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Terms in this set (40)
a market is
(1)people or organizations with
(2)needs or wants and with
(3)the ability and
(4)the willingness to buy.
The process of dividing a market into meaningful, relatively similar, and identifiable segments, or groups.
is to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments.
A segment must be large enough to warrant developing and maintaining a special marketing mix
Identifiability and measurability:
Segments must be identifiable and their size measurable. Data about the population within geographic boundaries, the number of people in various age categories, and other social and demographic characteristics are often easy to get, and they provide fairly concrete measures of segment size.
The firm must be able to reach members of targeted segments with customized marketing mixes. Some market segments are hard to reach—for example, senior citizens (especially those with reading or hearing disabilities), individuals who do not speak English, and the illiterate
Markets can be segmented using any criteria that seem logical. Unless one market segment responds to a marketing mix differently than other segments, however, that segment need not be treated separately. For instance, if all customers are equally price conscious about a product, there is no need to offer high-, medium-, and low-priced versions to different segments
Marketers use ______________ , or variables, which are characteristics of individuals, groups, or organizations, to divide a total market into segments.
refers to segmenting markets by region of a country or the world, market size, market density, or climate.
Marketers often segment markets on the basis of demographic information because it is widely available and often related to consumers' buying and consuming behavior. Some common bases of ____________ are age, gender, income, ethnic background, and family life cycle.
family life cycle (FLC)
is a series of stages determined by a combination of age, marital status, and the presence or absence of children.
_______ is market segmentation on the basis of the following psychographic segmentation variables: personality, motives, lifestyles, geodemographics
clusters potential customers into neighborhood lifestyle categories. It combines geographic, demographic, and lifestyle segmentations.
is the process of grouping customers into market segments according to the benefits they seek from the product.
_______ divides a market by the amount of product bought or consumed. Categories vary with the product, but they are likely to include some combination of the following: former users, potential users, first-time users, light or irregular users, medium users, and heavy users.
contact familiar suppliers and place the order with the first one to satisfy product and delivery requirements.
consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one.
identify marketing opportunities.
1.Select a market or product category for study
2.Choose a basis or bases for segmenting the market
3.Select segmentation descriptors:
4.Profile and analyze segments
6.Design, implement, and maintain appropriate marketing mixes
is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
undifferentiated targeting strategy
A firm using an __________ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments. The firm uses one marketing mix for the entire market. A firm that adopts an undifferentiated targeting strategy assumes that individual customers have similar needs that can be met with a common marketing mix.
concentrated targeting strategy
__________ , a firm selects a market niche (one segment of a market) for targeting its marketing efforts. Because the firm is appealing to a single segment, it can concentrate on understanding the needs, motives, and satisfactions of that segment's members and on developing and maintaining a highly specialized marketing mix.
ex: rent a car
multisegment targeting strategy.
A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each has a _______________. ex: tide, zipcar
which occurs when sales of a new product cut into sales of a firm's existing products.
continuing growth of CRM
There are at least four trends that will lead to the________: personalization, time savings, loyalty, and technology
One-size-fits-all marketing is no longer relevant. Consumers want to be treated as the individuals they are, with their own unique sets of needs and wants
Direct and personal marketing efforts will continue to grow to meet the needs of consumers who no longer have the time to spend shopping and making purchase decisions. With the personal and targeted nature of CRM, consumers can spend less time making purchase decisions and more time doing the things that are important to them.
Consumers will be loyal only to those companies and brands that have earned their loyalty and reinforced it at every purchase occasion. CRM techniques focus on finding a firm's best customers, rewarding them for their loyalty, and thanking them for their business
Mass-media approaches will decline in importance as advances in market research and database technology allow marketers to collect detailed information on their customers. New technology offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.
a process that influences potential customers' overall perception of a brand, product line, or organization in general.
is the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings.
One positioning strategy that many firms use to distinguish their products from competitors is based on ________________ . The distinctions between products can be either real or perceived.
____________ is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds. For example, Saks Incorporated, the department store chain, stumbled in sales when it tried to attract a younger core customer.
A product is associated with an attribute, product feature, or customer benefit. In engineering its products, Seventh Generation focuses on removing common toxins and chemicals from household products to make them safe for everyone in the household.
Price and quality
: This positioning base may stress high price as a signal of quality or emphasize low price as an indication of value. Neiman Marcus uses the high-price strategy; Walmart has successfully followed the low-price and value strategy.
Use or application
: Stressing uses or applications can be an effective means of positioning a product with buyers. Danone introduced its Kahlúa liqueur using advertising to point out 228 ways to consume the product.
: This positioning base focuses on a personality or type of user. Gap Inc. has several different brands: Gap stores offer basic casual pieces, such as jeans and T-shirts, to middle-of-the-road consumers at mid-level prices; Old Navy offers low-priced, trendy casual wear geared to youth and college-age groups; and Banana Republic is a luxury brand offering fashionable, luxurious business and casual wear to twenty-five- to thirty-five-year-olds.*
The objective here is to position the product as being associated with a particular category of products—for example, positioning a margarine brand with butter. Alternatively, products can be disassociated with a category
Positioning against competitors is part of any positioning strategy. Apple positions the iPhone as cooler and more up-to-date than Windows-based smartphones, and Samsung positions the Galaxy series as cooler and more up-to-date than the iPhone
: Positioning using emotion focuses on how the product makes customers feel. A number of companies use this approach. For example, Nike's "Just Do It" campaign did not tell consumers what "it" is, but most got the emotional message of achievement and courage.
is changing consumers' perceptions of a brand in relation to competing brands.
principle a principle holding that 20 percent of all customers generate 80 percent of the demand
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Chapter 15 Money and Financial System
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