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30 terms

Marketing: Chapter 9

STUDY
PLAY
Market segments
Groups that result from market segmentation
Market-product grid
Framework relating the segments of a market to products of the firm
Product differentiation
A marketing strategy using different marketing mix activities to help consumers perceive a product as being different from and better than competing products
Perceptual map
A means or method of displaying the position of products or brands in consumers' minds
Usage rate
Quantity consumed or services rendered during a specific period
Product positioning
The Place a product occupies in consumers' minds on important features relative to competing products
Market segmentation
Sorting potential buyers into groups that have common needs and will respond similarly to a marketing action
organizational synergy
the increased customer value achieved through performing organizational functions more efficiently
cannibalization
reduction in sales volume, revenue, or market share of one product as a result of introduction of a new product by the same producer
grouping potential buyers into segments
five criteria in forming market segments: simplicity and cost effectiveness of assigning potential buyers to segments, potential for increased profit, similarity of needs of potential buyers within a segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment.
geographic segmentation
Segmenting markets by region of a country or the world, market size, market density, or climate (ex. spicier campbell's soup for different parts of u.s.)
demographic segmentation
Segmenting markets by age, gender, income, ethnic background, and family life cycle (ex. serving size of campbell's soups)
psychographic segmentation
dividing a market into different groups based on social class, lifestyle, or personality characteristics.
behavioral segmentation: product features
understanding what features are important to different costumers (ex.microfridges for college students)
usage rate
(in behavioral segmentation) quantity consumed or times visited during a specific period
80/20 rule
A marketing heuristic that claims that 20% of purchasers account for 80% of a product's sales.
geographic segmentation: statistical area
type of sales call depending on whether area is metropolitan or micropolitan
demographic segmentation: naics or number of employees
printing needs, size of firm (different # of emloyees = different system)
market-product grid
a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization... used to determine which product market segments to select and which product groupings to offer
rows
markets on the market-product grid
colums
product groupings on the market-product grid
cells
the unique market-product combination on the market-product grid
criteria used to select target markets
market size, expected growth, competitive position, cost of reaching the segment, compatibility with the organization's objectives and resources
marketing synergy
streamlines products towards one target market
product synergy
streamlines a company towards only one product that caters to many markets
product positioning
refers to the place an offering occupies in consumer's mind on important attributes relative to competitive offerings.
product repositioning
changes the place a product occupies in a consumer's mind relative to competitive products
perceptual map
means of displaying the position of products or brands in the consumers' minds
head-to-head positioning
competing directly with competitors on similar products attributes in the same target market
differentiation positioning
seeking a less competitive smaller market niche in which to locate a brand