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82 Cards in this Set

  • Front
  • Back
market segmentation
dividing a market into smaller groups of buyers with distint needs, char., or behaviors who might require separate products or marketing mixes.
target marketing
evaluating each market segment's attractiveness adn selecting one or more of the market segments to enter.
marketing position
setting the competitive position for the product and creating a detailed marketing mix.
geographic segmentation
dividing the mardet into different geographical units such as nations, regions, states, countries...
demogrpahic segmentation (most popular)
devides the market into groups based on variables such as age gender family size, income ,occupation, religion, race...
Age and life cycle segmentation
offering different products or using different approaches for different age and life cycle goups. ex; for kids, crest fun spinbrush, adult- dentist clean feeling. guard against stereotyping.
behavioral segmentation
dividing based on consumer knowledge, attitude, use or response to product
occasion segmentation
dividing according to occasion when buyers get the idea to buy...mother's day= flowers
benefit segmentation
dividing based on the different benefits that consumers seek from the product. P&G different laundry detergents
heavy half
the heavy users are a small percentatge of the market but account for a high % of total consumption
multivariable segmentation
geodemographic segmentation
intermarket segmentation
form segments of comsumers who have similar needs and buying behavior even though they are located in different countries
Requirements for effective segmentation
1. measureable
2. accessible
3. substantial
4. differentiable
5. actionable
target market
set of buyers who share common needs or characteristics that the company decides to serve.
undifferentiated (mass) marketing
strategy in which a firm decides to ignore market segment differences adn go after the whole market with one offer
differentiated marketing
strategy in which a firm decides to target several market segments and designs separate offers to each
concentrated (niche) marketing
strategy in which a firm goes after a large share of one or a few segments, or niches.
tailoring products and marketing programs to suit the tastes of specific individuals and locations.
product's position
the way the product is defined by consumers on important attributes- the place the product occupies in the consumers mind relative to competing products
competitive advantage
advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
value proposition
the full mix of venefits on which the brand is positioned.
service intangibility
major characteristics of service... cannot be seen, tasted, felt, heard, or smelled before bought.
4 major characteristics of services
1. inseparability
2. variability
3. perishability
4. intangiblity
service-profit chain
links service firm profits with employee and customer satisfaction.
internal marketing
service firm must effectively train and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
interactive marketing
service quality depends heavliy on the quality of teh buyer-seller interaction during the service encounter.
idea generation
systematic search for new product ideas
Test Q- Drop Error
reject an idea that eventually works ex. xerox copy/printer
Test Q- Go Error
accept product when its really not a good idea
product concept
detailed version of teh new produt idea stated in meaningful consumer terms.
marketing strategy development
designing initial marketing strategy for a new product based on teh product concept
business analysis
review of the sales, costs and profit projections for a new product to find out whether these factors satisfy the company's objectives.
product life cycle
life of a product, involves: development, intro, growth, maturity, and decline.
mode of expression
currently accepted style
fast fashions, short time
introduction stage (test)
when product is first launched, sales will be slow, profits are negitive
growth stage (test)
sales quickly climbing, early buyers continue and new buyers start coming..faces trade off between high market share and high current profit.
maturity stage (test)
slaes start to slow down, challenge to marketing management... modifying market to try adn increase the consumption of current product
decline stage (test)
sales may go to zero, may remain with brand or reformulate/reposition to get back into growth stage.
dynamic pricing
charging different prices depending on individual customers and situations.
target costing
pricing that starts with an ideal selling price, then targets costs what will ensure the price is met.
pure competition
market consists of many buyers and sellers trading ina uniform commodity such as wheat, copper, or financial securities
monopolostic competition
many buyers and sellers who trade over a frange of prices rather than a single market price
oligopolistic competition
market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies.
pure monopoly
market consists of one seller.
demand curve
surve that shows the number of units the market will buy in a given time period at different prices that might be charged.
price inelastic
demand hardly changes/doesnt change with a small change in price.
price elastic
big change in demand with small change in price.
break even pricing (target profit pricing)
firm tries to determine the price at which it will break even or make the target profit it is seeking.
value based pricing
setting price based on buyers perception of value rather than on the sellers cost.
competition based pricing
setting prices based on the prices that competitors charge for similar products.
competition based pricing (going rate pricing)
setting prices based on the prices that competitors charge for similar products.
market skimming pricing
companies invent new products and set high prices to "skim" revenues layer by layer form teh market. ex; sony w/ HDTV
market penetration pricing
setting low price for new product in order to attract a large number of buyers and a large market share.
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
manufacturer seeks a market for these by products and should accept any price that covers more than the cost of storing and delivering them.
straight reduction in price on purchases druing a stated period of time
promotional money paid by manu. to retailers in return for an agreement to feature the manu's products some way.
segmented pricing
selling a priduct or service at two or more prices, where the difference is not based on defferences in costs.
psychological pricing
considers psychology of prices and not just economics, price used to say something about product.
promotional pricing
companies will temporarily price their products below list price to create buying excitement and urgency.
price fixing
sellers must set prices without talking to competitors.
predatory pricing
selling below cost with intention of punishing a competitor or gain form long run profits by putting competitors out of business
deceptive pricing
seller states prices or price savings that meslead comsumers or are not actually available to consumers.
upstream partner
from the manu or service provider is the set of frimst hat supply the raw materials, components, parts, info, finances...
downstream partner
marketing channels or distribution channels that look forwrd toward the customer.
marketing channel (distribution channel)
set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer.
channel level
lsyer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
direct marketing channel
marketing channel that has not intermediary levels
indirect marketing channel
channel containing one or more intermediary levels.
channel conflict
disagreement among marketing channel members on goals and roles.. who does what for what rewards.
channel captain
has power, usually manu, but now retailers have power (walmart)
conventianal distribution channel
consisting of one or more independent producers, wholesalers and retailers, each a separate business seeking to max its own profits
vertical marketing system (VMS)
channel structure where prod, wholesalers, and retailers act as a unified system.
franchise organization
contractual vms in which a channel member, franchiser, links several stages in the prodution.
horizontal marketing system
channel arrangement in which two or more companies at one level hoin together to follow a new marketing opportunity (banks now inside grocery store)
displacement of traditional resellers from a marketing channel by radical new types of intermediaries.
marketina logistics (physical distribution)
planning, implementing and controling the physical flow of materials, final goods, and related info
supply chain management
suppliers, company, resellers, customers.
intermodal transportation
combining two or more modes of transportation.
rail and trucks
wter adn trucks
water adn rail
air and trucks
integrated logistics management
emphasizes teamwork to max the performance of the entire distribution system
third party logistics provider
independent logistics provider that performs any or all the functions required to get its client's product to market.