Marketing Management Midterm 1

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Marketing Management Midterm 1
2012-02-15 02:08:12

Chapters 2, 5, and 8
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  1. What is Segmentation?
    The subdivision of a market into discrete customer groups that share similar characteristics
  2. What is Targeting?
    The identification of which segments to serve (you cannot serve everyone!)
  3. What is Positioning?
    • How (the firms hope that) the target market “sees” the product (happens in the mind of the target market)
    • Must identify Target Segments before implimenting
  4. SWOT Analysis
    • Offers both an internal and an external assessment.
    • The firm therefore must possess expertise in both what the firm can provide and what the market wants the firm to provide.
    • (Positive / Opportunities) (Negative / Threats)
  5. Ansoff Matrix
    Marketing tool created to Products and services in relation to their markets.
  6. What is Market Penetration?
    • When a company enters/penetrates a market in which current products already exist.
    • (Same products being sold to the same customers)
    • (Low Risk)
  7. What is Product Development?
    • Growth strategy where a business aims to introduce new products into existing markets.
    • (Medium Risk)
  8. What is Market Development?
    • Growth strategy where the business seeks to sell its existing products into new markets.
    • (Medium Risk)
  9. What is Diversification?
    • Growth strategy where a business markets new products in new markets.
    • (High Risk)
  10. BCG Matrix
    • Chart created to help corporations with analyzing their business units or product lines.
    • Contains (Cash Cows / Dogs) & (Stars / Question Marks)
  11. What are Dogs (BCG matrix)?
    • When a company is financially doing bad in a failing market
    • (ex. In the declining market of CD players and are not selling any)
  12. What are Cash Cows (BCG Matrix)?
    • When a company is in a failing market but is doing really well
    • (ex. being the top seller of CD players)
  13. What is a Question Mark (BCG Matrix)?
    • When a company is not doing well but is in a fast growing market
    • (ex. Not selling enough smart phones in at your company)
  14. What is a Star (BCG Matrix)?
    • When a company is doing very well finacially in a fast growing market
    • (ex. Being the top seller of Smart Phones)
  15. What is Consumer behavior?
    An understanding of consumers and their needs and purchasing behavior
  16. The order of Maslows Hiearchy of needs
    • Physiological Needs – Survival needs of all humans
    • Safety Needs– Protection from harm, ill health, etc..
    • Belongingness – Need for companionship
    • Esteem needs – Needs for things that reflect self esteem, personal worth, & social recognition
    • Self-actualization –To actualize all that a person can become….need for personal growth
  17. Direction of Marketing Plan
    • Always from Top to Bottom
    • (Cannot skip a step)
  18. Why do we Segment?
    • To allow the marketing program to focus on the subset of prospects that are "most likely" to purchase the offering / “least likely” to be served by competition
    • If done properly, can ensure highest return for marketing expendetures
  19. How to Position?
    • Choose dimensions important to the target segment
    • Choose dimensions where firm has a competitive advantage