Marketing Test #3

Front 1

Target Market Strategy

Back 1

Dividing the total market into different segments based on the basis of customer characteristics, selecting one of more segments, and developing products to meet the needs of those specific segments.

Front 2

Segmentation

Back 2

The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics

Front 3

Generation Y Pros

Back 3

flexible, adaptive, no exception of stability, fast moving, highly organized, time conscious, self-confident achievers, optimistic

Front 4

Five Universal Truths about Women

Back 4

1. Home as Cornerstone- emotions toward the home and household tasks linked to
women.
2. Air of feminine superiority-65% believe they can multitask better than their husbands and 67% say notice more detail.
3. She Chief – women run the house with 72% agreeing power to them
4. Elevation of Ordinary- shifting from ordinary things to products that provide functionality with style.
5. Clutter is the new fat- women feeling guilty about household clutter
***Elevation of the less and functional sophisticated isn’t one of these.

Front 5

3 Trends of Women

Back 5

1. outsourcing- women requiring assisting with their multi-role lives.
2. downshifting- more women are choosing to slow down and live with less.
3. Hiving- home has become a hub of activity, office, elderly people home, and place where schedules are managed.
***Consolidating isn’t a trend

Front 6

4 Different Types of Women

Back 6

1. House Proud- popularized by Martha Stewart, home is priority, source of pride,
joy, and self fulfillment.
2. Keeping up with the Jones- Everything she does in a sense is personally judged by how her home life is and characterized by a constant striving for perfection.
3. Treading Water-Home is one more burden in already overburdened life. Messy house but doesn’t care she’s an underachiever.
4. Keep it Simple- Out of choice not desperation she lives by very practical standards. Doesn’t buy into pressure of other women.

Front 7

Metrosexual

Back 7

a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.

Front 8

Income

Back 8

distribution of wealth as it relates directly to buying power.
Rich get Richer and the Poor get poorer

Front 9

Geocoding

Back 9

customizing web advertising so that people who log on in different places will see ad banners for local businesses.

Front 10

Psychographics

Back 10

the use of psychological, sociological, and anthropological factors to construct market segments.

Front 11

VALS (Values and Lifestyles)

Back 11

a psychographic system that divides the entire US population into eight segments.

Front 12

Behavioral Segmentation

Back 12

a technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service

Front 13

80/20 Rule

Back 13

a marketing heuristic that 20% of purchase account for 80% of a product sales.

Front 14

Target Markets

Back 14

a group(s) that a firm selects to turn into customers as a result of segmentation and targeting

Front 15

Viable Target Market should satisfy the following requirements

Back 15

1. Segment members with similarities in product needs and want yet differentiated from other segments.
2. Measurable segments.
3. Segment size large enough to allow profits.
4. The segments are reachable through marketing communications.
5. Marketers can adequately serve the needs of the segment

Front 16

Marriage Trends

Back 16

Married Couple Households as % is going down
People are marrying later
Unmarried couple households on the rise

Teens are increasingly seeing as marriage as optional

Out of wed-lock births on the rise (blacks more than whites)

More adults are forgoing marriage.

Front 17

Differentiated Targeting Strategy

Back 17

developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace. Ie. Loreal or the Milk Industry. Numerous Blocks with couple fills

Front 18

Mass Customization

Back 18

an approach that modifies a basic good/service to meet the needs of an individual. Ie. Dell Random dots everywhere.

Front 19

Customer Relationship Management (CRM)-

Back 19

1. a philosophy that sees marketing as a process of building long-term relationships with customers to keep them satisfied and to keep them coming back. 2.a business strategy to select/manage the most valuable customer relationships. CRM needs customer centric business philosophy and culture to support effective marketing, sales, and service processes.

Front 20

4 Steps to One-to-One Marketing

Back 20

Identify>Differentiate>Interact>Customize

Front 21

Customer Equity

Back 21

the financial value of a customer relationship throughout the lifetime of the relationship.

Front 22

Value Equity

Back 22

the customers objective assessment of the utility of a brand based on perceptions of what is given up for what is received ie. Quality, price, convenience

Front 23

Brand Equity

Back 23

the customers subjective and intangible assessment of the brand, above and beyond its objectively perceived value. ie. Built through image and meaning

Front 24

Relationship Equity

Back 24

tendency of the customer to stick with the brand, above and beyond the customer’s objective and subjective assessments of the brand.

Front 25

Layers of the Product

Back 25

basic benefit or core product is transportation

Front 26

Classifying Products

Back 26

Products generally are CONSUMER or B2B products, although same products are bought by both consumers and businesses.

The reason a product is purchased determines which category a product is placed in any particular purchasing scenario.

Front 27

Durable Goods

Back 27

consumer products that provide benefits over a long period of time, such as cars, furniture, and appliances

Front 28

Convenience Products

Back 28

- consumer good or service that is usually low priced, widely available, and purchased frequently with a min. comparison and effort.
1. Staples – basic and necessary items (milk, bread, or gas)
2. Emergency- products that we purchase when we are in dire need (bandages, umbrellas, or sink uncloggers)

Front 29

Shopping Products

Back 29

good/service for which consumers spend considerable time and effort gathering information and comparing alternatives.(laptop computers)
1. Attribute-based products involve finding the best possible product selection (Prom dresses)
2. Price-based products are based on a lowest price. NOTE. Price/quality are not always correlated.

Front 30

Specialty Product

Back 30

a good/service that has unique characteristics and is important to the buyer and for which the buyer will devote significant effort to acquire. (college, weddings, AIBO robot dogs)
***Scooba is a robot that preps, washes, scrubs, and dries your floor

Front 31

Maintenance, Repair, and Operating (MRO) Products

Back 31

goods that a business customer consumes in a relatively short time. Ie. Nuts, bolts, washers

Front 32

Processed Materials

Back 32

products created when firms transform raw materials from their original state. Ie. Treated lumber

Front 33

“New and Improved” Understanding Innovations

Back 33

FTC states that marketers may call a product “new” under these conditions:
1. product must be entirely new or changed significantly
2. product may be called “new” for only six months

Front 34

Continuous Innovation

Back 34

a modification of an existing product that sets one brand apart from its competitors.

Front 35

Knockoffs

Back 35

product that copies with slight modification the design of an original product

Front 36

Dynamically Continuous Innovations

Back 36

change in existing product that requires a moderate amount of learning or behavior change. Ie audio equipment advances, pda’s.)

Front 37

Convergence

Back 37

the coming together of two or more technologies to create a new system with greater benefits than its parts. Ie pda/computers/cell phones

Front 38

Discontinuous Innovations

Back 38

a totally new product that creates major changes in the way we live. Ie. Computers and the internet

Front 39

Samsung Example (makes the coolest gadgets)

Back 39

1. acts upon consumer preferences
2. growing commitment to employing product designers
3. forgoing cost cuts to drive up the value of its brands

Front 40

Developing New Products-why its growing in importance for marketers

Back 40

1. technology is changing at an ever increasing rate so that products are developed, get adopted, and then are replaced by better products faster.
2. competition in global marketplaces makes it essential for firms to continually innovate to offer new choices to consumers worldwide.

Front 41

Product Adaption

Back 41

process by which a consumer or business customer begins to buy and use a new good/service/idea.

Front 42

Diffusion

Back 42

process by which use of a product spreads throughout a population.

Front 43

Tipping Point

Back 43

in context of product diffusion, the point when a product’s sales spike from a slow climb to an unprecedented new level, often accompanied by a steep price decline.

Front 44

Adoption Process + Steps

Back 44

Awareness>Interest>Evaluation>Trial>Adoption>Confirmation
***Impulse buy happens during evaluation stage.

Front 45

Diffusion of Innovations

Back 45

Early majority- those whose adoption of a new product signals a general acceptance of the innovation

Front 46

Adoption and Diffusion Processes

Back 46

1. Relative Advantage- degree to which a consumer perceives that new product provides superior benefits.
2. Comparability- a new product is consistent with existing cultural values, customs, and practices.
3. Complexity- consumers find a new product or its difficult to understand
4. Trialability- ease of sampling a new product and its benefits
5. Observability- how visible a new product and its benefits are to others who might adopt it.

Front 47

Steps in Managing Products

Back 47

1. Develop Product Objectives(for individual and product lines/mixes)
2.Design a product strategy>
3.Make Tactical Product Decisions(Product branding/packaging and labeling design)

Front 48

Using Product Objectives to Decide on a Product Strategy

Back 48

**to be effective, product-related measurable, clear and unambiguous, feasible, and include a specific time frame.
******Value orient is not one of these

Front 49

Product line

Back 49

a firms total product offering designed to satisfy a single need or desire of a group of target customers

Front 50

Downward Line Switch

Back 50

adding new, lower quality/price items to an existing product line.

Front 51

Cannibalization

Back 51

the loss of sales of an existing brand when a new item in a product line or product family is introduced

Front 52

Kansei Engineering

Back 52

Japanese philosophy that translates customers feelings into design elements.

Front 53

Total Quality Management (TQM)

Back 53

a mgt philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

Front 54

ISO 9000

Back 54

criteria developed by International Org. for Standardization to regulate product quality in Europe.

Front 55

ISO 14000

Back 55

standards for the International Org. for standardization concerned with “environmental management” aimed at minimizing harmful effects on environment.

Front 56

Product Life Cycle (PLC)

Back 56

a concept that explains how products go through 4 distinct stages from birth to death; introduction, growth, maturity, and decline.
****Sustenance is not one of these
****Profits hit positive in introductory stage
****Sales go down during maturity

Front 57

Brand

Back 57

a name, term, symbol, or any other unique element of a product that identifies one firm’s product(s) and sets them apart from competition.

Front 58

“good” brand names

Back 58

easy to say, spell, read, and remember

Front 59

Brand names should “fit” in four ways

Back 59

1. target market
2. the products benefits
3. customers culture
4. legal requirements

Front 60

Brand Equity

Back 60

1. brand awareness
2. brand loyalty
3. brand associations
4. perceived brand quality
***satisfaction is not one

Front 61

Brand loyalty

Back 61

a customers favorable attitude toward a specific brand

Front 62

3 Degrees of Brand Loyalty

Back 62

Recognition>preference>insistence

Front 63

ULTIMATE CUSTOMER LOYALTY

Back 63

R. Oliver says:
1. superordinate to customer satisfaction
2. emerges as a combination of perceived product superiority, personal fortitude, social bonding, and their synergistic effect.
Fortitude- “….the degree to which the consumer fights off competitive overtures on the basis of his/her allegiance to the brand and not on the basis of marketergenerated information. Satisfaction>loyalty

Front 64

Brand extensions

Back 64

a new product sold with the same brand name as an existing brand

Front 65

National/Manufacturer Brands

Back 65

brands that a manufacturer of the product owns ie. Black and decker

Front 66

Private-Label brands

Back 66

brands that are owned and sold by a certain retailer or distributor. Ie. Sam’s Choice

Front 67

Selecting a Brand Name
Factors to consider:

Back 67

1. name should be easy for ALL buyers to say, spell and recall
2. brand name should indicate the products major benefit and suggest in a positive way the uses and special characteristics.
3. brand should be distinctive to support differentiation
4. brand should be designed so that it can be used and recognized in all types of media.

Front 68

Package

Back 68

covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication.