BUS-M 300: EXAM 2
56 Cards in this Set
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marketing segmentation
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dividing the total product marketing into several homogeneous groups
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Promotion
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advertising
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segment criteria
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measurable, reachable, relevant, profitable
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segmentation variables
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psychographics, usage, needs, geographic, demographic
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geography
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divide overall market into groups based on geography
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demographics
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divide consumers into groups based on sex, income, age, occupation, race, religion, education, etc
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psychographics
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divide the population in homogeneous groups based on behavioral and lifestyle profiles
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usage
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divide the population into their purchase frequency and usage level
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needs
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divide population into groups base don the product's availability to satisfy needs
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positioning
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competitive advantage, creates perception
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undifferentiated marketing
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firms produce only one product or product line and segment the market
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differentiated marketing
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a strategy where numerous products are offered to different segments
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concentrated/niche marketing
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a strategy often used by small firms, directing efforts towards serving a small segment
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customized marketing
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customizing products to fit customer's needs
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customer price sensitivity
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degree to which pricing influences demand
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Elasticity
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%change in demand/%change in unit price
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elastic
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less than -1, sensitive
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inelastic
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greater than -1. insensitive
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promotional pricing
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use of heavily advertised temporary price reductions
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EDLP pricing
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promotion-oriented every day low pricing strategy
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customary pricing
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tradition drives pricing as customers except certain prices for certain products
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price quality relationships
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there is a positive relationship between price and perceived quality in the absence of other product cues
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odd pricing
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the belief that certain prices carry information above and beyond the price itself and that some prices are more appealing than others
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markup pricing
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specified amount added to the cost of the product to yield a price
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Price
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markup + cost
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markup on price
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markup/price
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markup on cost
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markup/cost
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competition oriented pricing
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uses the prices of competitors to help the firm set their prices
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heterogeneous competing products
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competition oriented pricing is less important because price is not a compelling factor in the buying decision
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homogeneous competing products
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more important because price is likely to be a factor in buying decision
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value-based pricing strategy
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uses the value customers gain from product use to set prices, how much willing to pay
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skimming pricing strategy
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uses a high price to skim profits from the market
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penetration pricing strategy
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uses a low price to maximize sales, share, and profits
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brand
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name, symbol, or design used to identify the products and differentiate them from competitive offerings
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brand name
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the words or letters of the brand
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brand mark
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pictorial part of the brand
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trademark
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legally protected brand exclusive to the owner
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brand equity
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the added value to the firm, the channel, or the consumer with which a brand endows a product
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brand recognition
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knowledge of brand
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brand preference
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prefers one brand over another but will not demand that brand every time
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brand insistence
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no alternatives will suffice
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brand extension
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new products in different product categories
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product line extension
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new products that closely resemble the firm's existing products
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cannibalization
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the theft of sales from existing products by the new product line extension
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house of brands
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no corporate name
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branded house
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corporate name is dominant
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mixed branding
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set of family brands in addition to corporate name
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points of parity
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don't emphasize, similarity
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points of differentiation
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differences in product
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core product
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actual benefits received by consumer
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actual product
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the quality level, features, design, packaging, and brand name of the product
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augmented product
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delivery and credit, warranty, and after-sale service associated with the product
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desired product
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the product consumer really want or think they want
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industrial products
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sold by one business to another to serve organizational needs
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consumer product
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product designed to satisfy non-organizational, individual needs
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building greater products
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need, competitive advantage, price, sustainable
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