marketing unit 2

product

a good, service, or idea that satisfies a consumer’s want or need

product development

product features, brand name, warranties, etc.

price

what is exchanged for the product, what customers are willing and able to pay

place

getting product into customer’s hands; where to shop, how to distribute, online, resellers, etc.

promotion

all techniques sellers use to inform people about their products & motivate them to purchase those products

s

strengths; refer to those things that a company does well; sources of competitive advantage- positive attributes that sets one company apart from its competitors

w

weaknesses; refer to those areas where a company is lacking in comparison to its competitors; often opposite of strengths

o

opportunities; refer to external, or environmental factors that can help the business

t

threats; external factors that could hurt a company’s prospects

market segmentation

the process of classifying people who form a given market into smaller groups

demographic

refer to statistics that describe a population in terms of personal characteristics (age, race, gender, income, marital status, religion, family size, family life cycle, occupation, education, nationality)

geographic

segments the market based on where people live (country, state, county, city/town, neighborhood, density, region)

psychographic

involves grouping people w/ similar attitudes/opinions, interest, activities, hobbies, personalities and values, lifestyles, how people spend their time and money

behavioral characteristics

based on purchasing related behavior, involves analyzing customers w/regard to sales generated, shopping patterns, and purchase decisions (purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness stage, marketing factor sensitivity)