124 terms

Marketing Final Part 2

Ch 5,7,8,9
The set of basic values, perceptions,
wants, and behaviors learned by a
member of society from family and other
important institutions.
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
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.
A person's pattern of living as expressed
in his or her activities, interests, and
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.
The process by which people select,
organize, and interpret information to
form a meaningful picture of the world.
Changes in an individual's behavior
arising from experience.
A descriptive thought that a person holds
about something.
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
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
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
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
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
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
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
Market targeting strategies
Undifferentiated, differentiated, concentrated, and micromarketing marketing.
Undifferentiated (mass)
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.
Tailoring brands and promotions to the
needs and wants of local customer
segments—cities, neighborhoods, and
even specific stores.
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
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
Product quality
The characteristics of a product or service
that bear on its ability to satisfy stated or
implied customer needs.
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
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.
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
Idea generation
The systematic search for new-product
Stages in new-product development
Idea generation, idea screening, concept development and testing, mkting strategy development, business analysis, product development, test marketing, and commercialization
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
Marketing strategy development
Designing an initial marketing strategy
for a new product based on the product
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.
Introducing a new product into the
Customer-centered new-product
New-product development that focuses
on finding new ways to solve customer
problems and create more customersatisfying
Team-based new-product
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
A basic and distinctive mode of
A currently accepted or popular style in a
given field.
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
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
The size, purchasing power, and profiles of the segments
can be measured.
The market segments can be effectively reached and
The market segments are large or profitable enough to
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.
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