exam 2 Flashcards
market
set of buyers with some interest in the product
segmentation
dividing the market into distinct subsets of customers that have similar needs and buying behaviors
market segments
distinct subsets of customers that have similar needs and buying behavior/ lets companies better cater bc its smaller
critieria for segmentation
Measurable- research tells how big/small segment is
Accessible- identify, target, and reach segments
Responsive-practical bc it supports data for market position
Substantial- large, durable, and diff enough to make it worth while
basis for segmenting consumer markets
- demographic
- gender
- income
- ethnicity
- geographic
- psychographic segmentaiton- based on attitude, value, lifestyle
- benefit sought segmentation- focuses on value (benefit/price)
- usage rate segmentation- focus on if ppl purchase it, how much, how often its used
data mining
analytics include qualitiative&quantitative qualities, helps discover demographic
business model segmentation
may have to adjust based on consumer characteristics and buying process
targeting
evaluating each segments feasabiity and attractiveness, then selecting segments to enterun
undifferentiated targeting
pretty much same as targeting; ignores segmentation but increases dist and decreases production
concentrated targeting
niche marketing, single segment
multi-segment targeting
2 or more distinct markets, wide mkt coverage
positioning
deciding and comunicating how your product meets target wants and needs
perceptual mapping
locate brands in consumers mind based on what brand offers
differentiation
way for firms to distinguish products from competitors
attribute of benefit
economy, reliability, durability
quality + price
high price&quality= good value
use or user
associate bonds w users
competition
implicit reference to competition
decision support systems (dss)
computer based system to help make decisions
competitive market intelligence
ongoing process w/o any specific data requirement
marketing research
find variability of new product through direct research with potential customers
types of marketing research
- exploratory- initial investigation, open ended
- descriptive- gives overall picture of current market, confirm findings
- performance monitoring research-assese the effectiveness of mktg plan once agreed
- casual research- explain why something happens
steps in marketing research
- identify and formulate research problem
- secondary data and planning
- sampling procedures
types of sampling procedures
- probability (random) samples
- simple, stratified, cluster, systematic - nonprobability (non random) samples
- convenience, judgement, quota, snowball - errors in sampling
- frame, non response, response, random error
product
tangible offering/satisfaction of need
core product
no extra add ons
augmented product
includes warranty and extended service
types of consumer product
- convenience - how frequent and cheap
- shopping consumer- more expensive infrequently purchased
- specialty consumer- big $$ items often custom
- unsought products- don’t come easily and need planning ( life insurance)
product mix width
number of product lines (samsung sells tv and phones)
product line length
product types within product lines (smart phone and flip phone)
product line depth
variation within product type (pro vs regular)
product line extension
adding to product line
repositioning
change how a product is viewed in the marketplace
packaging
from production to end user, contains product
primary packaging
main purpose=hold and protect
secondary packaging
add visuals+mktg appeals
tertiary
protects in transet
brand
image & experience in customers mind abt company
brand identity
name or logo
brand equity
total value of product from marketing
manufacturer brands
brands own product (coca cola)
private label
retailer sells prduct under name (kirkland, 365)
generic brands
product lacks brand name (motrin=ibuprofin)
co branding
when 2 or more brands collab = more strength
ingredient brand
one brand carries other brand (mcflurry m&m)
cooperative brand
2 brandsd get equal treatment
complementary brand
work well tg (jack and coke)
new to the world
brand new, never been sold to anyone
new product lines
new to company
addition to product line
more variation to existing products (adds depth)
improvements to existing products
continuous improvement, scheduled obsolescence
repositioned products
update image over time
lower priced products
larger economies of sale inc efficiency and better price
idea generation
brainstorming, find open market
idea screening
filter through ideas
business analysis
estimate demand, sales, profitability
development
design, prototype, testing
test marketing
trial on small scale, controlled
commercialization
launching product in marketplace
diffusion
rate tht products adopted into market
innovation
any product thats new to the consumer
5 categories of adopters
- innovator
- early adopter (opinon seeker)
- early majority (deliberate)
- late majority (skeptics)
- laggard (resistant)
rate of adoption
the higher a product scores, faster adoption
relative advantage
innovation>existing products
compatibility
how well it fits consumers lifestlyes
simplicity
how difficult to use
communicability
is it easy to describe to others
trialability
can you try before u buy
product life cycle (PLC)
stages that products pass during time in market
4 stages of PLC
- introduction
- growth
- maturity
- decline
why is service mktg important?
bc more than half of US economy is in service sector
characteristics of services
- intangibility
- inseperability
- heterogeneity
- perishability
inseperability
can’t separate service from service provider
heterogeneity
quality varies from employee to employee
perishability
may have place and time constraints
5 components of service quality
- reliability
- responsiveness
- assurance
- empathy
- tangibles
gap analysis
analysis to pinpoint gap/shortcomings in service quality
5 perceptions of gaps
- customer expectation - customer needs
- service delivery policies- customer needs
- service delivery policies- service delivery
- service deliver-external communication
- customer expectation-customer perception
nonprofit orgs make up how much of US economy
20%
why do nonprofits still need money
to keep going and meet objectives
supply chain management
coordination of activities in unified system, can help lower costs if efficient
supply chain integration
connects external partners
demand supply integration
connects internal departments
customer relationship management
helps sales&mktg communicate with consumer accounts
customer service management
address concerns/complaints for strong customer relationship
demand management
forecast and manage demand
order fulfillment
ensure all sales are delivered to customer
manufacturing flow management
makes sure everyone has enough resources
supplier relationship management
identify&support suppliers
product development and commercialization
how to produce new products efficiently with entire chain
returns management
minimize cost from returned/defective products
3 functions of business logistics
- source
- make
- deliver
supply chain risk
unforseen shocks; natural disasters
supply chain security
taking proactive steps to minimize shocks
supply chain resilience
reactive steps to minimize downtime after shocks
electronic distribution
distribute digital goods throughout internet
sustainability supply chain mgmt
incorporate environmentally sustainable thinking
marketing channels
help flow of goods from manufacturer to consumer
types of intermediaries
merchants (sell products) and facilitators (broker)
channel length
of intermediaries that come between producer and end consumers
direct channel
0 level - no one in btwn
retailer channel
1 lvl - like target
wholesaler channel
2 lvl- mom and pop
intensive/extensive distribution
make product available as possible
selective distribution
smaller outlets, more expensive, purchased less
exclusive distribution
only a few amounts, luxury or custom
arms length relationship
manufacturers and intermediaries treated independently
cooperative
work together with formal contractsin
integrated
several companies work close, almost as one
channel power
control/influence over others
channel conflict
goals may not always be clear, formal contract
retailing
all activities directed at final consumer
retail ownership
manufacture own stores, flagship, independent, chain
product assortment
carry thousands of products from many stores
product pricing
part of branding decision (wal mart vs whole foods)
levels of service
self service, limited, full
location
destination store vs visible stores
department stores
wide mix, lots of departments
specialty retailers
very narrow, deep product mix
supermarket
carry wide and deep product mix
drug stores
moderately wide and deep
convenience stores
moderately wide but shallow, higher price
mass merchandisers
giant, full stores like target
other discount stores
dollar store hard discounts
warehouse membership
wide but very shallow, costco
automatic vending machine
very narrow and shallow
online retailing
growing rapidly, expansion
planogram
diagram that shows placement of products on shelves
point of purchase (POP)
promotional displays & materials found at point of sale
wing stack
movable display at end of aisle (cardboard)
end cap
end of aisle display, catches attention
