Marketing Test 2

early adopters

The second group to adopt an innovation. Early adopters have high levels of opinion leadership,

unique selling proposition

The single most important point of differentiation from competitors.

development stage

The stage of the product life cycle before a product is introduced.

growth stage

The stage of the product life cycle marked by rapid sales growth in the product category.

introduction stage

The stage of the product life cycle that begins when the first brand in the product category brand is introduced.

decline stage

The stage of the product life cycle when category sales begin to drop, signaling the end of the category.

maturity stage

The stage of the product life cycle when category sales reach their peak and begin to level.

early majority

The third group to adopt an innovation, usually a large percentage of those who do. often well-educated, somewhat older than early adopters and innovators, and actively look to early adopters for product information

What is segmentation, and why is it important for marketers?

categorizing groups of customers to divide a market into manageable pieces based on customer differences, different customers value different things, which means marketers need some way to distinguish between customers who want one thing and customers who want something else

List three products for which geographic segmentation would be important.

clothing, vehicles, sports equipment

branding

The process of developing images and feelings to be evoked by the words and images in a brand.

co-brands

A branded product that features another brand as a component part or ingredient.

responsive segment

A criteria of the market segmentation approach that states that the different marketing mixes should produce different marketing responses from the different segments.

substantial segment

A criteria of the market segmentation approach that states that the groups must be large enough to meet a marketing objective, and justify a unique marketing mix.

identifiable segment

A criteria of the market segmentation approach that states that the marketer must be able to identify the different groups and be able to distinguish between them.

measured segment

A criteria of the market segmentation approach that states that the segments must be measurable.

perceptual map

A graphical representation of customer perceptions of competitive products.

micromarketing

A marketing approach where a company considers every customer to be a segment of one.

niche marketing

A marketing approach where the company identifies a subsegment that has special needs that typically is not large enough for the larger competitors in a market to pursue.

differentiated marketing

A marketing approach where the company identifies large groups that share similar characteristics.

co-creation

A relationship in which customers participate in the design or production process with the brand.

experiential marketing

A style of marketing that creates memorable interactions with brands that appeal to customers' senses.

innovation

An improvement in a product's ability to deliver its primary benefit to customers.

variability

The quality of a service can vary widely from consumption to consumption and from provider to provider.

Which of the four segmentation variable categories is considered most effective?

Behavioral

service

Benefits experienced by a buyer when a seller performs some action or activity for the buyer such that, when the transaction is complete, no physical property has been included.

functional benefits

Benefits realized when products perform their intended tasks efficiently and effectively.

sensory benefits

Benefits that appeal to one or more of the five senses.

psychological benefits

Benefits that cause customers to positively respond emotionally to product purchases.

resource benefits

Benefits that save customers things that they value, primarily time and money.

out-of-category extensions

Brand extensions to products in categories different to those of the original banded product

in-category extensions

Brand extensions to products in the same category as the original product

near-category extensions

Brand extentions to products in categories similar to those of the original banded product

perishability

Characteristic of goods that they are consumed as they are produced.

intangibility

Characteristic of services that they cannot be touched.

repositioning

Creating a different perception of the brand in the customer's mind relative to competitor's offerings.

positioning

Creating a specific perception in the customer's mind relative to other options.

What are the six steps in market segmentation process?

Define broad market Narrow market Select variable(s) for segmentation Select variables within each category Identify categories within each variable Develop a profile for each segment.

selective demand

Demand for a particular brand within a product category rather than the product category itself.

primary demand

Demand for a product category without regard to brand.

product concepts

Detailed descriptions and illustrations of proposed new products.

Explain why it is possible for two competitors in the same industry to segment a market differently.

Differentness experiences local sandwich shops can have significantly different segmentation approaches. Perhaps one of the shops has an owner who also knows a lot of local business owners and was in catering before. The other has experience as a deli manager in a busy urban environment

geographic segmentation

Distinguishing customer groups based on geographic location.

demographic segmentation

Distinguishing customer groups based on their personal characteristics such as age, income, gender, race, education, marital status, religion, nationality.

behavioral segmentation

Distinguishing customer groups based on what they do relative to the category.

augmented product

Extra attributes and features that are not part of the actual product but may be offered to make the offering more attractive.

brand community

Groups of consumers united by engagement with a branded product or service.

segments

Groups of customers who share common characteristics within a market.

Give an example of a situation in which a company might consider repositioning a product or brand.

Harley Davidson customers have for the last 20 years been white males between 40 and 60 years of age

What are the primary criteria for effectively segmenting a market?

Identifiable:The marketer must be able to identify the different groups and be able to distinguish among them Measurable:Knowing how many customers are in each segment is critical Substantial:The groups must be large enough to meet a marketing objective Accessible:Groups must be accessible to the marketer to effectively use the specialized marketing mixes created for them Responsive:Different marketing mixes should produce different marketing responses from different segments.

product innovation ideas

Loosely worded statements about particular needs that exist.

Would "fast food," "casual," and "fancy" be viable segments for restaurants? Justify your answer.

No because those are not customers

What is the 5th P & C added to the extended marketing mix and why was it added?

Participation Connection The rise of experiential marketing and the increased use of technology by customers to stay connected

non-adotpers

People who, for whatever reason, never adopt an innovation.

brand extensions

Practice of placing a brand name on multiple products

commercialization

Process of actually creating, producing, and selling the product

fashions

Product life cycles marked by rises and declines in category sales as the fashion changes in popularity.

inseparability

Services are inseparable from their providers.

extended marketing mix

The 5Ps and Cs framework that marketers use to facilitate exchanges with a target market.

brand equity

The financial value of a brand.

innovators

The first people to adopt an innovation Innovators tend to be young and willing to take risks and tend to be social, often through extensive use of social media

late majority

The fourth group to adopt an innovation. which is likely related to somewhat lower levels of education and social standing compared to the early majority

laggards

The last group to adopt an innovation. The last group to adopt an innovation.

positioning statement

The marketing statement that spells out the differences between what a company offers customers and what other companies offer WE, Target customer, key benefit, competitive reference

brands

The name or symbol that identifies a specific product or service.

conceptualization

The parts to the new product development process that pertain to generating and screening ideas and concepts.

product life cycle

The pattern of growing and declining sales in a product category over time.

diffusion of innovation

The pattern of technology spreading through markets over time.

actual product

The physical and intangible properties or characteristics the product takes on.

benefits

The positive consequences of using or consuming a product.

target market

The primary group of customers towards which a company directs its marketing efforts.

market segmentation

The process of categorizing groups of customers to divide a market into manageable pieces based on customer differences.

gamification

The use of games to interact with others (especially customers) to make the interaction more engaging and interesting.

crowdsouring

The use of individuals or groups outside the organization to provide assistance, advice, or input on a task.

brand marks

The visual design, logos, colors, typefaces, and other representations of a brand that cannot be spoken.

New to the world

They did not exist prior to the innovation occurring

fads

Very short-lived product life cycles.

product

What the company offers to the customer in the exchange.

planning step

When viable product concepts are considered through the lens of marketing strategy.

prototypes

Working models of the actual products

What are four important considerations for applying the extended marketing mix?

all five Ps and Cs are equally important because all five areas affect the customer's experience the combination of the five Ps and Cs will determine the success or failure of the marketing strategy any P can affect any C, so decisions in one area can affect other areas mix decisions flows more smoothly if made in the following order: product, place, price, promotion, participation

What is experiential marketing? Provide an example.

creating memorable interactions with brands that appeal to customers' senses Lean Cuisine used experiential marketing with its #WeighThis campaign, asking women what they were most proud of and creating a wall in Grand Central Station in New York made of scales with some of the responses.

core values

deeply held beliefs and priorities that guide customer decision making

Which of the four segmentation variable categories is used most frequently and why?

demographic, primarily because it is easy to apply, and demographic information is often readily available

demarketing

efforts to discourage customers

core product

essential motivating benefit the customer is purchasing

new to the company

existed in the world prior to the company

What are the four categories of variables for segmenting a market?

geographic, demographic, psychographic, and behavioral

brand names

he parts of brands that can be spoken.

targeting

highlight the potential differences between groups of customers so that the company can choose on which group(s) to focus its marketing efforts

What is meant by targeting, and what are the steps in deciding on a target market for a product?

highlight the potential differences between groups of customers so that the company can choose on which group(s) to focus its marketing efforts First, the segments will be ranked in order of attractiveness (e.g., size, growth). Second, the company will identify any segments that should be excluded for ethical, moral, or competitive reasons. the third step in targeting is to prioritize remaining segments based on potential return on marketing investment.

What are the two major trends in current marketing practice that have changed how marketers do their job?

i an effort to continually offer more value to customers and build relationships, marketers have begun focusing more attention on providing increasingly positive experiences for customers increased use of technology for connectivity.

What is positioning, and what are the four elements of an effective positioning statement?

is creating a specific perception in the customer's mind relative to other options. We: The company, brand, unit that is providing the offer. Target customer: The target customer is clearly identified in terms of the important segmentation characteristics. Key benefit: Target customer wants and the company will provide (sometimes referred to as a unique selling proposition). Competitive reference: Who does the company want the customer to use as a comparison?

discontinuous innovation

large jumps in products benefit-delivering abilities

What is meant by mass marketing, micromarketing, segment marketing, and niche marketing?

mass marketing: One large segment segment marketing: A marketing approach where the company identifies large groups that share similar characteristics. Micromarketing: A marketing approach where a company considers every customer to be a segment of one. Niche Marketing: A marketing approach where the company identifies a subsegment that has special needs that typically is not large enough for the larger competitors in a market to pursue.

What is the 4Ps framework and what are the 4Cs?

product, place, price, and promotion customer benefit, convenience, cost, communication

continuous innovation

smaller incremental improvements to products' benefit-delivery capabilities

What is the rationale for adding the 4Cs to the 4Ps?

we would like to better understand the "customer mix" that represents the customer's perspective of the exchange

To be described as a market segment, does a group need to meet all of the criteria? Why or why not?

yes unless for specialized services because of money managed, left handers will see same commercials