Marketing Concepts
Unsought Products
items customers do not yet know they want or need to buy; promotion is the only way for marketers to raise awareness of the product
Specialty Products
items especially sought items by consumers; less comparison shopping than other types of products
Convenience Products
items of necessity consumers usually do not want to spend a lot of time or money buying
Marketing Information Management
managing market information to maximize business decisions
Discretionary Income
money left after basic living expenses have been paid
Disposable Income
money left after taxes are taken out of paychecks
Financing
obtaining the money necessary for business operations
Staples
products bought often, routinely and without a lot of thought
Emergency Products
products especially sought out by consumers usually for emergency reasons; no time to shop around
Negative Driven Products
products purchased due to the consumer's negative view of other comparable products such as bottled water
Regular Unsought
products remain unsought but not forever such as gravestones and encyclopedias
Parity Products
products seen as little-interest and little-involvement products; hard for marketers to distinguish these products from others; example light bulbs and toilet paper
Impulse Items
products the customer had not planned to buy but were at the right place at the right time; sales may be lost if customers do not see these items at the right place and right time
Selling
providing consumers with the products and services they desire
Disaggregate
reduce the marketing focus to product-market areas where companies are more likely to have a competitive advantage
Segmentation
an aggregating process which clusters people with similar needs into market segments
Target Marketing
applies to a fairly homogeneous group of consumers
Mass Marketing
applies to a more heterogeneous group of consumers
Promotion
applying promotional techniques to potential customers
Baby Boom Generation
babies born between 1946-1964; aging population; are of interest to companies promoting products related to aging populations
Generation X
babies born between 1965-1977; children of dual-careered parental homes and rising divorce rates; media savvy; big spenders in cosmetics, electronics, clothing and entertainment; reached through sharp images' music' and humor
Generation Y
babies born between 1977-1997; children growing up in computer-dense environment; comfortable with computers; are attractive to marketers for building lasting consumer loyalty
Sales Promotions
involves promotional activities other than advertising, publicity and personal selling raising interest, trial or purchase by customers other channel members
Channels of Distribution
series of companies who participate in the flow of products from producer to the final customer
Distribution
using channels to get products to consumers
Metropolitan Statistical Areas (MSAs)
created by the government to help distribute federal aid; used by marketers to target consumers and launch promotional campaigns
Customer
person who buys the product
Consumer
person who uses the product
Market Segments
a similar group of consumers responding to the same marketing mix
Marketing Concept
business must satisfy needs and wants of their customer to compete
Trends
changes in households, the economy, politics and workplace; changes in personal attitudes about health, time, fun and general living
New Unsought Products
completely new products people do not know about
Pricing
determines prices for products in order to maximize profit
Product/Service Management
developing, improving and maintaining a product mix
Mark-up
increase in cost
Mass Selling
involves communicating with large numbers of consumers at one time
Personal Selling
involves direct spoken communication between sellers and consumers
