1. 02 Vocabulary



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1.02 Vocabulary:


Market

Mass market

Market segment

Marketing mix

Product

Place

Price

Promotion

Goals

Strategies

Tactics

Target market

Direct distribution

Indirect distribution

Wholesalers

Retailers

Agents

Intermediaries/middlemen

Market Segmentation

Demographics Segmentation

Psychographics Segmentation

Geographics Segmentation

Behavioral Segmentation



Vocabulary Definitions


Market is a group of potential customers.
Mass Market is when the group is considered as a whole with all the marketing activities; using a single marketing plan. For example, chewing gum would be marketed as a mass market.
Market segment is a subgroup of a larger market that share one or more characteristics.
Market Segmentation is the process of dividing a larger market into smaller parts.
Demographics Segmentation is statistics that describe a population by personal characteristics such as age, gender, income, marital status, ethnicity, education, & occupation.
Geographics Segmentation is markets divided by where the customer lives.
Psychographic Segmentation is markets divided by social and psychological characteristics. (Lifestyles, morals, values, & interests)
Behavioral Segmentation is segmenting a market base on the way customers use a product or behave toward a product. (product benefits)
Marketing mix includes four basic strategies called the 4 P’s or elements of marketing. For each strategy, decisions have to be made for each product the business offers to best reach their target market.
Product decisions include what to make or obtain as the business’s product mix. Level of quality, features, branding, packaging, service, and warranty are items to decide and develop for each product.
Place decisions include where the customer can obtain the products. Many businesses utilize multiple channels of distribution. For example, store locations, website, and catalogs are the standard for most retailers today. Decisions of direct distribution or indirect distribution (intermediaries/middlemen) must be made.
Price decisions include determining what a customer is willing to pay, what competition is charging, determining seasonal discounts and allowances, and credit terms.
Promotion decisions include the promotional mix (advertising, sales promotion, selling, and publicity). These decisions are based on the budget a business sets for the promotional mix.
Goals are objectives set to achieve a specified purpose that should have measurability and a deadline established. (Stated achievement)
Strategies are plans of action used to achieve the goals. (What to do)
Tactics are specific actions for carrying out strategies and ultimately the goal. (How to do it)
Target Markets are identified segments of the market that a business wants to have as their customers. For example, teenagers, mothers-to-be, single mothers, American Family, men .vs. women, or college freshman. Each example has wants and needs that can be targeted and utilized to develop effective strategies to reach existing and/or potential customers.
Direct distribution is when a product/service goes from the manufacturer directly to the consumer. For example, doctors, hair stylist, nail stylist, massage therapist, fresh produce stand on the farmland.
Indirect distribution is when a product/service goes through an intermediary or middlemen.
Intermediary/middlemen are wholesalers, agents, or retailers.
Wholesalers buy products from the manufacturer taking ownership and then reselling to other wholesalers or retailers.
Agents do not take ownership but instead represent a business and assist in the sales transaction. For example, real estate agents or insurance agents represent the company.
Retailers buy their products from manufacturers or wholesalers and sell directly to the consumer. For example, Target, Belks, Macys, or Kohls are retailers.


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