Details Title: Chapter 7 Description: Marketing Final Total Flash Cards: 44 Created: 06/04/2009 17:49:54		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Marketing Flashcards
Cards in this set: Term Segmentation Definition The process of dividing a larger market into smaller pieces Term Demographic Dimensions Definition -Age-different want and needs -Gender-Starts at a very young age -Family Structure-impacts properties -Income and Social Issues-have things in common -Race and ethnicity-impacts preferences -Geography-needs vary by location Term Age Groups Definition -Children -Teens -Generation Y -Generation X -Baby Boomers -Elderly Term Children Definition 4-12 impacts family purchases Term Teens Definition 13-17 Spend money on feel good products Term Generation Y Definition 1977-1994 Children of Baby Boomers 26%of population 200 billion a year Term Generation X Definition 1965-1976 Term Baby Boomers Definition 1946-1964 Term Elderly Definition 65 and older Term The Hispanic Market Segment Definition Brand loyalty-buy products from their own country of origin Highly Concentrated-live together Youthful- middle age is 23 Receptive to relationship building-avg household size is 3.5 appreciate companies trying to relate to them Term Psychographics Definition Segment market in terms of shared attitude,interests,and opinions, and activities Some organization develop their own psychographics segments for their consumers -better understanding who their customers are Term Metro-sexual:a new segmentation buzzword Definition sensitive educated in touch with feminine side Term Segmentation by behavior Definition Slice consumer on the basis of they act toward, feel about,or use a product -find out why someone uses or doesn't use a product -heavy, moderate or light user -80/20 Rule- 80% of sales come from 20% of our customers -When they use the product the most Term Segmenting Industrial Markets Definition Organizational Demographics -firm size -number of facilities -domestic or multinational -type of business -production technology utilized Term Targeting Definition Evaluating Market Segments Developing Segments Profiles Choosing a Target Strategy Term Target Market Process Definition Step 1- Segmentation Step 2-Targeting Step 3-Positioning Term Evaluating Market Segments Definition A viable target segment should: -Have similar members -Be measurable-in size and purchasing power -Be large enough-to be profitable -Be reachable by- marketing communications - Have needs the marketer can serve Term Developing Segment Profiles Definition description of a typical consumer in that segment. Includes: -demographics -location -lifestyle -and how frequently the customer buys the product. Term 4 target strategies Definition Differentiated Marketing, Undifferentiated Marketing, Concentrated Marketing, Customized Marketing Term Differentiated Targeting Definition developing one or more products for each of several customer groups. - Used when customers are choosing among well-known brands have distinctive images and the company can identify one or more segments that have distinctive needs for different types of products. Term Undifferentiated Targeting Definition Appealing to a broad spectrum of people -Cheaper -Same product appeal to many people Term Concentrated Targeting Definition Focuses a firm effort of offering one or more products to a single segment -Smaller firms with less resources Term Customized Targeting Definition An approach that tailors specific products and the message about them to individual customers. -doctors, lawyers and hairstylist uses this Term Mass Customization Definition An approach that modifies a basic good or service to meet the needs of an individual. -Computer Companies are starting to use this (Creation of own personal computer) Term Positioning Definition Develop a market strategy aimed at influencing how customer perceive the product. -analyze competition position -Offer a product with competitive advantage -Finalize the marketing mix -Evaluate the target markets response Term Analyze the competitors position Definition What competition is are there? How do consumer perceive them? What are the substitutes? Term Offer a product with a competitive advantage Definition provide a reason why consumer will choose your product over competition. -offer a lower price -superior image -unique product feature -better service -more expertise Term Finalize the marketing mix Definition marketing mix must match the selected segment. Goods and service must deliver benefits that the segment values, such as convenience or status. Must add value and satisfactions. -Must set a reasonable price -Make available where consumers are likely to go -and communicate the product where consumer are going to notice it Term Evaluate target market's response Definition modify any needed changes firm might need to target a different segment or position. Term Repositioning Definition Redoing a products position to respond to marketplace changes. -Marlboro the cigarette company targeted women at first and then switched. Term Retro-brands Definition a once popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia. Term Brand Personality Definition A distinctive image that captures a good's or service's character and benefits. -cheap -expensive -elegant -sexy -cool Term Perceptual Map Definition A vivid way to construct a picture of where products or brands are located in consumers minds. Term Customer Relationship Management Definition Allows a company to identify its best customers, stay on top of theirs needs and increase their satisfactions communicating with customers Term Steps in the CRM process Definition Identify customers,Differentiate customers,Interact with customers, customize for your customers. Term Identify the customer Definition get to know them in a much detail as possible Term Differentiate among customers Definition in terms of both their needs and their values to the company Term Interact with the customer Definition find ways to improve cost efficiency and the effectiveness of the interaction. Term Customize for your customers Definition Customize some aspects of the goods and service that you offer to each customer. This means treating customers differently based on what has been learned through customers interaction. Term Characteristics of CRM Definition Share of customers, Lifetime value of the customer, Customer equity, A greater focus on high-value customers Term Share of Customers Definition the percentage of an individual customer purchase of a product this is a single brand, increase sales at a lower cost by advertising directly to a giving customer Term Lifetime Value of a customer Definition the potential profit generated by a single customers purchase of a firms products over the firms lifetime. Term Customer Equity Definition the financial value of a customer relationship throughout the lifetime of the relationship -compare investments made to acquire new customers, retain old customers, and relationship enhancement with the financial return on those investments Term A greater focus on High-Value Customers Definition Bank example in the book