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70 Cards in this Set

  • Front
  • Back
benefit segmentation
The division of a market according to benefits that customers want from the product.
breakdown approach
Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it.
buildup approach
Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered.
business market
Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.
consumer market
Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits.
differentiated targeting strategy
A strategy in which an organization targets two or more segments by developing a marketing mix for each.
geodemographic segmentation
Marketing segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information.
heterogeneous markets
Markets made up of individuals or organizations with diverse needs for products in a specific product class.
homogeneous market
A market in which a large proportion of customers have similar needs for a product.
market density
The number of potential customers within a unit of land area.
market potential
The total amount of a product that customers will purchase within a specified period at a specific level of industrywide marketing activity.
market segment
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs.
market test
Making a product available to buyers in one or more test areas and measuring purchases and consumer responses.
regression analysis
A method of predicting sales based on finding a relationship between past sales and one or more variables, such as population or income.
segmentation variables
Characteristics of individuals, groups, or organizations used to divide a market into segments
undifferentiated targeting strategy
A strategy in which an organization defines an entire market for a particular product as its target market, designs a single marketing mix, and directs it at that market.
cognitive dissonance
A buyer's doubts shortly after a purchase about whether the decision was the right one.
consideration set
A group of brands that a buyer views as alternatives for possible purchase.
evaluative criteria
Objective and subjective characteristics that are important to a buyer
extended problem solving
A type of consumer problem-solving process employed when purchasing unfamiliar, expensive, or infrequently bought products.
external search
An information search in which buyers seek information from outside sources.
internal search
An information search in which buyers search their memories for information about products that might solve their problem.
limited problem solving
A type of consumer problem-solving process that buyers use when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category.
psychological influences
Factors that partly determine people's general behavior, thus influencing their behavior as consumers.
reference group
Any group that positively or negatively affects a person's values, attitudes, or behavior
routinized response behavior
A type of consumer problem-solving process used when buying frequently purchased, low-cost items that require very little search-and-decision effort.
selective distortion
An individual's changing or twisting of information when it is inconsistent with personal feelings or beliefs
situational influences
Influences resulting from circumstances, time, and location that affect the consumer buying decision process.
A group of individuals whose characteristic values and behavior patterns are similar and differ from those of the surrounding culture.
psychological influences
Factors that partly determine people's general behavior, thus influencing their behavior as consumers.
business markets
Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.
government markets
Federal, state, county, and local governments that buy goods and services to support their internal operations and provide products to their constituencies.
inelastic demand
Demand that is not significantly altered by a price increase or decrease.
institutional markets
Organizations with charitable, educational, community, or other nonbusiness goals.
joint demand
Demand involving the use of two or more items in combination to produce a product.
modified rebuy purchase
A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified.
producer markets
Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations.
reseller markets
Intermediaries who buy finished goods and resell them for profit.
sole sourcing
An organization's decision to use only one supplier
straight rebuy purchase
A routine purchase of the same products by a business buyer.
vendor analysis
A formal, systematic evaluation of current and potential vendors.
value analysis
An evaluation of each component of a potential purchase.
Standard Industrial Classification (SIC) System
The federal government system for classifying selected economic characteristics of industrial, commercial, financial, and service organizations.
derived demand
Demand for industrial products that stems from demand for consumer products
An identifying name, term, design, or symbol.
brand extension
Using an existing brand to brand a new product in a different product category.
component parts
Items that become part of the physical product and are either finished items ready for assembly or products that need little processing before assembly.
convenience products
Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort.
depth of product mix
The average number of different product items offered in each product line.
family branding
Branding all of a firm's products with the same name.
product life cycle
The progression of a product through four stages: introduction, growth, maturity, and decline.
product adoption process
The stages buyers go through in accepting a product.
product line
A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations
product mix
The total group of products that an organization makes available to customers.
process materials
Materials that are used directly in the production of other products but are not readily identifiable.
raw materials
Basic natural materials that become part of a physical product.
specialty products
Items with unique characteristics that buyers are willing to expend considerable effort to obtain.
A legal designation of exclusive use of a brand
unsought products
Products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think about buying.
A service that is not physical and cannot be touched.
Being produced and consumed at the same time.
line extension
Development of a product that is closely related to existing products in the line but meets different customer needs.
product design
How a product is conceived, planned, and produced.
product differentiation
Creating and designing products so that customers perceive them as different from competing products.
product positioning
Creating and maintaining a certain concept of a product in customers' minds.
The inability of unused service capacity to be stored for future use.
product modification
Change in one or more characteristics of a product
Choosing the most promising ideas for further review.
test marketing
Introducing a product on a limited basis to measure the extent to which potential customers will actually buy it.
venture team
A cross-functional group that creates entirely new products that may be aimed at new markets.