Intro to Marketing Chapter 7, 8, 9, 10, 11

market segmentation
Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
market targeting
Evaluating each market segment’s attractiveness and selecting one or more segments to enter.
differentiation
Differentiating the market offering to create superior customer value.
positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
geographic segmentation
Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods.
demographic segmentation
Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
age and life-cycle segmentation
Dividing a market into different age and life-cycle groups.
gender segmentation
Dividing a market into different segments based on gender.
income segmentation
Dividing a market into different income segments.
psychographic segmentation
Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
behavioral segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
occasion segmentation
Dividing the market into segments according to occasions when buyers get the idea to buy, actually making their purchase, or use the purchased item.
benefit segmentation
Dividing the market into segments according to the different benefits that consumers seek for the product.
intermarket segmentation
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
target market
A set of buyers sharing common needs of characteristics that the company decides to serve.
undifferentiated marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
differentiated marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
concentrated marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
micromarketing
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.
local marketing
Tailoring brands and marketing to the needs and wants of local customer segments- cities, neighborhoods, and even specific stores.
individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers.
product position
The way a product is defined by consumers on important attributes- the place the product occupies in consumers’ minds relative to competing products.
competitive advantage
An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.
value proposition
The full positioning of a brand- the full mix of benefits on which it is positioned.
positioning statement
A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
service
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
consumer product
A product bought by final consumers for personal consumption.
convenience product
A consumer product that consumers usually buy frequently, immediately, and with minimal comparison and buying effort.
shopping product
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
unsought product
A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
industrial product
A product bought by individuals and organizations for further processing or for use in conducting a business.
social marketing
The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.
product quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
brand
A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or groups of sellers and differentiates them from those of competitors.
packaging
The activities of designing and producing the container of wrapper for a product.
product line
A 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.
product mix
The set of all product lines and items that a particular seller offers for sale.
service intangibility
Services cannot be seen, tasted, felt, heard or smelled before they are bought.
service inseparability
Services are produced and consumed at the same time and cannot be separated from their providers.
service variability
The quality of services may very greatly depending on who provides them and when, where, and how they are provided.
service profit chain
The chain that links service firm profits with employee and customer satisfaction.
internal marketing
Orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction.
interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs.
brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing.
brand value
The total financial value of a brand.
store brand
A brand created and owned by a reseller of a product or service.
co-branding
The practice of using the established brand names of two different companies on the same product.
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.
new product development
The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts.
idea generation
The systematic search for new product ideas.
crowdsourcing
Inviting broad communities of people-customers, employees, independent scientists and researchers, and even the public at large-into the new product innovation process.
idea screening
Screening new product ideas to spot good ones and drop poor ones as soon as possible.
product concept
A detailed version of the new product idea stated in meaningful consumer terms.
concept testing
Testing new product concepts with a group of target consumers to find out in the concepts have strong consumer appeal.
marketing strategy development
Designing an initial marketing strategy for a new product based on the product concept.
business analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.
product development
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
test marketing
The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.
commercialization
Introducing a new product into the market.
customer-centered new product development
New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
team-based new product development
New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.
product life cycle
The course of a product’s sales and profits over its lifetime.
style
A basic and distinctive mode of expression.
fashion
A currently accepted or popular style in a given field.
fad
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
introduction stage
The PLC stage in which a new product is first distributed and made available for purchase.
growth stage
The PLC stage in which a product’s sales start climbing quickly.
maturity stage
The PLC stage in which a product’s sales growth slows or levels off.
decline stage
The PLC stage in which a product’s sales fade away.
price
The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.
customer value-based pricing
Setting price based on buyers’ perceptions of value rather than on the seller’s cost.
good-value pricing
Offering just the right combination of quality and good service at a fair price.
value-added pricing
Attaching value-added features and services to differentiate a company’s offers and charging higher prices.
cost-based pricing
Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.
fixed costs
Costs that do not vary with production or sales level.
variable costs
Costs that vary directly with the level of production.
total costs
The sum of the fixed and variable costs for any given level of production.
experience curve
The drop in the average per-unit production cost that comes with accumulated production experience.
cost-plus pricing
Adding a standard markup to the cost of the product.
break-even pricing
Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.
competition-based pricing
setting prices based on competitors’ strategies, prices, costs, and market offerings.
target costing
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
demand curve
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
price elasticity
A measure of the sensitivity of demand to changes in price.
market-skimming pricing
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
market-penetration pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
product line pricing
Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices.
optional-product pricing
The pricing of optional or accessory products along with a main product.
captive-product pricing
Setting a price for products that must be used along with a main product, such as blades for a razor and games for a videogame console.
by-product pricing
Setting a price for by-products in order to make the main product’s price more competitive.
discount
A straight reduction in price on purchases during a stated period of time or of larger quantities.
allowance
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.
product bundle pricing
Combining several products and offering the bundle at a reduced price.
segmented pricing
Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
psychological pricing
Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
reference pricing
Prices that buyers carry in their minds and refer to when they look at a given product.
promotional pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
geographical pricing
Setting prices for customers located in different parts of the country or world.
FOB-origin pricing
A geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination.
uniform-delivered pricing
A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
zone pricing
A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.
basing-point pricing
A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.
freight-absorption pricing
A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
dynamic pricing
Adjusting prices continually to meet the characteristics and needs of individual customers and satisfactions.