Marketing Final Part 2

124 terms by suprindian

Create a new folder

Advertisement Upgrade to remove ads

Ch 5,7,8,9

Culture

The set of basic values, perceptions,
wants, and behaviors learned by a
member of society from family and other
important institutions.

Subculture

A group of people with shared value
systems based on common life
experiences and situations.

Social class

Relatively permanent and ordered
divisions in a society whose members
share similar values, interests, and
behaviors.

Group

Two or more people who interact to
accomplish individual or mutual goals.

Opinion leader

A person within a reference group who,
because of special skills, knowledge,
personality, or other characteristics, exerts
social influence on others.

Online social networks

Online social communities—blogs, social
networking Web sites, or even virtual
worlds—where people socialize or
exchange information and opinions.

Lifestyle

A person's pattern of living as expressed
in his or her activities, interests, and
opinions.

Personality

The unique psychological characteristics
that distinguish a person or group.

Motive (drive)

A need that is sufficiently pressing to direct
the person to seek satisfaction of the need.

Perception

The process by which people select,
organize, and interpret information to
form a meaningful picture of the world.

Learning

Changes in an individual's behavior
arising from experience.

Belief

A descriptive thought that a person holds
about something.

Attitude

A person's consistently favorable or
unfavorable evaluations, feelings, and
tendencies toward an object or idea.

Complex buying behavior

Consumer buying behavior in situations
characterized by high consumer
involvement in a purchase and significant
perceived differences among brands.

Dissonance-reducing buying
behavior

Consumer buying behavior in situations
characterized by high involvement but
few perceived differences among brands.

Habitual buying behavior

Consumer buying behavior in situations
characterized by low-consumer
involvement and few significantly
perceived brand differences.

Variety-seeking buying behavior

Consumer buying behavior in situations
characterized by low consumer
involvement but significant perceived
brand differences.

Need recognition

The first stage of the buyer decision
process, in which the consumer
recognizes a problem or need.

Information search

The stage of the buyer decision process in
which the consumer is aroused to search
for more information; the consumer may
simply have heightened attention or may
go into an active information search.

Alternative evaluation

The stage of the buyer decision process in
which the consumer uses information to
evaluate alternative brands in the choice
set.

Purchase decision

The buyer's decision about which brand
to purchase.

Postpurchase behavior

The stage of the buyer decision process in
which consumers take further action after
purchase based on their satisfaction or
dissatisfaction with a purchase.

Cognitive dissonance

Buyer discomfort caused by postpurchase
conflict.

New product

A good, service, or idea that is perceived
by some potential customers as new.

Adoption process

The mental process through which an
individual passes from first hearing about
an innovation to final adoption. Stages include: 1)Awareness 2)Interest 3)Evaluation 4)Trial 5)ADOPTION

Geographic segmentation

Dividing a market into different
geographical units, such as nations,
states, regions, counties, cities, or even
neighborhoods.

Demographic segmentation

Dividing the market into segments based
on variables such as age, gender, family
size, family life cycle, income, occupation,
education, religion, race, generation, and
nationality.

Age and life-cycle segmentation

Dividing a market into different age and
life-cycle groups

Gender segmentation

Dividing a market into different segments
based on gender.

Income segmentation

Dividing a market into different income
segments.

Psychographic segmentation

Dividing a market into different segments
based on social class, lifestyle, or
personality characteristics.

Behavioral segmentation

Dividing a market into segments based on
consumer knowledge, attitudes, uses, or
responses to a product.

Occasion segmentation

Dividing the market into segments
according to occasions when buyers get
the idea to buy, actually make their
purchase, or use the purchased item.

Benefit segmentation

Dividing the market into segments
according to the different benefits that
consumers seek from the product.

Intermarket segmentation
(cross-market segmentation)

Forming segments of consumers who
have similar needs and buying behavior
even though they are located in different
countries.

Market targeting strategies

Undifferentiated, differentiated, concentrated, and micromarketing marketing.

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 offer.

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.

Micromarketing

Tailoring brands and promotions to the
needs and wants of local customer
segments—cities, neighborhoods, and
even specific stores.
Micromarketing

Individual marketing

Tailoring products and marketing
programs to the needs and preferences of
individual customers—also called one-toone
marketing, customized marketing,
and markets-of-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.

Competitive advantage

An advantage over competitors gained by
offering greater customer value, either by
having lower prices or providing more
benefits that justify higher prices.

Value proposition

The full positioning of a brand—the full
mix of benefits on which it is positioned. (E.g. More for less, more for the same, more for more, etc)

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 difference).

Consumer product

A product bought by final consumers for
personal consumption.

Convenience product

A consumer product that customers usually
buy frequently, immediately, and with
minimal comparison and buying effort.

Shopping product

A consumer product that the customer, in
the process of selecting and purchasing,
usually compares on such attributes as
suitability, quality, price, and style.

Specialty product

A consumer product with unique
characteristics or brand identification for
which a significant group of buyers is
willing to make a special purchase effort

Unsought product

A consumer product that the consumer
either does not know about or knows
about but does not normally consider
buying.

Industrial product

A product bought by individuals and
organizations for further processing or for
use in conducting a business.

Social marketing

The use of commercial marketing
concepts and tools in programs designed
to influence individuals' behavior to
improve their well-being and that of
society.

Product quality

The characteristics of a product or service
that bear on its ability to satisfy stated or
implied customer needs.

Brand

A name, term, sign, symbol, design, or a
combination of these, that identifies the
products or services of one seller or group
of sellers and differentiates them from
those of competitors.

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 portfolio)

The set of all product lines and items that
a particular seller offers for sale. Includes: Width-number of different product lines the company carries, length-is the total number of items the company carries within its product lines, depth-is the number of versions offered of each product in the line.

Service intangibility

Services cannot be seen, tasted, felt,
heard, or smelled before they are bought.

Service inseparability

Services are produced and consumed at
the same time and cannot be separated
from their providers.

Service variability

The quality of services may vary greatly
depending on who provides them and
when, where, and how

Service perishability

Services 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

Orienting and motivating customercontact
employees and supporting service
people to work as a team to provide
customer satisfaction.

Interactive marketing

Training service employees in the fine art
of interacting with customers to satisfy
their needs.

3 Types of service marketing

Internal, external and interactive marketing

Brand equity

The differential effect that knowing the
brand name has on customer response to
the product or its marketing.

Major brand strategy decisions

Brand positioning, brand name selection, brand sponsorship, brand devlopment

Store brand (or private brand)

A brand created and owned by a reseller
of a product or service.

Co-branding

The practice of using the established
brand names of two different companies
on the same product

Line extension

Extending an existing brand name to new
forms, colors, sizes, ingredients, or flavors
of an existing product category.

Brand extension

Extending an existing brand name to new
product categories.

New-product development

The development of original products,
product improvements, product
modifications, and new brands through
the firm's own product development
efforts.

Idea generation

The systematic search for new-product
ideas.

Stages in new-product development

Idea generation, idea screening, concept development and testing, mkting strategy development, business analysis, product development, test marketing, and commercialization

Crowdsourcing

Inviting broad communities of people—
customers, employees, independent
scientists and researchers, and even the
public at large—into the new-product
innovation process.

Idea screening

Screening new-product ideas to spot
good ideas and drop poor ones as soon
as possible.

Product concept

A detailed version of the new-product
idea stated in meaningful consumer terms.

Concept testing

Testing new-product concepts with a
group of target consumers 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 to ensure that the
product idea can be turned into a
workable market offering.

Test marketing

The stage of new-product development
in which the product and its proposed
marketing program are tested in realistic
market settings.

Commercialization

Introducing a new product into the
market.

Customer-centered new-product
development

New-product development that focuses
on finding new ways to solve customer
problems and create more customersatisfying
experiences.

Team-based new-product
developmen

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 effectiveness.

Product life cycle (PLC)

The course of a product's sales and profits
over its lifetime. It involves five distinct
stages: product development,
introduction, growth, maturity, and
decline.

Style

A basic and distinctive mode of
expression.

Fashion

A currently accepted or popular style in a
given field.

Fad

A temporary period of unusually high
sales driven by consumer enthusiasm and
immediate product or brand popularity.

Introduction stage

The PLC stage in which a new product
is first distributed and made available
for purchase.

Growth stage

The PLC stage in which a product's sales
start climbing quickly.

Maturity stage

The PLC stage in which a product's sales
growth slows or levels off.

Decline stage

The PLC stage in which a product's sales
decline.

Buyer's black box

Includes a buyer's characteristics and buyer's decision process as influenced by the environment to illicit a buyer response

Maslow's Hierarchy of Needs

In order from most necessary to least: Physiological needs, safety needs, social needs, esteem needs and self-actualization needs

Selective attention

is the tendency for people to screen out most of the info to which they are exposed

Selective distortion

is the tendency for people to interpret info in a way that will support what they already believe

Selective retention

is the tendency to remember good points made about a brand they favor and forget good points about competing brands

Buyer decision making process

1) need recognition 2) Info search 3) Evaluation of alternatives 4)Purchase decision 5) Post-purchase behavior

Adopter composition based on time

1) Innovators 2.5% 2) Early adopters 13.5% 3)Early majority 34% 4)Late majority 34% 5) Laggards 16%

Multiple segmentation

is used to identify smaller, better-defined target groups

Market Segments should be:

Measurable, accessible, substantial, differentiable and actionable in order to be successful

Measurable

The size, purchasing power, and profiles of the segments
can be measured.

Accessible

The market segments can be effectively reached and
served.

Substantial

The market segments are large or profitable enough to
serve.

Differentiable

The segments are conceptually distinguishable and
respond differently to different marketing mix elements and programs.
If men and women respond similarly to marketing efforts for soft drinks, they
do not constitute separate segments.

Actionable

Effective programs can be designed for attracting and serving the segments.

When Evaluating segments you look at:

Segment size and growth, Segment structural attractiveness and
Company objectives and resources

Core benefits

represent what the buyer is really buying.

Actual product

represents the design, brand name, and packaging that delivers the core benefit to the customer.

Augmented product

represents additional services or benefits of the actual product.

Capital items

industrial products that aid in the buyer's production or operations

Materials and parts

include raw materials and manufactured materials and parts usually sold directly to industrial users

Supplies and services

include operating supplies, repair and maintenance items, and business services

Individual product or service decisions include:

1) product attributes 2) branding 3) packaging 4) labeling 5) product support services

Product quality level

is the level of quality that supports the product's positioning

Product Conformance Quality

is the product's freedom from defects and consistency in delivering a targeted level of performance

Product line filling

occurs when companies add more items within the present range of the line.

Product line stretching

is when a company lengthens its product line beyond its current range.

Branding strategy to build strong brands includes:

1)Brand positioning, 2)Brand name selection, 3)Brand sponsorship and 4)Brand development

R-W-W Screening network

Goes through these questions before implementing an idea: Is it real?
Can we win?
Is it worth doing?

Standard test markets

are small representative markets where the firm conducts a full marketing campaign and uses store audits, consumer and distributor surveys, and other measures to gauge product performance. Results are used to forecast national sales and profits, discover product problems, and fine-tune the marketing program.

Controlled test markets

are panels of stores that have agreed to carry new products for a fee. In general they are less expensive than standard test market, faster than standard test markets, but competitors gain access to the new product.

Simulated test markets

are events where the firm will create a shopping environment and note how many consumers buy the new product and competing products. Provides measure of trial and the effectiveness of promotion. Researchers can interview consumers.

Price elasticity of demand

illustrates the response of demand to a change in price or % change in quantity demand/ % change in price

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set