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.
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. Micromarketing
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.
The way the product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.
An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.
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)
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).
A product bought by final consumers for personal consumption.
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
A product bought by individuals and organizations for further processing or for use in conducting a business.
The use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.
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.
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.
Services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Services are produced and consumed at the same time and cannot be separated from their providers.
The quality of services may vary greatly depending on who provides them and when, where, and how
Services cannot be stored for later sale or use.
Service profit chain
The chain that links service firm profits with employee and customer satisfaction.
Orienting and motivating customercontact employees and supporting service people to work as a team to provide customer satisfaction.
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
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
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Extending an existing brand name to new product categories.
The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts.
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
Inviting broad communities of people— customers, employees, independent scientists and researchers, and even the public at large—into the new-product innovation process.
Screening new-product ideas to spot good ideas and drop poor ones as soon as possible.
A detailed version of the new-product idea stated in meaningful consumer terms.
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.
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
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 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.
A basic and distinctive mode of expression.
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.
The PLC stage in which a new product is first distributed and made available for purchase.
The PLC stage in which a product's sales start climbing quickly.
The PLC stage in which a product's sales growth slows or levels off.
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
is the tendency for people to screen out most of the info to which they are exposed
is the tendency for people to interpret info in a way that will support what they already believe
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
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 served.
The market segments are large or profitable enough to serve.
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
represent what the buyer is really buying.
represents the design, brand name, and packaging that delivers the core benefit to the customer.
represents additional services or benefits of the actual product.
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
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