Term
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Definition
involves aggregating prospective buyers into groups, or segments, that
1. have common needs
2. will respond similarly to a marketing action. |
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Term
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Definition
| relatively homogeneous groups of buyers that result from the segmentation process |
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Term
| **5 Steps in Segmenting and targeting markets ** |
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Definition
1. group buyers into segments
2. group products into categories
3. develop a market product grid and estimate the size of the market
4. select target market
5. take marketing actions |
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Term
| Types of Market Segmentation |
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Definition
Customer Oriented
Behavior Oriented
Benefit Oriented |
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Term
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Definition
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Term
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Definition
the place an offering occupies in consumers' minds on important attributes relative to competitive products
Ex: Jimmy Johns - Speedy |
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Term
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Definition
| changing the place an offering occupies in consumers minds relative to competitive products |
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Term
Continuous Innovation
(low innovation) |
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Definition
Marketing Emphasis: Gain awareness and wide distribution
Requires no new learning by consumers.
Ex: New improved deodorant |
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Term
Dynamically Continuous Innovation
(medium innovation) |
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Definition
Disrupts consumers normal routine but does not require totally new learning.
Advertise points of difference
Ex: electric toothbrush |
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Term
Discontinuous Innovation
(high innovation) |
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Definition
Requires new learning and consumption patterns
Educate consumers through trials and selling
Ex: Electric Car |
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Term
| Market Reasons for New Product Failures |
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Definition
1. lack of points of differences
2. incomplete market/product definition
3. too little market attractiveness
4. Poor execution of Marketing Mix
5. bad quality
6. bad timing
7. no access to buyers |
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Term
| Keys to Successfully Marketing Services |
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Definition
1. make the invisible visible
2. offer proof of satisfaction
3. communicate |
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Term
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Definition
1. New revenue streams
2. position the company in customer's minds
3. gain shelf space
4. raise awareness via buzz |
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Term
| 7 stages in the new-product process |
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Definition
1. New product strategy development
2. idea generation
3. screening and evaluation
4. business analysis
5. development
6. market testing
6. communication
7. commercialization |
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Term
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Definition
| a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, distributed through similar outlets, similar in price. |
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Term
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Definition
| use of an established brand name to launch a new product within the same product category |
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Term
| Line extension advantages |
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Definition
reduces buyer risk
leverages brand
enhances shelf space (cheerios) |
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Term
| Line extension disadvantages |
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Definition
can harm the parent brand
customer confusion
stretch resources
cannibalization |
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Term
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Definition
| consists of all the product lines offered by an organization |
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Term
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Definition
Intangibility
Inconsistency
Inseparability
Inventory |
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Term
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Definition
The essence of marketing is developing products and services to meet buyers needs.
Good, Service, or idea that tangibly or intangibly satisfies a customer need and is exchanged for something. |
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Term
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Definition
products purchased by the ultimate consumer
Convenience Products
Shopping Products
Specialty Products
Unsought Products |
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Term
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Definition
Bought by organizations to assist in providing other products for resale.
Sales are often the result of derived demand. |
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Term
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Definition
| a specific product that has a unique brand, size or price |
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Term
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Definition
| All of the products offered by a company |
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Term
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Definition
describes the stages a product goes through in the marketplace.
Introduction
Growth
Maturity
Decline |
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Term
| Introduction Stage of the Product Life Cycle |
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Definition
Sales grow slowly and profit is minimal
Few Competitors
Product: One
Price: Either Skimming or Penetration
Promotion: Inform and Educate $$$$
Place: Limited Distribution |
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Term
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Definition
Stress Differentiation
Competition: Some
Product: More versions
Price: Gain Market Share, Rapid increase in Sales
Promotion: Stress points of difference
Place: more outlets |
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Term
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Definition
Maintain Brand Loyalty
Competition: Lots
Product: Full Line
Price: Defend Market Share, Profit
Promotion: Reminder Oriented
Place: Maximum Outlets |
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Term
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Definition
Harvesting and/or Deletion
Competition: Reduced
Product: Best Sellers
Price: Stay Profitable
Promotion: Minimal
Place: Fewer Outlets |
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Term
| Common reasons for resisting a product in the introduction stage. |
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Definition
Usage Barriers
Value Barriers
Risk Barriers
Psychological Barriers |
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Term
| Challenges of package and label designers |
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Definition
1. connecting with customers
2. environmental concerns
3. health, safety, and security issues
4. cost reduction |
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Term
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Definition
| the increased customer value perceived through performing organizational functions such as marketing or manufacturing more efficiently |
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Term
| "Increased Customer Value" |
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Definition
more products
improved quality
lower prices
easier access to products through improved distribution |
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Term
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Definition
| by place, demographics, psychographic, and behavioral |
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Term
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Definition
| suggest 80% of a firms sales are obtained by 20% of its customers |
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Term
| Criteria for forming Segments |
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Definition
Simplicity and Cost effectiveness
Potential for increased profits
Similarity of needs of potential buyers within a segment
Difference of needs of buyers among segments
Potential of a marketing action to reach a segment |
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Term
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Definition
| framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. |
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Term
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Definition
Run Horizontally
represent opportunities for efficiency |
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Term
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Definition
Vertically Oriented
represent opportunities for efficiency in research and development and production. |
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