2. Marketing Terms
Market Segmentation
• Breaking down of customers into various segments i.e. potential and existing
customers is called as market segmentation
Basis of segmentation
• Demographic: Segmenting the market on various population characteristics
i.e. family size, socio-economic status, income and gender etc.
• Geographic: segmenting by location i.e. country, state
3. Marketing Terms
Market Segmentation
• Psychographic: personality characteristics, social characteristics and life style
• Geo-demographic: combination of demographic and geographic
characteristics
• Behavioral: Usage behavior, consumption or purchasing
4. Marketing Terms
Product Life Cycle
• Different stages from which a product goes from introduction to decline is called as
product life cycle
Stages of Product life cycle
Introduction
• One of the most expensive stage of a product as a company has to invest heavily to
introduce a product
• Cost on R&D, marketing and consumer can be higher at this stage
5. Marketing Terms
Product Life Cycle
Growth Stage
• Stage when sales and profits of a particular product are increasing
• Investing in promotional will increase the profits
• Maturity stage
• Product is established at this stage
• Company’s aim to maintain the market share
• Most competitive time for the product
6. Marketing Terms
Product Life Cycle
Decline Stage
• At this stage, product start shrinking
• Market is saturated
• Consumers are switching to different products
Marketing
• The process through which services and goods move from idea to consumers
7. Marketing Terms
4 Ps of Marketing
• Identification, selection and development of a product
• Determination of prices
• Selecting the particular channel to reach the place of consumer
• Selection, development and implementation of promotional strategy
Mass Market
• The market for goods tha are produced in large quantities
Niche market
• Market on which a specific product is focused
8. Marketing Terms
Unique Selling Point
• A particular factor that differentiates a specific product from competitors i.e.
first ever product, highest quality of lowest cost
9. Type of Market Research
Sr.
no
Type Explanation
1 Focus
Groups
Conducted at focus group facilities, managers can receive
feedbacks, mostly five to ten products about a group
2 One on
Intervie
ws
These are conducted from one person at a time
3 Phone
surveys
To validate the information from focus group or from one
person at a time through phone
4 Testing Product is actually tested at this stage
11. Bibliography
• Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
• Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
• Tomczak, T., Reinecke, S. and Kuss, A., 2018. Introduction. In Strategic Marketing (pp. 1-18).
Springer Gabler, Wiesbaden.
• Hanssens, D.M., Pauwels, K.H., Srinivasan, S., Vanhuele, M. and Yildirim, G., 2014.
Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4),
pp.534-550.
