-
Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require seperate marketing strategies or mixes
Market segmentation
-
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
Market targeting
-
Actually differentiating the market offering to create superioir customer value
Differentiation
-
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Positioning
-
Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods
Geographic segmentation
-
Dividing the market into segments based on variables such as agem gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
Demographic segmentation
-
Diving a market into different age and life-cycle groups
Age and life-cycle segmentation
-
Dividing a market into differnt segments based on gender
Gender segmentation
-
Diving a market into differnt income segments
Income segmentation
-
Diving a market into differnt segments basoned on social class, lifestyle, or personality characteristics
Psychographic segmentation
-
Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
Behavioral segmentation
-
Diving the market into segments according to occasions when buyers get the idea to buy, actually make theit purchase, or use the purchased item
Occasion segmentation
-
Dividing the market into segments according to the differnt benefits that consumers seek from the product
Benefit segmentation
-
A set of buyers sharing common needs or characteristics that the company decides to serve
Target market
-
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Undifferentiated (mass) marketing
-
A market-coverage strategy in which a firm decides to target several market segments and designs seperate offers for each
Differentiated (segmented) marketing
-
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Concentrated (niche) marketing
-
The practice of tailoring products and marketing programs to needs and wants of specific individuals and local customer segments - includes local marketing and individual marketing
Micromarketing
-
Tailoring brands and promotions to the needs and wants of local customer segments- cities, neighborhoods, and even specific stores
Local marketing
-
Tailoring products and marketing programs to the needs and prederences of individual customers- also labeled "one-to-one marketing," "customized marketing," and "markets-of-one marketing."
Individual marketing
-
The way the product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
Product position
-
An advantage over competitors gained by offering great customer value, either through lower prices or by providing more benefits that justify higher prices
Competitive advantage
-
The full positioning of a brand- the full mix of benefits upon which it is positioned
Value proposition
-
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Product
-
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Service
-
A product bought by final consumers for personal consumption
Consumer product
-
A consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort
Convenience product
-
A consumer product that the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style.
Shopping 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
Speciality product
-
A consumer product that the consumer either does not know about or knows about but does not normally think of buying
Unsought product
-
A product bought by individuals and organizations for further processing or for use in conducting a business
Industrial product
-
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
Product quality
-
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
Brand
-
The activities of designing and producing the container or wrapper for a product
Packaging
-
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 line
-
The set of all product lines and items that a particular seller offers for sale
Product mix (or product portfolio)
-
A major characteristic of services- they cannot be seen, tasted, felt, heard, or smelled before they are bought
Service intangibility
-
A major characteristic of services - their quality may vary greatly, depending on who provides them and when, where, and how.
Service variability
-
A major characteristic of services - they cannot be stored for later sale or use
Service perishability
-
The differential effect that knowing the brand name has on a customer response to the product or its marketing
Brand equity
-
A brand created and owned by a reseller of a product or service
Store brand (or private brand)
-
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
Line extension
-
The development of original products, product improvements, product modifications, and new brands through the firm's own product-development efforts
New-product development
-
The systematic search for new-product ideas
Idea generation
-
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible
Idea screening
-
A detailed version of the new-product idea stated in meaningful consumer terms
Product concept
-
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Concept testing
-
Designing an initial marketing strategy for a new product based on the product concept
Marketing strategy development
-
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
Business analysis
-
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering
Product development
-
The stage of new product development in which the product and marketing program are tested in realistic market settings
Test marketing
-
Introducing a new product into the market
Commercialization
-
The course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline
Product life cycle
-
Begins when the company finds and develops a new product idea. During product development, sales are zero and the company's investment cost mount
Product development
-
is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction
Introduction
-
Is a period of rapid market acceptance and increasing profits
Growth
-
is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profit level off or decline because of increased marketing outlays to defend the product against competition
Maturity
-
is the period when sales fall off and profits drop
Decline
-
The product life-cycle stage in which the new product is first distributed and made available for purchase
Introduction stage
-
The product life-cycle stage in which a product's sales start climbing quickly
Growth stage
-
The product life-cycle stage in which sales growth slows or levels off
Maturity stage
-
The product life-cycle stage in which a product's sales decline
Decline stage
-
The amount of money charged for a product or service, or the sum of values that customers exchange for the benefits of having or using the product or service
Price
-
Setting price based on buyers' perceptions of value rather than on the seller's cost
Customer value-based pricing
-
Offering just the right combination of quality and good service at a fair price
Good value pricing
-
Attaching value-added features and services to differentiate a company's offers and charging higher prices
Value-added pricing
-
Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk
Cost-based pricing
-
Costs that do not vary with production or sales level
Fixed costs (overhead)
-
Costs that vary directly with the level of production
Variable costs
-
The sum of the fixed and variable costs for any given level of production
Total costs
-
Adding a standard markup to the cost of the product
Cost-plus pricing (markup pricing)
-
Setting price to break even on the costs of making and marketing a product, or setting price to make a target return
Break-even pricing (target return pricing)
-
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
Demand curve
-
A measure of sensitivity of demand to changes in price
Price elasticity
-
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
Market-skimming pricing
-
Setting a low price for a new product in order to attract a large number of buyers and large market share
Market-penetration pricing
-
Setting the price steps between various products in a product line based on a cost differences between the products, customer evaluations of different features, and competitors' prices
Product line pricing
-
The pricing of optional or accessory products along with a main product
Optional-product pricing
-
Setting a price for products that must be used along with a main product, such as blades for a razor and games for a videogame console
Captive-product pricing
-
Setting a price for by-products in order to make the main product's price more competitive
By-product pricing
-
Combining several products and offering the bundle at a reduced price
Product bundle pricing
-
A straight reduction in price on purchases during stated period of time or of larger quantities
Discount
-
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way
Allowance
-
Selling a product or service at two or more prices, where the differences in prices is not based on differences in costs
Segmented pricing
-
Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product
Psychological pricing
-
Prices that buyers carry in their minds and refer to when they look at a given product
Reference prices
-
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
Promotional pricing
-
Adjusting prices continually to meet the characteristics and needs of individual customers and situations
Dynamic pricing
-
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
Marketing channel (or distribution channel)
-
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
Channel level
-
A marketing channel that has no intermediary levels
Direct marketing channel
-
Channel containing one or more intermediary levels
Indirect marketing channel
-
Disagreement among marketing channel members on goals, roles, and rewards-who should do what and for what rewards
Channel conflict
-
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole
Conventional distribution channel
-
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate
Vertical marketing system (VMS)
-
A vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership
Corporate VMS
-
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone
Contractual VMS
-
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
Multichannel distribution system
-
The cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries
Disintermediation
-
Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
Marketing logistics (or physical distribution)
-
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers
Supply chain management
-
Combining two or more modes of transportation
Intermodal transportation
-
An independent logistics provider that performs any or all of the functions required to get its client's product to market
Third-party logistics (3PL) provider
-
Useful for planning differentiation & positioning strategies. Can help define a brand's position relative to competitors using two key dimensions
Perceptual positioning maps
-
Firm gains competitive advantage by reducing costs below those of competing firms. Lowest production and distribution costs enable firm to sell at low prices and still make a substantial profit
Overall cost leadership strategy
-
Firm distinguishes itself from competitors through quality of its products and services. Firm charges more because customers are willing to pay extra value they perceive
Differentiation strategy
-
Concentrate on specific market, product line, or group buyers. Can use overall cost leadership or differentiation strategy within target market
Focus Strategy
-
is the consumable product, which can be viewed as the main good,service or idea the customer is buying.
actual product
-
a product enhanced by the addition of related services and benefits, e.g. installation, warranty, maintenance and repair services, etc
Augmented product
-
"what is the buyer buying"
Core customer value
-
A business arrangement in which one company gives another company permission to manufacture its product for a specified payment
Licensing
-
FOBi-origin pricing, uniform-delivered pricing, zone pricing, freight-absorption pricing are all examples of
Geographical pricing
-
Controlling customer demand through use of variable pricing and capacity management to enhance profitability. Particularly relevant when product is perishable. Exampls are off-peak pricing discounts for segments, and penalties and deposits
Yield management
-
Charging constant everyday low price with few (or no) temporary price discounts
Everyday low pricing (EDLP)
-
-
-
-
-
-
13%
Intermodal transportation
|
|