Week 6 (Chapter 11) Flashcards
Market segmentation
The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry.
Niche market
A place within a market segment that represents a narrow group of customers with similar interests.
Product attribute map
Illustrates a firm’s positioning strategy relative to its major rivals.
Brand
The set of attributes (positive or negative) that people associate with the company.
Brand management
A program used to protect the image and value of an organization’s brand and enable it to increase a firm’s valuation.
Brand equity
The term that denotes the set of assets and liabilities that are linked to a brand and enable it to increase a firm’s valuation.
Co-branding
When to companies form a partnership to combine their brands.
Marketing mix
The set of controllable, tactical marketing tools that it uses to produce the response it wants in the target market:
Product, Place, Promotion, Price
Product
The good or service it offers to its target market. The customer must be able to recognize that the product/service adds value.
- Find the early adapters and reference accounts
Reference account
An early user of a firm’s product/service who is willing to give a testimonial regarding his/her experience with the product.
Price
The amount of moment consumer pay for a product/service. The price a company charges sends an important message to its target market.
- The only element of the marketing mix that produces revenue, not represents costs.
Cost-based pricing
The list price is determined by adding a markup percentage to a product’s cost
Value-based pricing
The list price is determined by estimating what consumers are willing to pay for a product.
Price-quality attribution
When looking at the price of a product, consumers naturally assume that the higher-prices product is also better-quality product.
Place
Ensuring access to your product.
- Selling direct
- Selling through intermediaries
Selling direct
Many firms sell direct to the customer, maintaining control of the distribution and sales process.
Selling through intermediaries
Other firms sell through intermediaries and pass off their products to wholesalers who place them in retail outlets to be sold.
Promotion
Communicates the merits of the product to the target audience. The ultimate goal is to persuade people to buy the product.
Advertising
Making people aware of a product in hopes to persuading them to buy it. Ofc you have traditional marketing, but also:
- Social media & WOM
- Viral marketing
- Guerilla marketing
Social media & WOM (Word of Mouth)
Blogging and connecting with customers and others though SNS
Viral marketing
Facilitates and encourages people to pass along a marketing message about a particular product or service- usually via word-of-mouth.
Guerilla marketing
A low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.
The 4 I’s of Marketing New Ventures
- Identification of target market
- Interactive marketing
- Informal information gathering
- Intuitive innovation
Press kit
A folder that contains background information about the company and includes a list of its most recent accomplishments.
Trade show
An event at which the products or services in a specific industry are exhibited and demonstrated.
Social plug-ins
Tools that websites can use to provide their users with personalized and social experiences.
Traditional marketing
Top-down process
- Traditional segmentation, targeting and positioning
Entrepreneurial marketing
Bottom-up process
- Attract an initial customer base then look for more of the same
