Marketing Exam 2
Market Targeting
Evaluate segments and select segments to enter
break-even analysis
a cost based technique used to examine the relationship between cost and price and to determine best sales volume
positioning strategies
a firm may focus its positioning strategy on certain product attributes, features, or value perceptions
services
a form of product that consists of activities benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything
Disney Mickey check
a nutritional seal of approval program to combat childhood obesity after survey feedback revealed parents concern about childhood health
performance levels
ability to perform its function
cost-plus pricing
adds a standard mark-up to the cost of the product
total quality management
approach that involves constantly improving the quality of products/services
Brand association
are consumer thoughts connected to the consumer's memory about the brand
product mix
assortment of product lines and individual product offerings
private brand
brand created/owned by seller
measurement role
brand price compared to unbranded price
marketing strategies
develop marketing strategies consistent with offering's competitive advantages
Market differentiation
differentiate offering to create superior value
Psychographic segmentation
divides a market into different segments based on social class, lifestyle, or personality characteristics
behavioral segmentation
divides a market into segments based on consumer knowledge, attitudes, uses of a product, or response to a product.
Geographic segmentation
divides groups based on physical location
Demographic segmentation
divides markets into segments based on variables such as age, generation, etc.
laggards
don't like change, may remain loyal to a product until it is no longer available, may not use the internet
value proposition
how company will create differential value for targeted segments, and the position it will occupy based on the full mix of benefits upon which a brand is positioned
differentiation
how offering are differentiated based on the value proposition - benefits it promises to target market compared to competitors
changing society
how societies operate is constantly changing
Positioning
how the product is defined by consumers on important attributes - the place it occupies in the consumer's mind relative to competitors
Geo Demographic
hybrid form of segmentation that considers geographic and demographic factors
labeling and logos
identifies the product or brand, describes attributes, and provides promotional value
competitive advantage
identify competitive advantages and select the ones consistent with consumer beliefs
competitive advantage
if consumers believe it has more value than other products in its category
undifferentiated
ignore segments and sell one offer to entire market
four characteristic that affect services
intangible, inseparable, perishable, variability
every-day-low pricing
involves charging a constant everyday low price with few or no temporary price discounts
packaging
involves designing and producing the container or wrapper for a product
Brand loyalty
is a consumer steadfast allegiance to a brand by repeatedly purchasing it
brand loyalty
is a consumer steadfast allegiance to a brand by repeatedly purchasing it
perceived quality
is a consumer's perception of the overall quality of the brand
Good-value pricing
is offering just the right combination of quality and good service at a fair price
quality levels
level of quality that will support positioning
manufacturer brand
manufacturer sells under their own brand name
positioning
marketers need to position brands clearly in the target market's mind
Strategic fit
marketers should work to ensure that the selected target markets fit with what the organization is and wants to be
Requirements for effective segmentation
measurable, accessible, substantial, differentiable, actionable
new-to-market
new been seen before
new product
new to the company
new category
new to the company, not market
length
number of different products a firm sells
co branding
occurs when two or more companies issue a single product in an effort to capitalize on the equity of each company's brand
attributes
often a product will have multiple attributes that create a unique position in the market
Price/quality relationship
optionally priced according to quality
revamped products
packaging, features, design
observability
people can see others using a product and perceive value in its use
market positioning
position offering in the minds of the target consumers vs competition
Market Segmentation
Divide total market into smaller, similar segments with distinct needs, characteristics or behaviors
The Cohort Effect
Tendency of members of a generation to be influenced and bound together by significant events in their formative years
Price
The amount of money charged for a product or service, or the sum of all the values that customers exchange for the benefits of having or using the product or service
Product
This includes a specific combination of goods, services, or ideas that a firm offers to its target market
Positioning
a company's market position is the customers perception of a company's efforts, including its products, services, and even ideas
early majority
careful in their approach, more competitors have entered the market by this time so they have some choice as to which product to buy
product features
characteristics that describe a product
communications
communicate important attributes and deliver on promise
licensed brand
companies extend their brand by licensing
types of consumer products
convenience products, shopping products, specialty products, unsought products
product line extentions
extend product line
competitive analysis
firms must understand the position other competitors have taken in the marketplace
innovators
first to try new products, unafraid to take risks
concentrated
focus effort on a large share of one/few segments
competition
forced to update/add products because competitors
conformance quality
freedom from defects and consistency in delivering a targeted level of performance
technology
has always driven/most responsible for product innovation
High-low pricing
pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
Family life cycle
process of age-related family formation and dissolution
complexity
product is easier it is to understand and use a product
application
product/brand positioned in term of how it is used
consumer products
products and services bought by final consumers for personal consumption
trialability
products that consumers can try without significant expense
early adopters
purchase product soon after it is introduced, wait for product reviews and info before purchasing
return on equity
quality is an investment, holding quality efforts accountable for bottom line results
customer expectations
related to changes in what consumers need or want
product lines
series of related products
Cost based pricing
sets prices based on the cost for producing distributing, and selling the product plus a fair rate of return for effort and risk
competition
setting prices based on competitors strategies costs, prices, and market offerings. consumers base their decisions base on price for value
product item
single, specific product
target costing
starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that price is met
style and design
style - describes the appearance of the product but does not necessarily make the product better design - broader measure, contributes to the products usefulness and looks
differentiated
targets several market segments and design separate offers for different segment
micro marketing
taylors offers to needs of individuals and local customer segments
late majority
tend to be cautious about new things and ideas, often older
Product Quality
the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
Brand recognition
the degree to which customers identify the brand under the variety of circumstances
Brand equity
the differential effect that knowing the brand name has on customer responses
Growth potential
the higher the future growth rate, the more attractive is the segment
level of competition
the more intense the competition within a segment, the less attractive the segment is to marketers
branding
the name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service
diffusion
the process through which a product is adopted and spreads across various types of adopters
compatibility
the product fits a potential customer's needs, values, product knowledge, and past behaviors
Product life cycle
the progression of a product category rather than a product item through the four stages of its time on the market
globalization
their product is sold in an expanded global marketplace
Perceptual maps
tool used to show the customer's perception of a brand relative to competing brands on important attributes
width
total number of product lines a firm offer
co-branded
use brand name of two different companies
Value-based pricing
users the buyers perceptions of value rather than the seller's cost
depth
variation in each product the firm offers
