Intro to Marketing Chapter 7, 8, 9, 10, 11 – Flashcards
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market segmentation
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Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
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market targeting
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Evaluating each market segment's attractiveness and selecting one or more segments to enter.
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differentiation
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Differentiating the market offering to create superior customer value.
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positioning
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Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
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geographic segmentation
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Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods.
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demographic segmentation
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Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
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age and life-cycle segmentation
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Dividing a market into different age and life-cycle groups.
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gender segmentation
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Dividing a market into different segments based on gender.
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income segmentation
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Dividing a market into different income segments.
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psychographic segmentation
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Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
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behavioral segmentation
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Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
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occasion segmentation
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Dividing the market into segments according to occasions when buyers get the idea to buy, actually making their purchase, or use the purchased item.
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benefit segmentation
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Dividing the market into segments according to the different benefits that consumers seek for the product.
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intermarket segmentation
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Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
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target market
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A set of buyers sharing common needs of characteristics that the company decides to serve.
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undifferentiated marketing
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A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
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differentiated marketing
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A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
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concentrated marketing
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A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
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micromarketing
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Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.
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local marketing
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Tailoring brands and marketing to the needs and wants of local customer segments- cities, neighborhoods, and even specific stores.
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individual marketing
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Tailoring products and marketing programs to the needs and preferences of individual customers.
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product position
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The way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products.
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competitive advantage
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An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.
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value proposition
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The full positioning of a brand- the full mix of benefits on which it is positioned.
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positioning statement
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A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
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product
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Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
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service
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An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
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consumer product
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A product bought by final consumers for personal consumption.
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convenience product
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A consumer product that consumers usually buy frequently, immediately, and with minimal comparison and buying effort.
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shopping product
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A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
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specialty product
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A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
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unsought product
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A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
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industrial product
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A product bought by individuals and organizations for further processing or for use in conducting a business.
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social marketing
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The use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.
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product quality
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The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
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brand
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A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or groups of sellers and differentiates them from those of competitors.
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packaging
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The activities of designing and producing the container of wrapper for a product.
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product line
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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.
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product mix
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The set of all product lines and items that a particular seller offers for sale.
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service intangibility
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Services cannot be seen, tasted, felt, heard or smelled before they are bought.
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service inseparability
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Services are produced and consumed at the same time and cannot be separated from their providers.
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service variability
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The quality of services may very greatly depending on who provides them and when, where, and how they are provided.
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service profit chain
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The chain that links service firm profits with employee and customer satisfaction.
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internal marketing
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Orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction.
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interactive marketing
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Training service employees in the fine art of interacting with customers to satisfy their needs.
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brand equity
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The differential effect that knowing the brand name has on customer response to the product or its marketing.
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brand value
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The total financial value of a brand.
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store brand
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A brand created and owned by a reseller of a product or service.
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co-branding
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The practice of using the established brand names of two different companies on the same product.
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line extension
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Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
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brand extension
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Extending an existing brand name to new product categories.
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new product development
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The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts.
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idea generation
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The systematic search for new product ideas.
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crowdsourcing
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Inviting broad communities of people-customers, employees, independent scientists and researchers, and even the public at large-into the new product innovation process.
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idea screening
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Screening new product ideas to spot good ones and drop poor ones as soon as possible.
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product concept
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A detailed version of the new product idea stated in meaningful consumer terms.
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concept testing
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Testing new product concepts with a group of target consumers to find out in the concepts have strong consumer appeal.
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marketing strategy development
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Designing an initial marketing strategy for a new product based on the product concept.
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business analysis
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A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
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product development
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Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
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test marketing
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The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.
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commercialization
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Introducing a new product into the market.
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customer-centered new product development
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New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
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team-based new product development
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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.
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product life cycle
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The course of a product's sales and profits over its lifetime.
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style
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A basic and distinctive mode of expression.
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fashion
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A currently accepted or popular style in a given field.
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fad
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A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
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introduction stage
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The PLC stage in which a new product is first distributed and made available for purchase.
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growth stage
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The PLC stage in which a product's sales start climbing quickly.
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maturity stage
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The PLC stage in which a product's sales growth slows or levels off.
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decline stage
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The PLC stage in which a product's sales fade away.
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price
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The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.
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customer value-based pricing
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Setting price based on buyers' perceptions of value rather than on the seller's cost.
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good-value pricing
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Offering just the right combination of quality and good service at a fair price.
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value-added pricing
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Attaching value-added features and services to differentiate a company's offers and charging higher prices.
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cost-based pricing
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Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.
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fixed costs
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Costs that do not vary with production or sales level.
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variable costs
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Costs that vary directly with the level of production.
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total costs
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The sum of the fixed and variable costs for any given level of production.
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experience curve
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The drop in the average per-unit production cost that comes with accumulated production experience.
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cost-plus pricing
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Adding a standard markup to the cost of the product.
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break-even pricing
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Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.
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competition-based pricing
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setting prices based on competitors' strategies, prices, costs, and market offerings.
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target costing
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Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
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demand curve
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A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
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price elasticity
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A measure of the sensitivity of demand to changes in price.
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market-skimming pricing
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Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
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market-penetration pricing
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Setting a low price for a new product in order to attract a large number of buyers and a large market share.
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product line pricing
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Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
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optional-product pricing
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The pricing of optional or accessory products along with a main product.
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captive-product pricing
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Setting a price for products that must be used along with a main product, such as blades for a razor and games for a videogame console.
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by-product pricing
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Setting a price for by-products in order to make the main product's price more competitive.
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discount
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A straight reduction in price on purchases during a stated period of time or of larger quantities.
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allowance
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Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.
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product bundle pricing
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Combining several products and offering the bundle at a reduced price.
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segmented pricing
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Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
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psychological pricing
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Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
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reference pricing
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Prices that buyers carry in their minds and refer to when they look at a given product.
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promotional pricing
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Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
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geographical pricing
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Setting prices for customers located in different parts of the country or world.
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FOB-origin pricing
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A geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination.
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uniform-delivered pricing
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A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
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zone pricing
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A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.
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basing-point pricing
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A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.
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freight-absorption pricing
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A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
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dynamic pricing
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Adjusting prices continually to meet the characteristics and needs of individual customers and satisfactions.
