BA 370 SDSU Exam 2

Segmentation

Dividing a market into groups of consumers with similar needs or characteristics.

Geographic Segmentation

Dividing markets based on location.

Demographic Segmentation

Dividing markets based on age, income, gender, education.

Psychographic Segmentation

Dividing markets based on lifestyle, values, and personality.

Behavioral Segmentation

Dividing markets based on usage, loyalty, or purchase behavior.

Benefit Segmentation

Dividing markets based on benefits sought from a product.

Targeting

Selecting which segments to pursue.

Undifferentiated Targeting

One marketing strategy for the entire market.

Differentiated Targeting

Different strategies for multiple segments.

Concentrated Targeting

Focusing on a single niche market.

Micromarketing

Tailoring products to individual customers.

Positioning

Creating a clear and distinctive perception of a product in consumers’ minds.

Value Proposition

Statement of benefits a product delivers to customers.

Perceptual Map

Visual representation of consumer perceptions of brands.

Product

Anything of value offered to consumers.

Product Mix

All products offered by a firm.

Product Line

Group of related products.

Brand

Name, term, symbol, or design identifying a product.

Brand Equity

Value derived from consumer perception of a brand.

Family Branding

Using the same brand name across multiple products.

Individual Branding

Using separate brand names for products.

Brand Extension

Using the same brand name in a new product category.

Line Extension

Using the same brand name within the same category.

Co-Branding

Marketing two brands together.

Brand Licensing

Allowing another firm to use a brand for a fee.

Packaging

Physical container used to protect and promote a product.

Innovation

Process of turning ideas into new products or services.

Diffusion of Innovation

Process by which a new product spreads through a market.

Product Life Cycle

Stages a product goes through: introduction, growth, maturity, decline.

Price

Overall sacrifice a consumer makes to obtain a product.

Demand Curve

Relationship between price and quantity demanded.

Price Elasticity

Sensitivity of demand to price changes.

Elastic Demand

Demand is sensitive to price changes.

Inelastic Demand

Demand is not sensitive to price changes.

Cost-Based Pricing

Setting price based on costs plus markup.

Competition-Based Pricing

Setting price based on competitors.

Value-Based Pricing

Setting price based on perceived value.

EDLP

Everyday low pricing strategy.

High Low Pricing

High regular prices with frequent discounts.

Price Skimming

Setting high initial price and lowering over time.

Penetration Pricing

Setting low initial price to gain market share.

Supply Chain

System of organizations involved in producing and delivering a product.

Distribution Center

Facility that stores and redistributes goods.

Fulfillment Center

Facility that ships directly to customers.

Channel Conflict

Disagreements among supply chain members.

Omnichannel

Integration of multiple shopping channels for seamless experience.