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Chapter 7
Marketing Final
44
Marketing
Undergraduate 2
06/04/2009

Additional Marketing Flashcards

 


 

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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
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