09 Boone & Kurtz Contemporary Marketing

Front 1

business products

Back 1

Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

Front 2

concentrated marketing

Back 2

Focusing marketing efforts on satisfying a single market segment; also called niche marketing.

Front 3

consumer products

Back 3

Products bought by ultimate consumers for personal use.

Front 4

demographic segmentation

Back 4

Division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family life cycle; also called socioeconomic segmentation.

Front 5

differentiated marketing

Back 5

Market strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments.

Front 6

geographic information systems (GISs)

Back 6

Computer systems that assemble, store, manipulate, and display data by their location.

Front 7

geographic segmentation

Back 7

Division of an overall market into homogeneous groups based on their locations.

Front 8

market segmentation

Back 8

Division of the total market into smaller, relatively homogeneous groups.

Front 9

micromarketing

Back 9

Targeting potential customers at very narrow, basic levels, such as by zip code, specific occupation, or lifestyle—possibly even individuals themselves.

Front 10

positioning

Back 10

Placing a product at a certain point or location within a market in the minds of prospective buyers.

Front 11

product-related segmentation

Back 11

Division of a population into homogeneous groups based on their relationships to the product.

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psychographic segmentation

Back 12

Division of a population into groups that have similar psychological characteristics, values, and lifestyles.

Front 13

undifferentiated marketing

Back 13

Market strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing.

Front 14

80/20 principle

Back 14

Generally accepted rule that 80 percent of a product’s revenues come from 20 percent of its total customers.

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9/11 Generation

Back 15

People in their formative years at the time of the September 11, 2001, terrorist attacks.

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AIO

Back 16

statementsItems on lifestyle surveys that describe various activities, interests, and opinions of respondents.

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baby boomers

Back 17

People born between 1946 and 1965.

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cohort effect

Back 18

Tendency of members of a generation to be influenced and bound together by events occurring during their key formative years—roughly age 17 to 22.

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consolidated metropolitan statistical area (CMSA)

Back 19

Urban area that includes two or more PMSAs.

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core based statistical area (CBSA)

Back 20

Collective term for metropolitan and micropolitan statistical areas.

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core region

Back 21

Region from which most major brands get 40 to 80 percent of their sales.

Front 22

Engel’s laws

Back 22

Three general statements about the impact of household income on consumer spending behavior: as household income increases, a smaller percentage of expenditures goes for food; the percentage spent on housing, household operations, and clothing remains constant; and the percentage spent on other items (such as recreation and education) increases.

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family life cycle

Back 23

Process of family formation and dissolution.

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Market

Back 24

Group of people with sufficient purchasing power, authority, and willingness to buy.

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metropolitan statistical area (MSA)

Back 25

Freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more.

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micropolitan statistical area

Back 26

Area that has at least one town of 10,000 to 49,999 people with proportionally few of its residents commuting to outside the area.

Front 27

niche marketing

Back 27

Marketing strategy that focuses on profitably satisfying a single market segment; also called concentrated marketing.

Front 28

positioning map

Back 28

Tool that helps marketers place products in a market by graphically illustrating consumers’ perceptions of competing products within an industry.

Front 29

primary metropolitan statistical area (PMSA)

Back 29

Urbanized county or set of counties with social and economic ties to nearby areas.

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VALS

Back 30

Segmentation system that divides consumers into eight psychographic categories: actualizers, fulfilleds, believers, achievers, strivers, experiencers, makers, and strugglers.

Front 31

repositioning

Back 31

Changing the position of a product within the minds of prospective buyers relative to the positions of competing products.

Front 32

target market

Back 32

Group of people to whom a firm decides to direct its marketing efforts and ultimately its goods and services.