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30 Cards in this Set

  • Front
  • Back
Shopper, Buyer, and Consumer Benefits
People do not buy products or services, they buy benefits; it's easy to see why we have so many choices.
Consumer Benefits
Those positive factors that the consumer obtains as a result of the possession and/or use of a product or service.
Tangible Benefits
benefits that are in some sense measurable; ie. the watch keeps accurate time.
intangible benefits
benefits based on the feelings experienced; ie. the brand name speaks to the reputation of the manufacturer.
The person who gathers information in the marketplace about products and/or services in preparation for making or recommending a choice from among them.
The person who completes the marketing transaction through a purchase or other exchange for himself/herself or another person or group of persons. In the organizational sense, a buyer is the person who purchases goods or services and may or may not be involved in the mechanics of transaction completion.
The individual who actually uses and/or possesses a product or service.
People or groups who exert various levels of power over the choices a person makes in certain product categories.
Any location (store, mall, street market) or medium (by mail, by phone, on the web) in which a marketing exchange is carried out.
Benefits and the total Product Concept
People do not just seek one, but a bundle of benefits, some tangible and some intangible.
Total Product Concept
The view of goods and services as a sum of their benefits; it involves four types of benefits: a basic core, an accessory ring, a psychological ring, and time dimensions of a product or service.
Basic Core of a product
The bundle of utilitarian benefits purchased; ie. laptop computer consists of its design, features, memory, speed, etc.
Accessory ring of benefits
includes those benefits not paid for, yet received. "added-value" factors like store reputation, manufacturer prestige, and convenience of location.
Psychological ring
Benefits that result from the consumer's feelings associated with the possession and/or use of a product.
Everything we purchase either saves time or takes time from us, and in each case, this may be perceived as good or bad.
Literal expressions of time
involve reality, are precise, objective, and unambiguous.
Metamorphic expressions of time
go beyond the information provided, are used in the context of a situation, and often present figurative relationships; ie. "time flies" or "time is money" are metamorphic.
Market Segmentation
The identification of like-minded clusters of consumers who can be expected to behave in similar ways, making similar decisions in the marketplace in similar situations.

Stages of market segmentation: Segment bounding, segment viability, segmentation strategy
There are many firms that offer different options to marketers to help them find market segments and learn more about them.
Claritas PRIZM nE approach, which offers geographic and household segment info; MapInfo PSYTE, which is designed to identify market and product potential, store placement, and targeting information.
Segment bounding
A method of setting conditions whereby consumers qualify or do not quality as part of a segment. Segments are based on descriptors, location, and time.
Segment bounding 1:
Marketers develop a set of descriptors of consumer likely to be seeking the benefits that the business or organization can deliver.

Descriptors may be single characteristics or a combination of characteristics that consumers in the ame segment share.

They include demographics, psycographics, benefits sought, and marketplace and consumption behavior.
Segment bounding 2:
Marketers bound segments to a specific geographic location.

The census, government agencies, and commercial data gatherers such as a.C. nielsen are all useful to help bound segments according to census tracts, cities, metropolitan areas, counties, sates, regions, and countries.
Segment bounding 3:
Marketers bound segments in time as a means of ensuring that all data gathered are relevant and up-to-date for the time of use.

The objective is to state when the segment existed or will exist.

Time is important when marketers forecast product sales, pricing, distribution availability, and the like for a year or serveral years into the future.

By bounding a segment, marketers describe its general characteristics, its location, and the time frame during which these factors will continue to define the segment sot aht consumers included in that segment can be properly pursued.
Viable Segment
One that is distinctive and is of sufficient potential to be pursued.

Marketers use four factors to determine segment viability:
sufficient size, measurable, clearly differentiated from other segments, reachable.
Segment viability 1:
For a segment to be viable for the marketing of a product, it must be of sufficient size to generate acceptable profits from sales.
Segment viability 2:
A segment must be measurable: marketers must be able to identify people within it and gather specific information, such as demographic and ifestyle characteristics about them.
Segment viability 3:
A segment must be clearly differentiated from other segments. To justify treating different groups of consumers in different ways, the groups must be sufficiently unlike one another in their responses to one or more of themarketing mix variables. Seek diff types of products? respond differently to price? wish the product to be available at different times and places? How do they respond as different types of promos are offered?
Segment viability 4:
Reachable; marketers must be able to deliver the product to members of the segment.

This requires that both the consumer and the seller have access to distribution.
Can the product be made available through retail, direct mail, the internet, direct selling or other media that members use?
Will the product be easy for consumers to find and buy?

Marketers must be able to deliver product info about the product to members of the segment.
This requires that both the consumer and the seler have access to appropriate media.
Can the product be promoted through newspaper, magazine, internet, or tv advertising that members will see and respond to?
Segmentation strategies
Used once viable segments have been identified, there are three segmentation strategies commonly used by marketers: mass marketing, concentrated marketing, and differentiated marketing.
Mass marketing
undifferentiated marketing; a method where segmentation is not used and the marketer offers the same product to the entire consumer population, regardless of age, gender, or lifestyle characteristics; ie. Henry Ford's "Model T"; the vehicles were identical inside and out, and every one was black.