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Definition
| A firms target market, marketing mix & method of obtaining a sustainable competitive edge |
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| Sustainable Competitive Advantage |
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Definition
| something the firm does better than competitors |
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| The process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities |
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| The process of dividing markets into groups of costumers with different needs or characteristics |
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| A group of consumers who respond similarly to marketing efforts |
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| A measure of the products strengths in a market, defined as the sales of the focal product by the sales of the achieved by the largest firm in the industry |
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| the annual rate of growth of the specific market in which the products competes |
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| Current market and current product to focus efforts on existing customers |
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| New market, current product, reaching new markets |
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| Current market, new product, offers a new product to same market |
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| Macro-Environmental Factors |
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Definition
| Culture, Demographics, Social, Technology, Economic, Political/Legal |
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Definition
| Shared beliefs, meanings, values, and customs of a group of people |
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| Information about the characteristics of human population and segments |
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| trends that shape consumer values |
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| trends that shape consumer values |
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Definition
| Economic situation, Inflation, Interest rates |
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Definition
| includes all possible choices for a product category |
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Definition
| Includes those brands or stores that the costumer can readily bring forth from memory |
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Definition
| Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision |
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Definition
| features that are important to the buyer and on which competing brands or stores are perceived to differ |
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| Compensatory decision rules |
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Definition
| trading when characteristic to compensate for the bad one |
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| Non-compensatory decision |
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Definition
| chooses based off the subset of its characteristics regardless of the values of its other attributes |
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Definition
| mental shortcuts that help consumers narrow down chooses, example: brand, price |
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Definition
| buyers remorse, questions appropriateness after purchase |
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Definition
| When a costumers spreads negative info |
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Term
| Maslow's Hierarchy of Needs |
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Definition
Top: Self Actualization
Esteem
Love
Safety
Physiological |
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Definition
| Cognitive, affective, behavioral |
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| Lifestyles (psychographics) |
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Definition
| how people spend their money and time |
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Definition
one or more persons whom a person uses as a basis for comparison
1. Offer info
2. provide rewards
3. enhance a consumers self image |
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Definition
| consumers degree of interest in the product |
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Term
| Examples of Decision heuristics |
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Definition
Price = wine, if it's more expensive, it must be good
Brand = if it's not brand Y, I won't buy it
Product presentation = Web site (amateur vs. professional), packaging, design |
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Definition
| features that the consumer feels are important AND on which s/he perceives competing brands to differ |
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| Companies target segments because |
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Definition
It enables companies to more closely meet needs and the desires of potential customers
It increases sales & profits |
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Definition
Treat it all as one
no need for separate strategies |
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Term
| Differentiated segmentation |
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Definition
| target several segments and designs programs for each segment |
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| Concentrated segmentation strategy |
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Definition
| selecting one group and focusing all efforts |
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Definition
| mass customization, working one to one to make a product of service |
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Definition
| combination of demo and geo characteristics |
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Definition
| grouping consumers on the basis of the benefits they derive from the products or services |
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Definition
| investing in loyalty initiatives to retain the firms most profitable consumers |
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Term
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Definition
| VALS stands for Values, Attitudes, and Lifestyles |
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Term
| what to consider with target markets |
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Definition
Market size
Expected growth
Competitive position
Cost of reaching the segment
Compatibility with your company’s objectives & resources |
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Definition
| makes it easier for the consumer to buy |
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Term
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Definition
For (target consumer),
who (state the need or the opportunity),
(your product) is a (fill in the product category)
that (state your key benefit, or the compelling reason customers will buy it) |
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Definition
Unlike (name the primary competitive alternative),
(your product) (state your primary differentiation) |
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Term
| The Consumer Decision Process |
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Definition
| Need Recognition-> information search -> alternative evaluation -> purchase -> post-purchase |
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Definition
| Need recognition, information search, evaluate alternatives |
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Definition
| satisfaction/dissonance, word of mouth or loyalty, disposal |
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| what kinds of risk are associated with purchasing? |
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Definition
| performance, financial and psychological |
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Definition
| when the customer perceives risk involved in the purchasing process |
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Definition
| buying something with little conscious effort |
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| how do costumers weigh alternatives |
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Definition
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Term
| How do consumers weigh alternatives? |
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Definition
Brands or Stores (retrieval and evoked set)
Evaluative criteria (determinant attributes)
Decision rules (Compensatory, Non-compensatory, decision heuristics)
Weigh internal and external information
decision |
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Term
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Definition
| Strategy or objectives -> Describe segments -> evaluate segment attractiveness -> select target market -> identify and develop positioning strategy |
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| undifferentiated/mass marketing |
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Definition
| consider everyone has a potential buyer |
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Term
| concentrated segmentation |
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Definition
| select a single target market to focus on |
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Term
| Segmentation Descriptions |
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Definition
| Geographic, demographic, psychographics, benefits, loyalty |
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Term
| Criteria for segment attractiveness |
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Definition
substantial
reachable
responsive
profitable
identifiable |
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Term
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Definition
| (Segment size X Segmement adoption % X Purchase Behavior X profit margin % ) - fixed costs |
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Term
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Definition
1.Define Objectives
2. Designing the research project
3. data collection
4. analyzing data
5.Presenting results |
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Term
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Definition
Qualitative
Observation - actual behavior
In-depth interviews - conscious mind
Focus group
Projective |
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Definition
Quantitative
Survey
Experiments
Panel
Scanner (actual behavior) |
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Term
| Advantages & Disadvantages to Secondary Research |
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Definition
Advantages
- saves time in collecting data
- reduces cost
Disadvantages
- May not be relative
- information may not be as timely as needed
- sources not original |
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Term
| dvantages & Disadvantages to Primary Research |
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Definition
Advantages
- Specific to the to pic
- offers behavior insight
Disadvantages
- usually cost a lot
- longer to collect data
- more training |
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Term
| Examples of Primary research |
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Definition
observed consumer behavior
interviews
surveys |
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Term
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Definition
census data
sales invoices
internet info
books
articles syndicated data |
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