Chapter 9 and 11 quiz

Micropolitan statistical area

Area with at least one town of 10,000 to 49,999 people with proportionally few of its residents commuting to outside the area.

Product mix

Assortment of product lines and individual product offerings a company sells.

What are the major categories of demographic segmentation?

gender age ethnic group family lifecycle household type income expenditure patterns

What is the role of positioning in a marketing strategy?

positioning places a product in a certain position in the minds of prospective buyers so marketers can create messages that distinguish their offerings from those of competitors.

What type of business products are classified as raw materials

sugar, crude oil, silk, titanium, iron ore

Give an example of a market segment that meets these critera

women, teens, hispanics, empty nesters, and NASCAR enthusiasts for example.

What are the 3 motivation groups for VALS?

Ideal (Thinkers believers) Achievement (achievers Strivers Survivors) Self Expression Experiencers makers

Family Lifecycle

Process of family formation and dissolution.

Consumer (B2C) product

Product destined for use by ultimate consumers.

Describe product related segmentation

Product related segmentation can take three basic forms; 1. Segmenting based on the benefits people seek when buying a product. 2. Segmenting based on usage rates for a product. 3. SEGMENTING ACCORDING TO A CUSTOMERS' BRAND LOYALTY TOWARD A PRODUCT. (NOT YELLING)

Business to business product (B2B) product

Product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product.

consumer products

Products bought by ultimate consumers for personal use.

Emergency goods and services

Products bought in response to a unexpected and urgent needs.

Shopping products

Products consumers purchase after comparing competing offerings.

unsought products

Products marketed to consumers who may not yet recognize a need for them.

Impulse goods and services

Products purchased on the spur of the moment

Discuss the psychographic approach to segmenting consumer markets.

Psychographic segmentation uses behavioral profiles developed from analysis of consumers' activities, opinions, interests, and lifestyles to identify market segments.

Core Region

Region from which most major brands get 40 to 80 percent of their sales.

Supplies

Regular expenses a firm incurs in its daily operations.

VALS

Segmentation system that divides consumers into eight psychographic categories: Innovators Thinkers Achievers Experiencers believers Strivers Makers Survivors

Product line

Series of related products offered by one company.

Geographic Information Systems (GISs)

Software packages that assemble, store, manipulate, and display data by their location,

Goods-services continuum

Spectrum along which goods and services fall according to their attributes, from pure good to pure service.

Positioning Map

Tool that helps marketers place products in a market by graphically illustrating consumers' perceptions of competing products within an industry.

Psychographic Segmentation

division of a population into groups having similar attitudes, values, and lifestyles.

Video Game Generation

During this cohort's formative years, while their preferences and behaviors were being shaped, so too were video games.

80/20 principle

Generally accepted rule that 80 percent of a product's revenues come from 20 percent of its customers.

Explain the geographic approach to the segmentation of consumer markets.

Geographic segmentation divides the overall market into homogeneous groups according to population locations.

Convenience Products

Goods and services consumers want to purchase frequently, immediately, and with minimal effort.

business products

Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

target market

Group of people to whom a firm decides to direct its marketing efforts and ultimately its goods and services.

market

Group of people with sufficient purchasing power, authority, and willingness to buy.

homeshoring

Hiring workers to do jobs from their homes.

What types of products are considered Shopping products?

Homogeneous: Airplane flights, computers heterogeneous: Child care, furniture, Pilates or yoga instruction, Caribbean cruise

discuss four basic strategies for reaching target markets.

1. undifferentiated marketing- uses a single marketing mix. 2. differentiated marketing- produces numerous products, each with its own mix; 3. Concentrated marketing- directs all the firm's marketing resources toward a small segment; 4. Micromarketing- targets potential customers at basic levels, such as a zip code or occupation.

Distinguish between a consumer product and a business product

A consumer product is purchased by the ultimate buyer for personal use. A business product is purchased for use directly or indirectly in the production of other goods and services.

Identify the essential components of a market.

A market consists of people and organizations with the necessary purchasing power, willingness, and authority to buy. 1. Consumer products are purchased by the ultimate consumer for personal use. 2. Business products are purchased for use directly or indirectly in the production of other goods and services. Certain products may fall into both categories.

Line extension

Development of individual offerings that appeal to different market segments while remaining closely related to the exiting product line.

Service quality

Expected and perceived quality of a service offering.

Decline stage

Final stage of the product lifecycle, in which a decline in total industry sales occurs.

Introductory Stage

First stage of the product lifecycle, in which a firm works to stimulate sales of a new-market entry.

Concentrated (or niche) marketing

Focusing marketing efforts on satisfying a single market segment.

What is at the top and bottom of VALS?

Innovators- High resources/ high innovation top survivors- low resources/ low innovation bottom

Installations

Major capital investments in the B2B market.

Under what circumstances are marketers most likely to use geographic segmentation?

Marketers usually use geographic segmentation when regional preferences exist and when demand for categories of goods and services varies according to geographic region.

Benchmarking

Method of measuring quality by comparing performance against industry leaders

Raw materials

Natural resources such as farm products, coal, copper, or lumber that become part of a final product.

Positioning

Placing a product at a certain point or location within a market in the minds of prospective buyers.

Product lifecycle

Progression of a product through introduction, growth, maturity, and decline stages.

Growth Stage

Second stage of the product lifecycle that begins when a firm starts to realize substantial profits from its investment in a product.

maturity Stage

Third stage of the product lifecycle, in which industry sales level out.

Explain the difference between undifferentiated and differentiated marketing strategies

Undifferentiated marketing promotes a single product line to all consumers with a single marketing mix. Differentiated marketing promotes numerous products with different marketing mixes designed to satisfy smaller segments

Consolidated metropolitan statistical area (CMSA)

Urban area that includes two or more PMSA'a.

Primary Metropolitan statistical area (PMSA)

Urbanized county or set of counties with social and economic ties to nearby areas.

What are the four determinants of a market specific strategy?

company resources product homogeneity stage in the product lifecycle competitors strategies

Services

intangible tasks that satisfy the needs of consumer and business users.

A market consists of people and organizations with the necessary

purchasing power, willingness, authority to buy.

List 3 approaches to product related segmentation.

segmenting by benefits sought " by usage rates " by brand loyalty

What is the order of the middle of vals?

thinkers achievers experiencers on top believers strivers makers on bottom

Engel's laws

three general statements about the impact of household income on consumer spending behavior: as household income increases, a smaller percentage of expenditures goes for food; the percentage spent on housing,household operations, and clothing remains constant; and the percentage spent on other items (such as recreation and education) increases.

Specialty Products

Products with unique characteristics that cause buyers to prize those particular brands.

What type of business products are classified as Acessory Equipment

Dell computers, motorola cell phones, herman miller chairs, black berry pearl smartphone

AIO statements

Items on lifestyle surveys that describe various activities, interests, and respondents' opinions.

What types of products are considered Specialty?

Luxury cars tax attorneys designer clothes botox injections

Name some possible approaches for positioning a product

Attributes- ebay "Buy it. Sell it. Love it. Price/quality- Omega watches "We measure the 100th of a second that separates winning from taking part. Competitors- Walmart. Save money, live better Application- Blue Cross Blue Shield- Experience. Wellness. Everywhere. Product user- Cranes stationary, "for the writer somewhere in each of us." Product class- BMW, the "ultimate driving machine."

Marketing mix

Blending of the four strategy elements- product pricing promotion and distributution- to fit the needs and preferences of a specific target market.

What type of business products are classified as Installations

Boeing 787, Toyota truck plant, Starwood Hotels, natural gas pipeline

What type of business products are classified as MRO Supplies

Bosch staplers, Weyerhauser paper, Duct tape, memorex DVD's

product

Bundle of physical, service, symbolic attributes designed to satisfy a customer's wants and needs.

MRO items

Business supplies that include maintenance items, repair items, and operating supplies.

Demographic Segmentation

Division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, household, size, and stage in the family lifecycle; also called socioeconomic segmentation.

What type of business products are classified as Business Services

CSX (railroad), ABM janitorial services, ryder trucking, Pinkerton security services

Accessory equipment

Capital items such as desktop computers and printer that typically cost less and last for shorter periods than installations

Repositioning

Changing the position of a product within the minds of prospective buyers relative to the positions of competing products

Industrial distributor

Channel intermediary that takes title to goods it handles and then distributes these goods to retailers, other distributors, or business or B2B customers, also called a wholesaler.

Core based statistical area (CBSA)

Collective term for metropolitan and micropolitan statistical areas.

What are the benefits of concentrated marketing?

Concentrated marketing can allow a firm to focus on a single market segment, which is especially appealing to smaller firms and those that offer highly specialized goods and services.

Total quality management (TQM)

Continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world-class performance

Staples

Convenience goods and services consumers constantly replenish to maintain a ready inventory

What are the five main categories for classifying urban data?

Core based statistical area (CBSA) metropolitan statistical area (MSA) micropolitan statistical area consolidated micropolitan statistical area (CMSA) primary metropolitan statistical area (PMSA)

Market segmentation

Division of the total market into smaller, relatively homogeneous groups.

Discuss the demographic approach to segmenting consumer markets.

Demographic segmentation classifies the market into groups based on characteristics such as age, gender, and income level.

identify the four stages of market segmentation

Developing user profiles forecasting the overall market potential estimating market share selecting specific market segments

Product-related segmentation

Division of a population into homogeneous groups based on their relationships to a product

Geographic Segmentation

Division of an overall market into homogeneous groups based on their locations.

Describe the criteria necessary for effective segmentation.

Effective segmentation depends on these four basic requirements: 1. The segment must have measurable purchasing power and size. 2. Marketers can find a way to promote to and serve the market, 3. Marketers must identify segments large enough for profit potential, and 4. The firm can target a number of segments that match its marketing capabilities.

Component parts and materials

Finished business products of one producer that become part of the final products of another producer.

Why is forecasting important to market segmentation?

Forecasting is important because it can define a preliminary go or no-go decision based on sales potential. It can help a firm avoid a disastrous move or point out opportunities.

Metropolitan statistical area (MSA)

Freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more.

What types of products are considered Convenience?

Impulse items. Magazines, disposable cameras, snack foods, Staples: Gas, milk, dry cleaning Emergency Items: ER visit, plumbing repair kit, asthma inhalers

Business services

Intangible products firms buy to facilitate their production and operating processes

What type of business products are classified as components?

Intel chips, cummins diesel engines, spandex fabric

Identify the steps in the market segmentation process.

Market segmentation is the division of markets into relatively homogeneous groups. Segmentation follows a four-step sequence: 1. developing user profiles, 2. Forecasting the overall market potential. 3. estimating market share, and 4. Selecting specific, market segments.

Outline the role of market segmentation in developing a marketing strategy.

Market segmentation is the process of dividing a total market into several homogeneous groups. It is used in identifying a target market for a good or service. Segmentation is the key to deciding a marketing strategy.

Service encounter

Point at which the customer and service provider interact.

Summarize the types of positioning strategies and explain the reasons for positioning and repositioning products.

Positioning strategies include positioning a good or service according to attributes, price/quality, competitors, application, product user, and product class. Positioning helps distinguish a firm's products from those of competitors and provides a basis for marketing communications. Repositioning a product- changing the position it holds in consumers' minds- may be necessary to gain greater market share.

What types of products are considered unsought?

Pre- need funeral plans, long term health care (nursing home) insurance, remedial math programs

ISO 9001:2000

Standards developed by the International Organization for Standardization in Switzerland to ensure consistent quality management an quality assurance for goods and services throughout the European Union. (EU)

Undifferentiated marketing

Strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing.

Differentiated Marketing

Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments.

Goods

Tangible products customers can see, hear, smell, taste, and touch.

Micromarketing

Targeting potential customers at very narrow, basic levels such as by zip code, specific occupation, or lifestyle- possibly even individuals themselves.

Cohort effect

Tendency of members of a generation to be influenced and bound together by events occuring during their key informative years- roughly ages 17 to 22.

What is the 80/20 principle?

The 80/20 principle states that a big percentage (80 percent) of a product's revenues comes from a relatively small number (20 %) of loyal customers

Identify the four criteria for effective segmentation.

The four criteria for effective segmentation are: 1. the market segment must present measurable purchasing power and size. 2. Marketers must find a way to promote effectively and serve the market segment 3. marketers must identify segments sufficiently large to give them good profit potential 4. the firm must aim for segments that match its marketing capabilities.

Describe the role of market segmentation

The role of market segmentation is to identify the factors that affect purchase decisions and then group consumers according to the presence or absence of these factors.