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Principles of Marketing > Exam #2 > Flashcards

Exam #2 Flashcards

1
Q

Segmentation

A

Divide total market into smaller, similar segments with distinct needs, characteristics or behaviors

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2
Q

Targeting

A

Evaluate segments and select the segments to serve

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3
Q

Differentiation

A

differentiate offering to create superior value

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4
Q

Postitioning

A

position offering in the minds of the target consumers v. competition

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5
Q

Geographic segmentation

A

divides groups based on physical location

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6
Q

Demographic segmentation

A

divides the market into segments based on variable such as age, generation, life-cycle stage, gender, income, occupation, education, religion, and ethnicity

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7
Q

Geo Demographic

A

Hybrid form of segmentation that considers geographic and demographic factors

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8
Q

Family Life Cycle

A

Process of age-related family formation and dissolution

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9
Q

The Cohort Effect

A

tendency of members of a generation to be influenced and bound together by significant events in their formative years (17 - 22)

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10
Q

Psychographic segmentation

A

divides a market into different segments based on social class, lifestyle, or personality characteristics

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11
Q

Behavioral segmentation

A

divides a market into segments based on consumer knowledge, attitudes, uses of product, or responses to a product

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12
Q

Requirements for effective segmentation

A

Measurable, accessible, substantial, differentiable, actionable

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13
Q

Target selection process:

A

Growth potential, level of competition, strategic fit

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14
Q

Growth potential

A

the higher the future growth rate, the more attractive the segment

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15
Q

Level of competition

A

the more intense the competition within a segment, the less attractive the segment is to marketers

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16
Q

Strategic fit

A

marketers should work to ensure that the selected target markets fit with what the organization is and wants to be

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17
Q

Undifferentiated (Mass Marketing)

A

ignore segments and sell one offer to entire market

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18
Q

Differentiated

A

target several market segments and design separate offers (marketing mix) for different segment

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19
Q

Concentrated (niche)

A

Focus effort on a large share of one/few segments

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20
Q

Micro-Marketing

A

Tailors offers to needs of individuals and local customer segments

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21
Q

Differentiation

A

how offerings are differentiated based on the value proposition (benefits/values it promises to a target market compared to its competitors)

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22
Q

Positioning

A

How the product is defined by consumers on important attributes - the place it occupies in the consumer’s mind relative to competitors

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23
Q

Perceptual Maps

A

tool used to show the customer’s perception of a brand relative to competing brands on important attributes

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24
Q

Choosing a differentiation/positioning strategy:

A
  1. identify competitive advantages and select the ones consistent with consumer beliefs
  2. develop marketing strategies consistent with offering’s competitive advantages
  3. communicate important attributes and deliver promise
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25
Q

Value proposition

A

how company will create differential value for targeted segments, and the position it will occupy based on the full mix of benefits upon which a brand is positioned

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26
Q

Possible value propositions

A

more for more, more for the same, more for less, the same for less, less for much less

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27
Q

Positioning strategies

A

a firm may focus its positioning strategy on certain product attributes, features, or value perceptions

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28
Q

Positioning your brand

A
  1. analyze competitors positions
  2. highlight competitive advantage
  3. evaluate consumer feedback
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29
Q

Competitive analysis

A

firms must understand the position other competitors have taken in the marketplace

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30
Q

Product (offering)

A

this includes a specific combination of goods, services, or ideas that a firm offers to its target market

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31
Q

Product components

A

core product, actual product, augmented product

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32
Q

Core product

A

purchase benefits

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33
Q

Actual product

A

benefits translated into product form

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34
Q

Augmented product

A

additional features that exceed expectations

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35
Q

Consumer products

A

products and services bought by final consumers for personal consumption; classified according to how a consumer shops, pays for, or uses the products

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36
Q

Types of consumer products:

A

convenience, shopping, specialty, unsought

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37
Q

Product quality

A

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs (positioning attribute)

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38
Q

Total quality management

A

approach that involves constantly improving the quality of products/services

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39
Q

Return on equity

A

quality is and investment, holding quality efforts accountable for bottom line results

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40
Q

Quality levels

A

level of quality that will support positioning (high price/high value)

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41
Q

Performance levels

A

ability to perform its function (mercedes v. chevy)

42
Q

Conformance quality

A

freedom from defects and consistency in delivering a targeted level of performance

43
Q

Product features

A

characteristics that describe the product

44
Q

Style and design

A

style: describes appearance of product; does not necessarily make the product better
design: broader measure, contributes to the products usefulness and looks

45
Q

Product attributes (actual product)

A

product quality, feature, style and design, packaging

46
Q

Labelling and Logos

A

identifies the product or brand, describes attributes, and provides promotional value

47
Q

Width

A

total number of product lines a firm offers

48
Q

Length

A

number of different product lines a firm sells

49
Q

Depth

A

variation in each product the firm offers

50
Q

Branding

A

the name, term, sign, design, or a combination of these that identifies the maker or seller of a product or service

51
Q

Brand equity

A

the differential effect that knowing the brand name has on customer responses, ability to capture consumer preferences and loyalty, high brand equity provides competitive advantage

52
Q

Components of brand equity

A

brand recognition, brand association, perceived quality, brand loyalty

53
Q

Three levels of positioning

A

product attributes, benefits, beliefs and values (pamper’s example)

54
Q

Four brand sponsorship options

A

manufacturer, private (store) brand, licensed brand, co-branded

55
Q

Private (store) brand

A

brand created/owned by reseller

56
Q

Licensed brand

A

companies extend their brand by licensing

57
Q

Five drivers of innovation

A

customer expectations, competition, globalization, technology, changing society

58
Q

Innovation

A

creation of a new or significantly improved product offering

59
Q

New product

A

new to the company

60
Q

New-to-market

A

never been seen before

61
Q

New category

A

new to the company, not market

62
Q

Product line extension

A

extend product line or related products

63
Q

Revamped products

A

packaging, features, design, etc.

64
Q

Diffusion

A

the process through which a product is adopted and spreads across various types of adopters

65
Q

Innovators

A

influencers, first to try new products

66
Q

Product diffusion and types of adopters

A

Competitive advantage (better than competitors), compatibility (fits potential customer’s needs), observability (see others using), complexity (product is easier to understand), trialability (consumers can try without significant expense)

67
Q

7 stages of new product development

A

new product development strategy, idea generation, idea screening, business analysis, product development, test marketing, product launch

68
Q

Business analysis

A

a review of the sales, costs, and profit projections for a new product

69
Q

Concept development

A

product idea, product concept (detailed version of the idea stated in meaningful consumer terms), product image (the way consumers perceive an actual potential product)

70
Q

Standard test market

A

tested through representative cities using normal distribution channels (test group gets new product, control gets original product)

71
Q

Electronic test market

A

panel of consumers carry ID card that track purchases

72
Q

Simulated market

A

lower cost, digital ways to test products (chat room, panels)

73
Q

Launch activities

A

purchasing the materials to make and package the good, hiring employees, manufacturing enough of a good, preparing internal systems for taking service orders

74
Q

Product life cycle stages

A

introduction, growth, maturity, decline

75
Q

Considerations in setting price

A

product cost, competition and other external factors, consumer perception of value

76
Q

Price elasticity

A

one of the most important concepts in setting price that refers to a measure of sensitivity of demand to changes in price

77
Q

Value based pricing

A

customer driven and priced to match perceived value

78
Q

Good value pricing

A

offering just the right combination of quality and good service at a fair price

79
Q

Every day low pricing

A

involved charging a constant everyday low price with few or no temporary price discounts

80
Q

High low pricing

A

pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items

81
Q

Cost-based

A

based on product costs with a fair rate of return

82
Q

Cost-plus pricing

A

adds a standard mark-up to the cost of a product

83
Q

Target costing

A

starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that the price is met

84
Q

Break-even analysis

A

a cost based technique used to examine the relationship between cost and price and to determine best sales volume

85
Q

Market offering

A

comparison of value offered by competitor; consumer perception drive higher/lower prices

86
Q

New product pricing strategies

A

market-price skimming, penetration pricing, product mix pricing (firms seek a set of prices that will maximize profits for the total mix)

87
Q

Product line pricing

A

price lining; sets points between various products in a product line (higher price, higher perceived value)

88
Q

Captive product pricing

A

pricing components required to support a product already purchased

89
Q

Allowances

A

promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturers product in some way

90
Q

Segmentation pricing

A

selling a product or service at two or more prices, where the differences in prices is not based on differences in costs

91
Q

Reference pricing

A

prices that buyers carry in their minds and refer to when they look at a given product

92
Q

Dynamic pricing

A

adjusting prices continually to meet the characteristics and needs of individual customers and situations

93
Q

Price adjustments

A

pricing to account for differences in consumer segment and situation

94
Q

Price fixing

A

companies that collude to set prices at a mutually beneficial high level

95
Q

Price discrimination

A

occurs when a seller offers different prices to different customers without substantive basis

96
Q

Predatory pricing

A

strategy to intentionally sell below cost and push competitor out of the market

97
Q

Psychological pricing

A

considers the psychology of prices and not simply the economics; price is used to say something about the product

98
Q

Discount pricing

A

straight reduction in price on purchase during a stated period of time or of larger quantities

99
Q

Optional-product pricing

A

pricing of option or accessory products along with main product

100
Q

Price sensitivity

A

degree to which the price of a product affects consumers’ purchasing behavior

Principles of Marketing (3 decks)

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