Exam 2 Definition
Exam 2 Definition MKTG 2101 - 005
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MKTG 2101 - 005
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This 8 page Study Guide was uploaded by Roberto Pelucarte on Friday October 23, 2015. The Study Guide belongs to MKTG 2101 - 005 at Temple University taught by Craig Atwater (P) in Fall 2015. Since its upload, it has received 65 views. For similar materials see MARKETING MANAGEMENT in Marketing at Temple University.
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Date Created: 10/23/15
Chapter 7 Market fragmentation The creation of many consumer groups due to a diversity of distinct needs and wants in modern society Target market strategy Segmentation The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics Segmentation variables Dimension that divide the total market into fair homogeneous group each with different needs and preferences Demographics Statistics that measure observable aspects of a population including size age gender ethnic group income education occupation and family structure Cultural diversity A management practice that actively seeks to include people of different sexes races ethnic groups and religion in an organizations employees customers suppliers and distribution channel partners Geographic segmentation Approach in which marketers tailor their offering to specific geographic areas because peoples preferences often vary depending on where they live Geodemography A segmentation technique that combines geography with demographics Micromarketing The ability to identify and target very small geographic segments that sometimes amount to individuals Psychographics The use of psychological sociological and anthropologic factors to construct market segment VALS A psychographic system that divides the entire US population into eight segment Behavioral segmentation A technique that divides consumers into segments on the basis of how they act towards feel about or use a good or service Usage status 8020 rule Usage rate A measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service Usage occasions An indicator used in behavioral market segmentation based on when consumers use a product most Targeting A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers Target market The market segment on which an organization focuses its marketing plan and toward which it directs its marketing efforts Segment profile A description of the typical customer in a segment Undifferentiated targeting strategy appealing to a brand spectrum of people MKTG 2101 Marketing Management 1 10262015 Differentiated targeting strategy Developing one or more products for each of several distinct customer groups and making sure these offering are kept separate in the marketplace Concentrated targeting strategy Focusing a firms efforts and offering one or more products to a single segment Customized marketing strategy An approach that tailors specific products and the message about them to individual customer Mass customization An approach that modifies a basic good or service to meet the needs of an individual Differentiation A marketing process that showcases the differences between products Competitive advantage is an advantage over competitors gained by offering consumers greater value either by means of lower prices or by providing greater benefits and service that justifies higher Positioning Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition Repositioning Redoing a products position to respond to marketplace change Perceptual map A technique to visually describe where brands are located in consumer minds relative to competing brands Chapter 8 Attributes Includes features functions benefits and uses of a product Marketers view products as a bundle of attribute that includes the packaging brand name benefits and supporting features in addition to a physical good Good A tangible product that we can see touch smell hear or taste Core product All the benefits the product will provide for consumer or business customers Actual product The physical good or the delivered service that supplies the desired benefit Augmented product The actual product plus other supporting features such as a warranty credit delivery installation And repair service after the sale Durable goods Consumer products that provide benefits over a long period of time such as cars furniture and appliances Nondurable goods Consumer products that provide benefits for a short time because they are consumed or are no longer useful Convenience product A consumer good or service that is usually low priced widely available and purchased frequently with a minimum comparison and effort Equipment Expensive goods that an organization uses in its daily operations that last for a long time Raw materials Product of the fishing agricultural and mining industries that organizational customers purchase to use in their finished products Innovation A product that consumers perceive to be new and different from existing products MKTG 2101 Marketing Management 2 10262015 Continuous innovation A modification of an existing product that sets one brand apart from its competitors Knockoff A new product that copies with slight modification the design of an original product Dynamically continuous innovation A change in a existing product that requires a moderate amount of learning or behavior change Discontinuous innovation cause a paradigm shift in science or technology andor the market structure of an industry Research amp Development RampD Investigative activities that a business chooses to conduct with the intention of making a discovery that can either lead to the development of new products or procedures or to improvement of existing products or procedures New product development The phases by which develop new products including idea generation product concept development and screening marketing strategy development business analysis Technical development test marketing and commercialization Idea generation A phase of product development in which marketers use variety of sources to come up with great new product ideas that provide customer benefits and that are compatible with the company mission Product concept development amp screening The second step of product development in which marketers test product idea for technical and commercial success Business analysis The step in the product development process in which marketers assess a product commercial viability Technical development The step in the product development process in which company engineers refine and perfect a new product Test marketing Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter Simulated virtual test marketing Application of specific computer software to imitate the introduction of a product into the marketplace allowing the company to see the likely impact of price cuts and new packaging or even to determine where in the store it should try to place the product Commercialization The final step in the product development process in which a new product is launched into the market Product adoption The process by which a consumer or business customer begins to buy and use a new good service or idea Diffusion The process by which the use of a product spreads throughout a population Innovators The first segment of population to adopt a new product roughly 25 percent Early adopters Those who adopt an innovation early in the diffusion but after the innovators Early majority Those whose adoption of a new product signals a general acceptance of the innova on MKTG 2101 Marketing Management 3 10262015 Late majority The adopters who are willing to try new products when there is little or no risk associated with the purchase when the purchase becomes an economic necessity or when there is social pressure to purchase Laggards The last consumer to adopt an innovation Chapter 9 Product line A firms total product offering designed to satisfy a single need or desire of target customer Product line length Determine by the number of separate items within the same category Stockkeeping unit A unique identifier for each distinct product Cannibalization The loss of sales of an existing brand when a new item in a product line or product family is introduced Product mix The total set of all products a firm offer for sale Product mix width The number of different product lines the firm produces Product life cycle A concept that explains how products go through four distinct stages from birth to death introduction growth maturity and decline Introduction stage The first stage of the product life cycle in which slow growth follows the introduction of a new product in the marketplace Growth stage The second stage in the product life cycle during which consumers accept the product and sales rapidly increase Maturity stage The third and longest stage in the product life cycle during which sales peak and profit margin narrow Decline stage The final stage in the product life cycle during which sales decrease as customer needs change Brand A name a term a symbol or any other unique of a product that identifies one firms products and sets it apart from the competition Trademark The legal term for a brand name brand marl or trade character trademarks legally registered by a government obtain for exclusive use in that country Line extensions is the use of an established product brand name for a new item in the same product category Brand extensions A new product sold with the same brand name as a strong existing brand Multibranding Marketing of two or more similar and competing products by the same firm under different and unrelated brands Chapter 10 MKTG 2101 Marketing Management 4 10262015 Price The assignment of value or the amount the consumer must exchange to receive the offering Market share The process of collecting analyzing and interpreting data about customer competitors and the business environment in order to improve marketing effectiveness Prestige products Products that have a high and that appeal to statusconscious consumers Price elasticity of demand The percentage change in unit sales that results from a percentage change in price Elastic demand Demand in which changes in price have large effects on the amount have demanded Inelastic demand Demand in which changes in price have little or no effect on the amount demanded Variable costs The cost of production raw and processed materials parts and labor that are tied to and vary depending on the number of units produced Fixed costs Costs of production that don t change with the number of units produced Markup An amount added to the cost of a product to create the price at which a channel member will sell the product Gross margin The markup amount added to the cost of a product to cover the fixed costs of the retailer or wholesale and leave an amount for a profit List price or Manufacturer s suggested retail price MSRP The price that the manufacturer sets as the appropriate price for the end consumer to pay Costplus pricing A method of setting prices in which the seller totals all the costs for the product and them adds an amount to arrive at the selling price Demandbased pricing A price setting method base on estimates of demand at different pnces Yield management pricing A practice of charging different prices to different customers in order to manage capacity while maximizing revenues Value pricing The setting of a product or service39s price based on the benefits it provides to consumers Everyday Low Pricing EDLP is a pricing strateov promising consumers a low price without the need to wait for sale price events or comparison shopping Skimming price A very high premium price that a firm charges for its new highly desirable product Penetration pricing A pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it MKTG 2101 Marketing Management 5 10262015 Optional product pricing Price bundling Selling two or more goods or services as a single package for one price Captive pricing A pricing tactic for two items that must be used together one item is prices very low and the firm makes it profits on another Byproduct pricing By product is something which is produced as a result of producing something else the main product Usually the byproducts are disposed off and have little value FOB origin pricing A pricing tactic in which the cost of transportation the product from the factory to the customer s location is the responsibility of the customer Uniform delivered pricing A pricing tactic in which a firms adds a standard shipping charge to the price for all customers regardless of location Freight absorption pricing Designed areas where foreign companies can warehouse good without paying taxes or customs duties until they move the goods into the marketplace Trade discounts Discounts off list price of products to members of the channel of distribution who perform various marketing function Quantity discounts A pricing tactic of charging reduced prices for purchases of large quantities of product Cash discounts A discount offered to a customer to entire them to pay their bill quickly Seasonal discounts Price reduction offered only during certain times of the year Dealer or promotional allowances A controlled integrated program of communications methods and materials designed to present a company and its products to prospective customers to communicate needsatisfying attributes of products toward the end of facilitating sales and thus contributing to longrun profit performance Segmented pricing A situation that occurs when a company sets more than one price for a product without experiencing significant differences in the costs of producing or distributing the product Dynamic pricing Dynamic pricing also called realtime pricing is an approach to setting the cost for a product or service that is highly flexible Internal reference price A set price or a price range in consumers minds that they refer to in evaluating a product price Price lining or Product line pricing The practice of setting a limited number of different specific prices called price points for items in a product line Oddeven pricing Psvcholooical pricind method based on the belief that certain prices or price ranges are more appealing to buyers This method involves setting a price in odd numbers just under round even numbers such as 4995 instead of 5000 MKTG 2101 Marketing Management 6 10262015 Baitandswitch An illegal marketing practice un which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higherprice item Loss leader pricing The pricing policy of setting prices very low or even below cost to attract customers into a store Price fixing The collaboration of two or more firm in setting prices usually to keep prices high Predatory pricing An illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business MKTG 2101 Marketing Management 7 10262015 MKTG 2101 Marketing Management 8 10262015
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