Chapter 2 (Book) Flashcards
Target market
A fairly homogeneous (similar) group of customers to whom a company wishes to appeal
Marketing mix
The controllable variables the company puts together to satisfy this target group
Massmarketing
The typical production – oriented approach – vaguely aims at “everyone” with the same marketing mix. Mass marketing assumes that everyone is the same – and it considers everyone to be a potential customer
The 4 P’s that make up a marketing mix
Product
Place
Promotion
Price
Marketing strategy
Specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market
Customer lifetime value
Total stream of purchases that a customer could contribute to the company over the length of the relationship
Competitive advantage
A firm has a marketing mix that the target market sees as better than a competitor’s mix.
Differentiation
The marketing mix is distinct from what is available from a competitor
Market penetration
Trying to increase sales of a firm’s present products in its present markets - probably through a more aggressive marketing mix
Market development
Trying to increase sales by selling present products in new markets
Product development
Offering new or improved products for present markets
Diversification
Moving into totally different lines of business - perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system
