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Principles of Marketing, Chapter 8 Unit 2, and Chapter 7, Unit 7
Terms in this set (50)
Division general manager proposes to replace company's computer network.
Initiator (buying-center roles for computer purchases)
Corporate controller's office and vice president of data processing have an important say in which system and vendor the company will deal with.
Influencers/Evaluators (buying-center roles for computer purchases)
Corporate departments for purchasing and data processing analyze company's needs and recommend likely matches with potential vendors.
Gatekeepers (buying-center roles for computer purchases)
Vice president of administration, with advice from others, selects vendor the company will deal with and system it will buy.
Decider (buying-center roles for computer purchases)
Purchasing agent negotiates terms of sale
Purchaser (buying-center roles for computer purchases)
All division employees use the computers.
Users (buying-center roles for computer purchases)
Identifiability and Measurability, Data about the population
Within geographic boundaries, number of people in various age categories, and other demographic characteristics are often easy to get, and provide fairly concrete measures of segment.
Identifiability and Measurability, Unless a company can measure
How many people are willing, indifferent, or unwilling to patronize, it will have trouble gauging whether there are enough people to justify setting up in an area.
Characteristics of individuals, groups, or organizations. AKA Variables
Characteristics of individuals, groups, or organizations. AKA Segmentation Bases
Marketers use Segmentation Bases
To divide a total market into segments.
The choice of segmentation bases is crucial
Because an inappropriate segmentation strategy may lead to lost sales and missed profit opportunities.
The key to successful segmentation bases
Is to identify those that will produce substantial, measurable, and accessible segments that exhibit different response patterns to marketing mixes.
The disadvantages of multiple-variable segmentation
It's often harder to use than single-variable segmentation, usable secondary data is less likely to be available, and as the number of segmentation bases increases, the size of individual segments decrease.
Multiple-variable segmentation advantage
It is clearly more precise than single-variable segmentation and is the current trend in marketing.
Segmenting markets by region of a country or of the world, market size, market density, or climate.
The number of people within a unit of land, such as a census tract.
Climate in marketing
Is commonly used for geographic segmentation because of its dramatic impact on needs and purchasing behavior.
Climate is a successful segmentation tool for
Snowblowers, water and snow skis, clothing, and air-conditioning and heating systems.
Reasons to use geographic segmentations
To find new ways to generate sales because of sluggish or intensely competitive markets, checkout stations with scanners give retailers an accurate assessment of this, introduce regional brands to appeal to local preferences, a regional approach makes companies more able to react more quickly to competition.
Macy's and Geographic Segmentation
Company has changed the merchandise mix so that 15% of it in the store reflect local preferences to its customers.
Behavioral Targeting Segments Consumers Based On
Observed and measured online data and is an ethical dilema with consumer privacy.
Behavioral targeting can look at
Pages or sites users visit, content examined, search inquires entered, and ads clicked.
Behavioral targeting is often combined
With the stickiness factor which includes time, length and frequency of site visits.
Benefits of Behavioral Targeting
Can lead to ad campaigns that are more likely to persuade their audience.
Ongoing challenge of behavioral targeting
Trying to balance online ad targeting with consumer privacy.
Companies have access through behavioral targeting
To both consumer identity through IP address and consumer personality through online behavior. Which is unsettling for 49% of consumers.
Behavioral targeting practices rely on these, which are small pieces of data used to track and maintain online actions of a user.
Cookies can track
The sites visited as well as items stored in an electronic shopping cart.
Critics of Behavioral Targeting Question
Whether the practices violate wiretap laws, which prevent carriers from monitoring customer communications.
Marketers segment markets on the basis of demographic information
Because it is widely available and often related to consumers' buying and consuming behavior.
Segmenting markets by age, gender, income, ethnic background, and family life cycle.
Through allowances, earnings, and gifts
Children account for and influence a great deal of consumption
To be kids, but also want some of the fun of being a teenager.
One of the many retailers that serve this market with clothing that is similar in style to that worn by teenagers and young adults.
Also known as Generation Y, and like to try whatever is new and trendy, tend to change their minds quickly about things, and covet status brands.
Millennials are aware of brands and also marketing strategies
Which means that obvious marketing techniques will not work.
Teens have these favorite brands that they define themselves with
iPod, American Eagle Outfitters, Facebook, and MTV
Teens are environmentally conscious
And say they would shop at an environmentally friendly retailer more, and spend more money if those brands were environmentally friendly.
Struggled to compete with other shampoos before P&G acquired them, so marketers chose to target Gen Y and millennial women through redesigning their packaging and adding cute style names.
Members of Generation X, or Xers
Tend to be disloyal to brands and skeptical of big business.
Many Xers are becoming parents
And they make purchasing decisions with thought for and input from their families.
Xers desire an experience, not just a product
Which is why Starbucks developed a market for expensive coffee by encompassing this for this generation.
Half of all spending in the United States.
Boomers spend big money on
Products that include travel, electronics as well as automobiles.
Baby boomers are not particularly
Brand loyal and they are a very diverse group.
Hallmark Channel targets baby boomers
Because of their wealth as well as the fact that they are more engaged in TV than are members of other groups.
Challenges facing marketers who target boomers
They refuse to believe they're aging, so marketers cannot use any kind of messaging that refers to their age.
Rather than refer to Boomer age
They must appeal to their interests, lifestyles, and values.
Baby boomers don't want the kind of patronizing
Help-me-do-something kind of tools, and Good Grips can appeal to that, as well as 20-40 range because the products look cool.
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