Flashcards on Marketing review

question

What is the 1st step in determining whom to approach about buying a product?
answer

Market Segmentation
question

A Market Is…
answer

1. people or organizations with 2. needs or wants, and with 3. the ability and 4. the willingness to buy
question

Market Segment
answer

a subgroup of people or orgs sharing one or more characteristics that cause them to have similar product needs (should respond similarly to marketing mix)
question

Market Segmentation
answer

the process of dividing a market into meaningful, relatively similar groups (wasn’t used very much until the 1960s)
question

The Importance of Market Segmentation (3)
answer

1. markets have a variety of product needs and preferences 2. marketers can better define customer needs 3. decision makers can define objectives and allocate resources more accurately
question

Criteria for Segmentation:
answer

1. substantiality 2. identifiability and measurability 3. accessibility (reachable with marketing mix) 4. responsiveness
question

Substantiality
answer

segment must be large enough to warrant a special marketing mix
question

Responsiveness
answer

unless segment responds to a marketing mix differently, no separate treatment is needed
question

Bases for Segmentation
answer

geography, demographics, psychographics, benefits sought, usage rates
question

Geographic Market Segmentation
answer

1. region of the country or world 2. market size 3. market density (# people per unit of land) 4. climate
question

Benefits of Regional Segmentation
answer

1. new ways to generate sales in sluggish and competitive markets 2. regional brands appeal to local preferences 3. quicker reaction to competition
question

Demographic Segmentation
answer

age, gender, income, ethnic background, family life cycle
question

Family Life Cycle
answer

1. age 2. marital status 3. children
question

Psychographic Segmentation
answer

market segmentation on the basis of personality, motives, lifestyles, and geodemographics (hyvee sells black & gold shirts)
question

Lifestyle Segmentation
answer

how time is spent, beliefs, socioeconomic (income and education)
question

Geodemographic Segmentation
answer

segmenting potential customers into neighborhood lifestyle categories (ex. wouldn’t put Saks 5th ave in broadway st.)
question

Benefit Segmentation
answer

the process of grouping customers into market segments according to the benefits they seek from the product 1. usage-rate segmentation 2. 80/20 principle
question

Usage-Rate Segmentation
answer

dividing a market by the amount of product bought or consumed
question

80/20 Principle
answer

pareto’s principle that 80% of goods are purchased by 20% of your customers
question

Bases for Segmenting Business Products
answer

producers, resellers, government, institutions ==> company characteristics and buying processes
question

Company Characteristics
answer

geographic location, type of company, company size, volume of purchase, product use
question

Buyer Characteristics
answer

1. satisficers 2. optimizers
question

Satisficers
answer

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
question

Optimizers
answer

business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids and study all proposals carefully before selecting one
question

Buyer Characteristics
answer

demographic, decision style, tolerance for risk, confidence level, job responsibilities
question

Steps in Segmenting Markets
answer

1. select a market for study 2. choose bases for segmentation 3. select descriptors 4. profile and analyze segments 5. select target markets 6. design, implement, maintain marketing mix
question

Undifferentiated Strategy for Selecting Target Markets
answer

go after everyone with one marketing mix and one product (mass-marketing philosophy), likely used by marketers of commodity products. Advantage: potential savings on production and marketing costs
question

Concentrated Strategy for Selecting Target Markets (definition and advantages and disadvantages)
answer

a niche strategy used to select one segment of a market for targeting marketing efforts. advantages: concentration of resources. meets narrowly defined segment disadvantages: segments too small, large competitors may market to niche segment
question

Multisegment Targeting Strategy
answer

chooses two or more well-defined market segments and develops a distinct marketing mix for each advantages: greater financial success disadvantages: higher costs, cannibalization
question

Costs of Multisegment Targeting Strategy
answer

product design, production, promotion, inventory, marketing research and management costs. cannibalization!
question

One-to-One Marketing is:
answer

1. individualized 2. information-intense 3. long-term 4. personalized
question

Mass Marketing is in ___.
answer

decline
question

Positioning
answer

the place a product brand or group of products occupies in consumers minds relative to competing offerings. “what the product does & who is it for?”
question

Positioning
answer

developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or org in general
question

Positioning of Proctor & Gamble Detergents
answer

they own tide cheer bold gain era etc, nearly all of the market -cannibalization occurs
question

Effective Positioning
answer

1. assess the positions occupied by competing products 2. determine dimensions underlying these positions 3. choose a market position where marketing efforts will have the greatest impact
question

Product Differentiation
answer

a positioning strategy that some firms use to distinguish their products from those competitors
question

Perceptual Mapping
answer

a means of displaying the location of products, brands or groups of products in customers’ minds
question

Positioning Bases
answer

attribute (association of a product w/ a product attribute), price and quality, use or application, product user, product class, competitor, emotion
question

Repositioning
answer

changing consumers’ perceptions of a brand in relation to competing brands -used to sustain growth in slow markets or to correct positioning mistakes
question

Examples of repositioning
answer

1. national pork brand’s campaign of “the other white meat” 2. wal-mart’s expansion into a super-market industry 3. cadillac repositioning itself as a car for younger drivers
question

Malcolm Gladwell video:
answer

-howard moskawich reinvented spaghetti sauce – developed diet pepsi formula -1/3 of americans want chunky spaghetti sauce, got campbells to create it -people don’t know what they want (can’t explain it) -horizontal segmentation (different types of mustard) -no perfect way to make a dish *embracing the diversity of humans allows us to find true happiness

Get instant access to
all materials

Become a Member