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93 Cards in this Set
- Front
- Back
benefits sought |
grouping customers into market segments according to the benefits they seek from the product
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usage rate |
dividing a market by the amount of product bought or consumed. |
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80/20 |
20% of all customers generate 80% of demand |
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Cannibalization |
sales of a new product cut into sales of a firm's existing product |
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Concentrated/niche |
main focus |
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micro marketing or one-to-one |
custom made |
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undifferentiated or mass marketing |
one product offering to the entire market |
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product positioning |
place the product occupies in the consumers mind vs competing products |
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head-to-head |
competing directly with competitors on similar offerings in the same market |
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differentiation positioning |
distinguishing offering with real or perceived differences |
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undifferentiated |
focuses on an entire market rather than a segment of it. one product to entire market |
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differentiated |
targets different market segments with different marketing mixes |
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5 factors of segmentation attractiveness |
s-substantial r-reachable r-responsive p-profitable i-indentifable |
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perceptual mapping |
a means of displaying or graphing in two or more dimensions, the location of products, brands, or groups of products in customers' minds |
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market research |
process of defining a marketing problem or opportunity, systematically planning, collecting, and analyzing information for decision making |
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3 roles of market research |
descriptive, diagnostic, predictive |
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Why invest? |
the value of the insight outweighs the expense |
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calculate market share |
identify opportunity/problem develop research plan collect data analyze/present findings take marketing action |
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data warehouse |
large store of data accumulated from a wide range of sources within a company used to guide management decisions |
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data base marketing |
centrally stores computer files |
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data mining |
analysis tools to extract insight software trends |
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primary data |
newly collected for the first time |
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3 parts of primary data |
in-depth interviews focus groups observation |
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secondary data |
data already available |
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focus groups |
7-10 pre selected individuals of the target segment |
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behavioral targeting |
that combines on-line activity with psychographic and demographic profiles |
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CGM |
Consumer Generated media |
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competitive intelligence |
intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors |
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product |
good, service, or idea that satisfies consumers and is received in an exchange for money or some other value |
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product line |
group of closely related products |
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product mix |
total number of product lines/ products offered |
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family brand |
company markets several different products under one brand |
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individual brand |
quality or use varies |
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private label brand |
a brand name owned by a wholesaler or retailer |
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convience products |
frequent purchases, minimum effort, inexpensive, impulse decisions |
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shopping products |
more expensive and limited number of retail stores |
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specialty products |
are reluctant to accept substitutes, psychological needs |
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brand |
name, logo, term, symbol, design or combination thereof that identifies a seller's products and differentiates them from competitors products |
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brand awareness |
number of consumers familiar with the brand |
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brand equity |
how valuable is your brand |
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brand associations |
mental "links" of a brand and its key attributes |
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brand loyalty |
buy same brand repeatedly, drives sales, often at a premium price |
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advertising economies |
multiple products advertised |
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package uniformity |
allows consumer quick and easy identification |
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standardized components |
lowers manufacturing and inventory costs |
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efficient sales and distribution |
full line reduces the companies retailers have to work with |
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equivalent quality |
all apple products are viewed similarly |
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manufacturer's brand |
the brand name of a manufacturer |
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nominal |
no decision making involved |
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limited |
few alternatives made |
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extended |
extensive internal and external search process is used |
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new product strategy |
new to the world new lines offered additions to existing lines improved lines lower price re positioned lines |
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idea screening (concept testing) |
concept is a brief written description of the product |
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business analysis |
often the first time financials are created |
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test marketing |
research to assess customer acceptance |
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simulated testing |
prior to launch, low risk |
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test marketing |
limited geographic launch, greater expense, time, and risk |
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product life cycle |
development introduction growth maturity decline |
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alternative product life cycles |
high-learning product low learning product fashion product fad product |
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New products fail |
poor match between consumer needs and product characteristics |
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new products succeed |
carefully listen to your customers, obsessions with your products, a vision of future market conditions, strong leadership |
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skimming price straetgy |
high initial price to recoup the cost of development |
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penetration price strategy |
lower market pricing. long term positioning |
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diffusion |
the process by which the adoption of an innovation spreads |
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product modification |
new and improves, cost reductions |
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market modification |
finding new users, increasing use, creating new situations |
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reliability |
ability to perform the service right the first time |
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responsiveness |
ability to provide prompt service |
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assurance |
knowledge and courtesy of employees |
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empathy |
caring, individualized attention to customers |
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tangiable |
physical evidence of a service |
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credence properties |
nearly impossible to assess even after purchasing |
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search quality |
effective for tangible goods, far harder for services |
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experiencing properties |
assessed after purchase |
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intangiability |
cant be touched, seen or tasted in the same manner as goods |
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inseparability |
consumer must be present in most cases and consumer while its provided, cant be returned |
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heterogeneity |
continual challenge of consistent service since it relies on people |
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pershability |
inventory challenge, can not be stored |
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knowledge gap |
between what customers want and what management thinks they want |
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delivery gap |
difference between the service goals and what is actually provided |
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communication gap |
what is communicated to customers and what is provided |
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marketing channels |
a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer |
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disinter-mediation (vertical conflict) |
when a channel member is by-passed |
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contact efficiency |
supply chain streamline distribution |
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product breadth |
number of separate product lines owned by a company |
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product depth |
number of products in a product line |
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intensive |
products made very widely available |
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selective |
middle group, shopping products |
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exclusive |
used with specialty products |
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gross margin |
the amount of money the retailer makes after the cost of goods sold is substracted |
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stores |
browsing. touching and feeling. personal service. cash or credit. risk reduction |
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catalogs |
convenience. information. safety |
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internet |
broader selection. more information. personalization |