MKT 340 1st Edition Exam # 2 Study Guide Lectures: 12 - 21I. CH 7a. Market Segmentation: dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors (No single way to segment a market)i. Geographic: nations, regions, states, counties, citiesii. Demographic: age, life-cycle stage, gender, income (most popular bases for segmenting customer groups)iii. Psychographic: social class, lifestyle, personalityiv. Behavioral: occasions, benefits, user statusv. Gender: used in clothing, cosmetics, magazinesvi. Income: cars, clothing, financial servicesvii. Behavioral: based on consumer knowledge, attitudes, uses, or responses to a productviii. Occasion: campells advertises soups heavily in winterix. Benefit: dividing market based on different benefits the consumers seek. Gillette= womens shavers that have a close shaveb. Requirements for effective segmentation: measureable, accessible, substantial, differentiable, actionablec. Targeting: Evaluating each market segment and selecting which ones to enterd. Differentiation: differentiating the market offering to create superior customer valuee. Positioning: arranging for a market offering to occupy a clear, distinctive place relative to competitors in consumer’s mindsf. Target Market: set of buyers sharing common needsg. Undifferentiated Marketing: strategy in which a company decides to ignore market segment differences and go after whole market in one offerh. Differentiated: targets several segments and designs separate offers for eachi. Concentrated: firm goes after a large share of one or more segments or nichesj. Micromarketing: tailoring products to needs and wants of specific individuals and customer segments (includes local marketing)k. Local Marketing: Tailoring brands to needs of local customer segmentsl. Individual Marketing: tailoring to individual needs, ex. Nike custom shoesm. Perceptual maps: show consumer perceptions of brands and their competitorsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.n. Competitive advantage: advantage over competitors by offering greater value o. Differences promoting criteria: important, distinctive, superior, communicable, preemptive, affordable, profitablep. Value Proposition: full positioning of a brand, full mix of benefitsq. More for more positioning: providing upscale product at a higher price to cover higher costr. More for the same: comparable quality at a lower prices. Same for less: Same products, good deals (walmart)t. Less for much less: offers less and costs less (dollar general)u. More for less: offering more for less, hard to maintainv. Positioning statement: summarizes company positioning using form: to (target segment) our (brand) is (concept) that (point of difference). Must deliver!w. Business segmentation can use: demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics. II. Ch 8a. Product: anything offered to a market that can satisfy a needb. Service: activity, benefit, or satisfaction offered for sale that does not result in ownership of anything.c. Products are key elements on overall market offeringd. Customer experience to help differentiatee. Most basic level of product/services = core customer valuef. 2nd= actual productg. 3rd augmented, additional customer services/benefits. Ex= ipadh. Two classes of products/servicesi. Consumer: bought by final consumersii. Industrial: bought by organizations for further processing. 1. Materials and parts, capital items, supplies and servicesi. Convenience Product: usually bought frequently, immediately, minimal comparison (gum)j. Shopping Product: the customer in the process of selecting compares based on quality, price, style. (appliances)k. Specialty: unique characteristics in which a significant group of buyers is willing to make special purchase effort (rolex watches)l. Unsought: does not know about or does not want (life insurance, donations)m. Organizational marketing: sell organization itselfn. Corporate image marketing: campaigns to polish imageo. Person Marketing: to create, maintain, or change attitudes toward particularpeoplep. Place marketing: to create, maintain, or change attitudes toward particular placesq. Ideas can be marketed, social ideasr. Social Marketing: designed to influence behavior to improve well being and of societys. Product Quality: char of a product/service that bear on its ability to satisfy customer needs (one of major positioning tools)t. TQM= Total Quality Management, constantly improvingu. Value through product features, style and design.v. Brand: name, term, symbol that identifies maker or seller of a product/servicew. Hardly anything goes unbrandedx. Packaging: designing and producing container to wrapper for product.y. Labeling: identifies product or brand that can describe and promote that product.z. Product line: group of products that are closely related because they function in a similar way and sold to same customer groups. aa. Product Mix/portfolio: set of all product lines and items a particular seller offersbb. Services marketing: governments, private, non profits, business organizationscc. Service intangibility: cannot be seen, tasted, felt, heard, smelled before bought.dd. Service inseparability: produced and consumed at the same timeee. Service variability: quality depends on who provides them, when, where andhow.ff. Service Perishability: cannot be stored for later salegg. Service Profit Chain: links service firm profits with employee satisfactionhh. Service companies face three marketing tasks:i. Service differentiation, quality, and productivityii. Brand Equity: differential effect knowing the brand name has on customersjj. Brand positioning: position on product attributes, beliefs and values, benefits.kk. Store/private brand: created and owned by reseller of a prod/servicell. Co-branding: using established names of 2 companies in same productmm. Line extension: extending existing brand name to new forms, colors, sizes, of an existing product categorynn. Brand extension: existing brand to new product categoriesIII. Ch 9a. New Product Development: dev of original products, improvements, modifications, and new brands through firms own efforts.b. Idea generation: New prod dev first step, systematic search for new ideasc. Crowdsourcing: inviting broad communities of people into