Marketing Babson 1-6

Market Segmentation
dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
Target Marketing
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Market Positioning
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers
Geographic Segmentation
Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods
Demographic Segmentation
dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
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, or responses to a product
Occasion Segmentation
dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Benefit Segmentation
dividing the market into segments according to the different benefits that consumers seek from the product
Micromarketing
the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments- includes local and individual marketing
Value Proposition
the full positioning of a brand- the full mix of benefits upon which it is positioned
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Service
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Consumer product
Product bought by final consumer for personal consumption
Convenience product
Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort
Shopping product
Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style
Specialty product
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
Consumer product that the consumer either does not know about or knows about but does not normally think of buying
Industrial product
Product bought by individuals and organizations for further processing or for use in conducting a business
Social marketing
The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group
Product quality
The ability of a product to perform its functions—it includes the product’s overall durability, reliability, precision, ease of operation and repair, and other valued attributes
Brand
A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Packaging
The activities of designing and producing the container or 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 (or product assortment)
The set of all product lines and items that a particular seller offers for sale
Brand equity
The positive differential effect that knowing the brand name has on customer response to the product or service
Private brand (or 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
Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or packaging sizes
Brand extension
Using a successful brand name to launch a new or modified product in a new category
Service intangibility
A major characteristic of services—they cannot be seen, tasted, felt, heard, or smelled before they are bought
Service inseparability
A major characteristic of services—they are produced and consumed at the same time and cannot be separated from their providers
Service variability
A major characteristic of services—their quality may vary greatly, depending on who provides them and when, where, and how
Service perishability
A major characteristic of services—they cannot be stored for later sale or use
Service-profit chain
The chain that links service firm profits with employee and customer satisfaction
Internal marketing
Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction
Interactive marketing
Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction
Market Offering
basis upon which the company builds profitable customer relationships
pure tangible good
such as soap, toothpaste, or salt – no services accompany the product
pure services
doctor’s exam, financial services – offer consists primarily of a service
core customer value
What is the customer really buying? What consumers seek from the product
actual product
product and service features, design, a quality level, a brand name, and packaging
augmented product
additional consumer services and benefits
materials and parts
raw materials and manufactured materials and parts. Raw materials consist of farm or natural products
capital items
industrial products that aid in the buyer’s production or operations, including installations and accessory equipment
supplies and services
operating supplies, and repair and maintenance items; purchased with minimum effort or comparison
organization marketing
activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization
corporate image advertising
polishing your image
person marketing
activities undertaken to create, maintain, or change attitudes or behavior toward particular people
place marketing
activities undertaken to create, maintain, or change attitudes or behavior toward particular places
Total Quality Management
the company’s people are involved in constantly improving the quality of products, services, and business processes
product line length
the number of items in the product line
product mix width
the number of different product lines the company carries
mix length
total number of items the company carries within its product lines
product mix depth
number of versions offered of each product in the line
Market segmentation
Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behavior who might require separate products of marketing mixes
Target marketing
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Market positioning
Arranging for a product 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, countries, cities, or neighborhoods
Demographic segmentation
Dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race, and nationality
Age and life-cycle segmentation
Dividing a market into different age and life-cycle groups
Gender segmentation
Dividing a market into different groups based on gender
Income segmentation
Dividing a market into different income groups
Psychological segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics
Behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
Occasion segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Benefit segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
Target market
A set of buyers sharing common needs or characteristics that the company decides to serve
Undifferentiated (mass) 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 (segmented) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated (niche) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups—includes local marketing and individual marketing
Local marketing
Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores
Individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers—also labeled “markets-of-one marketing,” “customized marketing,” and “one-to-one marketing”
Product position
The way the 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 consumers greater value, either through lower prices or by providing more benefits that justify higher prices
Value proposition
The full positioning of a brand—the full mix of benefits upon which it is positioned
Positioning statement
A statement that summarizes company or brand positioning—it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference)
Consumer buyer behavior
The buying behavior of final consumers—individuals and households who buy goods and services for personal consumption
Consumer market
All the individuals and households who buy or acquire goods and services for personal consumption
Culture
The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
Subculture
A group of people with shared value systems based on common life experiences and situations
Social classes
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
Group
Two or more people who interact to accomplish individual or mutual goals
Opinion leader
Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others
Lifestyle
A person’s pattern of living as expressed in his or her activities, interests, and opinions
Personality
The unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment
Motive (drive)
A need that is sufficiently pressing to direct the person to seek satisfaction of the need
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world
Learning
Changes in an individual’s behavior arising from experience
Belief
A descriptive thought that a person holds about something
Attitude
A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
Complex buying behavior
Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands
Dissonance-reducing buying behavior
Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands
Habitual buying behavior
Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences
Variety-seeking buying behavior
Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
Need recognition
The first stage of the buyer decision process, in which the consumer recognizes a problem or need
Information search
The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search
Alternative evaluation
The stage of the buyer decision-making process in which the consumer uses information to evaluate alternative brands in the choice set
Purchase decision
The buyer’s decision about which brand to purchase
Postpurchase behavior
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
Cognitive dissonance
Buyer discomfort caused by postpurchase conflict
New product
A good, service, or idea that is perceived by some potential customers as new
Adoption process
The mental process through which an individual passes from the first hearing about an innovation to final adoption
Marketing information system (MIS)
People, equipment, and procedures to gather, sort , analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
Internal databases
Electronic collections of information obtained from data sources within the company
Marketing intelligence
The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment
Marketing research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Exploratory research
Marketing research to gather preliminary information that will help define problems and suggest hypotheses
Descriptive research
Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
Casual research
Marketing research to test hypotheses about cause-and-effect relationships
Secondary data
Information that already exists somewhere, having been collected for another purpose
Primary data
Information collected for the specific purpose at hand
Online databases
computerized collections of information available from online commercial sources or via the internet
Observational research
The gathering of primary data by observing relevant people, actions, and situations
Survey research
The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
Single-source data systems
Electronic monitoring systems that link consumers exposure to television advertising and promotion (measured using television meters)
Environmental research
The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
Focus group interviewing
Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues.
Online (Internet) marketing research
Collecting primary data through Internet surveys and online focus groups
Sample
A segment of the population selected for marketing research to represent the population as a whole
Customer relationship management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
Needs
States of felt deprivation
Wants
The form human needs take as shaped by culture and individual personality
Demands
Human wants that are backed by buying power
Marketing offer
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Exchange
The act of obtaining a desired object from someone by offering something in return
Market
The set of actual and potential buyers of a product or service
Marketing management
The art and science of choosing target markets and building profitable relationships with them
Production concept
The idea that consumers will favor products that are available and highly affordable
Product concept
The idea that consumers will favor products that offer the most in quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
Selling concept
The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort
Marketing concept
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
Societal marketing concept
A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long run interests, and society’s long run interests
Customer relationship management
The overall process of building and maintaining profitable customer value and satisfaction
Customer perceived value
The difference between total customer value and total customer cost
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations
Partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Customer lifetime value
The value of the entire stream of purchases that the customer would make over a lifetime of patronage
Share of customer
The portion of the customer’s purchasing that a company gets in its product categories
Customer equity
The total combined customer lifetime values of all the company’s customers
Internet
A vast public web of computer networks, which connects users of all types all around the world to each other and to an amazingly large information repository