Marketing 301 - Exam 2
Requirements for Effective Segmentation
-Measurable -Accessible -Substantial -Differentiable -Actionable
Maturity Stage Strategies
-Modifying Market: new users, reposition -Modifying Product: change charactersitics -Modifying Marketing Mix: change four P's
Buyer Decision Process
-Need Recognition -Information Search -Evaluation of Alternatives -Purchase Decision -Postpurchase Behavior
Individual Product Decisions
-Product Attributes -Branding -Packaging -Labeling -Product Support Services
Segmentation
Dividing the market into smaller parts with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
Subculture
Each larger part contains a smaller group of people with shared value systems based on common life experiences and situations - Hispanic, Afr/Asian-American.
Survivors
Elderly, passive people who are concerned about change. Loyal to their favorite brands.
New Brands
Extending a new brand name into a completely new product category.
Multibrands
Extending a new brand name into an existing product category.
Line Extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Brand Extension
Extending an existing brand name to new product categories.
Product Line
Group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
Commercialization
Introducing new product into the market - final stage of new-product development.
More for the Same
Involves introducing a brand offering comparable quality but at a lower price.
More for More
Involves providing the most upscale product or service and charging a higher price to cover higher costs.
Less for Much Less
Involves settling for less than optimal performance in exchange for a lower price.
Growth
Life-Cycle stage of rapid market acceptance and increasing profits - Early Adopters (Stars).
Decline
Life-Cycle stage of sales and profit drop - Laggards (Dogs).
Introduction
Life-Cycle stage of sales growth as product is introduced, no profits because of heavy expenses - Innovators (Question Marks)
Maturity
Life-Cycle stage of slowdown in sales growth because of product acceptance, profits level off and begin decline - Middle Majority (Cash Cows).
Product Development
Life-Cycle stage where company finds and develops new product idea, sales are zero, and investment costs mount.
User Status
Market can be broken into non-users, ex-users, potential, first-time, and regular users.
Undifferentiated Marketing
Market coverage strategy of mass marketing in which firm decides to ignore market segment differences and go after whole market.
Concentrated Marketing
Market coverage strategy of niche marketing in which firm goes after a large share of one or a few segments.
Differentiated Marketing
Market coverage strategy of segmented marketing in which firm decides to target several market segments and design separate offers for each.
Micromarketing
Market coverages strategy of local/individual marketing in which firm tailors products to the needs of specific individuals and local customer segments.
Thinkers
Mature, satisfied, and reflective people who are motivated by ideals and value order, knowledge and responsibility.
Brand
Name, term, design, or symbol that identifies one seller's goods/services to another.
Customer-Centered NPD
New-product development that focuses on finding new ways to solve customers problems and create more satisfying experiences.
Same for Less
Offer many of the same brands as department stores but at deep discounts.
Brand Equity
Positive effect that knowing the brand name has on customer response to the product.
Makers
Practical, down to earth, self-sufficient people who like to work with their hands.
Targeting
Process of evaluating each market segment's attractiveness and selecting one or more to enter.
Indirect
Reference Group Including Aspirational, and Dissociative.
Direct
Reference Group including Primary (co-workers) and Secondary (Religious Group).
Consumer Buying Behavior
Refers to the buying behavior of individuals and households that buy goods and services for personal consumption.
Social Class
Relatively permanent and ordered divisions in society whose members share similar values, interests, and behaviors.
Business Analysis
Review of the sales/profit, and cost projections for new product to find out whether these factors satisfy the company's objectives.
Idea Screening
Screening new-product ideas in order to spot good ideas and drop poor ones.
Culture
Set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
Target Market
Set of buyers sharing common needs or characteristics that the company decides to serve.
Test Marketing
Stage of new-product development in which the product and marketing program are tested in realistic market settings.
Achievers
Successful, goal-oriented people who focus on career and family. Favor premium products that demonstrate success to peers.
Innovators
Successful, sophisticated, take charge people with high self-esteem
Idea Generation
Systematic search for new-product ideas.
Concept Testing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Buyer's Black Box
The Why's of Buyer's behavior that marketers don't exactly understand.
Relative Advantage
The degree to which an innovation appears superior to existing products.
Compatibility
The degree to which an innovation fits the values and experiences of potential customers.
Complexity
The degree to which an innovation is difficult to understand or use.
Divisibility
The degree to which an innovation may be tried on a limited basis.
Communicability
The degree to which the results of using the innovation can be observed or described to others.
Value Proposition
The full positioning of a brand - full mix of benefits upon which it is positioned.
Reference Group
The people to whom an individual looks when forming an attitude about an object.
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world.
Product Adoption Process
-Awareness -Interest -Evaluation -Trial -Adoption
Adopter Categories
-Innovators -Early Adopters -Early Majority -Late Majority -Laggards
Brand Strategy Decisions
-Brand Positioning -Brand Name Selection -Brand Sponsorship -Brand Development
Factors of Influencing Consumer Behavior
-Cultural -Social -Personal -Psychological
Occasion Segmentation
Dividing market into segments according to occasions when buyers get idea to buy.
Demographic Segmentation
Dividing market into segments based on age, gender, family size, family life cycle, income, occupation etc.
Behavioral Segmentation
Dividing market into segments based on consumer knowledge, attitudes, uses or responses to a product.
Psychographic Segmentation
Dividing market into segments based on social class, lifestyle or personal characteristics.
Belief
A descriptive thought that a person holds about something.
Motive
A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
Attitude
A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
Lifestyle
A person's pattern of living as expressed in his or her activities, interests, and opinions.
Early Adopters
Adopter Class that are opinion leaders in their communities and adopt new ideas early but carefully.
Early Majority
Adopter class that's deliberate, and although they are rarely leaders, they adopt new ideas before the average person.
Late Majority
Adopter class that's skeptical, they adopt an innovation only after a majority of people have tried it.
Laggards
Adopter class that's tradition bound, they are suspicious of changes and adopt the innovation only when it's become something of tradition.
Innovators
Adopter class that's venturesome, they try new ideas at some risk.
Service
Any activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Positioning
Arranging for the market offering to occupy a clear, distinctive, and desirable place relative to competing products in minds of target consumers.
Actual Product
Brand Name, Quality Level, Packaging, Design, Features - Physical entity in terms of form, functional characteristics around the benefit.
Believers
Conservative, conventional, and traditional people with concrete beliefs.
Convenience Product
Consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort - Paper Towels.
Unsought Product
Consumer product that the consumer either doesn't know about or knows about but does not normally think of buying - Life Insurance.
Shopping Product
Consumer product that the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style - NorthFace.
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 - Rolex, Ferrari.
Augmented Product
Delivery and Credit, After-Sale Service, Warranty, Product Support - Value added services and experiences obtained with the product.
Marketing Strategy Development
Designing an initial marketing strategy for a new product based on the concept.
Product Concept
Detailed version of the new-product idea stated in meaningful consumer terms.
Product Development
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering.
New Product Development
Development of original products, product improvements, product modifications, and new brands through the firm's own efforts.
Differentiation
Differentiating the market offering to create superior customer value.
Geographic Segmentation
Dividing market into different geographic units such as nations, states, regions, counties, cities, or neighborhoods.
Product Position
The way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competition.
Positioning Statement
To (target segment and need) our (brand) is (concept) that (point-of-difference).
Strivers
Trendy and fun-loving people who are resource-constrained. Favor stylish products that emulate purchases of those with greater wealth.
Experiencers
Young enthusiastic impulsive people who seek variety and excitement. Spend a comparatively high proportion of income on fashion, entertainment, and socializing.