Mkt.Test 2

  1. market
    a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services - that is ways of satisfying those needs.
  2. Generic market
    • a market wtih broadly similar needs, and sellers offerin various often diverse (broad) ways of satisfying those needs.
    • sellers focus on the needs of the customers being met, not on their product being better than the other producers.
  3. product market
    a market with very simiar needs and sellers offering various close substitute ways of satisfying those needs.
  4. A complete product-market definition includes a four-pat description.
    Product market names:
    bad why?
    • What: Product type
    • TO meet what: customer needs
    • for whom: customer types
    • where: geographic area

    because people make markets. specific definition can be clumsy.
  5. product type
    • describes the oods and or services that customers want
    • can be a good or a service
  6. customer/user needs
    the needs the product type satisfies for the customer.
  7. customer type
    the final consumer or user of a product type
  8. geographic area
    where consumers plan to compete .
  9. The description of a generic market consist of:
    • NOT product type
    • to meet what: customer need
    • for whom: customer types
    • where: geographic area
  10. market segmentation (2 step processs)
    • 1. naming broad product-markets
    • 2. segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
  11. sergmenting
    an aggretating process - clustering people with similar needs into a "market segment"
  12. market segment
    a relatively homogeneous group of customers who will respond to a marketing mix in a similar way
  13. Good segment markets fit the following criteria
    homogeneous within
    similar responses to marketing mixes
  14. Good segment markets fit the following criteria
    heterogeneous between
    customers in different segments should be as different as possible when it comes to their responses to marketing mixes.
  15. Good segment markets fit the following criteria
    segment should be big enough to make a profit.
  16. Good segment markets fit the following criteria
    segmenting dimensions should be useful for identifying customers and deciding marketing mix variables.
  17. Three basic ways to develop market-oriented strategies ina broad product-market
    single target market approach
    • segmenting the market and picking one of the homogeneous segments as the firms target market
    • "segmenters"
  18. Three basic ways to develop market-oriented strategies ina broad product-market
    multiple taret market approach
    • segmenting the market and choosing two or more segments, and then treating each as as seperate target market needeing a different marketing mix
    • "segmenters"
  19. Three basic ways to develop market-oriented strategies ina broad product-market
    combined target market approach
    • combining two or more submarkets into one larger target market as a basis for one strategy.
    • "combiners"
  20. combiners
    • look at similarities rather than differencs when making target markets.
    • they increase the size of their target markets by combining two or more segments.
  21. segmenters
    • aim at one or more hoogeneous segments and try to develop a different marketing mix for each.
    • focuses on target markets needs and how to meed those specifically.
  22. qualifying dimensions when segmenting
    those relevant to including a customer type in a product-market
  23. determining dimensions in segmenting
    those that actually affect the customer's purchase of a specific product or brand in a product-market
  24. positioning
    how a customer thinks about proposed or present brands in a merket.
  25. gross domestic product (GDP)
    the toal market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country.
  26. gross national income or gross national product
    it does not include the earning by foreigners who own resources in that nation.
  27. birthrate
    number of babies born with 1000 people.
  28. metropolitan statistical area (MSA)
    • an integrated economic and social unit with a large population nucleus.
    • usually an urbanized are of 50,000 or more.
  29. real income
    income that is adjusted to take out the effects of inflation on purchasing power.
  30. disposable income
    what is left after taxes
  31. discretionary income
    what is left of disposable income after paying for necessities.
  32. economic buyers
    people who know all the facts and logically compare choices toget the greatest satisfaction from spending their time an dmoney.
  33. economic needs
    concerned with making the best use of a consumer's time and money - as the consumer judges it.
  34. needs
    • the basic forces that motivate a person to do something.
    • more basic than wants.
  35. physical needs
    food, clothing, shelter...
  36. social needs
    belonging and affection
  37. individual (personal) needs
    knowledge or self expression.
  38. wants
    • object that satisfy a need.
    • people grow to learn their wants...for example, the wanting of a specific brand.
  39. demands
    human wants backed by buying power (what can i afford to buy?)
  40. drive
    • a strong stimulus that encourages action to reduce a need.
    • they are internal.
  41. Maslow hierarchy of needs
    • (Top to bottom)
    • personal needs
    • social needs
    • safety needs
    • physiological needs (food water rest sex)
  42. selective exposure
    our eyes and minds seek out and notice information that interests us.
  43. selective perception
    we screen out or modify ideas messags and information that conflict with previously learned attitudes and beliefs.
  44. selective retention
    we remember only what we want to remember.
  45. psychographics/ life style analysis
    • the analysis of a person's day-to-day parern of living.
    • Activities Interest Opinion (AIO's)
  46. Characteristics affecting consumer behavior
    the whole set of believes, attitudes and ways of doing things of a reasonably homogenious oset of people
  47. Characteristics affecting consumer behavior
    the people around you who may influence your actions
  48. social classes (7)
    • society's relatively permanent and ordered divisions whose members share similar, values, interests and behaviors.
    • upper upper, lower upper, middle class, working class, lower upper, lower lower
    • determined by factors such as occpation, income, welath, education and neighborhoods.
  49. reference groups
    groups whose value structures and standards influence a person's behaviors.
  50. reference groups
    primary groups
    family, close friends, coworkers
  51. reference groups
    secondary groups
    organizations, groups that you are a part of (church)
  52. reference groups
    aspirational groups
    • groups that we aspire to be a part of
    • atheltes, entertainers...
  53. reference groups
    dissociative groups
    groups that we don't want to be associated with.
  54. extensive problem solving
    when they put much effort into deciding how to satisfy a need...
  55. limited problem solving
    used by consumers when some effort is required in deciding the best way to satisfy a need
  56. routinized response behavior
    when he or she regularly selects a particular way of satisfying a need when it occurs.
  57. dissonance
    a feeling of uncertainty about whether the right decision was made.
  58. adoption process
    • steps individuals go through on the way to accepting or rejecting a new idea.
    • awareness, interest, evaluation, trial, decision and confirmation
  59. decision making process
    problem recognition, information search, evaluate alternatives, purchse decision, purchase act, post purchase evaluation.
  60. Characteristics affecting consumer behavior
    personal factors
    • age and life cycle stage
    • occupation
    • economic situation
    • lifestyle
    • personality and self concept
  61. Characteristics affecting consumer behavior
    psychological factos
    motivation, learning, believes and attitudes, perception
  62. perception
    process by which people select, organize, and interpret information
  63. marketing concept
    a consumer oriented, integrated and goal oriented philosophy.
  64. marketing mix
    four P's
Card Set
Mkt.Test 2
Mkt Chapter 4, 5 and 6