Marketing 300 exam 2

Market segmentation
involves 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 market segments to enter
Ways to segment a market
Geographically
Demographically
Psychographically
Behavioral
Steps in segmentation process
measurable
accessible
substantial
differential
Actionable
Undifferentiated
marketing targets the whole market with one offer
Differentiated marketing
targets several different market segments and designs separate offers for each
Concentrated marketing
targets a small share of a large market
Micromarketing
is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing
involves tailoring brands and promotion to the needs and wants of local customer groups
Individual marketing
involves tailoring products and marketing programs to the needs and preferences of individual customers
Positioning
Choosing the right competitive advantages
Differentiation
Identifying a set of possible competitive advantages to build a position by providing superior value from
Product
Anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want
Service
an activity for sale that cannot be owned
Product line
is 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
all the products and items that a particular seller offers for sale
Brand mark
Symbol or pictorial design that distinguishes a product
Levels of brand loyalty
Brand recognition
Brand preference
Brand insistence
Brand recognition
Consumer awareness and identification of a brand
Brand preference
Consumer reliance on previous experiences with a product to choose that product again
Brand insistence
Consumer refusal of alternatives and extensive search for desired merchandise
Brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing
Brand extensions
Strategy of attaching a popular brand name to a new product in an unrelated product category
Brand licensing
Practice that expands a firm’s exposure in the marketplace
Functions of packaging
Protection against damage, spoilage, and pilferage
Assistance in marketing the product
Cost effectiveness-make packaging both cheaper and better for the environment
Penetration
a measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service
Product development
the creation and testing of one or more physical versions by the R&D or engineering departments
Market development
the initial marketing strategy for introducing the product to the market
Business analysis
a review of the sales, costs, and profit projections to find out whether they satisfy the company’s objectives
Test marketing
the stage at which the product and marketing program are introduced into more realistic marketing settings
Commercialization
the introduction of the new product
Stages of product life style
1. Product development
2.Introduction
3.Growth
4.Maturity
5.Decline
Product development
Sales are zero and investment costs mount
Introduction
Slow sales growth and profits are nonexistent
Growth
Rapid market acceptance and increasing profits
Maturity
Slowdown in sales growth and profits level off or decline
Decline
Sales fall off and profits drop
Ways to extend product life cycle
Re-brand
Repackage