G12 Business Ch11 Marketing Key Concepts

What is market segmentation?

• A firm’s ability to target and effectively serve a single segment of the market, often within a limited geographic area.

• The process of separating, identifying, and evaluating the layers of a market in order to identify a target market.

What is Marketing?

• The process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations.

• A new flavor, size, or model using an existing brand name in an existing category.

What is the marketing concept?

• A marketing research method in which the investigator monitors respondents’ actions without interacting directly with the respondents; for example, by using cash registers with scanners.

• Identifying consumer needs and then producing the goods or services that will satisfy them while making a profit for the organization.

What is marketing database?

• A product priced below cost as part of a leader-pricing strategy.

• Computerized file of customers’ and potential customers’ profiles and purchase patterns.

What is the marketing mix?

• The blend of product offering, pricing, promotional methods, distribution system, and strategies for utilizing people that creates an offering that brings a specific group of consumers superior value.

• A marketing research method in which the investigator monitors respondents’ actions without interacting directly with the respondents; for example, by using cash registers with scanners.

What is an exchange in marketing?

• A firm’s ability to provide a unique product or service with a set of features that the target market perceives as important and better than the competitor’s.

• The process in which two parties give something of value to each other to satisfy their respective needs.

What is the customer's satisfaction?

• The differentiation of markets through the use of categories such as age, education, gender, income, and household size.

• The customer’s feeling that a product has met or exceeded expectations.

What are the 5 Ps in marketing?

• A marketing research method in which the investigator changes one or more variables—price, packaging, design, shelf space, advertising theme, or advertising expenditures—while observing the effects of these changes on another variable (usually sales).

• The traditional 4Ps of marketing: product, price, promotion, place (distribution), now with people added as a key marketing component, which together make up the marketing mix.

What is environmental scanning?

• The process in which a firm continually collects and evaluates information about its external environment.

• The differentiation of markets through the use of categories such as age, education, gender, income, and household size.

What is target market?

• Items that are bought after considerable planning, including brand-to-brand and store-to-store comparisons of price, suitability, and style.

• The specific group of consumers toward which a firm could direct its marketing efforts. It is often divided into segments so that marketing strategies can be directed to a more specific target.