmenting markets on the basis of when consumers buy and use a good or service.

benefits

The particular product attributes offered to customers, such as high quality, low price, status, speed, sex appeal, good taste, and so on.

geographic segmentation

A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region.

demographic segmentation

Based on a population’s statistical characteristics such as gender, age, ethnicity, education, occupation, income, or other quantifiable factors.

psychographic segmentation

Method of defining consumer markets based on variables including values, attitudes, personality, and lifestyle.

primary motivation

The pattern of attitudes and activities that help people reinforce, sustain, or modify their social and self-image. An understanding helps advertisers promote and sell goods and services

resources

A term in the Values and Lifestyles (VALS) typology relating to the range of psychological, physical, demographic, and material capacities that consumers can draw upon. The resource axis includes education, income, self-confidence, health, eagerness to buy, and energy level.

business markets

A term in the Values and Lifestyles (VALS) typology relating to the range of psychological, physical, demographic, and material capacities that consumers can draw upon. The resource axis includes education, income, self-confidence, health, eagerness to buy, and energy level.

primary demand trend

The projection of future consumer demand for a product category, based on past demand and other market influences.

product concept

The consumer’s perception of a product as a “bundle” of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.

marketing mix

Four elements, called the 4Ps (product, price, place, and promotion), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.

psychological pricing

Using price as a means of influencing a consumer’s behavior or perceptions; for example, using high prices to reinforce a quality image, or selling at $2.99 instead of $3.00 to make a product appear less expensive.

direct distribution

The method of marketing in which the manufacturer sells directly to the customers without the use of retailers.

network marketing

A method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer.

reseller

Businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. The most common examples are retail stores and catalog retailers.

distribution channel

The network of all the firms and individuals that take title, or assist in taking title, to the product as it moves from the producer to the consumer.

intensive distribution

A distribution strategy based on making the product available to consumers at every possible location so that the consumers can buy with a minimum of effort.

selective distribution

Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.

exclusive distribution

The strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect other dealers in a geographic region.

vertical marketing system

A system in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a cooperative group to meet consumer needs.

retail cooperative

A group of independent retailers who establish a central buying organization (a wholesaler) to acquire discounts from manufacturers and gain economies from joint advertising and promotion efforts.

franchising

A type of vertical marketing system in which dealers pay a fee to operate under the guidelines and direction of the parent company or manufacturer.

promotion element

Includes all market-related communications between the seller and the buyer.

marketing communications

The various efforts and tools companies use to communicate with customers and prospects, including newspaper ads, event sponsorship, publicity, telemarketing, digital ads, and coupons, to mention just a few.