Mcom 341 week 5 summary


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Mcom 341 week 5 summary

  1. 1. MCOM 341<br />Week 5 Summary<br />Class 1 (Tues): Segmentation & Targeting<br />DEFINITIONS: <br />utility  A product's ability to provide both symbolic or psychological want satisfaction and functional satisfaction. A product's problem-solving potential may include form, time, place, or possession segmentation  Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product's market  The market segment or group within the market segment toward which all marketing activities will be audience  The specific group of individuals to whom the advertising message is directed.behavioristic segmentation  Method of determining market segments by grouping consumers into product-related groups based on their purchase behavior.usage rates  The extent to which consumers use a product: light, medium, or heavy.purchase occasion  A method of segmenting markets on the basis of when consumers buy and use a good or service.<br />benefits  The particular product attributes offered to customers, such as high quality, low price, status, speed, sex appeal, good taste, and so on.<br />geographic segmentation  A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.<br />demographic segmentation  Based on a population's statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors.<br />geodemo- graphic segmentation  Combining demographics with geographic segmentation to select target markets in advertising.psychographic segmentation  Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle.product concept  The consumer's perception of a product as a "bundle" of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs. Also, as an element of the creative mix used by advertisers to develop advertising strategy, it is the bundle of product values the advertiser presents to the consumer.<br />OTHER CONCEPTS: <br />Methods of Behavioristic SegmentationVALS Psychographic Framework<br />389255062230User-Status VariablesUsage-Rate VariablesPurchase Occasion VariablesBenefits-Sought Variables<br />Six Types of Users in User Status Variables<br />Type of UserBrand ACompetitorSole usersAlways buyNever buySemisole usersGenerally buySeldom buy Discount usersBuy if discountedGenerally buyAware nontriersPrefer not to buy Prefer to buy Trial/rejectorsNever buyAlways buyRepertoire users Will buyWill buy<br />Class 2 (Thurs): Segmentation & Targeting<br />DEFINITIONS: <br />exchange  The trading of one thing of value for another thing of value. Marketing facilitates satisfying exchanges.<br />early adopter  Prospects who are most willing to try new products and services.<br />pull strategy  Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.<br />push strategy  Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople.<br />positioning  The association of a brand's features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer.<br />product different-iation  Manufacturers portraying their brands as different from and better than similar competitive products through advertising, packaging, or physical product differences.<br />brand  That combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products—the fundamental differentiating device for all products.<br />brand equity  The totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time; in short, it is the value of the brand's capital.psychological pricing  Using price as a means of influencing a consumer's behavior or perceptions; for example, using high prices to reinforce a quality image, or selling at $2.99 instead of $3.00 to make a product appear less expensive.<br />distribution channel  The network of all the firms and individuals that take title, or assist in taking title, to the product as it moves from the producer to the distribution  The method of marketing in which the manufacturer sells directly to customers without the use of retailers.resellers  Businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or other buyers; also called middlemen. The most common examples of resellers are retail stores and catalog retailers.intensive distribution  A distribution strategy based on making the product available to consumers at every possible location so that consumers can buy with a minimum of effort.selective distribution  Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.exclusive distribution  The strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect other dealers in a geographic region.<br />OTHER CONCEPTS: <br />Types of Differences in Product Differentiation:<br />Perceptible differences: those that are easily apparent to the consumer<br />Hidden differences: imperceptible variations that may enhance product desirability<br />Induced differences: Differences created by marketing and advertising <br />Types of Brands:<br />Individual brand: Each product, even of the same product type, has a different brand <br />National brand: Individual brands manufactured and sold nationally, such as these Unilever brands <br />Family brand: Multiple products sold under a single brand name <br />Private label brand: Products manufactured nationally and sold to resellers who put their own brand name on the product. <br />Price Factors:<br />Demand<br />Production & Distribution<br />Corporate Goals & Strategies<br />Competition<br />Factors for Successful Advertising:<br />Strong primary demand for the product class<br />Chance for significant product differentiation<br />Hidden qualities highly important to consumers<br />Opportunity for strong emotional appeals<br />Substantial budget available for advertising<br />The 4 P’s of Marketing:<br />The 4 P’s of the Marketing MixProductPricePlacePromotion<br />The Product Life Cycle:<br />Product Classifications:<br />By MarketBy Rate of Consumption, TangibilityBy purchasing habitsBy physical descriptionConsumer goodsDurable goodsConvenience goodsPackaged goodsIndustrial goodsNondurable goodsShopping goodsHard goodsServicesSpecialty goodsSoft goodsUnsought goodsServices<br />See Exhibit 4-9 on p. 111 of your textbook for full details.<br />