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| Micromarketing | The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations—includes local marketing and individual marketing | |
| Local marketing | Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores | |
| Individual marketing | Tailoring products and marketing programs to the needs and preferences of individual customers—also labeled one-to-one marketing, customized marketing, and markets-of-one marketing | |
| Segmentation variables | Factors by which market segments are formed, e.g., geographic, demographic, socio-economic, behavioural, and psychographic variables | |
| Geographic segmentation | Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods | |
| Demographics | A catchall term referring to particular variables describing populations, such as age or sex | |
| Age and life-cycle segmentation | Dividing a market into different age and life-cycle group | |
| Gender segmentation | Dividing a market into different groups based on sex | |
| Income segmentation | Dividing a market into different income groups | |
| Behaviouristic segmentation | A method of segmenting a market by dividing customers into groups based on their usage, loyalties, or buying responses to a product or service | |
| Psychographics | The system of measurement of life styles | |
| Psychogenic needs | Needs which arise from learning and socialisation | |
| Behavioral segmentation | Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product | |
| Benefit segmentation | A method of segmenting markets on the basis of the major benefits consumers seek in a product or service | |
| Occasion segmentation | Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item | |
| Intermarket segmentation | Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries | |
| Target market | A set of buyers sharing common needs or characteristics that the company decides to serve | |
| Market targeting | The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter | |
| Differentiated marketing | The strategy of pursuing several market segments with particular products and marketing mixes designed for the needs of each A type of marketing strategy whereby a firm offers products or services to a number of market segments and develops separate marketing strategies for each | |
| Undifferentiated marketing | The process opposite of market segmentation; i.e., marketers define their products as broadly as possible and promote a product or service to anyone capable of making a purchase | |
| Concentrated marketing | The strategy of focusing on a single, easily defined, profitable market segment | |
| Product-oriented positioning | The strategy that rests on some attribute inherent in a product’s makeup, packaging, use, or price | |
| Market positioning | Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers | |
| Product positioning | The proces by wich marketers create and image in buyers’ minds and control buyers’ perceptions of their product | |
| Repositioning | The conscious effort to change consumers’ perceptions of a product – may be in order when marketers discover that a product appeals to other market segments | |
| Consumer oriented positioning | The strategy aimed at getting the consumer to perceive a product in some unique, personally related manner, regardless of the product’s characteristics | |
| Value proposition | The full positioning of a brand—the full mix of benefits upon which it is positioned. | |
| Marketing planning | The process through which an organisation designs the offerings that will satisfy the needs of its target markets | |
| Marketing research | The systematic and objective research for and analysis of information relevant to the identification and solution of any problem in the field of marketing | |
| Marketing plan | A written document that contains the firm’s marketing strategy and tactics | |
| Product life cycle | The product‘s stages of development, which consist of introductory, growth, maturity and decline stage | |
| Demand curve | A curve that specifies the quantities demanded at various prices at a given time | |
| Experience curve | A curve reflecting the fact that the costs of doing something tend to decrease as the organisation gains experience doing it | |
| Fad | A cycle that is different from fashion only in the length of time, which is relatively short | |
| Fashion | A cycle usually starting with a designer‘s need to be different, and his or her sense that the new design will be acceptable to at least a segment of the market | |
| Life cycle extension | The process of finding new uses for the same product by the same users | |
| Market modification | turning non-users to users, entry on new segments, reaching customers of competitors, more frequent and heavier use of product | |
| Product modification | improvement quality, features and style of product | |
| Mix modification | special and volume discounts, credit accessibility, broadening assortment, more outlets, channels, advertising costs, change of message, media, timing, rebates, gifts, display, territories, delivery speed, and servicing | |
| Introductory stage | A stage in a product‘s life in which an innovation is alone in the market | |
| Growth stage | A stage in a product‘s life in which sales and profits grow rapidly, competitors are attracted to the growing market, and cash flow can still be negative because of firm‘s efforts to establish a strong market share ahead of competitors. The market is usually turbulent in this period | |
| Maturity stage | A stage in which sales growth slows, the market becomes saturated, and profits are high but begin to decline as market leaders cut prices in order to gain share | |
| Decline stage | A stage in which total demand decreases, leading to a further drop out of competitors until only a few remain | |
| Alternatives of introductory pricing | slow, and rapid penetration, eventually skimming | |
| Concept testing | A process involving the accumulation and evaluation of consumers‘ reactions to a new product idea before the product is actually developed | |
| Market share analysis | An evaluation of the firm‘s performance in comparison to that of its competitors | |
| Relative market share | A firm‘s market share divided by the market share of its largest competitor | |
| Secular trends | The rising or falling patterns of sales over a period of years | |
| Seasonal patterns | The consistent sales patterns within a year which are based on factors such as weather or holidays | |
| Growth-share matrix | A matrix that explains how market share, market growth, and cash flows are related | |
| Marketing implementation | The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives | |
| Marketing audit | A comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance | |
| Barrier to entry | Conditions that make difficult for a firm to enter the market in a particular industry, such as high advertising budgets | |
| Price | Both the value that buyers place on what is exchanged and the marketers’ estimates of that value | |
| Target costing | Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met | |
| Fixed costs | Costs that do not vary with production or sales level | |
| Variable costs | Costs that vary directly with the level of production | |
| Total costs | The sum of the fixed and variable costs for any given level of production | |
| Experience curve (learning curve) | The drop in the average per-unit production cost that comes with accumulated production experience | |
| Demand curve | A curve that shows the number of units the market will buy in a given time period at different prices that might be charged | |
| Price elasticity | A measure of the sensitivity of demand to changes in price | |
| Total costs approach | An overall examination of the costs involved in moving finished goods from the end of the production line into customers’ hands | |
| Break-even pricing (target profit pricing) | Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit | |
| Value-based pricing | Setting price based on buyers’ perceptions of value rather than on the seller’s cost | |
| Value pricing | Offering just the right combination of quality and good service at a fair price | |
| Competition-based pricing | Setting prices based on the prices that competitors charge for similar products | |
| Equilibrium (market) price | The price at the point where supply equals demand | |
| Basic price | The amount marketers estimate consumers will pay for the core product | |
| List price | The amount at which a product is priced for final buyers, whether individual consumers or organisation | |
| Cross-elasticity of demand | The degree to which the quantity of one product demanded will increase or decrease in response to changes in the prices of another product | |
| Functional accounts | Accounting units which divide expenditures according to their purpose |