Market Segmentation
Dividing a market into smaller groups with distinct needs, characterisitics, or behavior that might require seperate marketing strategies or mixes.
Market Targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Differentiation
Actually differentiating the market offering to create superior customer to create superior customer value.
Positioning
Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing porducts in the minds of the targert consumer.
Geographic Segmentation
Deviding a market into different geographical units such as nations, states, regions, counties. cities or neighborhoods.
Demographic Segmentation
Deviding the market into groups based on variables such as age, gender, family size, family life cycles, income, occupation, education, religion, race, generation, and nationality.
Age and Life Cycle Segmentation
Dividing a market into different age and life-cycle groups.
Gender Segmentation
Dividing a market into different groups based on gender.
Income Segmentation
Dividing a market into different income groups.
Psychographic Segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics.
Occasion Segmentation
Dividing the market into groups 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 groups according to the different benefits that consumer seek from the product.
Intermarket Segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
Target Market
A set of buyers sharing common needs or characteristics that they company decides to serve.
Undifferentiated 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 Marketing
A market-coverage strategy in which a firm decides to target several market segments and designs seperate offers for each.
Concentrated Marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups - includes local marketing and inividual marketing.
Local Marketing
Tailoring brand and promotions to the needs and wants of local customer groups - cities, neighborhoods and even specific stories.
Individual Marketing
Tailoring products and marketing programs to needs and preferences of individual customers - also labeled "one-to-one marketing", "Customized marketing" and "markets-of-one marketing".
Product Position
The way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products.
Competative Advantage
An Advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.
Positioning Statement
A statement that summarizes company or brand positioning.
Product
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
Service
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
Consumer Product
A product bought by final consumer for personal consumption.
Convenience Product
A consumer product that customers usually buy frequently, immidiately, and with a minimum of comparison and buying effort.
Shopping Product
A consumer product that the customer, in the process of selection and purchases, usually compares on such a bases as suitability, style, quality and price.
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.
Unsought Product
A consumer product that the customer either does not know about or knows about but does not normally think of 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, design or a combination 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
The set of all product lines and items that a particular seller offers for sale.
Store Brand
A brand created and owned by a reseller of a product or service.
Co Branding
The practice of using the established brand names of two different companies on the same product.
Brand Extension
Extending an existing brand name to new product categories.
Service Intangibility
A major characteristic of services - they connot be seen, tasted, felt, heard, or smelled before they are bought.
Service Inseparability
A major characteristic of services - they are produced and consumed at the same time and cannot be seperated from their providers.
Service Variability
A major characteristic of services - their quailty may vary greatly, depending who provides them and when where and how.
Service Profit Chain
The chain that links service firm profits with employee and customer satisfaction.
Internal Marketing
Orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction.
Interactive Marketing
Training service employees in the fine art of interacting with customers to satisfy thier needs.
New Product Development
The development of original products, product improvements. product modifications, and new brands through the firm's own product-development efforts.
Idea Generation
The systematic search for new-product ideas.
Idea Screening
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
Product Concept
A detailed version of the new-product idea stated in meaningful consumer terms.
Concept Testing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Marketing Strategy Development
Designing an initial marketing strategy for a new product based on the product concept.
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.
Product Development
Developing the product concept into a physical product in order to ensure that the product idea can be turned intro a workable market offering.
Test Marketing
The stage of new-product development in which the product and marketing program are tested in realistic market settings.
Commercialization
Introducing a new product into the market.
Customer Centered New Product Development
New-product development that focuses in finding new ways to solve customer problems and create more customer-satisfying experiences.
Team Based New Product Development
An approach to developing new products in which various company departments work closely together, overlapping the steps in the process to save time and increase effectiveness.
Product Life Cycle
The course of a product's sales and profits over its lifetime. It involves five distinct stages: Product Development, Introduction, Growth, Maturity, and Decline.
Style
A basic and distinctive mode of expression.
Fashion
A currently accepted or popular style in a given field.
Fad
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
Introduction Stage
The product life cycle stage in which the new product is first distributed and made available for purchase.
Growth Stage
The product life cycle stage in which a product's sales start climbing quickly.
Maturity Stage
The product life cycle stage in which sales growth slows or levels off.
Decline Stage
The product life cycle stage in which a product's sales decline.
Price
The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefit of having or using the product or service.
Value Based Pricing
Setting price based on buyer's perceptions of value rather than one the seller's cost.
Good Value Pricing
Offering just the right combination of quality and good service at a fair price.
Value Added Pricing
Attaching value added features and services to differentiate a company's offers and charging higher prices.
Cost Based Pricing
Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
Fixed Costs
Costs that do not vary with production or sales level.
Variable Costs
Costs that vary directly with the level of production.
Total Costs
The sum of the fixed and variable costs for any given level of production.
Experience Curve
The drop in the average per unit production cost that comes with accumulated production.
Cost Plus Pricing
Adding a standard mark up to the cost of the product.
Break Even Pricing
Setting price to break even on the costs of making and marketing a product or setting price to make a target profit.
Demand Curve
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
Price Elasticity
A measure of the sensitivity of demand to changes in price.
Market Skimming Pricing
Setting a high price for a new product to skim maximum revenues layer by layer from segment willing to pay the high price; company makes fewer but more profitable sales.
Market Penetration Pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Product Line Pricing
Setting the price steps between various products in a product line based on cost differences between the products, customer different evaluations of features and competitors prices.
Optional Product Pricing
The pricing of optional or accessory products along with a main product.
Captive Product Pricing
Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera.
By Product Pricing
Setting a price for by-products in order to make the main product's price more competitive.
Product Bundle Pricing
Combining several products and offering the bundle at a reduced price.
Discount
A straight reduction in price on purchases during a stated period of time.
Allowance
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.
Segmented Pricing
Selling a product or service at two or more selling prices, where the difference in prices is not based on differences in costs.
Psychological Pricing
A pricing approach that considers the psychology of prices and not simply the economics.
Reference Prices
Prices that buyers carry in their minds and refer to when they look at a given product.
Promotional Pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
Geographical Pricing
Setting prices for customers located in different parts of the world.
FOB Origin Pricing
A geographical pricing strategy in which goods are placed free on board a carrier; customer pays the freight from the factory to the destination.
Uniform Delivered Pricing
A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
Zone Pricing
A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone the higher the price.
Basing Point Pricing
A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.
Freight Absorption Pricing
A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
Dynamic Pricing
Adjusting prices continually to meet the characteristics and needs of individual customers and situations.