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chapters 9,10 and 11
segmentation....
29
Marketing
Undergraduate 3
11/07/2011

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Cards

Term
Market Segmentation- entails a process of divison, from...
Definition
  • larger groupings of potential customers to smaller groupings of potential customers
  • more heterogenous to more homogenous potential customers
  • huge masses of customers that are less alike to smaller groupings that are more alike
Term

Why should firms engage in Market segmentation?

 

Definition
a business firm segments it markets so it can respond more effectively to the wants of potential buyers and thus increase it sales and profits
Term

What's a Market

 

Definition
Potential consumers , people with both the desire and ability to buy a specific offering
Term
Variables/factors on which markets can and should be segmented
Definition
  • Geography -nations,states cites...
  • Demographics - age, gender,family size, occupation,religion, race (this base is used a lot because of its "ease of measure"
  • Psychographics- dividing buyers into diff groups based on social class, life style (Activies, Interest, Opinions), or personality characteristics
  • Behavioral Segmentation-dividing buyes based on their level of knowlege about products, their attitudes toward products, their usage rates with respect to certain product
Term
How firms know they have created 'attractive segments"
Definition
  • M easurable (size, purchasing power & customer profiles associated with the market segment must be measurable)
  • A ccessible (segments must exist within the effective and efficient reach of firms and their marketing mix efforts)
  • S ubstantial (Large and profitable enough)
  • D ifferentiable (does the segment respond in and identifiably diff way than other segments to my firms mktg mix efforts?)
  • A ctionable (firm must design effective marketing mix programs that are designed for and attractive to members of the segment)
Term
Target Marketing
Definition
Evaluating the various segments that have been identified and deciding which ones to pursue ( marketers should logically target those segments that respond favorably to their existing mktg mix)
Term
Marketers can evalute target segment "attractiveness" by examining 3 factors:
Definition
  • Current Size & future growth prospects
  • Structural Attractiveness ( in relation to the existence of - powerful competitors, potential substitue prod., powerful suppliers/ vendors)
  • Degress to which firms objectives and resoures available line up with the requirement to pursue this segment
Term
Firms can target at one of four diff levels
Definition
  • Targeting very broadly - no segments (called undifferentiated (or mass) mktg
  • Target narrowly - One segment (concentrated/niche mktg approach)
  • Targeting extremely narrowly (is called Micro-marketing)eg Loch-heed Martin which produces missles for US army
  • Differentiated Targeting approach - multiple segments
Term
Which targeting strategies make the most sense when?
Definition
  • Use the concentrated/niche mktg approach when resources are limited
  • when variablitiy among competitiors products is low (such as steel) them employ the undifferentiated mktg approach. brand new products should also use this approach
  • mature products should puruse the differentiated target approach
Term
3 ways to differentiate/position any brand, company, or product
Definition
  • Customer intimacy - which is relationship based
  • Product Leadership - which technologically based
  • Cost Leadership- which is resource advantage based
Term
Basic New product Development Strategies
Definition
  1. through the outright acquisition- buy an entire company, or rights to a patent, or license
  2. through new product development- dev. of original products, prod improvements, modifications
Term
3 factors hugely important to the succes of NPD process
Definition
  1. "Creativity"- creativity entails seeing or experiencing that same things as everybody else and thinking about something new that has value
  2. Planning
  3. Execution

 

Term

 

Determinant

Definition
Important benefits that NPs deliver to the market
Term
SCA
Definition
Sustainable Competitive Adavantage
Term
Keys to NPD's success
Definition
  • Relative advantage over existing products
  • complexity (the ease with which products can be used)
  • Compatibilty (with the existing ways users do things, with their attitudes, beliefs, likes etc)
  • the amount of Value the new prod provides as compared to other alternative solutions
  • divisbility- the ease with which a new prod may be tried out on a limited basis
Term
NPD test
Definition
  • The concept test- to determine whether the intended user is likely to either need or want the product
  • the Product Use test- to determine whether the product developed actually satisfies that need or want
  • The Market test - to det whether our firm has in place an effective mktg plan that will function to commercialize new prod successfully
Term
Invention
Definition
refers to a dimension of uniquess- the form, formulation or funciton of something. Inventions are often patentable
Term
Innovation
Definition

refers to an overall process whereby an invention is transformed into a commercialized product that be sold profitably.

 

*there are more inventions than innovations

Term
5 stage mapping of the new product developement
Definition
  • stage 1 : begins with New Product Strategy- ID'ing mktg and mtkging opportunites
  • stage 2 involves Concept Generation
  • stage 3 involves Concept/Idea/Project Evaluation
  • stage 4 involves Development
  • Stage 5 Launch (or commercialization)
Term
PLC
Definition
Product life Cycle
Term
4 stages of a product
Definition
  • Introduction stage - goal should be to develop awarness. (few competitors, high prices)
  • growth stage - more competition, more product varities, struggle to gain/maintain market share, promotion of differentiation
  • Maturity - Much competition, maintain brand loyalty, defend price, defend share
  • Decline- VCR's, milkmen, handwritten letters
Term
Product
Definition
As anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want
Term
3 levels of product
Definition
  • the "core benefit"- what the customer is really buying
  • The "Actual Product"- features, design, quality, brand, packaging
  • The "Augumented product"- any additional serives attached to or associated with the actual product
Term
Design
Definition
Design features a perfect marriage of performance and purpose to suggest meaning
Term
Quality
Definition
Freedom from defects
Term
Branding
Definition
A name, sign, symbol or design or combination of these dimension, that identifies and distinguishes the marketer of a product/service
Term

How do brands help sellers?

 

Definition
  • Send messages
  • Tell stories
  • Make promises
  • exist as living entities with which customers cn have relationships
  • exist in the minds of customers
  • Brand loyalty

 

Term
Brand Equity
Definition

Defined and measured as the extent to which customers are willing to pay more for this particular branded product as opposed to another branded product from the same category- based on the power of the brand that has been built for and is associated with the product

Term
Promises
Definition
Represent commitments to deliver specific features, or benefits, or services, or experience or cache or prestige or solutions or value
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