Marketing Prelim #2 Review Notes

Marketing Prelim #2 Review Notes - Marketing Prelim #2...

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Marketing Prelim #2 Review Notes Chapter 9 – Segmenting, Positioning, and Forecasting Markets Terms: Market segmentation – involves aggregating prospective buyers into groups that have 1) common needs and 2) will respond similarly to a marketing action Market segments - the relatively homogeneous groups of prospective buyers that result from the market segmentation process Product differentiation – strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products Customer relationship management (CRM) – Each customer has unique needs and wants, and desires special tender loving care Build-to-order (BTO) – manufacturing a product only when there is an order from a customer (ex. Dell) Synergy – the increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently Usage Rate – is the quantity consumed or patronage during a specific period ( frequency marketing focuses on usage rate) 80/20 rule – concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers Market-product grid – framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization (markets vs product groupings) Product Positioning – refers to the place an offering occupies in consumers’ minds on important attributes relative to competitive products Product repositioning – changing the place an offering occupies in a consumer’s mind relative to competitive products Perceptual map – displaying or graphing in two dimensions the location of products or brand in the minds of consumers to enable a manger to see how consumers perceive competing products or brand and then take marketing actions (ex. Chocolate milk) Market potential or Industry Potential – refers to the max total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firms Sales Forecast or Company Forecast – refers to the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts Direct forecast – involved estimating the value to be forecast without any intervening steps Lost-horse forecast – involves making a forecast using the last known value and modifying it according to positive or negative factors expected in the future Survey of buyers’ intentions forecast – involves asking prospective customers if they are likely to buy the product during some future time period Salesforce survey forecast – involves asking the firm’s salespeople to estimate sales during a coming period
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Trend extrapolation – involves extending a pattern observed in the past data into the future Linear trend extrapolation – When pattern is described with a straight line
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This note was uploaded on 10/23/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell.

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Marketing Prelim #2 Review Notes - Marketing Prelim #2...

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