MKTG Exam 2 Study Guide COLORS

Component parts either finished items ready for

Info icon This preview shows pages 3–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Component Parts = either finished items ready for assembly or products that need very little processing before becoming part of some other product Processed Materials = products used directly in manufacturing other products Supplies = consumable items that do not become part of the final product Business Services = expense items that do not become part of a final product Business Buying Behavior Buying Center = all those people in an organization who become involved in the purchase decision New Buy = a situation requiring the purchase of a product for the first time Modified Rebuy = a situation in which the purchaser wants some change in the original good or service Straight Rebuy = a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers Chapter 8: Segmenting and Targeting Markets - People consumer markets - Organizations business markets Market = people or organizations with needs or wants and the ability and willingness to buy Market Segment = a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs Market Segmentation = the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups - Criteria for Successful Segmentation = 1. Substantiality 2. Identifiability & measurability 3. Accessibility 4. Responsiveness Bases for Segmenting Consumer Markets Segmentation bases (variables) = characteristics of individuals, groups or organizations Geographic segmentation = segmenting markets by region of a country or the world, market size, market density (#of people within a unit of land EX: census tract) or climate. Demographic segmentation = segmenting markets by age, genders, income, ethnic background, & family life cycle Family life cycle (FLC) = a series of stages determined by a combination of age, marital status, & the presence or absence of children Psychographic segmentation = market segmentation on the basis of 1. Personality 2. Motives 3. Lifestyles 4. Geodemographics Geodemographic segmentation = segmenting potential customers into neighborhood lifestyles categories; Combines geographic, demographic, & lifestyle segmentations. Benefit segmentation = the process of grouping customers into market segments according to the benefits they seek from the product. Different because it groups potential customers on the basis of their needs or wants rather than some other characteristics, such as age or gender. (EX: dividing snack-foods into nutritional, weight watchers, guilty snacks, party snacks, etc..) Usage rate segmentation = dividing a market by the amount of product bough or consumed. (enables marketers to focus their efforts on heavy users or to develop multiple marketing mixes aimed at different segments) 80/20 Principle = a principle holding that 20% of all customers generate 80% of the demand (EX: my extra shopping makes up for Lauren not buying or shopping) Bases for Segmenting Business Markets - Business market consists of 4 broad segments: 1. Producers 2. Resellers 3. Government 4. Institutions
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern