Chapter 6 1 Age lifecycle segmentation dividing a market into different age and life cycle groups 2 Behavioral segmentation dividing a market into segments based on consumer knowledge attitudes uses of a product or responses to a product 3 Benefit segmentation dividing the market into segments according to the different benefits that consumers seek from the product 4 Concentrated niche marketing a market coverage strategy in which a firm goes after a large share of one or a few segments or niches 5 Demographic segmentation dividing the market into segments based on variables such as age life cycle stage gender income occupation religion ethnicity and generation 6 Differentiated segmented marketing a market coverage strategy in which a firm decides to target several market segments and designs separate offers for each 7 Differentiation actually differentiating the market offering to create superior customer value 8 Gender segmentation dividing a market into different segments based on gender 9 Geographic segmentation dividing a market into different geographical units such as nations states regions counties cities or even neighborhoods 10 Income segmentation dividing a market into different income segments 11 Individual marketing tailoring products and marketing programs to the needs and preferences of individual customers 12 Local marketing tailoring brands and marketing to the needs and wants of local customer segments cities neighborhoods and even specific stores 13 Market segmentation dividing a market into smaller segments of buyers with distinct needs characteristics or behaviors that might require separate marketing strategies or mixes 14 Market targeting evaluating each market segments attractiveness and selecting one or more segments to enter 15 Micromarketing tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments it includes local marketing and individual marketing 16 Occasion segmentation dividing the market into segments according to occasions when buyers get the idea to buy actually make their purchase or use the purchased item 17 Positioning arranging for a market offering to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers 18 Psychographic segmentation dividing a market into different segments based on social class lifestyle or personality characteristics 19 Target market a set of buyers sharing common needs or characteristics that the company decides to serve 20 Undifferentiated mass marketing a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer 21 Value proposition the full positioning of a brand the full mix of benefits on which it is positioned Chapter 7 1 Actual product a product that has been developed and designed as well as an established quality level and a brand name 2 Augmented product built around core benefit and actual product by offering additional consumer services and benefits 3 Brand a name term sign symbol or design or a combination of these that identifies the products services of one seller or group of sellers and differentiates them from those of competitors 4 Brand equity the differential effect that knowing the brand name has on customer response to the product or its marketing 5 Brand extension extending an existing brand name to new product categories 6 Consumer product a product bought by final consumers for personal consumptions 7 Convenience product a consumer product that customers usually buy frequently immediately and with minimal comparison and buying effort 8 Core customer value the core problem solving benefits or services that consumers seek 9 Industrial product a product bought by individuals and organizations for further processing or for use in conducting a business 10 Line extension extending an existing brand name to new forms colors sizes ingredients or flavors of an existing product category 11 Packaging the activities of designing and producing the container or wrapper for a product 12 Product anything that can be offered to a market for attention acquisition use or consumption that might satisfy a want or need 13 Product mix product portfolio the set of all product lines and items that a particular seller offers for sale 14 Product quality the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs 15 Service an activity benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything 16 Service inseparability services are produced and consumed at the same time and cannot be separated from their providers 17 Service intangibility services cannot be seen tasted felt heard or smelled before they are bought 18 Service perishability services cannot be stored for later sale or use 19 Service recovery the actions a service provider takes in response to service failure 20 Service variability the quality of services may vary greatly depending on who provides them and when where and how they are provided 21 Shopping product a consumer product that the customer in the process of selecting and purchasing usually compares on such attributes as suitability quality price and style 22 Specialty product a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort 23 Store brand private brand a brand created and owned by a reseller of a product or service 24 Unsought product a consumer product that the consumer either does not know about or knows about but does not normally consider buying Chapter 8 1 Business analysis a review of the sales costs and profit projections for a new product to find out whether these factors satisfy the company s objectives 2 Commercialization introducing a new product into the market 3 Concept testing testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal 4 Crowdsourcing inviting broad communities of people into the new product innovation process 5 Decline stage the PLC stage in which a products sales fade away 6 Growth stage the PLC stage in which a products sales start climbing quickly Idea generation the systematic search for new product ideas 7 8 9 Idea screening screening new product ideas to spot good ones or drop poor ones as soon as