Advertising Chapter 6
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69 terms
Terms | Definitions |
|---|---|
 Market Segmentation | Involves two steps: identifying groups of people (or organizations) with certain shared needs and characteristics and aggregating (combining) these groups into larger market segments according to their interest in the product's utility. |
| Behavioristic Segmentation | To group consumers by purchase behavior.Variables include user status, usage rate, purchase occassion, and benefits sought. |
| User Status | potential users, nonusers, ex-users, regulars, first-timers, and users of competitors' products. |
| Volume Segmentation | dividing the market by usage (volume of use) |
| Usage Rates | The extent to which consumers use a product: light, medium, or heavy. |
| Purchase Occasion | A method of segmenting markets on the basis of when consumers buy and use a good or service. |
| Benefits | High quality, low price, status, sex appeal, good taste, health consciousness. |
| Benefit Segmentation | The process of grouping customers into market segments according to the benefits they seek from the product |
| Geographic Segmentation | segmenting markets by region of a country or the world, market size, market density, or climate |
| Demographic Segmentation | dividing a market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. |
| Geodemographic Segmentation | the grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics |
| Psychographic Segmentation | dividing the market into smaller groups based on consumer attitudes, personality, interests, values, and lifestyles |
| Primary Motivation | consumers are inspired by three primary motivations: Ideals, achievements, and self-expression |
| Resources | varying levels of ______ which include money, education, or self-confidence. |
| Business (industrial) Markets | Include manufacturers, government agencies, wholesalers, retailers, banks, and institutions that buy goods and services to help them operate. |
| Resellers | Such as retail businesses that resell to consumers |
| North American Industry Classification System (NAICS) Codes | Method used by the U.S. Department of Commerce to classify all businesses. The _______ are based on broad industry groups, subgroups, and detailed groups of firms in similar lines of business. |
| Primary Demand Trend | the projection of future consumer demand for a whole product category based on past demand and other market influences; use because you need to know the market potential for the product/service |
| Target Marketing Process | determines the content, look and feel of its advertising |
| Target Market | That group of segments the company wishes to appeal to, design products for, and tailor its marketing activities toward. |
| Product Concept | the consumer's perception of a product as a bundle of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs |
| Marketing Mix | the blending of product, distribution, price, and communications. |
| Product Element | Major activities typically include the way the product is designed & classified, positioned, branded & packaged |
| Product Life Cycle | Four stages that product goes through over its life: introduction, growth, maturity, and decline. |
| Early Adopters | Those who adopt an innovation early in the diffusion process but after the innovators. |
| Primary Demand | Demand for a product category rather than for a specific brand |
| Introductory (pioneering) Phase | company incurs considerable costs for educating customers, building a widespread dealer distribution and encouraging demand, Any new product category, the company incurs considerable costs for educating customers, building widespread dealer distribution, and encouraging demand. Spends significant advertisng sums at this stage to establish a position as a market leader adn to gain a large share of market before the growth stage begins. |
| Pull Strategy | directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product |
| Sales Promotion | Short-term incentives to encourage the purchase or sale of a product or service. |
| Push Strategy | promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. |
| Growth Stage | the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy |
| Maturity Stage | The product life cycle stage in which sales growth slows or levels off |
| Selective Demand | demand for a specific brand |
| Decline Stage | final stage of product life cycle: obsolescence, new technology, changing customer taste, cease all promotion, or fade out quickly. |
| Service | A bundle of intangible benefits that satisfy some need or want, are temporary in nature, and usually derive from completion of a task. |
| Equipment-based Service | A service business that relies mainly on the use of specialized equipment. ex: railroads |
| People-based Service | Relies on the creative talents and marketing skills of indivuals. (Law firm or bank) |
| Position | The first strategic decision to be made. |
| Perceptible Differences | differences between products that are readily apparent to the consumer |
| Hidden Differences | Imperceptible but existing differences that may greatly affect the desirability of a product. ex gums may taste the same, advertising needs to show these differences to enhance product dseirability |
| Induced Differences | Distinguishing characteristics of products effected through unique branding, packaging, distribution, merchandising, and advertising. ex: Many product classes, such as aspirin, salt, gasoline, packaged foods, liqour, and financial services |
| Brand | The fundamental differentiating device for all products. |
| Individual Brand | giving each product within a line a different name (Procter & Gamble has brand names for its dif laundry detergents: Tide, Cheer, Dash) |
| Family Brand | marketing several different products under the same brand name |
| National Brands | brands that are owned and initiated by national manufacturers or service companies; also known as producer brands. |
| Private Labels | personalized brands applied by distributors or dealers to products supplied by manufacturers; sold at a lower price in a large chain store ex: kenmore, craftsman, etc. |
| Licensed Brands | companies pay a substantial fee for the right to use another companys brand name. ex coca cola clothing |
| Brand Equity | The totality of what consumers, distributors, dealers--even competitors--feel and think about the brand over an extended period of time. |
| Copy Points | copywriting themes in the products advetising |
| Price Element | amount charged for the good or service- including deals, discounts, terms, warranties and so on, the factors affecting the price are market demand, cost of production, and distribution, competition, and corporate objectives |
| Distribution Element | How and where customers will buy a company's product; either direct or indirect distribution. |
| Direct Distribution | When companies sell directly to end users or consumers. |
| Network (multilevel) Marketing | a method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer; one of the fastest growing methods of direct distribution |
| Distribution Channel | Comprises all the firms and individuals that take title, or assist in taking title, to the product as it moves from the producer to the consumer. |
| Intensive Distribution | stocking the product in as many outlets as possible |
| Selective Distribution | distribution that sends products to only a preferred group of retailers in an area |
| Cooperative Advertising | an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand |
| Exclusive Distribution | giving a limited number of dealers the exclusive right to distribute the company's products in their territories |
| Vertical Marketing System (VMS) | A centrally programmed and managed system that supplies or otherwise serves a group of stores or other businesses. |
| Franchising | A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor. |
| Communication Element | all marketing-related communications between the seller and the buyer |
| Communications Mix | the blend of personal selling, advertising, direct marketing, sales promotions and public relations a firm employs to communicate with potential consumers., a variety of marketing communication tools, grouped into personal and non personal selling |
| Personal Communication | Includes all person-to-person contact with customers. |
| Nonpersonal Communication | use some medium as an intermediary for communicating, including advertising, direct marketing, pr, collateral materials, and sales promotion. |
| Direct Marketing | like taking the store to the customer. |
| Telemarketing | (a direct marketing technique) to increase productivity through person-to-person phone contact. |
| Publicity | news releases, feature stories |
| Special Events | open houses, factory tours, VIP parties, grand openings |
| Collateral Materials | many accessory items companies produce to integrate and supplement their advertising or PR activies. ex: booklets, catalogs, brochures, films, sales kits, promotional products, and annual reports. |
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