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MAR 3023
Exam 2 - Marketing Management
| Question | Answer |
|---|---|
| Market Segmentation | the process that companies use to divide large markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs |
| Bases for segmenting consumer markets | Geographic Demographic Psychographic Behavioral |
| Demographic Segmentation | divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality |
| Geographic Segmentation | divides the market into different geographical units such as nations, regions, states, counties, or cities |
| Psychographic Segmentation | divides buyers into different groups based on social class, lifestyle, or personality traits |
| Behavioral Segmentation | divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product |
| Requirements for Effective Segmentation | Measurable Accessible Substantial Actionable |
| 4 options for selecting Market Segments | Undifferentiated marketing Differentiated marketing Concentrated marketing Micromarketing |
| Undifferentiated Marketing | targets the whole market with one offer |
| Measurable | examples include the size, purchasing power, and profiles of the segments – degree to be measured. |
| Accessible | refers to the fact that the market can be effectively reached and served |
| Sustainable | refers to the fact that the markets are large and profitable enough to serve |
| Actionable | refers to the fact that effective programs can be designed for attracting and serving the segments |
| Differentiated marketing | targets several different market segments and designs separate offers for each |
| Concentrated marketing | targets a small share of a large market |
| Micromarketing | the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations |
| Product | is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want |
| Consumer products | products and services for personal consumption |
| Convenience products | consumer products and services that the customer usually buys frequently, |
| Shopping products | consumer products and services that the customer compares carefully on suitability, quality, price, and style |
| Specialty products | consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort |
| Product attributes | the benefits of the product or service. Ex: Quality, Features, Style and design |
| Brand | the name, term, sign, or design, or a combination of these, that identifies the maker or seller of a product or service |
| Packaging | involves designing and producing the container or wrapper for a product |
| New Product Development | Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialization |
| Product Life Cycle | Product development Introduction Growth Maturity Decline |
| Price | the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. |
| Value-based pricing | Pricing that uses the buyers’ perceptions of value, not the seller’s cost, as the key to pricing. Price is considered before the marketing program is set. |
| Cost-based pricing | pricing that involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk |
| Market skimming pricing | a strategy with high initial prices to “skim” revenue layers from the market |
| Market penetration pricing | pricing that sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share |
| Product line pricing | pricing that takes into account the cost differences between products in the line, customer evaluation of their features, and competitors’ prices – ex: GAP Inc. |
| Optional product pricing | pricing that takes into account optional or accessory products along with the main product – ex: Buying a car |
| Captive product pricing | pricing that involves products that must be used along with the main product – ex: Gillette or Polaroid |
| Quantity Discount | reduces prices to buyers who buy large volumes |
| Seasonal Discount | reduces prices to buyers who purchase merchandise or services out of season |
| Timing Discount | reduces prices to buyers who based on month, day, even hour. |
| Promotional Discount | temporarily reduces prices below list price to increase short-run sales. |
| Samples | offer a trial amount of a product |
| Coupons | certificates that give buyers a saving when they purchase specified products |
| Cash refunds (rebates) | similar to coupons except that the price reduction occurs after the purchase |
| Contests, sweepstakes, and games | give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort |
| Direct-mail marketing | Marketing that involves an offer, announcement, reminder, or other item to a person at a particular address |
| Telephone direct marketing (telemarketing) | Marketing that involves using the telephone to sell directly to consumers and business customers |
| Direct-response television (DRTV) marketing | Marketing that involves 60- to 120-second advertisements that describe products or give customers a toll-free number or Web site to purchase and 30-minute |
| Kiosk marketing | Marketing that involves placing information and ordering machines in stores, airports, trade shows, and other locations |
| Mobile phone marketing | includes Ring-tone giveaways, Mobile games, Ad-supported content, Contests and sweepstakes |
| Podcasts and Vodcasts | involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s convenience |
| Interactive TV (ITV) | lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences |
| Business to consumer (B2C) | involves selling goods and services online to final consumers |
| Business to business (B2B) | involves selling goods and services, providing information online to businesses, and building customer relationships |
| Consumer to consumer (C2C) | occurs on the Web between interested parties over a wide range of products and subjects |
| Consumer to business (C2B) | involves consumers communicating with companies to send suggestions and questions via company Web sites |
| Click-only marketers | operate only online without any brick and mortar presence |
| E-tailers | dot coms that sell products and services directly to final buyers via the Internet |
| The promotion mix | the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships |
| Advertising | any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor |
| Sales promotion | the short-term incentives to encourage the purchase or sale of a product or service |
| Public relations | involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events |
| Personal selling | the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships |
| Direct marketing | involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships |
| Rational appeal | relates to the audience’s self-interest – ex: Pine Sol |
| Emotional appeal | an attempt to stir up positive or negative emotions to motivate a purchase – ex: Alarms |
| Moral appeal | directed at the audience’s sense of right and proper – ex: AIDS |
| Advertising objective | a specific communication task to be accomplished with a specific target audience during a specific time |
| Informative advertising | used when introducing a new product category; the objective is to build primary demand |
| Comparative advertising | directly or indirectly compares the brand with one or more other brands |
| Persuasive advertising | important with increased competition to build selective demand |
| Reminder advertising | important with mature products to help maintain customer relationships and keep customers thinking about the product |
| 9 steps to the communication process | 1. Sender 2. Encoding 3. Message 4. Media 5. Decoding 6. Receiver 7. Response 8. Feedback 9. Noise |
| Distribution channel OR Marketing channel | a set of independent organizations that help make a product or service available for use or consumption by the consumer or business users |
| Market Intermediaries | people or organizations that help get products to the final consumer. They are sometimes called middle men. |
| Direct marketing channel | has no intermediary levels; the company sells directly to consumers |
| Indirect marketing channels | contain one or more intermediaries |
| Intensive distribution | a strategy used by producers of convenience products and common raw materials in which they stock their products in as many outlets as possible |
| Exclusive distribution | a strategy in which the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories |
| Selective distribution | a strategy when a producer uses more than one but fewer than all of the intermediaries willing to carry the producer’s products |
| Physical Distribution (Marketing logistics) | involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit |
| Retailing | includes all the activities in selling products or services directly to final consumers for their personal, non-business use |
| Specialty stores | stores that carry narrow product lines with deep assortments within the product lines |
| Department stores | stores that carry a wide variety of product lines |
| Convenience stores | stores that carry a limited line of high-turnover convenience goods |
| Superstores | stores that offer a large assortment of routinely purchased food products, non food items, and services |
| Discount stores | Stores that sell standard merchandise at lower prices by accepting lower margins and selling higher volume |
| Wholesaling | All the activities involved in selling goods and services to those buying for resale or business use. Ex: Selling to other businesses who sell to consumers. |
Created by:
luismih
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