Marketing Final Exam Chapter 10-16
Behavioral Segmentation
Divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Geographic Segmentation
Divides groups based on physical location "Birds of a feather flock together
Demographic Segmentation
Divides the market into segments based on variables such as age, generation, life-cycle stage, gender, income, occupation, education, religion, & ethnicity
Targeting
Evaluate segments & Select the segment(s) to enter (serve)
Good-Value Pricing
Is offering just the right combination of quality and good service at a fair price (2008 Recession: Change in customer attitudes toward price/value).
Branding
•The name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service.
Characteristics of Services
intangibility, inseparability, variability, perishability
Stages of the Product Life Cycle
introduction, growth, maturity, decline
Requirements for Effective Segmentation
measurable, accessible, substantial, differentiable, actionable
Seven Stages of New Product Development
1. new product strategy development 2. idea generation 3. idea screening 4. business analysis 5. product development 6. market testing 7. product launch
Predatory Pricing
A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs is called predatory pricing (Sherman Antitrust Act 1890). .
Promotional Pricing
Characterized by temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
Price Fixing
Companies that collude to set prices at a mutually beneficial high level are engaged in price fixing (Sherman Antitrust Act 1890).
Psychological Pricing
Considers the psychology of prices and not simply the economics; the price is used to say something about the product
Differentiation
Differentiate offering to create superior value
Segmentation
Divide total market into smaller, similar segments with distinct needs, characteristics or behaviors
Psychographic Segmentation
Divides a market into different segments based on social class, lifestyle, or personality characteristics.
Every-Day-Low Pricing
Involves charging a constant everyday low price with few or no temporary price discounts.
Price Discrimination
Occurs when a seller offers different prices to different customers without a substantive basis, such that competition is reduced (Robinson-Patman Act 1936).
Positioning
Position offering in the minds of the target consumers vs. competition
Reference Pricing
Prices that buyers carry in their minds and refer to when they look at a given product. Reference might be formed by noting current prices or remembering past prices
High-Low Pricing
Pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.
Price
The amount of money charged for a product or service, or the sum of all the values that customers exchange for the benefits of having or using the product or service.
Value-Based Pricing
Uses the buyers' perceptions of value rather than the seller's cost. Cost-based pricing is product driven Value-based pricing is customer driven & priced to match perceived value
Five Specific Drivers of Innovation
consumer expectations, competition, globalization, technology, changing society
Segmentation Pricing
selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
