Contemporary Advertising Chapter 6 Definitions The terms are given you generate the definitions Twelfth Edition Arens Weigold Arens Run slideshow in PowerPoint to view Market Segmentation Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product s utility p 174 Behavioristic Segmentation Segmenting consumers by how they buy Examples include user status usage rate purchase occasion and benefits sought p 174 User Status Six categories into which consumers can be placed which reflect varying degrees of loyalties to certain brands and products sole users semisole users discount users aware nontriers trial rejectors and repertoire users p 174 Usage Rate The extent to which consumers use a product light medium or heavy p 175 Volume Segmentation Discounts given to advertisers for purchasing print space or broadcast time in bulk quantities p 175 Purchase Occasion A method of segmenting markets on the basis of when consumers and use a good or service p 177 Benefits sought segmentation Method of segmenting consumers based on the utilities that consumers desire in a product p 177 Benefits The product attributes offered to customers such as high quality low price status speed sex appeal good taste and so on p 177 Geographic Segmentation A method of segmenting markets by geographic regions based on the shared characteristics needs or wants of people within the region p 177 Demographic Segmentation Based on a population s statistical characteristics such as sex age ethnicity education education occupation income or other quantifiable factors p 178 Geodemographic Segmentation Combining demographics with geographic segmentation to select target markets in advertising p 178 Psychographic Segmentation Method of defining consumer markets based on psychological variables including values attitudes personality and lifestyle p 181 Psychographics The grouping of consumers into market segments on the basis of psychological makeup values attitudes personality and lifestyle p 181 Resource Axis A term in the Values and Lifestyle VALS typology relating to the range of psychological physical demographic and material capacities that consumers can draw upon The resource axis includes education income self confidence health eagerness to buy and energy level p 181 Primary Motivation The pattern of attitudes and activities that help people reinforce sustain or modify their social and self image An understanding of the primary motivation of individuals helps advertisers promote and sell goods and services p 181 Business Markets Organizations that buy natural resources component products and services that they resell sue to conduct their business or use to manufacture another product p 184 Reseller Businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers also called middlemen These businesses do not change or modify the goods before they resell them p 184 North American Industry Classification System NAICS codes Method used by the US Department of Commerce to classifies all businesses The NAICS codes are based on broad industry groups subgroups and detailed groups of firms in similar lines of business p 186 Primary Demand Trend A product s market potential in a given region or area p 187 Target Market The market segment or group within the market segment toward which all marketing activities will be directed p 189 Target Marketing Process The sequence of activities aimed at assessing various market segments designating certain ones as the focus of marketing activities and designing marketing mixes to communicate with and make sales to these targets p 189 Product Concept The consumer s perception of a product as a bundle of utilitarian and symbolic values that satisfy functional social and psychological and other wants and needs Also as an element of the creative mix used by advertisers to develop advertising strategy it is the bundle of product values the advertiser presents to the consumer p 191 Four Ps 4Ps Also called the marketing mix Mnemonic device for recalling four marketing functions p 191 Product Element The most important element of the marketing mix the good or service being offered and the values associated with it including the way the product is designed and classified positioned branded and packaged p 191 Product Life Cycle Progressive stages in the life of a product including introduction growth maturity and decline that affect the way a product is marketed and advertised p 191 Early Adopter Prospects who are willing to try new things p 191 Primary Demand Consumer demand for a whole product category p 192 Introductory Phase The initial phase of the product life cycle also called pioneering phase when a new product is introduced costs are highest and profits are lowest p 192 Pull Strategy Marketing advertising and sales promotion activities aimed at inducing trial purchase and repurchase by consumers p 192 Push Strategy A monetary inducement for retail salespeople to push the sale of particular products p 192 Sales Promotion A direct inducement offering extra incentives all along the marketing route from manufacturers through distribution channels to customers to accelerate the movement of the product from the producer to the consumer p 192 Growth Stage The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases p 192 Maturity Stage That point in the product life cycle when the market has become saturated with products the number of new customers has dwindled and competition is most intense p 192 Selective Demand Consumer demand for the particular advantages of one brand over another p 192 Decline Stage The stage in the product life cycle when sales begin to decline to obsolescence new technology or changing consumer tastes p 193 Service A bundle of benefits that may or may not be physical that are temporary in nature and that come from the completion of a task p 194 Equipment Based Service A service business that relies mainly on the use of specialized equipment p 194 People Based Service A service that relies on the talents and skills of individuals rather than on highly technical or specialized