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Exam 2
Chapters 7-11
174
Marketing
Undergraduate 3
10/19/2010

Additional Marketing Flashcards

 


 

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Term
target marketing
Definition
identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.
Term
market segmentation
Definition
dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
Term
market targeting (targeting)
Definition
process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Term
differentiation
Definition
actually setting apart the market offering to create superior customer value.
Term
positioning
Definition
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Term
geographic segmentation
Definition
dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.
Term
demographic segmentation
Definition
dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality.
Term
age and life-cycle segmentation
Definition
dividing a market into different age and life-cycle groups
Term
gender segmentation
Definition
dividing a market into different groups based on gender
Term
income segmentation
Definition
dividing a market into different income groups
Term
psychographic segmentation
Definition
dividing a market into different groups based on social class, lifestyle, or personality characteristics
Term
behavioral segmentation
Definition
dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product
Term
occasion segmentation
Definition
dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Term
benefit segmentation
Definition
dividing the market into groups according to the different benefits that consumers seek from the product.
Term
intermarket segmentation
Definition
forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
Term
measurable
Definition
the size, purchasing power, and profiles of the segments can be calculated
Term
accessible
Definition
the market segments can be effectively reached and served
Term
substantial
Definition
the market segments are large or profitable enough to serve
Term
differentiable
Definition
the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs
Term
actionable
Definition
effective programs can be designed for attracting and serving the segments
Term
target market
Definition
a set of buyers sharing common needs or characteristics that the company decides to serve
Term
undifferentiated (mass) marketing
Definition
a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Term
differentiated (segmented) marketing
Definition
a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Term
concentrated (niche) marketing
Definition
a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Term
micromarketing
Definition
the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups- includes local marketing and individual marketing
Term
local marketing
Definition
tailoring brands and promotions to the needs and wants of local customer groups- cities, neighborhoods, and even specific stores
Term
individual marketing
Definition
tailoring products and marketing programs to the needs and preferences of individual customers- also labeled "one-to-one marketing", "customized marketing", and "markets-of-one marketing"
Term
product position
Definition
the way the product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
Term
perceptual positioning maps
Definition
show consumer perceptions of brands versus competing products on important buying dimensions
Term
competitive advantage
Definition
an advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices
Term
product differentiation
Definition
brands differentiated on features, performance, or style and design
Term
services differentiation
Definition
brands differentiated through speedy, convenient, or careful delivery.
Term
channel differentiation
Definition
gaining competitive advantage through the way a company designs their channel's coverage, expertise, and performance
Term
people differentiation
Definition
hiring and training better people than their competitors do
Term
image differentiation
Definition
differentiating by company or brand image conveying the product's distinctive benefits and positioning
Term
important
Definition
the difference delivers a highly valued benefit to target buyers
Term
distinctive
Definition
competitors do not offer the difference, or the company can offer it in a more unique way
Term
superior
Definition
the difference is better than other ways customers might obtain the same benefit
Term
communicable
Definition
the difference is visible and transmittable to buyers
Term
preemptive
Definition
competitors cannot easily copy the difference
Term
affordable
Definition
buyers can afford to pay for the difference
Term
profitable
Definition
the company can introduce the difference profitably
Term
value proposition
Definition
the full positioning of a brand- the full mix of benefits upon which it is positioned
Term
positioning statement
Definition
a statement that summarizes company or brand positioning- it takes this form: to (target segment and need) our (brand) is (concept) that (point-of-difference)
Term
product
Definition
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Term
service
Definition
any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Term
consumer product
Definition
a product bought by final consumer for personal consumption
Term
convenience product
Definition
a consumer product that customers usually buy frequently, immediately, and with a minimum comparison and buying effort.
Term
shopping product
Definition
a consumer product that the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style
Term
specialty product
Definition
a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
Term
unsought product
Definition
a consumer product that the consumer either does not know about or known about but does not normally think of buying
Term
industrial product
Definition
a product bought by individuals and organizations for further processing or for use in conducting a business
Term
organization marketing
Definition
activities undertaken to create,maintain, or change the attitudes and behavior of target consumers toward an organization
Term
person marketing
Definition
activities undertaken to create, maintain, or change attitudes or behavior toward particular people
Term
place marketing
Definition
activities undertaken to create, maintain, or change attitudes or behavior toward particular places.
Term
social marketing
Definition
the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society
Term
product quality
Definition
the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
Term
total quality management (TQM)
Definition
an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes
Term
performance quality
Definition
the ability of a product to perform its functions
Term
conformance quality
Definition
freedom from defects and consistency in delivering a targeted level of performance
Term
style
Definition
simply describes the appearance of the product
Term
design
Definition
contributes to a product's usefulness as well as to its looks
Term
brand
Definition
a name, term, sign, symbol, design, or combination of these that identifies that products or services of one seller or group of sellers and differentiates them from those of competitors
Term
packaging
Definition
the activities of designing and producing the container or wrapper for a product
Term
label
Definition
identifies the product or brand, describes several things about the product, and promotes the brand, supports its positioning, and connects with customers
Term
product line
Definition
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and are marketed through the same types of outlets, or fall within given price ranged
Term
product line filling
Definition
adding more items within the present range of the product line
Term
product line stretching
Definition
a company lengthens its product line beyond its current range
Term
product mix (product portfolio)
Definition
the set of all product lines and items that a particular seller offers for sale
Term
product mix width
Definition
refers to the number of different product lines the company carries
Term
product mix length
Definition
refers to the total number of items the company carries within its product lines
Term
product mix depth
Definition
refers to the number of versions offered of each product in the line
Term
consistency of product
Definition
refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way
Term
brand equity
Definition
the differential effect that knowing the brand name has on customer response to the product or its marketing
Term
brand valuation
Definition
the process of estimating the total financial value of a brand
Term
customer equity
Definition
the value of the customer relationships that the brand creates
Term
store brand (private brand)
Definition
a brand created and owned by a reseller of a product or service
Term
co-branding
Definition
the practice of using the established brand names of two different companies on the same product.
Term
line extensions
Definition
extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
Term
brand extension
Definition
extending an existing brand name to new product categories
Term
multibranding
Definition
introducing additional brands into the same category offering a way to establish different features and appeal to different buying motives and lock up more reseller shelf space
Term
new brands
Definition
new name is needed or the company enters a new product category for which none of the company's current brand names are appropriate
Term
megabranding
Definition
weeding out weaker or slower-growing brands and focusing their marketing dollars only on brands that can acheive the number-one or number-two market share positions with good growth prospects in their categories
Term
service intangibility
Definition
a major characteristic of services- they cannot be seen, tasted, felt, heard, or smelled before they are bought
Term
service inseparability
Definition
a major characteristic of services- they are produced and consumed at the same time and cannot be separated from their providers
Term
service variability
Definition
a major characteristic of services- their quality may vary greatly, depending on who provides them and when, where, and how
Term
service perishability
Definition
a major characteristic of services- they cannot be stored for later sale or use
Term
service-profit chain
Definition
the chain that links service firm profits with employee and customer satisfaction
Term
internal marketing
Definition
orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction
Term
interactive marketing
Definition
training service employees in the fine art of interacting with customers to satisfy their needs
Term
new-product development
Definition
the development of original products, product improvements, product modifications, and new brands through the firm's own development efforts
Term
idea generation
Definition
the systematic search for new-product ideas
Term
idea screening
Definition
screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible
Term
product concept
Definition
a detailed version of the new-product idea stated in meaningful consumer terms
Term
product idea
Definition
an idea for a possible product that the company can see itself offering to the market
Term
product image
Definition
the way consumers perceive an actual or potential product
Term
concept testing
Definition
testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Term
marketing strategy development
Definition
designing an initial market strategy for a new product based on the product concept
Term
business analysis
Definition
a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
Term
product development
Definition
developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering
Term
test marketing
Definition
the stage of new-product development in which the product and marketing program are tested in realistic market settings
Term
commercialization
Definition
introducing a new product into the market
Term
customer-centered new-product development
Definition
new-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences
Term
sequential product development approach
Definition
one company department works individually to complete its stage of the process before passing the new product along to the next department and stage
Term
team-based new-product development
Definition
an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
Term
innovation management system
Definition
collects, reviews, evaluates, and manages new-product ideas
Term
product life cycle
Definition
the course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline
Term
product development
Definition
begins when the company finds and develops a new-product idea. Sales are zero and the company's investment costs mount
Term
introduction
Definition
a period of slow sales growth in which the new product is first distributed and made available for purchase. Profits are nonexistent because of heavy expenses of product introduction
Term
growth
Definition
a period of rapid market acceptance and increasing profits
Term
maturity
Definition
a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increases marketing outlays to defend the product against competition
Term
decline
Definition
the period when sales fall off and profits drop
Term
style
Definition
a basic and distinctive mode of expression
Term
fashion
Definition
a currently accepted or popular style in a given field
Term
fad
Definition
a temporary period of unusually high sales driven by consumer enthusiasm, and immediate product or brand popularity
Term
price
Definition
the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service
Term
value-based pricing
Definition
setting price based on buyers' perceptions of value rather than on the seller's cost
Term
good-value pricing
Definition
offering just the right combination of quality and good service at a fair price
Term
everyday low pricing (EDLP)
Definition
charging a constant, everyda low price with few or no temporary price discounts
Term
high-low pricing
Definition
charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
Term
pricing power
Definition
the power to escape price competition and to justify higher prices and margin
Term
value-added pricing
Definition
attaching value-added features and services to differentiate a company's offers and charging higher prices
Term
cost-based pricing
Definition
setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
Term
fixed costs (overhead)
Definition
costs that do not vary with production or sales level
Term
variable costs
Definition
costs that vary directly with the level of production
Term
total costs
Definition
the sum of the fixed and variable costs for any given level of production
Term
experience curve (learning curve)
Definition
the drop in the average per-unit production cost that comes with accumulated production experience
Term
cost-plus pricing
Definition
Adding a standard markup to the cost of the product
Term
break-even pricing
Definition
Setting price to break even on the costs of making and marketing a product, or setting price to make a target profit
Term
target costing
Definition
pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
Term
pure competition
Definition
the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities.
Term
monopolistic competition
Definition
the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. Sellers can differentiate their offers to buyers
Term
oligopolistic competition
Definition
the market consists of a few sellers who are highly sensitive to each others' pricing and marketing strategies.
Term
pure monopoly
Definition
the market consists of one seller.
Term
regulated monopoly
Definition
the government permits the company to set rates that will yield a "fair return"
Term
nonregulated monopolies
Definition
free to price at what the market will bear
Term
demand curve
Definition
a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
Term
price elasticity
Definition
a measure of the sensitivity of demand to changes in price
Term
market-skimming pricing
Definition
setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
Term
market-penetration pricing
Definition
setting a low price for a new product in order to attract a large number of buyers and a large market share
Term
product line pricing
Definition
setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices
Term
optional-product pricing
Definition
the pricing of optional or accessory products along with the main product
Term
captive-product pricing
Definition
setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera
Term
two-part pricing
Definition
used in the case of services; the price of the service is broken down into a fixed fee plus a variable usage rate
Term
by-product pricing
Definition
setting a price for by-products in order to make the main product's price more competitive
Term
product bundle pricing
Definition
combining several products and offering the bundle at a reduced price
Term
discount
Definition
a straight reduction in the price on purchases during a stated period of time
Term
cash discount
Definition
a price reduction to buyers who pay their bills promptly
Term
quantity discount
Definition
a price reduction to buyers who buy large volumes
Term
functional discount (trade discount)
Definition
offered by the seller to trade channel members who perform certain functions, such as selling, storing, and record keeping
Term
seasonal discount
Definition
a price reduction to buyers who buy merchandise or services out of season
Term
allowance
Definition
promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way
Term
trade-in allowances
Definition
price reductions given for turning in an old item when buying a new one
Term
promotional allowances
Definition
payments or price reductions to rewards dealers for participating in advertising and sales support programs
Term
segmented pricing
Definition
selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
Term
customer-segment pricing
Definition
different customers pay different prices for the same product or service
Term
product-form pricing
Definition
different versions of the product are priced differently but not accoring to differences in their costs
Term
location pricing
Definition
a company charges different prices for different locations, even though the cost of offering each location is the same.
Term
time pricing
Definition
a firm varies its price by the season, month, day, and even the hour
Term
psychological pricing
Definition
a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product
Term
reference pricing
Definition
prices that buyers carry in their minds and refer to when they look at a given product
Term
promotional pricing
Definition
temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
Term
geographical pricing
Definition
setting prices for customers located in different parts of the country or world
Term
FOB-origin pricing
Definition
a geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination
Term
Uniform-delivered pricing
Definition
a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location
Term
zone pricing
Definition
a geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price
Term
basing-point pricing
Definition
a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer
Term
freight-absorption pricing
Definition
a geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business
Term
dynamic pricing
Definition
adjusting prices continually to meet the characteristics and needs of individual customers and situations
Term
predatory pricing
Definition
selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business
Term
retail (or resale) price maintenance
Definition
a manufacturer cannot require dealers to charge a specified retail price for its product.
Term
deceptive pricing
Definition
when a seller states prices or price savings that mislead consumers or are not actually available to consumers
Term
price confusion
Definition
when firms employ pricing methods that make it difficult for consumers to understand just what price they are really paying.
Term
mass customization
Definition
the process through which firms interact one-to-one with masses of customers to design products and services and tailor-made to individual needs.
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