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Marketing Research
Lecture 1-Exam 2
30
Marketing
Undergraduate 3
05/19/2010

Additional Marketing Flashcards

 


 

Cards

Term
Target Market Selection Process
Definition

1. Identify the appropriate targeting strategy

2. Determine which segmentation variables to use

3. Develop market segment profiles

4. Evaluate relevant market segments

5. Select specific target markets

Term
Undifferentiated Marketing
Definition

- appeals to a broad spectrum of people

 

- efficient due to economies of scale

 

- effective when most consumers have similar needs

 

- ex. Wal-Mart "Everyday Low Prices"

- never changes

Term
Concentrated Marketing
Definition

- entails focusing efforts on offering one or more products to a single segment

- useful for smaller firms that do not have the resources to serve all markets

* or used to target Niche segment

Term
Differentiated Marketing
Definition

- develops one or more products for each of several customer groups with different product needs

 

Term

Define:

Position

Definition
- the place a product occupies in consumers minds relative to the competition
Term

Define:

Benefit Usage

Definition
What the consumers' minds have derived from the product
Term

4 Segmentation Variables

- Consumer Segmentation

Definition

1. Demographic Variables

2. Geographic Variables

3. Psychographic Variables

4. Behavioristic Variables

Term
Geodemographic Segmentation
Definition
- Marketing segmentation that clusters people in zip codes and smaller neighborhood units based on lifestyle and demographic information
Term
Market Density
Definition
- the number of potential customers within a unit of land area
Term
Geographic Variables
Definition
- customer product needs are influenced by climate, terrain, city size, population density, and urban/rural areas
Term
Psychographic Variables
Definition

- personality characteristics

- Motives

- Lifestyles

Term
How do marketers use the personality characteristics, motives and lifestyles of consumers?
Definition

- personality characteristics

* marketers appeal to positive/favorable personal characteristics to influence the purchase decision

- motives

* marketers use individuals' differing purchase motives to segment a product market

- lifestyles

* marketers segment markets according to how individuals choose to spend their time in various activities, their income and their education

Term
What Dimensions are used to segment markets?
Definition

1. Kind of relationship

2. type of customer

3. demographics

4. how customers will use the product

5. type of buying situation

6. purchasing methods

Term
How is the demension "kind of relationship used"?
Definition

1. loyalty

2. reciprocity (exchanging things with others for mutual benefit)

Term
What is the dimension "demographics" based on?
Definition

1. size

2. primary business or industry

3. number of facilities

 

ALSO!

- can be based on sales

Term
What is the "type of buying situation" based on?
Definition

1. Decentralized

- buying from others (from plants, manufacturers)

2. Centralized

- local sellers

Term

Market and Sales Potential:

Sales Estimates

Definition

- Market Potential

- Company Sales Potential

Term

Market and Sales Potential:

Competitive Assessment

Definition
- who, how many, how large, and how strong
Term

Market and Sales Potential:

Cost Estimates

Definition

- the expense of developing a marketing mix

- costs of reaching segment relative to competitors' costs

* is this a good thing for the company to do?

Term
Issues in Selecting a Target Market
Definition

1. Do customers' needs differ enough to warrant the use of market segmentation

 

2. In which market segment(s) should the firm participate?

 

3. Does the firm have the resources and skills to compete effectively in the target market?

Term
Criteria for Effective Segmentation
Definition

1. Measurability

 

2. Accessibility

 

3. Substantialness

Term

Define:

Measurability

Definition
- reflects the degree to which the size and purchasing power of segments can be assessed
Term

Define:

Accessibility

Definition

- describes the degree to which a firm can reach intended target segments efficiently

 

** refers to distribution and promotion

Term

Define:

Substantialness

Definition
refers to the degree to which identified target segments are large enough to have sufficient sales and profit over the long run
Term
Criteria for Effective Segmentation
Definition

1. Durability

 

2. Differential Responsiveness

Term

Define:

Durability

Definition

- the stability of segments

 

-- whether distinctions between segments will diminish or disappear as the product category or the markets themselves mature

Term

Define:

Differential Responsiveness

Definition
- the extent to which market segments exhibit different responses to different marketing mixes
Term

Developing Forecasts:

Qualitative Procedures

Definition

1. Survey of Buyers' Intentions

 

2. Expert Opinions

 

3. Composite of Sales Forces estimates

Term

Developing Forecasts:

Quantitative Methods

Definition

1. Trend Analysis

 

2. Market Tests

 

3. Statistical Demand Analysis

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