Segmentation, Targeting, and Positioning
Segmentation that divides markets by characteristics such as age, gender, income, education, and family size.
Demographics
Nonpersonal promotional communication about goods, services, or ideas that is paid for by the firm identified in the communication.
Advertising
The value the firm derives from consumers’ positive perception of its products.
Brand Equity
The point at which the costs of producing a product equal the revenue made from selling the product.
Break-even Point
All of the activities a firm engages in to satisfy the needs and wants of its customers.
Customer Service
Segmentation that divides consumers according to how they behave with or act toward products.
Behaviorial
All the activities that communicate the value of a product and persuade customers to buy it.
Promotion
Products developed by a retailer and sold only by that specific retailer. Example: Kirkland Signature
Private Label Brands
The amount of something— money, time, or effort—that a buyer exchanges with a seller to obtain a product.
Price
A strategy that focuses on attracting, maintaining, and enhancing customer relationships, thus building brand loyalty.
Relationship Marketing
Segmentation that divides markets into groups such as nations, regions, states, and neighborhoods.
Geographic
Sales promotions in which consumers compete against one another and must demonstrate skill to win.
Contests
A brand that is marketed under the same name in multiple countries.
Global Brands
A situation in which a specific change in price causes only a small change in the amount purchased. Hint: Think Petrol or Gasoline
Inelastic Demand
Steel boxes used to transport goods, usually internationally.
Containers
A targeting strategy that involves pursuing a large share of a small market segment. Hint: Think Specialized
Niche Marketing
Documents that entitle the customers who carry them to a discount on a product.
Coupons
The degree to which customers can identify the brand under a variety of circumstances.
Brand Recognition
Costs that remain constant and do not vary based on the number of units produced or sold.
Fixed Cost
That part of supply chain management that plans, implements, and controls the flow of goods, services and information between the point of origin and the final customer.
Logistics
The science of using psychology and demographics to segment consumers.
Psychographic
A form of advertising that is communicated to the consumer via a handheld device.
Mobile Advertising
The elements of a brand not expressed in words that a consumer instantly recognizes, such as a symbol, color, or design.
Brand Marks or Logos
A pricing method in which a certain amount is added to the cost of the product to set the final price.
Markup Pricing
A type of warehouse used specifically to store and ship finished goods to customers.
Distribution Center (DC)