MARKETING 305 EXAM 3

market segmentation
involves aggregating prospective buyers into groups, or segments, that have common needs & will respond similarly to a marketing action
market segments
relatively homogeneous groups of prospective buyers that result from the market segmentation process
product differentiation
a marketing strategy that involves a firm using different marketing perceive the product as being different and better then competing products
product positioning
the place a product occupies in consumers minds on important attributes relative to competitive products
product repositioning
changing the place a product occupies in a consumers mind relative to competitive products
perceptual map
means of displaying in two dimensions the location of the products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as the firms own product or brand
product
good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers needs and is received in exchange for money or something else of value
services
intangible activities or benefits that an organization provides to satisfy consumers needs in exchange for money or something of value
consume products
products purchased by the ultimate consumer
business products
products organizations buy that assist in providing other products for resale (B2B products or industrial products)
convenience
wide spread, many outlets, frequent purchases, inexpensive (toothpaste, hand soap)
shopping
infrequent purchases, needs comparison shopping time prefer specific brands, large number, fairly expensive (cameras,tvs,airplane tickets)
specialty
infrequent purchases, needs extensive search and decision time, very brand loyal (no substitutes), very limited, very expensive (rolex watches, heart surgery, rolls royce cars)
unsought
very infrequent purchases, comparison shopping, will accept substitutes, often limited, varies (burial insurance, thesaurus)
derived demand
demand for industrial products and services that is driven by or derived from, demand for consumer products and services
reliability
ability to perform the promised service dependably and accurately
tangibility
appearance of physical facilities, equipment, personnel and communication materials
responsiveness
willingness to help customers and provide prompt service
assurance
knowledge and courtesy of employees and their ability to convery trust and confidence
empathy
caring, individualized attention provided to customers
intangibility
services cannot be touched / seen before purchase decision; performance, marketers try to show benefits
inseparability
consumer cannot distinguish service provider from the service itself
inconsistency
depends on people who provide them; quality varies with each persons capabilities and day to day job performance
inventory
handling costs and relate to storage, perishability and movement
product line
group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer groups, are distributed through the same outlets, or fall within a given price range
product mix
consists of all of the product lines offered by an organization
product life cycle
describes the stages a new product goes through in the market place: intro, growth, maturity, decline)
branding
marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from competitors
brand name
any word, device (design, sound, or color) or combination of these used to distinguish a sellers goods or services
brand personality
set of human characteristics associated with brand name
brand equity
added value a brand name gives to a product beyond the functional benefits provided