Marketplace & the Consumers Chp. 6, 7, & 8

What is something that can be offered to a market for attention, acquisition, use, or consumption that mighty satisfy a want or need?

A product. Includes services, events, persons, places, organizations, and ideas or a mixture of these.

What is an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything?

A service.

What is the second level that product planners need to think about?

Actual Product. They need to develop product and service features, a design, a quality level, a brand name, and packaging.

What involves dividing a market into different age and life cycle groups?

Age & Life-Cycle Segmentation

What is the last level that product planners need to think about?

Augmented Product. Offering additional consumer services and benefits.

What involves dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product?

Behavioral Segmentation.

What involves dividing the market into segments according to the different benefits that consumers seek from the product?

Benefit Segementation

The design of a company's channel coverage, expertise and performance reflects what?

Channel Differentiation

What are examples of products where gender segmentation is used?

Clothing, cosmetics, toys, toiletries, and magazines.

What has helped given rise to location based marketing?

Communications technology; companies can track consumers whereabouts and engage them in the stores.

What is an advantage over competitors gained by offered greater customer value, either by having lower prices or providing more benefits that justify higher prices?

Competitive Advantage

What are the variables that affect segment attractiveness?

Competitors, easy of new entrants, substitute products, and power of buyers and suppliers (control price or reduce the quality or quantity of ordered goods and services).

What are the different loyalty statuses?

Completely Loyal - Buy one brand all the time and can't wait to tell others about it. Somewhat Loyal - Loyal to two or three brands of a given product or favor one brand while sometimes buying others. They want something different each time they by or they buy whatever's on sale.

Which market coverage strategy lets companies focus their limited resources that may be unimportant to or overlooked by larger competitors?

Concentrated Marketing

What market coverage strategy allows a fir to gain a strong market position due to its greater knowledge of consumer needs in the niches it serves and the special reputation?

Concentrated Marketing - more efficiency.

What is the market coverage strategy in which a firm goes after a large share of one or a few segments or niches?

Concentrated/Niche Marketing

What is product bought by final consumers for personal consumption?

Consumer Product.

What are the two classes products fall under?

Consumer and Industrial

What are the four types of consumer products?

Convenience, shopping, specialty, and unsought

What is the most popular bases for segmenting customers groups?

Demographic factors since they're easier to meausre and the needs, wants, and usage rates are closely related to them.

What form of segmentation involves dividing the market into segments based on variables such as: age, life cycle stage, gender, income, occupation, education, religion, ethnicity, and generation?

Demographic.

What is the market coverage strategy in which a firm decides to target several market segments and designs separate offers for each?

Differentiated Marketing

What involves differentiating the firm's market offering to create superior customer value?

Differentiation

What is the main purpose of companies using market segmentation?

Divide large, diverse markets into smaller segments that can be reached more efficiently and effectively wip products and services that match their unique needs.

What are examples of retailers that target low and middle income groups?

Dollar General, Family Dollar, and Dollar Tree

What is the leading consumer segmentation systemrs?

Experian's Mosaic USA System since it classifies lifestyle segments and levels of affluence based on consumer demogrpahics, interests, behaviors, and passions.

True or False. Companies do not pay attention to the differences in need and wants based on geographical areas.

False. Companies focus on localizing their products, services, advertising, promotion, and sales effort to fit the needs of individual regions, cities, and neighborhoods.

True or False. Concentrated marketing is not profitable.

False. It can be highly profitable, but has high risks associated with it. Consider Coke and all the different brands they have: Fuze, Zico, NOS, etc.

True or False. Marketers leave their products' position to chance.

False. They must plan positions that will give their products the greatest advantage in selected target markets.

True or False. The largest fastest growing segments are the most attractive ones for each company.

False. This is not always the cases in some smaller companies may lack the skills and resources, too competitive, and the profitability is not ideal.

What involves dividing a market into different segments based on gender?

Gender Segmentation.

What form of segmentation involves dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods?

Geographic.

What are the seven criteria to establishing if a difference is worth it?

IMportant, distinctive, superior, communicable, preemptive, affordable, and profitable.

What involves dividing a market into different income segments?

Income Segmentation. Consider automobiles, clothing, cosmetics, financial services, and travel.

What involves tailoring products and marketing programs to the needs and preferences of individual customers?

Individual Marketing.

What marketing techinque has made relationships with customers more important than ever?

Indvidiual Marketing

What involves forming segments of consumers who have similar needs and buying behaviors even thought they are located in different countries?

Inter-market Segmentation/Cross Market Segmentation

How does differentiated marketing benefit a company?

It allows them to develop a stronger position within several segments to create more total sales.

What's the first step a company must take if it decides to build a position on better quality and service?

It must deliver the position.

Why do companies prefer multiple segmentation bases?

It provides a way to identify smaller, better definited target groups.

What is the positioning that involves meeting consumers' lower performance or quality requirements at a much lower price?

Less for Much Less

What are the three categories of usage rates?

Light, medium, and heavy. Heavy users are a small percentage of the market, but account for a high percentage of total consumption.

What involves tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores?

Local Marketing

What are disadvantages of local marketing?

Manufacturing and marketing costs increase and logistics problems can arise. However, the advantages of local marketing often outweigh the drawbacks.

What involves dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who require separate marketing strategies or mixes?

Market Segmentation

What consists of evaluating each market segment's attractiveness and selecting one or more market segments to serve?

Market Targeting/Targeting

What is a pure service?

Market offer consists primarily of a service.

What is the process by which frims interact one to one with masses of customerse to design products, services, and marketing programs tailor made to individual needs?

Mass Customization

What is the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments?

Micromarketing (includes local and individual marketing)

What is the winning value proposition?

More for Less

What positioning involves providing the most upscale product or services and charging a higher price to cover the costs?

More for More; it's a profitable yet vulnerable strategy.

What positioning involves offering more for the same price?

More the Same.

What is a pure tangible good?

No services accompany the product.

What are the five categories of user status?

Nonusers, ex-users, potential users, first time users, and regular users.

What involves dividing a market into segments according to occasions when buyers get the idea to buy actually make their purchase, or use the purchased item?

Occasion Segmentation.

What are other names for individual marketing?

One to one marketing, mass customization, and markets of one customization.

What are the other variables besides demographically, geographically, and benefits sought that business marketers use to segment business market?

Operating characteristics, purchasing approaches, situational factors, and personal characteristics.

What is the hiring and training better people than their competitors do?

People DIfferentiation

What shows consumer perceptions of a company's brand versus those of a competing product?

Perceptual Positioning Maps

What consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers?

Positioning

What statement summarizes company or brand positioning using the form: To (target segment and need), our (brand) is (concept) that (point of difference).

Positioning Statement

What is a key element in the overall market offering?

Products

What is differentiated on features, performance, and style and design?

Products (Product Differentiation)

What involves dividing a market into different segments based on social class, lifestyle, or personality characteristics?

Pyshcographic Segmentation

What are the three factors a frim must look at when evaluating different market segments?

Segment size and growth, segment structural attractiveness, and company objectives and resources.

What is speed, convenient service an example of?

Services DIfferentiation

What is a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style?

Shopping Products i.e. furniture, clothing, major appliances, and hotel services. -Fewer outlets, but deeper sales support.

What form of target marketing helps companies become efficient and effective by focusing on the segments that they can satisfy best and most profitably?

Smart Targeting.

What is a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort?

Speciality Product i.e. cars, designer clothes, gourmet foods, medical specialists. -Only invest time needed to reach the dealers carrying the wanted products.

What is an example of a popular occasion segmentation?

Starbucks's Pumpkin Spice Latte sold only in the fall.

What is a popular company that serves two business markets?

Starbucks. The Office Coffee and the Food Service Segments.

What is a set of buyers that share common needs or characteristics that the company decides to serve?

Target Market

Do most companies prefer mass marketing or target marketing?

Target Marketing

What position offer many of the same brands as department and specialty stores, but at deep discounts based on superior purchasing power and lower-cost operations?

The Same for Less

What factors affects a company's targeting strategy?

The company's resources, product variability, and product's life cycle stage, market variability, and competitors' marketing strategies. .

What is a disadvantage of differentiated marketing?

The costs of doing business are a lot higher to do the different marketing research, forecasting, promotion, and channel management. A company should weigh the increase sales vs the increased costs.

What is the real issue in marketing?

The issue is not really who is targeted, but rather how and for what.

How is a product defined by consumers on important attributes - the place a product occupies in consumers' minds relative to competing products?

The product position. It's a set of perceptions, impressions, and feelings that consumers have for the product compared with competing products.

Who is a target of the potential user groups?

Those consumer facing life stage changes such as new parents and newlyweds.

True or False. Marketers want to reinforce and retain regular users, attract nonusers, and reinvigorate relationships with ex users.

True.

True or False. Marketers must be careful to guard against stereotypes when using age and life cycle segmentation.

True. Age is a poor predictor of a person's life cycle, health, work, or family status, needs, and buying power.

True or False. Target marketing sometimes generates controversy and concern.

True. Consider children being the vulnerable audience.

True or False. Many companies establish separate systems for dealing with larger or multiple locations.

True. Think about the role as account manager.

What are the three levels that market targeting can be carried out on?

Undifferentiated aka Broadly Micro-marketing aka very narrowly Differentiated/Concentrated aka Somewhere in Between

What is the market coverage strategy in which a firm decides to ignore market segment difference and go after the whole market with one offer?

Undifferentiated/ Mass Marketing

What does a company use to decided how it will create differentiated value for targetred segmenats and what positions it wants to occupy in those segmetns?

Value Proposition

What is the full position of a brand or the full mix of benefits on which it's differentiated and positioned?

Value Proposition

What is a unique selling proposition?

When a brand picks an attribute and tout itself as number on that attitude.

What are the five ways a company can segment international markets?

-Geographic location: In some cases, nations close together have common traits and behaviors, but not always. -Economic factors: Population income levels, overall level of economic development. The economic structure of a country shapes its populations product and service needs. -Political and Legal Factors: Type & stability of the government, receptivity to foreign forms, monetary regulations, and amount of bureaucracy. -Cultural Factors: Language, religions, values and attitudes, customs, and behavioral patterns.

What are the five factors that make segmentation effective?

-Measurable: Size, purchasing power, and profiles of the segments can be measured. -Accessible: Effectively reachable and serviceable. -Substantial: Large or profitable enough to say. -Differentiable: Conceptually distinguishable and respond differently to marketing mix elements and programs. -Actionable: Effective programs can be designed for attracting and serving the segments.

What ways can a company differentiate itself or its market offer?

Along the lines of product, services, channels, people, or image.

What are some examples of Experian's Mosaic USA Segments?

Birkenstocks & Beemers -40 to 65 year olds who chieveed financial security and left the urban community for artsy ones near small cities. Colleges & Cafes - Mainly white, under age 35 graduates who are still finding them self.

What are brand focused psychographic segments referred to as?

Brand Tribes or communities of core customers withs shared characteristics, brand experience, and strong affinities for a particular brand.

What serves the needs and preferences of a well-defined target markets?

Brand's Positioning.

What consumer products do customer buys frequently, immediately, and with minimal comparison and buying effort?

Convenience Products. i.e. laundry detergent, candy, magazines, and fast food. -Usually low priced and are available when customers need or want them.

What is the basic level that product planners need to think about?

Core Customer Value. The must define the core, problem solving benefits or services that consumers eek.

What are the three steps to differentiation and positioning?

Identifying a set of differentiating competitive advantages on which to build a position, choosing the right competitive advantages, and selecting an overall position strategy.

A company or brand image should convey a product's distinctive benefits and positioning. What is this an example of?

Image Differentiation

Who should a company study first when analyzing loyalty patterns?

Loyal Customers because they can often promote the brand through personal word of mouth and social media. On the other hand, studying the less loyal customers allows a company to detect which brands are the most competitive with its own.

What are the four important segmentation topics?

Segmenting consumer markets, business markets, international markets, and the requirements for effective segmentation.