Principles of Marketing Exam Chapter 9 – 13

Types of Markets
The Role of Market Segmentation
Division of the total market into smaller relatively homogeneous groups. No singly marketing mix can satisfy everyone, separate marketing mixes should be used for different market segments.
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Product – Related
Geographic Segmentation
Dividing an overall market into homogeneous groups on the basis of their locations. Different people in different places will make different purchase decisions.
Demographic Segmentation
Dividing consumer groups according to characteristics such as gender, age, income, occupation, education, household size, and stage in the family life cycle. A primary source for this data is the census bureau.
Psychographic Segmentation
Divides a population into groups that have similar psychological characteristics, values, and lifestyles.
Product Related Segmentation
Dividing a consumer population into homogeneous groups based on characteristics of their relationships to the product.
Strategies for Reaching Target Markets
Marketers must identify, evaluate, and select a target market. The market is people or institutions with sufficient purchasing power, authority, and willingness to buy. Target Market is the specific segment of consumers most likely to purchase a particular product.
Selecting and Executing a Strategy: Product Positioning
No, single best choice strategy suits all firms. Determinants of a market – specific strategy:
Company resources
Product homogeneity
Stage in the product life-cycle
Competitors’ strategy
The Marketing Research Function
The process of collecting and using information for marketing decision – making.
The Marketing Research Process (The Problem only)
Marketing Research Methods
Garbology: The study of consumer behavior and preferences for food and products by examining items found in the trash.
Syndicated services: Organizations that regularly provide a standardized set of data to all customers.
Full – Service research suppliers: Organizations that contract with clients to conduct complete marketing research products.
Limited: A marketing research firm that specializes in selected activities like interviews, data processing, and focus groups.
Conducting International Marketing Research
Sales Forecasting
Estimate of company revenue for a specified future period. Qualitative and Quantitative.
What is a Product?
Bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs.
What are Goods and Services?
Goods: a tangible product that customers can see, hear, smell, taste, or touch.
Importance of the Service Sector
Intangible task that satisfies customer or business user needs.
Classifying Goods and Services for a Consumer
Consumer products: products destined for use by ultimate consumers.
Business (or B2B) products: those that contribute directly or indirectly to the output of other products for resale.
Shopping product: good or service purchased only after the customer compares competing offering from competing vendors on such characteristics as price, quality, style, and color.
Specialty product: good or service with unique characteristics that cause the buyer to value it and make a special effort to obtain it.
Unsought product: good or service marketed to consumers who may not yet recognize the need for it.
Development of Product Lines
A product line is a series of related products. Motivation: a desire to grow, enhancing the company’s position in the market, optimal use of company’s resources, exploit the product life cycle.
The Product Mix
A company’s assortment of product lines and individual offerings.
Width – the number of product offerings.
Length – the number of different products a firm sells.
Depth – Variations in each product that a firm markets in its mix.
The Product Lifecycle
Introduction
Growth Stage
Maturity Stage
Decline Stage
Extending the Product Lifecycle
Increase frequency of use by current customers. Increase the number of users for the product.
Find new uses. Change package sizes, labels, or product quality.
Product Deletion Decisions
Decisions are faced during the late maturity and early decline stages of the product life cycle.
Managing Brands for Competitive Advantage
Creating identity, brand name, term, logo, design, or something that differentiates the brand from others.
Brand Recognition
Brand Preference: Customer reliance on previous experiences with a product to choose that product again.
Brand Insistence: Consumer refusals of alternatives and extensive search for desired merchandise.
Product Identification
Brand name, brand mark, generic name, trademark, trade dress, developing global brand names and trademarks.
Consumer Adoption Process
Stages that consumers go through in learning about a new product, trying it, and deciding whether to purchase it again.