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167 Cards in this Set

  • Front
  • Back
Marketing segmentation
Dividing a market into smaller groupos of buyers distinct needs, characteristics and selecting one or more segments to enter.
Target marketing
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Market positioning
Arranging for a product to occupy a clear, distinctive, and desirale place relative to competing products in the minds of target consumers.
Geographic segmentation
Dividing a market into different geographical units such as nations, states, regions, counties, cities or neighborhoods.
Demographic segmentation
Dividing the market int groups based on demographic variables such as age, sex, family size, family life cycle, income occupation, education, religion, race and nationality.
Age and life-cycle segmentation
dividing a market into different age and life-cycle groups.
Gender segmentation
Dividing a market into different groups based on gender.
Income segmentation
Dividing a market into different income groups.
Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle or personality characteristics.
Behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product.
Benefit segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product.
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
Target market
A set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one another.
Differentiated (segmented) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Concentrated (niche) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
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.
Local marketing
Tailoring brands and promotions to the needs and wants of local customer groups--cities, neighborhoods and even specific stores.
Individual marketing
Tailoring products and marketing programs to the needs and prferences of individual customers--also labeled "markets-of-one marketing," "customized marketing" and "one-to-one marketing."
Product position
The way the product is defined by consumers on important attributes--the place the product occupies in consumers' minds relative to competing products.
Competative advantage
An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
Differences to promote
Value proposition
The full positioning of a brand--the full mix of benefits upon which it is positioned
Positioning statement
A statement that summarizes company or brand positioning--it takes this form: To (target segment and need) our )brand) is (concept) that (point-of-differnce).
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
Any activity or benefit that one party can offer to another that is essentially intangible and does not reult in the ownership of anything.
Consumer product
Product bought by final consumer for personal consumption.
Convenience product
Consumer product that the customer usually buys frequently, immediately and with a minimum of comparison and buying effort.
Shopping product
Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style.
Specialty product
Consumer prduct with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Unsought product
Consumer product that the consumer either does not know about or knows about but does not normally think of buying.
Industrial product
Product bought by individuals and organizations for further processing or for use in conducting a business.
Social marketing
The design, implementation and control of programs seeking to increase the acceptability of a social idea, cause or practice among a target group.
Product quality
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.
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.
The activities of designing and producing the container or wrapper for a product.
Product line
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.
Product mix (or product assortment)
The set of all product lines and items that a particular seller offers for sale.
Brand equity
The positive differential effect that knowing the brand name has on customer response to the product or service.
Private brand (or store brand)
A brand created and owned by a reseller of a product or service
The practice of using the two different companies on the same product.
Line extension
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 package sizes.
Brand extension
Using a successful brand name to launch a new or modified product in a new category.
Service intangibility
A major characteristic of services--they cannot be seen, tasted, felt, heard or smelled before they are bought.
Service inseparability
A major characteristic of services--they are produced and consumed at the same time and cannot be separated from their providers.
Service variability
A major characteristic of services--their quality may vary greatly, depending on who provides them and when, where and how.
Service perishability
A major characteristic of services--they cannot be stored for later sale or use.
Service-profit chain
The chain that links service firm profits with employee and customer satisfaction.
Internal marketing
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.
Interactive marketing
Marketing by a service firm that recognizes that perceived service qulaity depends heavily on the quality of buyer-seller interaction.
New-product development
The development of original products, product improvement, product modification and new brands through the firm's own R&D efforts.
Idea generation
The systematic search for new-product ideas.
Idea screening
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
Product concept
A detailed veresion of the new-product idea stated in meaningful consumer terms.
Concept testing
Testing new-product concepts with a group of target consumer to find out if the concepts have strong consumer appeal.
Marketing strategy development
Designing an initial marketing strategy for a new product based on the product concept.
Business analysis
A review of the sales, costs and profit projections for a new product to find out whether these factors satisfy the company's objectives
Product development
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product.
Introducing a new product in the market.
Sequential product development
A new-product development aproach in which one company department works to complete its stage of the process before passing the product along to the next department and stage.
Simultaneous (or team-based) product development
An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase development.
Product life cycle
The course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity and decline.
A basic and distinctive mode of expression.
A current accepted or popular style in a given field.
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
Introduction stage
the product life-cycle stage in which the new product is first distributed and made available for purchase.
Growth stage
The product life-cycle stage in which a product's sales start climbing quickly.
Maturity Stage
The stage in the product life cycle in which sales growth slows or levels out.
Decline stage
The product life-cycle stage in which a product's sales declines.
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Dynamic pricing
Charging different prices depending on individual customers and situations.
Target costing
Pricing that starts with an ideal selling price, then targts costs that will ensure that the price is met.
Fixed costs
Costs that do not vary with production or sales level.
Variable costs
Costs that vary directly with the levels of production.
Total costs
The sum of the fixed and variable costs for any given level of production.
Experience curve (learning curve)
The drop in the average per-unit production cost that comes with accumulated production experience.
Demand curve
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
Price elasticity
A measure of the sensitivity of demand to changes in price.
Cost-plus pricing
Adding a standard markup to the cost of the product
Break-even pricing (target profit pricing)
Setting price to break even on the costs of making marketing a product; or setting a price to make a target profit.
Value-based pricing
Setting price based on buyers' perceptions of balue rather than on the seller's cost.
Value pricing
Offering just the right combination of quality and good service at a fair price.
Competition-based pricing
Setting prices based on the prices that competitors charge for similar products.
Market-skimming pricing
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.
Market-penetration pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Product line pricing
Setting the price steps between various prducts in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
Optional-product pricing
The pricing of optional or accessory products along with a main product.
Captive-product pricing
Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera.
By-product pricing
Setting a price for by-products in order to make the main products in order to make the main product's price more competitive.
Product bundle pricing
Combining several products and offering the bundle at a reduced price. (ie Taco Bell)
A straight reduction in price on purchases during a stated period of time.
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's product in some way.
Segmented pricing
Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
Psychological pricing
A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
Reference prices
Prices that buyers carry in their minds and refer to when they look at a given product.
Promotional pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
FOB-origin pricing
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.
Uniform-delivered pricing
A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
Zone pricing
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 distnt the zone, the higher the price.
Basing-point pricing
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.
Freight-absorbtion pricing
A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
Value delivery network
The network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system.
Marketing channel (or distribution channel)
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.
Channel Level
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
Direct marketing channel
A marketing channel that has no intermediary levels.
Indirect marketing channel
A channel containing one or more intermediary levels.
Channel conflict
Disagreement among marketing channel memebers on goals and roles--who should do what and for what rewards.
Conventional distribution channel
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.
Vertical marketing system (VMS)
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
Corporate VMS
A vertical marketing system that combines successive stages of production and distribution under single ownership--channel leadership is established through common ownership.
Contractual VMS
A verticla marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than then could achieve alone.
Franchise organization
A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production distribution process.
Administered VMS
A verticle marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties.
Horizontal marketing system
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
Mulitchannel distribution system (or hybrid marketing channel)
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
The displacement of traditional resellers from marketing channel by radical new types of intermediaries.
Intensive distribution
Stocking the product in as many outlets as possible.
Exclusive distribution
Giving a limited number of dealers the exclusive right to distribute the exclusive right to distribute the company's products in their territories.
Selective distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products.
Marketing logistics (physical distribution)
The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Supply chain management
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Distribution center
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customer as quickly as possible.
Intermodal transportation
Combining two or more modes of transportation.
Integrated logistics management
The logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system.
Third-party logistics (3PL) provider
An independent logistics provider that performs any or all of the functions required to get its client's product to market.
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
A business whose sales come primarily from retailing.
Specialty store
A retail store that carries a narrow product line with a deep assortment within that line.
Department store
A retail organization that carries a wide variety of product lines--typically clothing, home furnishings, and household goods; each line is operated as a separate department managed by specialist buyers or merchandisers.
Large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of food, laundry, and household products.
Convenience store
A small store, located near a residential area, that is open long hours 7 days a week and carries a limited line of high-turnover convenience goods.
A store much larger than a regular supermarket that carries a large assortment of routinely purchased food products, nonfood items, and services.
Category killer
Giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees.
Discount store
A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.
Off-price retailer
Retailer that buys at less-than-regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.
Independent off-price retailer
An off-price retailer that is either owned and run by an entrepreneur or is a division of a larger retail corporation.
Factory outlet
An off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer's surplus, discontinued, or irregular goods.
Warehouse club
An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.
Chain stores
Two or more outlets that are owned and controlled in common, have central buying and merchandising, and sell similar lines of merchandise.
A contractual association between a manufacturer, wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.
Three major product variables
-product assortment
-services mix
-store atmosphere
Shopping center
A group of retail businesses planned, developed, owned, and managed as a unit.
Wheel-of-retailing concept
A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.
All activities involved in selling goods and services to those buying for resale or business use.
A firm engaged primarily in wholesaling activity.
Merchant wholesaler
Independently owned business that takes title to the merchandise it handles.
A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.
Manufacturers' sales branches and offices
Wholesaling by sellers or buyers themselves rather than through independent wholesalers.
Marketing communications mix (promotion mix)
The specific mix of advertising, personal selling, sales promotion, and public relations a company uses.
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service.
Public relations
Building good relations with the company's various publics by obtaining favorable publicity, building up a good "corporate image," and handling or heading off unfavorable rumors, stories, and events.
Personal selling
Personal presentation by the firm's sales force for the purpose of making sales an building customer relationships.
Direct marketing
Diret communications with carefully targeted individual consumers--the use of telephone, mail, fax, email, the internet, and other tools to communicate directly with specific consumers.
Integrated marketing communications (IMC)
The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Buyer-readiness stages
The stages consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase.
Personal communication channels
Channels through which two or more people communicate directly with each other, including face to face, person to audience, over the telephone, or through the mail.
Word-of-mouth influence
Personal communication about a product between target buyers and neighbors, friends, family members, and associates.
Buzz marketing
Cultivating opinion leaders and getting them to spread information about a product or service to others about a product or service to others in their community.
Nonpersonal communication channels
Media that carry messages without personal contact or feedback, including major media, atmospheres, and events.
Affordable method
Setting the promotion budget at the level management thinks the company can afford.
Percentage-of-sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
Competative-parity method
Setting the promotion budget to match competitors' outlays.
Objective-and-task method
Devoloping the promotion budget by
1-defining specific objectives
2-determining the tasks that must be performed to achieve these objectives
3-estimating the costs of performing these tasks.
The sum of these costs is the proposed promotion budget.
Push strategy
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer prmotes the product to wholesalers, the wholesalers promote to retailers, and the retailers promote to consumers.
Pull strategy
A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.