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Flashcards in Chapter 4 Deck (43):
1

Market

A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services

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Generic market

A market with broadly similar needs - and sellers offering various, often diverse, ways of satisfying those needs

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Prodcut Market

A market with very similar needs and sellers offering close substitute ways of satisfyign those needs

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Segmentation and Targeting

Defining generic markets and product-markets

Understanding types of dimensions used to segment markets

Knowing how to identify segments

Deciding what segments to target

Using segmentation approaches

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Differentiation and Positioning

Understanding customer's view

Using positioning techniques

Evaluating segment preferences

Differentiating the marketing mix

Knowing the relationship between positioning and targeting

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In a generic market, quite different product types will:

compete with each other

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A generic market doesnt include any ______________

product-type terms

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Market segmentation

1. Naming broad product-markets 

2. Segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes

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Segmenting

An aggregating process - clustering people with similar needs into a "market segment"

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Market segment

A relatively homogeneous group of customers who will respond to a marketing mix in a similar way

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A good market segments meet the following criteria:

1. Homogeneous (similar) within - the customers ina market segment should be as similar as possible with respect to their likely responses

2. Heterogenous (different) between - the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions

3. Substantial - the segment should be big enough to be profitable

4. Operational - the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables

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It is especially important that segments be ___________

operational

This leads to markets to include demographic dimensions such as age, sex, income, etc.

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3 ways to develop a market-oriented strategy in a broad product market

1. Single target approach - segmenting the market and picking one of the homogeneous segments as the firm's target market

2. Multiple target market approach - segmenting the market and choosing two or more segments, and then treating each as a seperate target market needing a different marketing mix

3. Combined target market approach - combining two or more submarkets into one larger target market as a basis for one strategy

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Combiners

Try to increase the size of their target markets by combining two or more sgments 

Look at various submarkets for similarities rather than differences

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Segmenters

Aim at one or more homogeneous segments and try to develop a different marketing mix for each segment

Usually fine-tune their market mixes for each target mixes because they want to satisfy each segment very well

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Qualifying dimensisons

Those relevant to including a customer type in a product-market

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Determining dimensions

Those that actually affect the customer's purchase of a specific product or brand in a product-market

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Clustering techniques

Try to find similar patterns within sets of data

Use computers

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Customer relationship management (CRM)

The seller fine-tunes the marketing effort with information froma detailed customer database

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Positioning

Refers to how customers think about proposed or present brands in a market

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Positioning maps are based on ______________

customers perceptions - the actual characteristics of the products might be different

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Single Target Approach

Meet needs, but only 1 target

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Multiple Target Approach


meet needs of multiple

Costly

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Combined target approach


Open for competition

Only partly meets needs

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Difference between discretionary and disposable income?


Discretionary - income that is left after taxes and necessities

Disposable - left after taxes

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How is income distributed in the U.S. / how does that affect marketing?


The top 1% has most of the income

Appeal to most with value

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4 key factors that affect the purchase decision

Economic needs - (economy of purchase. convenicnce, depdendibility, efficiency, income)

Psychological variables (motivation, perception, learning, attitude, trust)

Social influences (family, social class, reference groups, culture, ethnic groups)

Purchase situation (purchase reason, time, surrondings)

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Difference betwee need, want, and a drive


Need - basic forces that motivate person to do something

wants - needs that are learned during lifetime

drive- an unsatisfied need

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Perception


How we gather and interpret information from the world

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3 screens people use to manage incoming stimuli


selective exposure - we only notice information that interests us

selective perception - we filter or modify information in conflict with previously learned attitudes or beliefs

selective retention - we only remember what we want to remember

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Learning


A change in a person's thought process caused by prior experience

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Cue


Product, ads that encourage a specific responses to a drive

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Drive


strong stimulus that encourages action

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response


an effort to satisfy a drive

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response


an effort to satisfy a drive

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reinforcement


response followed by satisfaction - strengthens cue and response

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Difference between attitude and belief


Attitude - a persons point of view toward something (like or dislike)

Belief - a persons opinion about something - not action oriented

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Economic needs


Economic buyer theory - concerned with best use of money

depends on amount of money

 

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Social influences


social class, family life cycle, culture (set of beliefs/do things) ethnic groups

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Purchase situation


reason, urgency, excitement

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Consumer behavior


Effort (extensive, limited, routinized)

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Adaptation process


Accept or reject an idea

factors: awareness

interest

evaluation

trial

decision

confirmation

 

Dissonance/ opposites

 

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