Chapter 12 (12.1-12.3, 12.7, 12.8) Flashcards
Marketing Concept
the whole firm is directed toward serving customers at a profit
Delivering Value
Value = Benefits / Costs
Utility
adding value
Time Utility
Place Utility
Ownership (Possession) Utility
Form Utility
consumer goods
tangible products purchased by individuals for their use
industrial goods
products purchased by companies to use directly or indirectly to produce other products
Relationship Marketing
building lasting relationships with customers and suppliers (Goal: customer satisfaction and retention)
Customer Relationship Marketing (C R M)
organized methods used to build information connections to improve company–client relationships
Marketing Plan
a detailed, focused strategy for gearing the marketing mix to meet consumer needs and wants
Marketing Mix
Product
Price
Place
Promotion
Product
offering a good, service, or idea that satisfies buyers’ needs
Product Differentiation
creating a product that has a different image than existing products to attract consumers
changing existing products by responding to trends or improving current offerings
Market Segmentation
search for common traits between consumers
focus on traits that affect product need or purchase behaviour
Geographics
Demographics
Geo-Demographic
Behavioural Variables
Psychographics
Behavioural segmentation
dividing a market into groups based on consumer knowledge, use, or response to a product
Behavioural Variables
benefits sought
usage rate
occasion for use
loyalty status
user status
Positioning
the process of fixing, adapting, and communicating the nature of the product itself
the place a product occupies in a consumer’s mind
Industrial Products
Production items
Expense items
Capital items
STEPS to developing new products
Step #1: Product ideas
Step #2: Screening
Step #3: Concept testing
Step #4: Business analysis
Step #5: Prototype development
Step #6: Product and market testing
Step #7: Commercialization
Product Life Cycle
products have a limited profit-producing life cycle
may be months, years, or decades
Extending Product Life: An Alternative to New Products
Product Extension
product marketed globally
Product Adaptation
product modified to appeal to foreign markets
Reintroduction
reviving old products for new markets
Branding
use of symbols to communicate the qualities of a product made by a producer
Brand Equity
added value a brand provides to a product beyond its basic functional benefits
Types of Brand Names
- National
distributed by, and carrying the name of the manufacturer
(e.g., Kellogg’s) - Private
brands carrying the name of the retailer or wholesaler
(e.g., President’s Choice) - Generic
house-brand sold under the category name rather than a specific company name - Licensed
selling the right to use the firm’s name on another company’s product
e.g., Harley-Davidson, Disney characters
