Marketing Babson 1-6 – Flashcards

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Market Segmentation
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dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
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Target Marketing
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the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Market 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 customers
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Geographic Segmentation
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Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods
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Demographic Segmentation
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dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
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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, 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 make 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 from the product
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Micromarketing
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the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments- includes local and individual marketing
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Value Proposition
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the full positioning of a brand- the full mix of benefits upon which it is positioned
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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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Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
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Consumer product
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Product bought by final consumer for personal consumption
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Convenience product
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Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort
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Shopping product
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Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style
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Specialty product
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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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Consumer product that the consumer either does not know about or knows about but does not normally think of buying
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Industrial product
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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 design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group
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Product quality
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The ability of a product to perform its functions—it includes the product's overall durability, reliability, precision, ease of operation and repair, and other valued attributes
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Brand
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A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
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Packaging
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The activities of designing and producing the container or 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 (or product assortment)
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The set of all product lines and items that a particular seller offers for sale
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Brand equity
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The positive differential effect that knowing the brand name has on customer response to the product or service
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Private brand (or 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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Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or packaging sizes
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Brand extension
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Using a successful brand name to launch a new or modified product in a new category
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Service intangibility
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A major characteristic of services—they cannot be seen, tasted, felt, heard, or smelled before they are bought
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Service inseparability
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A major characteristic of services—they 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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A major characteristic of services—their quality may vary greatly, depending on who provides them and when, where, and how
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Service perishability
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A major characteristic of services—they cannot be stored for later sale or use
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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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Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction
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Interactive marketing
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Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction
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Market Offering
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basis upon which the company builds profitable customer relationships
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pure tangible good
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such as soap, toothpaste, or salt - no services accompany the product
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pure services
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doctor's exam, financial services - offer consists primarily of a service
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core customer value
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What is the customer really buying? What consumers seek from the product
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actual product
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product and service features, design, a quality level, a brand name, and packaging
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augmented product
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additional consumer services and benefits
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materials and parts
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raw materials and manufactured materials and parts. Raw materials consist of farm or natural products
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capital items
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industrial products that aid in the buyer's production or operations, including installations and accessory equipment
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supplies and services
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operating supplies, and repair and maintenance items; purchased with minimum effort or comparison
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organization marketing
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activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization
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corporate image advertising
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polishing your image
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person marketing
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activities undertaken to create, maintain, or change attitudes or behavior toward particular people
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place marketing
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activities undertaken to create, maintain, or change attitudes or behavior toward particular places
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Total Quality Management
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the company's people are involved in constantly improving the quality of products, services, and business processes
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product line length
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the number of items in the product line
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product mix width
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the number of different product lines the company carries
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mix length
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total number of items the company carries within its product lines
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product mix depth
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number of versions offered of each product in the line
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Market segmentation
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Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behavior who might require separate products of marketing mixes
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Target marketing
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
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Market positioning
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Arranging for a product 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, countries, cities, or neighborhoods
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Demographic segmentation
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Dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race, and nationality
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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 groups based on gender
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Income segmentation
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Dividing a market into different income groups
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Psychological segmentation
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Dividing a market into different groups based on social class, lifestyle, or personality characteristics
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Behavioral segmentation
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Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
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Occasion segmentation
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Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
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Benefit segmentation
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Dividing the market into groups according to the different benefits that consumers seek from the product
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Intermarket segmentation
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Forming segments of consumers who have similar needs and buying behavior 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 or characteristics that the company decides to serve
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Undifferentiated (mass) 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 (segmented) 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 (niche) 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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The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups—includes local marketing and individual marketing
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Local marketing
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Tailoring brands and promotions to the needs and wants of local customer groups—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—also labeled "markets-of-one marketing," "customized marketing," and "one-to-one marketing"
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Product position
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The way the 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 consumers greater value, either through lower prices or by 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 upon which it is positioned
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Positioning statement
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A statement that summarizes company or brand positioning—it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference)
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Consumer buyer behavior
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The buying behavior of final consumers—individuals and households who buy goods and services for personal consumption
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Consumer market
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All the individuals and households who buy or acquire goods and services for personal consumption
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Culture
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The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
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Subculture
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A group of people with shared value systems based on common life experiences and situations
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Social classes
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Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
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Group
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Two or more people who interact to accomplish individual or mutual goals
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Opinion leader
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Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others
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Lifestyle
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A person's pattern of living as expressed in his or her activities, interests, and opinions
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Personality
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The unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment
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Motive (drive)
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A need that is sufficiently pressing to direct the person to seek satisfaction of the need
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Perception
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The process by which people select, organize, and interpret information to form a meaningful picture of the world
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Learning
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Changes in an individual's behavior arising from experience
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Belief
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A descriptive thought that a person holds about something
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Attitude
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A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
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Complex buying behavior
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Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands
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Dissonance-reducing buying behavior
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Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands
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Habitual buying behavior
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Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences
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Variety-seeking buying behavior
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Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
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Need recognition
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The first stage of the buyer decision process, in which the consumer recognizes a problem or need
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Information search
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The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search
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Alternative evaluation
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The stage of the buyer decision-making process in which the consumer uses information to evaluate alternative brands in the choice set
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Purchase decision
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The buyer's decision about which brand to purchase
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Postpurchase behavior
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The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
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Cognitive dissonance
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Buyer discomfort caused by postpurchase conflict
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New product
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A good, service, or idea that is perceived by some potential customers as new
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Adoption process
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The mental process through which an individual passes from the first hearing about an innovation to final adoption
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Marketing information system (MIS)
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People, equipment, and procedures to gather, sort , analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
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Internal databases
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Electronic collections of information obtained from data sources within the company
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Marketing intelligence
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The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment
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Marketing research
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The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
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Exploratory research
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Marketing research to gather preliminary information that will help define problems and suggest hypotheses
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Descriptive research
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Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
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Casual research
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Marketing research to test hypotheses about cause-and-effect relationships
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Secondary data
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Information that already exists somewhere, having been collected for another purpose
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Primary data
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Information collected for the specific purpose at hand
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Online databases
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computerized collections of information available from online commercial sources or via the internet
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Observational research
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The gathering of primary data by observing relevant people, actions, and situations
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Survey research
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The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
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Single-source data systems
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Electronic monitoring systems that link consumers exposure to television advertising and promotion (measured using television meters)
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Environmental research
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The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
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Focus group interviewing
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Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues.
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Online (Internet) marketing research
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Collecting primary data through Internet surveys and online focus groups
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Sample
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A segment of the population selected for marketing research to represent the population as a whole
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Customer relationship management (CRM)
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
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Marketing
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The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
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Needs
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States of felt deprivation
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Wants
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The form human needs take as shaped by culture and individual personality
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Demands
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Human wants that are backed by buying power
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Marketing offer
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Some combination of products, services, information, or experiences offered to a market to satisfy a need or want
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Exchange
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The act of obtaining a desired object from someone by offering something in return
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Market
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The set of actual and potential buyers of a product or service
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Marketing management
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The art and science of choosing target markets and building profitable relationships with them
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Production concept
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The idea that consumers will favor products that are available and highly affordable
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Product concept
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The idea that consumers will favor products that offer the most in quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
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Selling concept
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The idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort
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Marketing concept
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The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
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Societal marketing concept
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A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, consumers' long run interests, and society's long run interests
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Customer relationship management
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The overall process of building and maintaining profitable customer value and satisfaction
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Customer perceived value
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The difference between total customer value and total customer cost
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Customer satisfaction
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The extent to which a product's perceived performance matches a buyer's expectations
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Partner relationship management
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Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
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Customer lifetime value
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The value of the entire stream of purchases that the customer would make over a lifetime of patronage
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Share of customer
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The portion of the customer's purchasing that a company gets in its product categories
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Customer equity
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The total combined customer lifetime values of all the company's customers
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Internet
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A vast public web of computer networks, which connects users of all types all around the world to each other and to an amazingly large information repository
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