MKTG Exam 2 Chapters 6 10 Vocabulary CHAPTER 6 Designing a Customer Driven Marketing Strategy Market segmentation dividing a market into smaller segments of buyers with distinct needs characteristics or behaviors that might require separate marketing strategies or mixes Market targeting evaluating each market segment s attractiveness and selecting one or more segments to enter Differentiation differentiating the market offering to create superior customer value Positioning arranging for a market offering to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers Geographic segmentation dividing a market into different geographical units such as nations states regions counties cities or even neighborhoods Demographic segmentation dividing the market into segments based on variable such as age life cycle stage gender income occupation education religion ethnicity and generation Age and life cycle segmentation dividing a market into different age and life cycle groups Gender segmentation dividing a market into different segments based on gender Income segmentation dividing a market into different income segments Psychographic segmentation dividing a market into different segments based on social class lifestyle or personality characteristics Behavioral segmentation dividing a market into segments based on consumer knowledge attitudes uses of a product or responses to a product 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 Benefit segmentation dividing the market into segments according to the different benefits that consumers seek from the product Intermarket cross market segmentation forming segments of consumers who have similar needs and buying behaviors event though they are located in different countries Market segments must be Measurable Accessible Substantial Differentiable Actionable effective Target market a set of buyers sharing common needs or characteristics that the company decides to serve 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 Differentiated segmented marketing a market coverage strategy in which a firm decides to target several market segments and designs separate offers for each Concentrated niche marketing a market coverage strategy in which a firm goes after a large share of one or a few segments or niches 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 Local marketing tailoring brands and marketing to the needs and wants of local customer segments cities neighborhoods and specific stores Individual marketing tailoring products and marketing programs to the needs and preferences of individual customers Product position the way a product is defined by consumers on important attributes the place the product occupies in consumers minds relative to competing products Competitive advantage an advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices Value proposition the full positioning of a brand the full mix of benefits on which it is positioned More for More positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs More for the Same offers comparable quality at a lower price The Same for Less offer the same brands but at discounted prices Less for Much Less meeting consumers lower performance quality at a much lower price dollar stores More for Less good quality for less cost Positioning statement a statement that summarizes company or brand positioning using this form To target segment and need our brand is concept that point of difference CHAPTER 7 Product anything that can be offered to a market for attention acquisition use or consumption that might satisfy a want or need Service an activity benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything service intangibility Consumer product a product bought by final consumers for personal consumption Convenience product consumer product that customers buy frequently immediately and with minimal comparison and buying effort 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 Specialty product a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing o make a special purchase effort Unsought product a consumer product that the consumer either does not know about or knows about but does not normally consider buying Industrial product a product bought by individuals and organizations for further processing or for use in conducting a business Social marketing the use of commercial marketing concepts and tools in programs designed to influence individuals behavior to improve their well being and that of society Product quality the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs Brand a name term sign symbol or design or a combo of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors Packaging the activities of designing and producing the container or wrapper for a product Product line a group of products that are closely related because they function in a similar manner are sold to the same customer groups are marketed through the same types of outlets or fall within given price ranges Product mix product portfolio the set of all product lines and items that a particular seller offers for sale Service inseparability services are produced and consumed at the same time and cannot be separated from their providers Service variability quality of services may vary greatly depending on who provides them and when where and how they are provided Service perishability services cannot be stored for later sale or use Service profit chain the chain that links service firm profits with employee and customer satisfaction Internal marketing orienting and motivating