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Method of segmenting consumers based on the benefits being sought.
behavioristic segmentation
 
The particular product attributes offered to customers, such as high quality, low price, status, speed,
sex appeal, good taste, and so on.
benefits
 
Method of segmenting consumers based on the benefits being sought.
benefit segmentation
 
That combination of name, words, symbols, or design that identifies the product and its source and
distinguishes it from competing products—the fundamental differentiating device for all products.
brand
 
The totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an
extended period of time; in short, it is the value of the brand's capital.
brand equity
 
A marketing function that identifies products and their source and differentiates them from all other products.
branding
 
Organizations that buy natural resources, component products, and services that they resell, use to conduct
their business, or use to manufacture another product.
business markets
 
The sharing of advertising costs by the manufacturer and the distributor or retailer.
cooperative advertising
 
Copywriting themes in a product's advertising.
copy points
 
The stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or
changing consumer tastes.
decline stage
 
Based on a population's statistical characteristics such as gender, age, ethnicity, education, occupation,
income, or other quantifiable factors.
demographic segmentation
 
The method of marketing in which the manufacturer sells directly to the customers without the use of retailers.
direct distribution
 
The network of all the firms and individuals that take title, or assist in taking title, to the product as it moves
from the producer to the consumer.
distribution channel
 
Prospects who are most willing to try new products and services.
early adopters
 
The trading of one thing of value for another thing of value.
exchange
 
The strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a
prestige image, maintain premium prices, or protect other dealers in a geographic region.
exclusive distribution
 
The marketing of various products under the same umbrella name.
family brand
 
Product, price, place, and promotion used by every company.
four Ps (4 Ps)
 
A type of vertical marketing system in which dealers pay a fee to operate under the guidelines and
direction of the parent company or manufacturer.
franchising
 
Combining demographics with geographic segmentation to select target markets in advertising.
geodemographic segmentation
 
A method of segmenting markets by geographic regions based on the shared characteristics, needs, or
wants of people within a region.
geographic segmentation
 
The period in a product life cycle that is marked by market expansion as more and more customers make
their first purchases while others are already making their second and third purchases.
growth stage
 
Imperceptible but existing differences that may affect the desirability of a product.
hidden differences
 
Assigning a unique name to each product a manufacturer produces.
individual brand
 
The key factors in raising standards of living in low−income countries have been increases in
technology and knowledge.
 
High income countries have​ _________ and​ _________ as compared to developing countries.
high rates of​ savings; high rates of growth
 
One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore
experienced relatively low rates of economic growth is
the failure to fully establish the rule of law.
 
The economic growth model predicts that
GDP per capita of poor countries will grow more rapidly than in rich countries.
 
If there is a change in the ability of a firm to produce a given level of output with a given level of​ inputs, we say
there is a movement along a given
per−worker production function.
 
The purchase by an individual or firm of stock or bonds issued in another country is called
foreign portfolio investment.
 
Which of the following is not one of the three sources of technological​ change?
additional amounts of existing capital
 
Globalization refers to
the process of countries becoming more open to foreign trade and investment.
 
________ is considered a high income​ country, ________ a developing​ country, and​ ________ a
newly industrializing country
United​ States; Somalia; Taiwan
 
Creative destruction means that firms develop new products that replace old products in the​ economy,
thereby encouraging economic growth.
 
A patent grants an inventor exclusive rights to a product for how​ long?
20 years
 
Suppose that in 2018 real GDP grew in Estonia by​ 3% and that the population increased by​ 5%.
Therefore in​ 2018, Estonia experienced
economic​ growth, but not an increase in living standards.
 
Enforcing property rights in an economy will
raise the level of investment.
 
What is human​ capital?
the accumulated knowledge and skills that workers acquire from​ education, training, and their life experiences
 
In the long​ run, ________ differences in economic growth rates result in​ ________ differences in GDP per capita
​small; large
 
An economic growth model
explains changes in real GDP per capita in the long run.
 
Increasing growth rates of GDP per capita and sustaining these growth rates in an economy can
increase standards of living.
 
The term​ "brain drain" refers to
highly educated individuals who leave developing countries for high−income countries.
 
Diminishing marginal returns is illustrated in the​ per-worker production function in the figure by a movement
up along any of the production functions.
 
The purchase or building by a corporation of a facility in a foreign country is called
foreign direct investment.
 
Countries that are more globalized tend to have
higher growth rates in real GDP per capita.
 
Distinguishing characteristics of products effected through unique branding, packaging, distribution,
merchandising, and advertising.
induced differences
 
A distribution strategy based on making the product available to consumers at every possible location
so that the consumers can buy with a minimum of effort.
intensive distribution
 
The initial phase of the product life cycle (also called the pioneering phase) when a new product is introduced, costs are highest, and profits are lowest.
introductory phase
 
Brand names that other companies can buy the right to use.
licensed brands
 
Strategy of identifying groups of people or organizations with certain shared needs and characteristics
within the broad markets for consumer or business products and aggregating these groups into larger
market segments according to their mutual interest in the product's utility.
market segmentation
 
The various efforts and tools companies use to initiate and maintain communication with customers and prospects,
including advertising, personal selling, sales promotion, direct marketing, public relations, and social media.
marketing communications
 
Four elements, called the 4Ps (product, price, place, and promotion), that every company has the option of
adding, subtracting, or modifying in order to create a desired marketing strategy.
marketing mix
 
That point in the product life cycle when the market has become saturated with products, the number of
new customers has dwindled, and competition is most intense.
maturity stage
 
Product brands that are marketed in several regions of the country.
national brands
 
A method of direct distribution in which individuals act as independent distributors for a manufacturer or
private-label marketer.
network marketing
 
North American Industry Classification System (NAICS) codes -Method used by the U.S. Department of
Commerce to classify all businesses. The NAICS codes are based on broad industry groups, subgroups,
and detailed groups of firms in smaller lines of business.
North American Industry Classification System (NAICS) codes
 
Differences between products that are visibly apparent to the consumer.
perceptible differences
 
How and where customers will buy a company's product; either direct or indirect distribution.
place (distribution) element
 
The way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified
or differentiated from the competition, or by its relationship to certain target markets.
position
 
In the marketing mix, the amount charged for the good or service—including deals, discounts, terms, warranties, and so
on. The factors affecting price are market demand, cost of production and distribution, competition, and corporate objectives.
price element
 
Consumer demand for a whole product category.
primary demand
 
The pattern of attitudes and activities that help people reinforce, sustain, or modify their social and self-image.
An understanding of the primary motivation of individuals helps advertisers promote and sell goods and services.
primary motivation
 
Personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands
are typically sold at lower prices in large retail chain stores.
private labels
 
The consumer's perception of a product as a "bundle" of utilitarian and symbolic values that satisfy functional,
social, psychological, and other wants and needs.
product concept
 
The most important element of the marketing mix: the good or service being offered and the values associated
with it—including the way the product is designed and classified, positioned, branded, and packaged.
product element
 
Includes all market-related communications between the seller and the buyer.
product life cycle
 
Includes all market-related communications between the seller and the buyer.
promotion (communication) element
 
The grouping of consumers into market segments on the basis of psychological makeup—values, attitudes,
personality, and lifestyle.
psychographics
 
Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle.
psychographic segmentation
 
Using price as a means of influencing a consumer's behavior or perceptions; for example, using high prices
to reinforce a quality image, or selling at $2.99 instead of $3.00 to make a product appear less expensive.
psychological pricing
 
Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.
pull strategy
 
A method of segmenting markets on the basis ofwhen consumers buy and use a good or service.
purchase occasion
 
Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and
accelerating sales by offering inducements to dealers, retailers, and salespeople.
push strategy
 
Businesses that buy products from manufacturers or wholesalers and then resell the merchandise to consumers or
other buyers; also called middlemen. The most common examples of resellers are retail stores and catalog retailers.
reseller
 
A term in the Values and Lifestyles (VALS) typology relating to the range of psychological, physical, demographic,
and material capacities that consumers can draw upon. The resource axis includes education, income, self-confidence,
health, eagerness to buy, and energy level.
resources
 
A group of independent retailers who establish a central buying organization (a wholesaler) to acquire discounts
from manufacturers and gain economies from joint advertising and promotion efforts.
retail cooperative
 
Consumer demand for the particular advantages of one brand over another.
selective demand
 
Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.
selective distribution
 
The specific group of individuals to whom the advertising message is directed.
target audience
 
The market segment or group within the market segment toward which all marketing activities will be directed.
target market
 
The process by which an advertiser focuses its marketing efforts on a target market.
target marketing
 
The extent to which consumers use a product: light, medium, or heavy.
usage rates
 
Six categories into which consumers can be placed, which reflect varying degrees of loyalty to certain brands and products. The categories are sole users, semisole users, discount users, aware nontriers, trial/rejectors, and repertoire users.
user status
 
A product's ability to satisfy both functional needs and symbolic or psychological wants. A product's problem-solving potential may include form, task, possession, time, or place utility.
utility
 
A system in which the main members of a distribution channel—producer, wholesaler, and retailer—work together
as a cooperative group to meet consumer needs.
vertical marketing system, (VMS)
 
Defining consumers as light, medium, or heavy users of products.
volume segmentation
 
The ability of a product to meet both the psychological or symbolic wants and the functional needs of a buyer is
referred to as the product's
Utility
 
A transaction that occurs when an organization or a person trades something of value with another is referred to as _____.
exchange
 
The steps involved in the market segmentation process.
Joining groups into larger market segments based on their interest in the utility of a product.
Identifying groups of people or organizations with mutual needs and characteristics.
 
In order to present their products, services, and the ideas to buyers in the most effective way possible, advertisers
must comprehend the important relationship between the _____.
product and the marketplace
 
True or false: One of the best ways to segment markets is to group
consumers by purchase behavior.
True
 
According to Stephan and Tanneholz, which consumer category based on
user status should be the primary target for brand advertising?
repertoire users, they are brand switchers and respond to persuasive
advertising
 
Identifying groups of people with shared needs and characteristics and combining these groups into larger market
segments according to their interest in a product's utility are the two steps involved in ______.
market segmentation
 
The primary demand trend identifies the ______.
market potential for a product category
 
The process by which an advertiser focuses its marketing efforts on a target market is known as _______.
target marketing
 
User status, user rate, purchase occasion, and benefits sought are the key variables of ______ segmentation.
behavioristic
 
A group of consumers that the company wishes to appeal to, design products for, and focus its marketing activities
toward is known as a _____.
target market
 
Advertisers and marketers usually attempt to mold their product into a complete product _____ once they define
their target market.
concept
 
The projection of future consumer demand for a product category, based on past demand and other market
influences is the ______.
primary demand trend
 
To establish the content, look, and feel of its advertising, a company will begin the ______ process.
target marketing
 
The market segment or group within the market segment toward which all marketing activities will be directed
is known as the _____ market.
target
 
The most important element of the marketing mix is the good or service being offered and the values associated
with it, including the way the product is designed and classified, positioned, branded, and packaged.
This is known as the
product element
 
The way a consumer perceives the benefits of a product, the way the product is classified or differentiated from
its competition, or the product's relationship to certain target markets refers to its ______.
position
 
A consumer's perception of a product as a combination of utilitarian and symbolic values that meet functional,
social, and psychological wants and needs is referred to as the ______.
product concept
 
The differences between products that are obvious to the consumer are called ______ differences.
perceptible
 
The primary demand trend identifies the ______.
market potential for a product category
 
The fundamental differentiating device for all products is its _____.
brand
 
When creating a marketing mix, marketers usually start with the ______ element.
product
 
The element of the marketing mix that affects a buyer's perception of a brand is known as the _____ element.
price
 
The basic goal of a product positioning strategy is to ______.
own a concept that establishes the product in a customer's mind
 
A manufacturer of cell phone covers has decided to sell its products online, in stores that sell cell phones,
and in freestanding kiosks in shopping malls. This decision is related to which element of the marketing mix?
place
 
Imperceptible but existing differences that may affect the desirability of a product are called ______ differences.
hidden
 
Francine sells her handmade purses directly to customers at craft fairs and on her website. This is a form of ______.
direct distribution
 
The identifying elements of a product, such as its name, words or symbols associated with it, or its design,
that together distinguish the product from its competitors is referred to as the ______.
brand
 
The copywriting themes in a product's packaging or advertisements are known as
copy points
 
In the marketing mix, the amount charged for the good or service, including deals, discounts, terms, and warranties,
refers to the ________ element of the marketing mix.
price
 
The marketing mix element that determines how and where customers will buy a company's product is known as
the _____ element.
place
 
The method used by marketers to sell a product directly to end users or consumers is
direct distribution