Ch.

behavioral segmentation Groups consumers based on the benefits they derive from products or services,
their usage rate, their loyalty, and the occasion.
benefit segmentation Groups consumers based on the benefits they derive from products or services.
brand repositioning (rebranding) A strategy in which marketers change a brand’s focus to target new
markets or realign the brand’s core emphasis with changing market preferences.
concentrated (or niche) targeting strategy
A marketing strategy of selecting a single, primary target market and focusing all energies on providing a
product to fit that market’s needs.
demographic segmentation
The grouping of consumers according to easily measured, objective characteristics such as age, gender,
income, and education.
differentiated targeting strategy
A strategy through which a firm targets several market segments with a different offering for each.

geodemographic segmentation
The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle
characteristics.
ideal point
The position at which a particular market segment’s ideal product would lie on a perceptual map.
loyalty segmentation
Strategy of investing in retention and loyalty initiatives to retain the firm’s most profitable customers.
mass customization
The practice of interacting on a one-to-one basis with many people to create custom-made products or
services; providing one-to-one marketing to the masses.
micromarketing (one-to-one) segmentation
A form of segmentation that tailors a product or service to suit an individual customer’s wants or needs.
occasion segmentation
Groups consumers based on when they purchase or consume a product or service.
perceptual map
Displays, in two or more dimensions, the position of products or brands in the consumer’s mind.
positioning
The mental picture that people have about a company and its products or services relative to
competitors.
positioning statement
Expresses how a company wants to be perceived by consumers.

psychographics
This segmentation base delves into how consumers describe themselves; allows people to describe
themselves by using those characteristics that help them choose how they occupy their time (behaviour)
and what underlying psychological reasons determine those choices.
self-concept
The image that persons haveof themselves; a component of psychographics.
self-values
Goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that
refers to overriding desires that drive how a person lives their life.
undifferentiated targeting strategy (mass marketing)
A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to
everyone, with no need to develop separate strategies for different groups.
VALS
A psychological tool developed by Strategic Business Insights that classifies consumers into eight
segments: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.
value proposition
Communicates the customer benefits to be received from a product or service and the reason(s) for
wanting to buy it.

Ch7 definition
big data
Refers to extremely large quantities of data that companies have access to but are unable to handle using
conventional data management and data-mining software.

data mining
The use of statistical analysis tools to search for patterns in data or relationships among variables.

ethnography
An observational method that studies people in their daily lives and activities in their homes, work, and
communities.
experimental research
A type of quantitative research that systematically manipulates one or more variables to determine
which variable has a causal effect on another variable.

focus group
A research technique in which a small group of persons (usually 8 to 12) comes together for an in-depth
discussion about a particular topic, with the conversation guided by a trained moderator using an
unstructured method of inq

hypothesis
A statement or proposition predicting a particular relationship among multiple variables that can be
tested through research.
in-depth interview
A research technique in which trained researchers ask questions, listen to and record the answers, and
then pose additional questions to clarify or expand on a particular issue.

information
Data that has been organized, analyzed, interpreted, and converted into a useful form for decision
makers.

marketing research
A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting
data that can aid decision makers involved in marketing goods, services, or ideas.
observation
A qualitative research method that entails examining purchase and consumption behaviours through
personal or video camera scrutiny.

panel data
A type of quantitative research that involves collecting information from a group of consumers (the
panel) over time; data collected may be from a survey or a record of purchases.

primary data
Data collected to address the specific research needs/questions currently under investigation. Some
primary data collection methods include focus groups, in-depth interviews, and surveys.

qualitative research
Exploratory in nature, qualitative research is more informal. It uses broad, open-ended question
methods, including observation, in-depth interviews, and focus groups, and following social-media sites.

quantitative research
Structured responses that can be statistically tested to confirm insights and hypotheses generated via
qualitative research or secondary data.

scanner data
A type of quantitative research that uses data obtained from scanner readings of UPC codes at checkout
counters.

secondary data
Pieces of information that have been collected prior to the start of the focal project.

business ethics Concerned with distinguishing between right and wrong actions and decisions that might arise in a
business setting.

Consumerism A social movement aimed at protecting consumers from business practices that infringe
upon their rights.
corporate social responsibility (CSR)Refers to the voluntary activities undertaken by a company to
operate in an economically, socially, and environmentally sustainable manner.

ethical climate The set of values within a marketing firm, or in the marketing division of any firm, that
guides decision making and behaviour.
marketing ethics Refers to those ethical problems that are specific to the domain of marketing.
Unethical

Ch. 8
alpha testing
An attempt by the firm to determine whether a product will perform according to its design and whether
it satisfies the need for which it was intended; occurs in the firm’s R&D department.

beta testing
Having potential consumers examine a product prototype in a real-use setting to determine its
functionality, performance, potential problems, and other issues specific to its use.

concepts
Brief written descriptions of a product or service; its technology, working principles, and forms; and what
customer needs it would satisfy.

first movers
Product pioneers that are the first to create a market or product category, making them readily
recognizable to consumers and thus establishing a commanding and early market share lead.
innovators
Those buyers who want to be the first to have the new product or service.

early adopters
The second group of consumers in the diffusion of innovation model, after innovators, to use a product or
service innovation; generally don’t like to take as much risk as innovators.
pioneers
New product introductions that establish a completely new market or radically change both the rules of
competition and consumer preferences in a market; also called breakthroughs.

early majority
A group of consumers in the diffusion of innovation model that represents approximately 34 percent of
the population; members don’t like to take much risk and therefore tend to wait until bugs are worked
out.
laggards
Consumers who like to avoid change and rely on traditional products until they are no longer available.
Ch.11

bait and switch

break-even point The point at which the number of units sold generates just enough revenue to equal the
total costs; at this point, profits are zero
Buy Now Pay Later (BNPL) A payment installment option that lets consumers spread the cost of
purchases over weeks or months.
cash discount Tactic of offering a reduction in the invoice cost if the buyer pays the invoice prior to the
end of the discount period.
competitive parity A firm’s strategy of setting prices that are similar to those of major competitors.
competitor-based pricing method An approach that attempts to reflect how the firm wants consumers to
interpret its products relative to the competitors’ offerings.
competitor orientation A company objective based on the premise that the firm should measure itself
primarily against its competition.
complementary products Products whose demand curves are positively related, such that they rise or fall
together; a percentage increase in demand for one results in a percentage increase in demand for the
other.

contribution per unit Equals the price less the variable cost per unit; variable used to determine the
break-even point in units.
cost-based pricing method Determines the final price to charge by starting with the cost, without
recognizing the role that consumers or competitors’ prices play in the marketplace.
cost of ownership method A value-based method for setting prices that determines the total cost of
owning the product over its useful life.

Coupon Provides a stated discount to consumers on the final selling price of a specific item; the retailer
handles the discount.
cross-price elasticity The percentage change in demand for Product A that occurs in response to a
percentage change in price of Product B.
cumulative quantity discount Pricing tactic that offers a discount based on the amount purchased over a
specified period and usually involves several transactions.
customer orientationPricing orientation that explicitly invokes the concept of customer value and setting
prices to match consumer expectations.
dynamic pricing Refers to the process of charging different prices for goods or services based on the type
of customer; time of the day, week, or even season; and level of demand.

Elastic Refers to a market for a product or service that is price sensitive; that is, relatively small changes
in price will generate fairly large changes in the quantity demanded.
everyday low pricing (EDLP) A strategy companies use to emphasize the continuity of their retail prices
at a level somewhere between the regular, nonsale price and the deep-discount sale prices their
competitors may offer.
grey market Employs irregular but not necessarily illegal methods; generally, it legally circumvents
authorized channels of distribution to sell goods at prices lower than those intended by the
manufacturer.
high/low pricing A pricing strategy that relies on the promotion of sales, during which prices are
temporarily reduced to encourage purchases.
horizontal price fixing Occurs when competitors that produce and sell competing products collude, or
work together, to control prices, effectively taking price out of the decision process for consumers.
improvement value Represents an estimate of how much more (or less) consumers are willing to pay for
a product relative to other comparable products.
Inelastic > 10% Refers to a market for a product or service that is price insensitive; that is, relatively
small changes in price will not generate large changes in the quantity demanded.

leader pricing
Consumer pricing tactic that attempts to build store traffic by aggressively pricing and advertising a
regularly purchased item, often priced at or just above the store’s cost.
listing allowances Fees paid to retailers simply to get new products into stores or to gain more or better
shelf space for their products.
market penetration pricing A pricing strategy of setting the initial price low for the introduction of the
new product or service, with the objective of building sales, market share, and profits quickly.
maximizing profits strategyA mathematical model that captures all the factors required to explain and
predict sales and profits, which should be able to identify the price at which its profits are maximized.
monopolistic competition Occurs when many firms sell closely related but not homogeneous products;
these products may be viewed as substitutes but are not perfect substitutes.
Oligopoly Occurs when only a few firms dominate a market.
predatory pricing A firm’s practice of setting a very low price for one or more of its products with the
intent of driving its competition out of business; illegal under the Competition Act.
price bundling Consumer pricing tactic of selling more than one product for a single, lower price than the
items would cost sold separately; can be used to sell slow-moving items, to encourage customers to stock
up so they won’t purchase competing brands, to encourage trial of a new product, or to provide an
incentive to purchase a less desirable product or service to obtain a more desirable one in the same
bundle.
price lining Consumer market pricing tactic of establishing a price floor and a price ceiling for an entire
line of similar products and then setting a few other price points in between to represent distinct
differences in quality.

price skimming
A strategy of selling a new product or service at a high price that innovators and early adopters are
willing to pay to obtain it; after the high-price market segment becomes saturated and sales begin to slow
down, the firm generally lowers the price to capture (or skim) the next most price-sensitive segment.

Ch.13
category killer (home depot) Offers an extensive assortment in a particular category, so overwhelming
the category that other retailers have difficulty competing.
category specialist Offers a narrow variety but a deep assortment of merchandise.

Omnichannel A strategy that creates a consistent experience for consumers across all distribution
channels.
cooperative (co-op) advertising An agreement between a manufacturer and retailer in which the
manufacturer agrees to defray some advertising costs.
Drugstore A specialty store that concentrates on health and personal grooming merchandise, though
pharmaceuticals may represent more than 60 percent of its sales.

extreme-value retailer ( Dollar shop) A general merchandise discount store found in lower-income urban
or rural areas.
off-price retailer (Winner) A type of retailer that offers an inconsistent assortment of merchandise at
relatively low prices.
retail mix Product (merchandise assortment), pricing, promotion, place, personnel, and presentation
(store design and display) strategies to reach and serve consumers.
share of wallet The percentage of the customer’s purchases made from a particular retailer.
specialty stores (five mental shop)Concentrate on a limited number of complementary merchandise
categories in a relatively small store.

Ch.14
cause-related marketing
Commercial activity in which businesses and charities form a partnership to market an image, product, or
service for their mutual benefit; a type of promotional campaign.
click-through rate (CTR) The number of times a user clicks on an ad divided by the number of
impressions.
click-through tracking Measures how many times users click on banner advertising on websites.
eedback loop Allows the receiver to communicate with the sender and thereby informs the sender
whether the message was received and decoded properly.
gross rating points (GRP) Measure used for various media advertising—print, radio, or television; GRP =
reach × frequency.
integrated marketing communications (IMC) Represents the promotion dimension of the four Ps;
encompasses a variety of communication disciplines—general advertising, personal selling, sales
promotion, public relations, direct marketing, and digital media—in combination to provide clarity,
consistency, and maximum communicative impact.