Term
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Definition
| Dividing people by things like age/gender/income/education to understand the population and market better |
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Term
| Psychographic Segmentation |
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Definition
| The way we define ourselves: self values, lifestyle, self concept (to understand the market and the population better) |
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Definition
| An occasion like needing a suit to get married, loyalty/loyal customers are both examples. Segmenting population to understand market better |
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Definition
| dividing people based on what they get out of a product, like adult jokes in a kid movie- adults get something different from it. This kind of segmentation done to understand the market and the population better |
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Definition
| Where people live (to understand the market and the population better) |
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Term
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Definition
| STP marketing (Segmentation Targeting, and Positioning) is a three-step marketing framework. With the STP process, you segment your market, target your customers, and position your offering to each segment. |
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Term
| evaluation of segment attractiveness |
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Definition
| Segments that are growing are normally seen as being more attractive than segments where growth has peaked or even begun to decline. The market must be large enough to justify segmenting. |
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Term
| substantial segment attractiveness |
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Definition
| Is the segment big enough to be worth it? Does it have enough buying power? |
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Term
| identifiable segment attractiveness |
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Definition
| Is the segment distinct, does each segment require a unique marketing mix (four p's)? |
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Term
| reachable segment attractiveness |
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Definition
| Can that market be reached? The consumer has to know the product exists, understand what it can do, and recognize how to buy. Ex TV commercials for elderly |
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Term
| profitable segment attractiveness |
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Definition
| Profitability of each segment, both current and future |
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Term
| responsive segment attractiveness |
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Definition
| Do the segment react positively to what you’re offering? |
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Term
| Differentiated targeting strategy |
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Definition
| Strategy where target several market segments with a different offering for each |
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Term
| Undifferentiated targeting strategy |
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Definition
| When everyone might be interested in a product they might use this strategy. Also called mass marketing (sell to everyone, like food) |
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Term
| Concentrated targeting strategy |
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Definition
| When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs, it is using a concentrated targeting strategy. |
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Term
| Micromarketing targeting strategy |
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Definition
also called one-to-one marketing
When a firm tailors a product or service to suit an individual customer’s wants or needs |
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Term
| Value proposition/perceptual map |
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Definition
A firm’s value proposition communicates the customer benefits to be received from a product or service and thereby provides reasons for the customer to want to purchase it.
The main value proposition components are:
1. Target market
2. Offering name or brand
3. Product/service category or concept
4. Unique point of difference/benefits |
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Term
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Definition
| Techniques for collecting/interpreting data to better inform business decisions/strategies. Useful for things like segmentation and targeting, & monitoring competitors |
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Term
| secondary data vs primary data |
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Definition
Secondary data- data not specific to the company and collected prior to start of research; can be either
External like the US census and/or
Internal like sales transactions and data sources (the company’s sales invoices, customer lists, and other reports generated by the company itself).
Primary data-
data collected to address specific research needs. Some common primary data collection methods include focus groups, in depth interviews, and surveys |
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Term
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Definition
| Statistical tools used to uncover previously unknown patterns or relationships among variables stored in the big data databases |
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Term
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Definition
| A technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products |
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Term
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Definition
Focus groups: a form of qualitative research
Surveys: a form of quantitative research |
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Term
| qualitative vs quantitative research |
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Definition
Qualitative research- uses broad, open-ended questions to understand the phenomenon. Produces ideas, themes, and are dependent on how talented the focus group moderator is.
Quantitative research- structured responses that can be statistically tested to confirm insights. Quantitative research helps you actually decide things bc it uses concrete numbers |
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Term
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Definition
| The process of examining consumers’ brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies |
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Term
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Definition
| An exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny |
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Term
| actual product vs augmented product/associated services |
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Definition
Actual product- The physical attributes of a product including the brand name, features/design, quality level, and packaging.
Augmented product/associated services- The nonphysical attributes of the product including product warranties, financing, product support, and after-sale service |
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Term
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Definition
Specialty- Products or services toward which the customer shows a strong preference and for which they will expend considerable effort to search for the best suppliers
Shopping- Products or services for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances
Convenience- Products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase.
Unsought products- Products or services consumers either do not normally think of buying or do not know about. |
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Term
| Product mix (breadth and depth) |
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Definition
The complete set of all products offered by a firm.
Breadth represents a count of the number of product lines offered by the firm
The product mix reflects the breadth and depth of the company’s product lines. |
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Term
| Product line (breadth and depth) |
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Definition
Group of associated items, such as those that consumers use together or think of as part of a group of similar products.
Breadth- Number of product lines offered by a firm; also known as variety
Product line Depth, in contrast, equals the number of products within a product line |
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Term
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Definition
Measures how many consumers in a market
are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm’s communications to consumers. |
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Term
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Definition
| Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold |
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Term
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Definition
| (rebranding) A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences. |
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Term
| diffusion of innovation curve |
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Definition
| The rate at which consumers are likely to adopt a new product or service |
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Term
| phases of diffusion of innovation curve |
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Definition
Innovator- buyers who want to be the first to have the new product or service. Enjoy taking risks and are regarded as highly knowledgeable.
Early adopter- The second subgroup that begins to use a product or service innovation. Wait for first product reviews
Early majority- few new products and services can be profitable until this large group buys them (34% of the population). don’t like to take as much risk and therefore tend to wait until the bugs are worked out of a particular product. Ex renting a movie when it comes out on demand instead of seeing it in theatres
Late majority- 34% of the market. When the late majority enters the market the product has reached its full market potential. these movie watchers wait until its available on Netflix
Laggards- like to avoid change and rely on traditional products until the products are no longer available. In some cases, laggards may never adopt a certain product or service. Might watch a movie when it comes on cable television |
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Term
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Definition
new-to-the-world products that create new
markets. Also called breakthrough products. Ex: Apple iPod |
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Term
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Definition
| The first physical form of a new product, still in rough or tentative form, which has the same properties as a new product but is produced through different manufacturing processes—sometimes even crafted individually |
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Term
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Definition
| Taking apart a competitor’s product, analyzing it, and creating an improved product that does not infringe on the competitor’s patents |
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Term
Using the diffusion of innovation theory, firms can predict which types of customers will buy their new product
Relative advantage |
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Definition
Relative Advantage: If a product or service is perceived to be better than substitutes
compatibility (is it compatible across cultures), observability (when products are easily observed, their benefits or uses are easily communicated to others), complexity and trialability (Products that are relatively less complex are also relatively easy to try) |
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Term
| the product life cycle (phases and characteristics) |
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Definition
the stages products move through as they enter, get established, & leave the marketplace.
Phases: Introduction stage (first launch/innovators buying), Growth stage (product gains acceptance, demand/sales increase), Maturity stage (sales reach their peak; companies add new features to rejuvenate product), and the Decline stage where it exits the market |
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Term
| service vs product marketing |
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Definition
The marketing of services differs from product marketing because of the four fundamental
differences involved in services: Services are intangible (cannot be touched), inseparable production and consumption (produced and consumed at the same time), heterogeneous (variability in the service’s quality), and perishable (cannot be stored for future use). |
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Term
| the service gaps model (the four types of gaps and how to overcome them) |
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Definition
designed to encourage examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy
Knowledge gap- difference between customers’ expectations and the firm’s perception of those customer expectations.
Standards gap- the difference between the firm’s perceptions of customers’ expectations and the service standards it sets
Delivery gap- the difference between the firm’s service standards and the actual service it provides to customers
Communication gap- the difference between the actual service provided to customers and the service that the firm’s promotion program promises |
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Term
| the five dimensions of service quality |
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Definition
Reliability- ability to perform the service dependably and accurately
Responsiveness- willingness to help customers
Assurance- knowledge and courtesy of employees and skill in conveying trust
Empathy- care/individualized attention for customers
Tangibles- communication materials, equipment, physical facilities |
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Term
| voice of customer program |
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Definition
| Collects customer inputs and integrates them into managerial decisions. |
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Term
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Definition
| to the area between customers’ expectations regarding their desired service and the minimum level of acceptable service |
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Term
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Definition
1. Company objectives (profit, sales, competitor, customer oriented goals)
2. Customers
3. Costs
4. Competition
5. Channel members (manufacturers, wholesalers, and retailers—have different perspectives when it comes to pricing strategies. Developing a price that allows all channel members to earn their requisite profits) |
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Term
| company objectives for pricing |
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Definition
| profit-oriented, sales-oriented, competitor-oriented, customer-oriented. Company objectives. |
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Term
| price elasticity of demand (elastic vs. inelastic) |
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Definition
How changes in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price.
Elastic (price sensitive)
Inelastic (price insensitive)
Consumers are less sensitive to price increases for necessities |
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Term
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Definition
| The process of charging different prices for goods or services based on the type of customer; time of the day, week, or even season; and level of demand. Also called individualized pricing |
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Term
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Definition
| Because the break-even point occurs when the units sold generate just enough profit to cover the total costs of producing those units, it requires knowledge of the fixed cost, total cost, and total revenue curves. When these curves intersect, the marketer has found the break-even point |
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Term
| monopoly vs oligopoly vs monopolistic competition vs pure competition |
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Definition
Monopoly- One firm controls the market
Oligopoly- A handful of firms control the market
Monopolistic competition- Many firms sell differentiated products at different prices
Pure competition- Many firms sell commodities for the same prices |
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