Marketing Test 2 (Ch 5 - 9)

Consumer buyer behavior

The buying behavior of final consumers—individuals and households that buy goods and services for personal consumption.

Consumer market

All the individuals and households that buy or acquire goods and services for personal consumption.

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Subculture

A group of people with shared value systems based on common life experiences and situations.

Total market strategy

Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences.

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Reference group

A group that serves as direct or indirect point of comparison or reference in forming a person's attitudes or behavior.

Opinion leader

A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.

Word-of-mouth influence

The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.

Influencer marketing

Enlisting established influencers or creating new influencers to spread the word about a company's brands.

Online social networks

Online social communities—blogs, online social media, brand communities, and other online forums—where people socialize or exchange information and opinions.

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions.

Personality

The unique psychological characteristics that distinguish a person or group.

Motive (drive)

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Learning

Changes in an individual's behavior arising from experience.

Belief

A descriptive thought that a person holds about something.

Attitude

A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

Cognitive dissonance

Buyer discomfort caused by postpurchase conflict.

New product

A good, service, or idea that is perceived by some potential customers as new.

Adoption process

The mental process through which an individual passes from first hearing about an innovation to final adoption.

Stages in the Adoption Process

1) Awareness: The consumer becomes aware of the new product but lacks information about it.
2) Interest: The consumer seeks information about the new product.
3) Evaluation: The consumer considers whether trying the new product makes sense.
4) Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value.
5) Adoption: The consumer decides to make full and regular use of the new product.

Business buyer behavior

The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented,
or supplied to others.

Business buying process

The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands.

Derived demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

Supplier development

Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others.

Straight rebuy

A business buying situation in which the buyer routinely reorders something without modifications.

Modified rebuy

A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.

New task

A business buying situation in which the buyer purchases a product or service for the first time.

Systems selling (or solutions selling)

Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

Buying center

All the individuals and units that play a role in the purchase decision-making process.

E-procurement

Purchasing through electronic connections between buyers and sellers—usually online.

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 (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 groups.

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 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 (cross-market) 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 (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 targets several market segments and designs separate offers for each.

Concentrated (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 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 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.

Consumer product

A product bought 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 product

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 product

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 (or product portfolio)

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 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 brand (or 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

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

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.

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.

Style

A basic and distinctive mode of expression.

Fashion

A currently accepted or popular style in a given field