Market fragmentation: the creation of many consumer groups due to a diversity of distinct needs & wants in the modern

society Target marketing strategy: dividing the total market into different segments on the basis of customer characteristics, selecting 1 or more segments, & then developing products to meet the needs of those specific segments Segmentation: the process of dividing a larger market into smaller pieces based on 1 or more meaningful, shared characteristics. Segmentation Variables: dimensions that divide the total market into fairly homogeneous groups, each with different needs & wants. Generation Y: the group of consumers born between 1977-1994 Geodemography: segmentation technique that combines geography with demographics Generation X: group of consumers born between 1965-1976 Baby Boom era: the group of consumers born between 1946-1964 Metrosexual: man who is heterosexual, sensitive, educated urban dweller who is in touch with his feminine side Behavioural segmentation: technique dividing consumers into segments on the basis of how they act towards, feel about, or use a good or service 80/20 rule: marketing rule of thumb that 20% of purchasers account for 80% of a products sales Usage occasions: an indicator used in 1 type of market segmentation based on when consumers use a product most. Target market: a group or groups that a company selects to turn into customers as a result of segmentation & targeting Segmenting profile: a description of the typical customer in a segment Repositioning: modifying a products position to respond to marketplace changes. Br& personality: a distinctive image that captures a goods or servies character & benefits Perceptual map: a vivid way to construct a pircture of where products or br&s are located in consumers mind. Share of customer: % of a customers purchases of a product that is a single br & Lifetime value of a customer: the potential profit generated by a single customers purchases of a companys products over customers lifetime Customer Equity: financial value of a customer relationship throughout the lifetime of the relationship Consumer: the ultimate user of goods, ideas & services. Consumer market: market consisting of all individ. & households who buy or acquire goods/serv for personal consumption Consumer Behaviour: dynamic interaction of affect & cognition, behaviour & the environment, by which the human beings conduct the exchange asprcts of their lives. Consumer decision making process: process of selecting from several choices, products, br&s or ideas. The decision process involves complex cognitive or mental activity, a simple learned response, or an uninvolved & uninformed choice that mey even appear to be stochastic or probabilistic. 1) problem recognition: process that occurs whenever the consumer sees a significant difference b/w his/her current state of affairs & some desired or ideal state; this recognition initiates the decision making process 2)Information Search: the process whereby a consumer searches for appropriate information to make a reasonable decision. 3)evaluation of alternatives: evaluative criteria: dimensions used by consumers to compare competing product alternatives. Heuristics: mental rule of thumb that leads to a speedy decision by simplifying the process eg price=quality, br& loyalty, county of origin. Br& loyalty: pattern of repeat product purchasesd, accompanied by underlying positive attidues towards the br&, that is based on the belief that the br& makes products superior to its competition Customer satisfaction/dissatisfaction: the overall feelinfs or attirute a person has about a product post purchase. Involvement: relative importance of perceived consequences of the purchase to consumers perceived risk: the belief that choice of a product has potentially negative consequences either financial, physical or social. Perception is defined as the process by which people select, organize & interpret information to form a meaningful picture of the world (Kotler 2005). Consumers receive information through sensations & the immediate response of the sensory receptors (eyes, ears, nose, mouth & fingers to light, colour & sound). Motivation is defined as an internal state that drives us to satisfy our needs by activating goal oriented behaviour. Abraham Maslow has developed an influential approach to motivation: a hierarchy of needs that classifies motives based on five levels of importance, where the basic needs are at the bottom of the hierarchy & the higher needs at the top. Maslows approach proposes that before in dividuals progress to higher levels of more complex needs, they must initially meet their needs of the lower level. This then motivates them to achieve their complex needs of the higher level. LEARNING: defined as a change in behaviour caused by information or experience Behavioural learning theories: theories of learning that focus on how consumer behaviour is changed by external events or stimuli. Classical Conditioning: learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially doesnt elicit a response on its own but will cause a similar response over time because of its association with the first stimuli Operant Conditioning: learning that occuers as a reulst of rewards/punishments. Cognitive learning theory: theory of learning that stresses the importance of internal mental processes & that views people as problem solvers who actively use information from the world around them to master their enviro Attitude: learned predisposition to respond favourably or unfavourably to stimuli on the basis of relatively enduring evaluations of ppl, objects & issues: affect, cognition & behaviour Personality: psychological characteristics that consistently influence the way a person responds to situations in his/her enviro. Self Concept: an indivs self image, composed of a mixture of beliefs, observations & feelings about personal attributes. Family life cycle: a means of characterising consumers within a family structure on the basis of the different stages throufh which people pass as they grow older. Lifestyle: the pattern of living htat determines how people choose to spend their time, m1y & energy, & that reflects their values, tastes & preferences. Psychographics: use of psychological, sociological & anthropological factors to construct market segments. Culture: values, beliefs, customs & tastes valued by a group of ppl Subculture: group within a society whose members share a distinctive set of beliefs, characteristics or common experience Social class: overall rank or social st&ing of groups of ppl within a society according to the value assigned to factors: family background, edu, occupation & income. Reference Group: an actual or imaginary individual or group that has a significant effect on an indivs evaluations/aspirations/behaviour. Conformity: change in beliefs or actions as a reaction to real or imagined group pressure Opinion leader: person who is frequently able to influence others attitudes or behaviours by virtue of his or her active interest & expertise in 1/more product categories Gender roles: societys expectations regarding the appropriate attitudes, behaviours & appearance for men & women. C2C: communication & purchases that occur among individ without directly involving the manufacturer/retailer B2B: marketing of those goods/services that busn & orgal customers need to produce other goods/services for resale or to support their operations. B2B markets: group of customers that include manufacturers, wholesalers, retailers, & other orgs. Orgs markets: another name for B2B markets Derived Dem&: dem& for busn or orgal products derived from dem& for consumer goods/services Inelastic Dem&: dem& in which changes in price have little or no effect on the amount dem&ed Joint dem&: dem& for 2+ goods that are used to create a product Producers: individ, or orgs that purchase products for use in the production of other goods/services Resellers: indivs or orgs that buy finished goods for the pupose of reselling, renting or leasing to others to make a profit & to maintain their busn oprtn. Govt mrkts: federal, state & local govts tbat buy goods/services to carry out public objectives & to support their oprtns. Not-for-profit institutions: orgs with charitable, educational, community, & other public service goals that buy goods/services to support their functions & to attract & serve their members. Buy Class: 1 of the 3 classifcations of busn buying situations that characterises the degree of time & effort required to make a decision. Straight Rebuy: buying situation in which busn buyers make routine purchases that require minimal decision making. Modified rebuy: buying situation classification used by busn buyers to categorise a previously made purchase that involves some change & requires limited decision making. New task buy: a new B2B purchase that is complex or risky & that requires extensive decision making. Buying centre: group of ppl in an org who participate in a purchasing decision. Just in time: inventory management & purchasing processes that manufacturers & resellers use to reduce inventory to very low levels & ensure that deliveries from suppliers arrive only when needed. Single sourcing: busn practice of buying a particular product from only 1 supplier. Multiple sourcing: busn practice of buying a particular product from many suppliers. Reciprocity: trading partnership in which 2 companies agree to buy from 1 another Outsourcing: busn buying process of obtaining outside vendors to provide goods/services that otherwise might be supplied in house. Reverse marketing: a busn practice in which a buyer firm attempts to identify suppliers who will produce products according to the buyer firms specifi cations. Misleading or deceptive conduct: conduct capable of misleading the public at large or an identifiable section of it, determined by an objective test of a reasonable person. False representation: a representation that isnt correct, even if the person making it believes it to be true Ethics: relates to morals, the treatments of moral questions, & behaving in a morally correct & honourable way. Ethical considerations: going beyond self interest in reaching a decision. Ethical judgment: judgement that can be seen to apply to every1 in similar circumstances & not only to a particular indiv. TRADE PRACTICES ACT prohibits unfair practices Orgal integrity: bsed on the self reg of an org in accordance with a formal set of guiding principles. Code of ethics/code of conduct: voluntary & self regulatory framework that involves acting in a morally correct & honourable way by isnt enforceable in court. Patent: exclusive right granted by the Crown for any device, substance, method or process that is new, inventive & useful Design: relates to overall appearance or visual features of a product passing off: tort action aimed at preventing financial loss arising from a defendants representation that goods/services are those of the plaintiff Trademark: legal term for a br& name, br& mark, or trade character; trademarks legally registered by a govt obtain protection for exclusive use in that county Copyright: legal protection for the form or way an idea or info is expressed by a writer, composer, artist, or other creative indiv, but not the idea or the info itself Packaging & labelling: process of putting a good in a container & labelling it to protect, promote, transport &/or identify a product. Negligence: tort brought by a plaintiff against defendant for damage suffered as a result of the defendants breac h of duty of care. Anti-competitive agreements: contracts, arrangements or underst&ings that restrict dealings or affect competition. Resale price maintenance: setting of a minimum price by a corporation below which it goods/services cannot be sold. Self reg: reg of an industry by industry itself law of torts: a civil wrong, proof being based on the balance of probabilities Advertising Federation Australia: represents companies in advertising & marketing communications. Advertising St&ards bureau: manages a national system od slf-reg of advertising through the Advertising St&ards Board & the Advertising Claims Board. Advertising St&ard Board: has as its principal objective the maintenance of st&ards of taste & decency in advertising in the context of prevailing community st&ards Advertising Claims Board: provides a system of alternative dispute resolution to litigation in relation to advertising. Injurious falsehood: involves false + harmful suggestion concerning the quality of a persons goods or services. Ambush Marketing: marketing of goods/services in a manner that gives an indiv or a busn the appearance of being officially associated with an event when it isnt Ethics in marketing mix: make product safe, price fairly, promote ethically, making product available ethically, social response, addressing social & community issues Unsafe product: product that is likey to cause injury/death due to failure to function in the way claimed by the manu/supplier, waulity below that claimed by manu/supplier, inadequate instructions for use, or not including instructions for use. Social responsibility: management practice in which orgs seek to engage in activities that have a positive effect on society & promote the public good Cause marketing: a cooperative effort between a corporation & a not for profit org to deal with a social problem societal marketing: holds that companies should undertake all marketing actions with the best interests of society & consumers, & the consumers, & the companys long term viability, as key objectives. Social marketing: using commercial marketing activities, institutions & processes to bring about behavioural change in a targeted audience, either temporarily or permanently, in order to achieve a social goal.

Business planning: an ongoing process of making decisions that guide the company in the short term & for the long haul. Business plan: a plan including decisions guiding the entire org Marketing plan: doc that describes & outlines the marketing enviro, & identifies who will be responsible for carrying out each part of the marketing strtgy Strategic planning: managerial decision process that matches an orgs resources & capabilities to its market opportunities for long term growth & survival: Define missions, evaluate internal & external enviro, est org or SBU objectives, establish portfolio SMART criteria: objectives that are smart, measurable, attainable & realistic & timeframe Functional planning: decision process that concentrates on developing detailed plans for strategies & tactics for the short term that support & orgs long term strategic plan.: perform SWOT, set mktg objectives dev mktg strategies, monitor & control mktg strategies Operational planning: decision process focusing on developing detailed plans for day2day activities that carry out an orgs functional plans: dev action plans to implement the mktg plan, use mktg metrics to monitor how plan is working Strategic Business Units: individual unites within the company that operate like separate budinesses, with each having its own mission, busn obj., resources, managers & competitors Strategic planning process: 1) define the mission mission statement: formal statement in an orgs strategic plan describing the overall purpose of the or g & what it intends to achieve in terms of its customers, products & resources eg: to exp& & promote Aus greatest motorsport category, V8 Supercars, & to ensure that our teams continue to excel on the track & provide a competitive & entertaining Championship Series for our competitors, sponsors & fans! 2)evaluate internal & external enviro internal enviro: controllable elements inside an ord, inc its people, its facilities, & how it does things that influence its operations external enviro: uncontrollable elements outside an org that may affect its performance either +vely or vely. SWOT analysis: an analy of an orgs strengths, weaknesses & the opportunities & threats in its internal & external enviro PEST analysis: analysis of the political, economic, sociocultural & technological external environmental factors that can affect an org political: stability of gov, is gov fav towards busn? Economic: interest rate going up or down? Is economy growing? Sociocultural: is the society class based? Current social trends! Technological .3) set organisational SBU objectives Business portfolio: the group of different products or br&s owned by an organisation & characterised by different income generating & growth capabilities. Portfolio analysis: a management tool evaluating a companys busn mix & assessing the potential of its SBU BCG growth market share matrix: portfolio analysis model dev by Boston Consulting Group that assesses the potential of successful products to generate cash that the company can use to invest in new products. Stars: SBUS eith products that have dominant market share in high growth markets. Generate large revenues, but require a lot of fuunding to keep up with production & promotion dem&s. Cash cows: have dominant markets share in a low groeth potential market. Isnt much opportunity for new comps, competitors dont enter into marker. SBU is well established, enjoys a high market share that comp can sustain with minimal funding. Question marks: aka problem children. SBUs with low market share in fast growth markets. It could either be success or failure. Busn could be performing badl as sbu;s offer fewer benefits than competing products, prices too high, distribution ineffective, promotion weak. Dogs: small share of a slow growth market. Businesses offering specialised products in limited markets that arent likely to grow quickly. 5) develop growth strategies: market penetration strategies: increase sales of existing products to existing markets, market development strategies: introduce existing products to new markets, reaching to new customer segments eithin an existing geographic market,or exp&ing into new geographic areas. Product development strategies: create growth by selling new products in existing matkets. Corporate Culture: set of values, norms & beliefs that influence the behaviour of every1 in the organisation. Business cycle: overall patterns of change in the economy incljuding periods of prosperity, recession, depression & recovery, affecting consumer & busn purch power. Competitive intelligence: the process of gathering & analysing publicly available information about rivals discretionary income: the portion of income people have left over after paying for necessities ie housing, utilities, food & clothing product completion: when companies offering different products compete to satisfy the same consumer needs & wants. Br& competition: when companies offering similar goods/services compete on the basis of their br&s reputation or perceived benefits. Monopoly: market situation when 1 company, the only supplier og particular product is able to control the price, quality & supply of that product. Oligopoly: a market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers. Monopolistic competition: a market structure in which many companies, each having slightly different products, offer unique consumer benefits Perfect competition: a market structure where many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price or supply of a product. Demographics: population, including size, age, gender, ethnic group, income, education, occupation & fam strcutre. Control: process that entails measuring actual performance, comparing this performance to the established marketing objectives, & then making adjustments to the strategies or objectives on the basis of this analysis. Marketing information system: process determining what info marketing managers need, & then gathers, sorts ,analyses, stores & distributes relevant & timelt marketing info to system users. Intranet: an internal corporate communication netwro that uses internet technology to link company departments, employees, & database. Marketing intelligence system: method by which, marketers obtain information about everyday happenings in mktg enviro. Scenarios: possible future situations that futurists use to access the likely impact of alternative mktg strategies. Marketing research: process of collecting, analysing & interpreting data about customers, sompetitors & busn enviro to improve mktg effectiveness. Syndicated research: research by firms that collect data on a regular basis & sell the reports to multiple companies. Custom research: research conducted for a single company to provide specific info for its managers need marketing decision support system: data, analysis software & interactive software theat enable managers to conduct analysies & to find the onfo they need. Data mining: sophisticated analysis techniques to take advantage of the massive amt of transaction info now available.. has 4 important applications for marketers: customer acquisition, customer retention & loyalty, customer ab&onment, market basket anal. Research design: plan specifying what info marketers will collect & what type of study they will undertake. Secondart data: data have been collected for some purpose other than problem at &. Obtain reports published in the popular & busn press,etc! Primary data: data from research conducted to help in making a specific decision. Exploratory research: a technique used to generate insights for futures, more rigorous studies ,typically uses qualitative data collected by individual interviews, focus groups or observational methods i.e. ethnography. Focus group: product oriented discussion among a small group of consumers led by a trained moderator. Projective techniques: tests used to explore ppls underlying feelings about a products; esp appropriate when cosnuemrs are unable or unwilling to express theur true reactions case study: comprehensive examination of a particular company or org. Ethnography: detailed report based on observations of people in their own homes or communities. Descriptive research: tool that probes more systemativally inro the problem & bases its conclusions on large no# of observations. Cross sectional design: type of descriptive technique involving systematic collection of quantitative info Longitudinal design: technique that tracks the responses of the same sample of respondents over time. Causal research: technique that attempts to underst& the cause&effect relationship. Experiments: techniques that test pre-specified relationships among variables in a controlled enviro. Telemarketing: use of teleph1 to sell directly to consumers & busn customers. Validity: extent to which research actually measures what it was intended to measure reliability: extent to which research measurement techniques are free of errors representativeness: extent to which consumers in a study are similar to a larger group in which the org has an interest. Sampling: the process of selecting respondents who statistically represent a larger population of interest Probability sample: sample in which each member of the population has some known chance of being included. Non-probability sample: sample in which personal judgment is used selecting respondents back translation: process of translating material into a foreign language anf then back into the original language . Single source data: info that is integrated from large consumer panels comprised of ppl who agree to participate in ongoing research. Cookies: text files inserted by a website sponsor into a web surfers hard drive that allow the site to track the surfers movies. CASE STUDY Packaging Evolvement: the cow called mort, her picture has evolved over time, where 1st she had wrinkles all over her face & a different
attire. By simply changing her look by applying face cream, she looks much better. By removing her fine lines & wrinkles, she has had a change. Her spots were 1st grey & hve changed to black that gives a brighter attribute. Furthermore, in her recent picture, it seems she has put on some weight which implies the health benefits of the straw. Her happy look also reveals she is starting to feel more happy! HEALTH BENEFITS Inside each straw youll see tiny beads made of tapioca a natural starch also known as sago from the cassava, or

yucca plant specially chosen because its the least allergenic. These little guys are coated in delicious flavour powder with less than a teaspoon of sugar in each straw. As you sip, the beads release their flavor into the milk. & thats what puts the ahh! in every Sipahh. STATS: Surveys have shown that an alarming 80% of Australian children aged 2-18 are not getting the recommended daily intake of 3 serves of milk products they need. This is exactly why Sipahh was invented by a caring Aussie Dad wanting to keep his kids happy as well as healthy. Sipahh milk flavouring straws are the perfect way for all Mums & Dads to encourage their kids to enjoy more milk with less sugar everyday. Chapter1 marketing is an orgal function & a set of processes for creating, communicating & delivering value to customers, & for managing customer relationships in ways that benefit the org & its stakeholders. Marketing is all about delivering value to every1 whose affected by a transaction. Some companies are very marketing oriented, whilst others arent! Marketing however, is becoming increasingly integrated with other busn functions. Marketers decisions affect & are affected by the companys other operations. Marketers must work together with other executives. Orgs that seek to ensure their long term profitability by identifying & satisfying customers needs & wants have adopted the marketing concept. Any good can be marketed; service or idea that can be marketed is a product, even though what is being sold may not take a physical form. Consumer goods are tangible products that consumers buy for personal/family use. Services are intangible products that we pay for & use & never own. Industrial goods are goods sold to busnes & other orgs for further processing or for use in their busn operations. Not for profit orgs, ideas, places & people can also be marketed. Value is the benefits a customer receives from buying a product or service. Marketing communicates these benefits as the value proposition to customers. The value proposition includes a bundle of benefits the product promises to deliver, not just the benefits of the product itself. Sellers determine value by assessing whether their transactions are profitable, whether theyre providing value to stakeholders by creating a competitive advantage, & whether theyre providing value through their value chain. Society receives value from marketing activities when producers & consumers engage in ethical, profitable & environmentally friendly exchange relationships. The strategic process of marketing planning begins with assessments of factors within the organization & in the external environment that could help or hinder the development & marketing of products. On the basis of this analysis, marketers set objectives & develop strategies. Many companies use a target marketing strategy in which they divide the overall market into segments & then target the most attractive 1. They then design the marketing mix to gain a competitive position in the target market. The marketing mix comprises product, price, place & promotion. The product is what satisfies customer needs. The price is the assigned value or amount to be exchanged for the product. The place or channel of distribution gets the product to the custome r. Promotion is the orgs efforts to persuade customers to buy the product. Early in the 20 th century, companies followed a production orientation in which they focussed on the most efficient ways to produce & distribute product s. In the 1930s, some companies adopted a selling orientation that encouraged salespeople to sell products aggressively to customers. In the 1960s, orgs adopted a consumer orientation that focused on customer satisfaction. This led to the development of the marketing concept. Many companies are now moving towards a new millennium orientation that includes not only a commitment to quality & value, but also a concern for both economic & social profit.