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