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Chapter 5

MGTA02H3 Chapter Notes - Chapter 5: Marketing Mix, Customer Relationship Management, Psychographic


Department
Management (MGT)
Course Code
MGTA02H3
Professor
Bill Mc Conkey
Chapter
5

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Chapter 5: Understanding Marketing: Markets Segmentation and Market Research
Terms:
Marketing: planning and executing the development, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy both buyers’ and sellers’ objectives
Marketing Concept: the idea that the whole firm is directed toward serving present and
potential customers at a profit
Value: relative comparison of a product’s benefits versus its costs
Utility: ability of a product to satisfy a human want or need
Consumer Goods: products purchased by individuals for their personal use
Industrial Goods: products purchased by companies to use directly or indirectly to produce
other products
Service: intangible products, such as time, expertise, or an activity that can be purchased
Marketing Managers: managers responsible for planning and implementing all the marketing-
mix activities that result in the transfer of goods or services to customers
Marketing Plan: a detailed strategy for gearing the marketing mix to meet consumer needs and
wants
Marketing Mix: the combination of product, price, place, and promotion strategies used in
marketing a product
Product: a good, service, or idea that satisfies buyers’ needs and demands
Product Differentiation: the creation of a product or product image that differs enough from
existing products to attract consumers
Price: that part of the marketing mix concerned with choosing the appropriate price for a
product to meet the firm’s profit objectives and buyers’ purchasing objectives
Distribution: that part of the marketing mix concerned with getting products from the producer
to the buyer, including physical transportation and choice of sales outlets
Promotion: techniques for communicating information about products
Target Market: any group of people who have similar wants and needs and
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Market Segmentation: dividing a market into categories according to traits customers have in
common
Geographic Variables: geographical units that may be considered in a segmentation strategy
Demographic Variables: characteristics of populations that may be considered in developing a
segmentation strategy
Psychographic Variables: psychological traits that a group has in common, including motives,
attitudes, activities, interests, and opinions
Product-use Variables: consumer characteristics based on the use of a product, benefits
expected from it, reasons for purchasing it, and loyalty to it
Market Research: the systematic study of what buyers need and flow best to meet those needs
Secondary Data: information already available to market researchers as a result of previous
research by the firm or other agencies
Primary Data: information developed through new research by the firm or its agents
Observation: a market research technique involving viewing or otherwise monitoring consumer
buying patterns
Survey: a market research technique based on questioning a representative sample of
consumers about purchasing attitudes and practices
Focus Group: a market research technique involving a small group of people brought together
and allowed to discuss selected issues in depth
Experimentation: a market research technique in which the reactions of similar people are
compared under different circumstances
Consumer Behaviour: the study of the process by which customers come to purchase and
consume a product or service
Rational Motives: those reasons for purchasing a product that involve a logical evaluation of
product attributes such as cost, quality, and usefulness
Emotional Motives: those reasons for purchasing a product that involve non-objective factors
Industrial Market: businesses that buy goods to be converted into other products that will be
sold to ultimate consumers
Reseller Market: intermediaries like wholesalers and retailers who buy finished products and
resell them
Institutional Market: non-government organizations such as hospitals, churches, and schools
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