Marketing Chapter 8 & 10

Market
People or organizations with needs or wants and the ability and willingness to buy.
Market Segment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product need.
Segmentation (Bases)
An aggregation process which clusters people with similar needs into market segments. Characteristics of individuals, groups, or organizations.
Geographic Segmentation
Segmenting markets by region of a country or the world, market size, market density, or climate.
Demographic Segmentation
Segmenting markets by age, gender, income, ethnic background, and family life cycle.
Psychographic Segmentation
Segmenting markets on the basis of personality, motives, lifestyles, and geodemographics.
Geodemographic Segmentation
Segmenting potential customers into neighborhood lifestyle categories.
Target Market
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
Undifferentiated Market
A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix.
Concentrated Market
A strategy used to select one segment of a market for targeting marketing efforts.
Niche Market
One segment of a market.
Multisegment Market
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
Cannibalization
A situation that occurs when sales of a new product cut into sales of a firm’s existing products.
Positioning
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
Homogeneous
Describes something that has a uniform structure or composition throughout.
Product Differentation
A positioning strategy that some firms use to distinguish their products from those competitors.
Perceptual Mapping
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.
Heterogeneous
Describes something composed of unlike parts; different; diverse.
Criteria for Segmentation
Substantiality, Identifiability and Measurability, Accessibility, Responsiveness.
Bases for Segmentation
Geography, Demographics, Psychographics, Behavioral.
Evoked Set
Group of brands, resulting from an information search, from which a buyer can choose.
Types of Market Segmentation
Geographic Segmentation, Demographic Segmentatipon, Psychographic Segmentation, Benefit Segmentation, Usage-Rate Segmentation.
Behavioral Segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.
Targeting
A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.
Attributes
A quality or feature regarded as a characteristic or inherent part of someone or something.
Benefits
Compensation in forms other than direct payment.
Differentation
An aspect of the organizations internal environment created by job specialization and the division of labor.
Value Proposition
A statement of the functional, emotional, and self-expressive benefits delivered by the brand, which provide value to customers in the target segment.
Mass Customization
Ability of an organization to give its customers the opportunity to tailor its products or services to the customers specifications.
Marketing Mix
A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
Brand
A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
Product
Everything, both favorable and unfavorable, that a person receives in an exchange.
Brand Equity
The value of company and brand names.
Perceived Value
The relationship between a product or service’s benefits and its cost.
Shopping Products
A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores.
Convenience Products
A relatively inexpensive item that merits little shopping effort.
Unsought Products
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
Specialty Products
A particular item for which consumers search extensively and are very reluctant to accept substitutes.
Brand Identity
Those elements that are instantly recognized as representing a particular business or product.
Philanthropic Brand
Philanthropic Brand
Services
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything: banking, hotel, airline, retail, tax preparation, home repairs.
Brand Extension
Successful brand names help new products.
Product Line
A group of closely related product items.
Product Mix
All products that an organization sells.
Line Extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Product Extension
Selling virtually the same product in other countries.
Disintermediation
Channel conflict that arises when a channel member bypasses another member and sells or buys products direct.
Product’s Core Benefit
Product’s Core Benefit
Product’s Actual Benefit
Product’s Actual Benefit
Brand Strategy
A strategic plan for the development of a brand to enable a company to meet its objectives based on characteristics and needs of the target customer and their lifestyle. Basically, carrying a name-brand that will attract customers who shop specifically for that brand only.
Brand Essence
Focuses on how consumption of the brand and the category is relevant to customers’ lives.