Principles of Marketing chapter 7-12 – Flashcards
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Number of Customers
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business markets tend to have much fewer markets than consumer markets
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Concentration of Customers
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more geographically concentrated than consumer markets
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Nature of Buying
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unlike consumers, business markets approach purchases formally
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Types of Negations
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consumers generally expect sellers to set a price and credit them in terms in most situations business markets negotiate is common and expected (delivery dates, pricing terms, and payment terms)
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Buying Centers
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group or people within the or organization who make business purchase decisions 1. Initiator 2. Users 3. Influences 4. Purchasers 5. Gate Keepers
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Demand Characteristics of Business Markets
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Joint Demand Derived Demand Fluctuating Demand
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Joint Demand
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two or more items are used in a final product
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Derived Demand
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organization by products that are needed for producing the final product they are selling, based on demand for that product
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Fluctuating Demand
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increase or decrease in consumer demand change business demand for a product
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Market
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people or organizations with needs/wants and the ability/willingness to buy
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Market Segmentation
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meaning fully identifying different group of customers 1. plays a key role in marketing strategy of all successful organizatoin 2. powerful market tool 3. helps segmentation marketers define customer needs/wants more precisely
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Critical for Successful Market Segmentations
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1. Substantiality 2. Identifiability and Measurably 3. Accessibility 4. Responsiveness
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Substantially
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large enough to warrant developing
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Identifiability and Measurably
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concrete measures of Segment size
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Accessibility
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must be able to reach numbers or targets market segments
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Responsiveness (CSMS)
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can be segmented into any criteria that seem logical
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Segmentation Based for Consumer Market
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1. Geographical Segmentation 2. Demographical Segmentation 3. Physiographic Segmentation 4. Benefit Segmentation 5. Usage Rate Segmentation
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Geographical Segmentation
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climate/terrain/city size/ popular density/urban/rural
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Demographic Segmentation
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age/gender/income/ethnic/family life
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Benefit Segmentation
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benefit consumers want (low sugar vs low calorie)
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Usage Rate Segmentation
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amount of product bought or consumed (former/first time/heavy users)
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Psychographic Segmentation
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personality, characteristics, motives, life styles
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Strategies for Selecting Target Market
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1. Multi-Segment Target Strategy 2. Undifferenced Target Strategy 3. Concentrated Target Strategy
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Multi-Segment Target Strategy
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more than 1 segment and creating a marketing mix
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Undifferenced Target Strategy
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defining a target market for particular product as a target market A single marketing mix and aiming it toward the total market
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Concentrated Target Strategy
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dividing total market into groups with similar needs
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Positions
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a process that influences potential customers overall perception of a brand, product line, organization, in general helps when choosing which segment to target
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Perceptional Mapping
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displaying/graphing in 2 or more groups of products in customer needs
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Market Research
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process of planning, collecting, and analyzing data relevant to a marketing decision customer needs/wants marketing opportunity for particular goods and services changing attitudes and purchases patterns of customers
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Primary Data
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info that is collected for first time used for solving the particular problem under investigation
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Secondary Data
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data previously collected for any purpose other than the one at hand
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Open Ended Questioning
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an interview question that encourages an answer phrase in respondents own words
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Close Ended Questions
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an interview question that encourages an answer phrase in respondents to make a selection from a limited list of response
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Probability Sample
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a sample in which every element in population has a known statistical likelihood of being selected-every population has every population has an equal chance of being selected
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Non- Probability Sample
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any sample in which little or no attempt is made to get a representation cross section of probability - respondents of convenience
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Scaled Response Question
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close ended question designed for the measure of the intensity of a respondents answer
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Product
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the heart of marketing mix
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Type of Consumer Products
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1. Convenience Products 2. Shopping Product 3. Specialty Product 4. Unsought Product
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Convenience Products
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relatively inexpensive that merrits little shopping effort (Basics=Food)
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Shopping Product
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more expensive than a convenience product and is found in fewer stores (high risk = clothes/appliances)
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Specialty Product
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consumers search extremely extensive and is more expensive than a shopping product (big purchases = extensive watch/expensive)
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Unsought Product
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new product the consumer does not intend on purchasing and the company must go directly to customers
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Product Item
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Specific version of a product that can be designed as a district offering amount among organization products
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Product Line
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A group of closely related product items
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Product Mix
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all products that an organization sells
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Branding
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the success of any business or consumer product depends on target markets ability to distinguish one product from another
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Types of Branding
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1. Branding Equity 2. Family Branding 3. Individual Branding 4. Generic Product Name
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Branding Equity
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value of a company of a brand name
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Family Branding
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marketing server different products under the same brand name
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Individual Branding
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using different brands names for different products (used by companies with a proctor/gamble that set many different products/variety)
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Generic Product Name
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identifies a product by class to type and cannot be trademarked (shop rite brand)
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Packaging Function
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containing and protection products promoting products facilitation storage, use and convenience
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Categories of New Product
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1. New Product Lines 2. New To the World Products 3. Additions to existing product lines 4. Repositioning Product 5. Lower Priced Products
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New Product Lines
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set of products which the firms has not previously offered, allowed them to enter an established market
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New to the World Product
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creating an entirely new product
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Additions to existing product line
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new products that extends a firms established product lines
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Improvements or revisions of existing products
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any product that has been revised or updated whether significant or miniscule
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Reposition Product
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existing products targeted at new target markets or market segments
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Lower Priced Products
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refers to products that provide performance similar to competing brands but at a lower price
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Idea Screening
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the first filter in the product development process, which eliminates ideas that are inconsistent with the organizations new product salary or are obviously innapropiate for some other reason
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Concept Testing
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a test to evaluate a new product idea, usually before nay prototype has been created
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Product Life Styles
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concept that provides a way to trace the stages of a product acceptance from intro-> decline
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Product Life Style Stages
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1. Intro Stage 2. Growth Stage 3. Maturity Stage 4. Decline Stage
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Testing Market
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limited introduction of a product and a marketing program to determine the reactions to potential consumers in the market
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Product Characteristics and Rate of Adoption
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used to predict and explain the rate of acceptance and diffusion of a new product
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Product Characteristics and Rate of Adoption Stages
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1. Complexity 2. Compatibility 3. Relative Advantage 4. Observability 5. Triability
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Complexity
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degree of difficulty involved in understand the new product
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Compatibility
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degree to which the new product is consistant with existing value and product knowledg, past experiances and current needs and incompatible product diffuse more slowly than compatible products
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Relative Advantage
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degree to which a product is percieved as superior to existing substitutes
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observability
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degree to which the benefits of other results of using the product can be observed by others and communicated to target marketers
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Triability
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the degree to which a product can be tried on a limited basis
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Important of Services
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services amount for 65% of USA GDP
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Service
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result of applying human or mechanical efforts to people of objects
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How Server differ from Goods
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1. Intangibility 2. Inseparability 3. Heterogeny 4. Perishability
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Intangability
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services are intangible performances
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Inseperability
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consumers must present during production of the services goods are produce, sold, and then consumed
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Heterogeny
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services have greater diversity
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Perishability
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refers to the inability of services to be stored
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Service Quality
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customers perception of how well a service meets or exceeds their expectations
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Types of Service Quality
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1. Tangibility 2. Reliability 3. Responsiveness 4. Assurance 5. Empathy
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Tangibility
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physical evidence of the service
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Reliability
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consistently and dependently in performing the service
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Responsiveness (Service Quality)
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readiness of employees to provide the service
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Assurance
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Knowledge of Employees to provide the service
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Empathy
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caring and individual attention provided by employees
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Service Promotion
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1. Price 2. Guarantee 3. Performance Documentation 4. Availability 5. Training/Certification 6. Personal Selling 7. Word of Mouth 8. Must use a specific language
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Intro Stage
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launch of a product
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Growth Stage
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sales grow at an increasing rate
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Maturity Stage
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sales increase at a decreasing rate
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Decline Stage
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long run drop in sales
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