1. market segmentation
    dividing a market into smaller groups with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
  2. market targeting
    the process of evaluating each market segment's attractiveness and selecting one or more segments to enter
  3. differentiation
    actually differentiating the market offering to create superior customer value
  4. positioning
    arranging for a market offering to occupy a clear, distinctive, and desirable place relatvie to competing products in the minds of target consumers
  5. demographic segmentation
    dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
  6. gender segmentation
    dividing a market into different groups based on gender
  7. income segmentation
    dividing a market into different income groups
  8. psychographic segmentation
    dividing a market into groups based on social class, lifestyle, or personality characteristics
  9. behavioral segmentation
    dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product
  10. occasion segmentation
    dividing a market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
  11. benefit segmentation
    dividing the market into groups according to the different benefits that consumers seek from the product
  12. intermarket segmentation
    forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
  13. target market
    a set of buyers sharing common needs or characteristics that the company decides to serve
  14. 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
  15. differentiated (segmented) marketing
    a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
  16. concentrated (niche) marketing
    a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
  17. micromarketing
    the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups - includes local marketing and individual marketing
  18. local marketing
    tailoring brands and promotions to the needs and wants of local customer groups -- cities, neighborhoods, and even specific stores
  19. individual marketing
    tailoring products and marketing programs to the needs and preferences of individual customers -- also labeled "customized marketing"
  20. product position
    the way a product is defined by consumers on important attributes -- the place the product occupies in consumers' minds relative to competing products
  21. competative advantage
    an advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices
  22. value proposition
    the full positioning of a brand -- the full mix of benefits upon which it is positioned
  23. positioning statement
    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).
  24. service
    any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
  25. consumer product
    product bought by final consumer for personal consumption
  26. convenience product
    consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort
  27. shopping product
    consumer good that the customers, in the process of selection and purchase, characteristically compare on such bases as suitability, quality, price, and style
  28. specialty product
    consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
  29. unsought product
    consumer product that the consumer either does not know about or knows about but does not normally think of buying
  30. industrial product
    product bought by individuals and organizations for further processing or for use in conducting a business
  31. product quality
    the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
  32. brand
    a name, term, symbol, or 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
  33. packaging
    the activities of designing and producing the container or wrapper for a product
  34. product line
    a group of products that are closely related because they function in a similar manner, are sold to the same customer groupes, are marketed through the same types of outlets, or fall within given price ranges
  35. product mix (product portfolio)
    the set of all product lines and itemsa that a particular seller offers for sale
  36. brand equity
    the positive differential effect that knowing the brand name has on customer response to the product or service
  37. store brand (private brand)
    a brand created and owned by a reseller of a product or service
  38. line extension
    extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
  39. brand extension
    extending an existing brand name to new product categories
  40. service intangibility
    a major characteristic of services -- they cannot be seen, tasted, felt, heard, or smelled before they are bought
  41. service inseparability
    a major characteristic of swervices -- they are produced and consumed at the same time and cannot be separated from their providers
  42. service variability
    a major characteristic of services -- their quality may vary greatly, depending on who procides them and when, where, and how
  43. service perishability
    a major characteristic of services -- they cannot be stored for later sale or use
  44. service-profit chain
    the chain that links service firm profits with employee and customer satisfaction
  45. internal marketing
    orienting and motivating customer-contact employees and the supporting service people at work as a team to provide customer satisfaction
  46. interactive marketing
    training service employees in the fine art of interacting with customers to satisfy their needs
  47. new-product development
    the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts
  48. idea generation
    the systematic search for new-product ideas
  49. internal idea sources
    formal research and development, employee ideas, etc that contribute to new product ideas
  50. external idea sources
    distributors, suppliers, competitors, consumers, etc that contribute to new product ideas
  51. idea screening
    screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible
  52. product concept
    a detailed version of the new-product idea stated in meaningful consumer terms
  53. concept testing
    testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
  54. marketing strategy development
    designing an initial marketing strategy for a new product based on the product concept
  55. business analysis
    a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
  56. product development
    developing the product concept into a physical product in order to ensure that the pruduct idea can be turned into a workable market offering
  57. test marketing
    the stage of new-product development in which the product and marketing program are tested in realistic market settings
  58. commercialization
    introducing a new product into the market
  59. customer-centered new product development
    new product development that focuses on finding new ways to solve customer problems and create customer-satisfying experiences
  60. product life cycle
    • the course of a product's sales and profit over its lifetime
    • includes:
    • 1. product development
    • 2. introduction
    • 3. growth
    • 4. maturity
    • 5. decline
  61. price
    the amount of money charged for a product or service
  62. value-based pricing
    setting price based on a buyer's perceptions of value rather than on the seller's cost
  63. good-value pricing
    • offering just the right combination of quality and good service at a fair price
    • i.e. mcdonalds' $1 menu
  64. cost-based pricing
    setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk
  65. fixed costs
    costs that do not vary with production or sales level
  66. variable costs
    costs that bary directly with the level of production
  67. target costing
    pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
  68. demand curve
    a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
  69. price elasticity
    a measure of the sensitivity of demand to changes in price
  70. market penetration pricing
    setting a low price for a new product in order to attract a large number of buyers and a large market share
  71. product line pricing
    setting the price steps between products in a product line based on cost differences and customer perceptions of the value
  72. optional product pricing
    the pricing of optional or accessory products along with a main product
  73. captive product pricing
    setting a price for products that must be used along with a main product
  74. by-product pricing
    setting a price for by-products in order to make the main product's price more competitive
  75. discount
    a straight reduction in price on purchases under stated conditions or during a stated period of time
  76. allowances
    promotional money paid by manufacturers to retailers in return for an agreement to reature the manufacturers products in some way
  77. product bundle pricing
    combining several products and offering the bundle at a reduced price
  78. segmented pricing
    selling a product or service at two or more prices, where the difference in prices is not based on differences in cost
  79. psychological pricing
    a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something aobut the product
  80. reference prices
    prices that buyers carry in their minds and refer to when they look at a given product
  81. promotional pricing
    temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
  82. geographical pricing
    setting price based on the buyer's geographic location
  83. dynamic pricing
    adjusting prices continually to meet the characteristics and needs of individual customers and situations
  84. value delivery network
    the netowrk made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improce the performance of the entire system in delivering customer value
  85. marketing channel
    a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
  86. channel level
    a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
  87. direct marketing channel
    a marketing channel that has no intermediary levels
  88. indirect marketing channel
    a channel containing one or more intermediary levels
  89. channel conflict
    disagreement among marketing channel members on goals and roles -- who should do what and for what rewards
  90. conventional distribution channel
    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
  91. vertical marketing system
    • 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.
  92. corporate VMS
    a vertical marketing system that combines successive stages of production and distribution under single ownership -- channel leadership is established through common ownership
  93. contractual 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
  94. franchise organization
    a contractual vms in which a channel member, called a franchiser, links several stages in the production-distribution process
  95. Administered VMS
    a vms that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties
  96. horizontal marketing system
    a channel arangement in which two or more companies at one level join together to follow a new marketing opportunity
  97. multichannel distribution system
    a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
  98. marketing channel design
    designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them
  99. intensive distribution
    stocking the product in as many outlets as possible
  100. exclusive distribution
    giving a limited number of dealers the exclusive right to distribute the company's products in their territories
  101. selective distribution
    the use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products
  102. marketing channel management
    selecting, managing, and motivating individual channel members and evaluating their performance over time
  103. distribution center
    a large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
  104. intermodal transportation
    combining two or more modes of transportation
  105. integrated logistics management
    the logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations to maximize the performance of the entire distribution system
  106. third party logistics provider
    an independent logistics provider that performs any or all of the functions required to get its client's product to market
Card Set
Chapters 6-10 Terms