Term
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Definition
| a group of people who, as individuals or as organizations, have needs for products in a product class and have the ability, willingness, and authority to purchase such products |
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Term
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Definition
| purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits |
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Term
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Definition
| individuals or groups that purhcase a specific kind of product for resale, direct use in producing other products, or use in general daily operartions |
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Term
| Target Market Selection Process |
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Definition
1. Identify the apprpriate targeting strategy
2. Determine which segmentation variables to use
3. Develop market segment profiles
4. Evaluate relevant market segments
5. Select specific target markets |
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Term
| What are the three basic targeting strategies? |
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Definition
| Undifferentiated, concentrated, and differentiated |
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Term
| Undiffertiated Targeting Strategy |
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Definition
| a strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product. (the mix consists of one type of product with little or no variation, one price, one promtional program aimed at everybody, and one distribution system to reach most customers ni the total market.--commodities, sugar, salt, farm produce) |
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Term
| Undifferentiated targeting strategy is effective under what tow conditions? |
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Definition
1. Homogenous market situation-where a large proportion of customers in a total market must have similiar needs for the product. and
2. the organization must be able to develop and maintain a single marketing mix that satisfies customers needs. Must have the resources and managerial skills to reach sizable portion of that market |
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Term
| Concentrated targeting strategy |
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Definition
| a market segmentation strategy in which an organization targets a single market segment using one marketing mix |
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Term
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Definition
| a market made up of individuals or organizations with diverse product needs (part of the concentrated targeting strategy) |
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Term
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Definition
| the process of dividing a total market into groups with relatively similiar needs to design a marketing mix that matches those needs. the purpose is to enable a marketer to design a marketing mix that more precisely matches the needs of customers in the selected market segment |
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Term
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Definition
| individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs |
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Term
| the main rationale for segmenting heterogeneous markets is that .. |
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Definition
| a company is better able to develop a satisfying marketing mix for a relatively small portion of a total market than to develop a mix that meet the needs of all people |
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Term
| for market segmentation to succeed, what 5 conditions must exist? |
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Definition
1. customers needs for the product must be heterogenous
2. segments must be identified and divisible
3. the total market should be divided so segments can be compared with respect to estimated sales potential, costs, and profits
4. at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment
5.the company must be able to reach the chosen segment with a particular marketing mix |
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Term
| differentiated targeting strategy |
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Definition
| a strategy in which an organization targets two or more segments by developing a marketing mix for each segment |
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Term
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Definition
| characteristics of individuals, groups, or organizations used to divide a market into segments |
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Term
| segmentation variables for consumer markets |
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Definition
| Demographic variables, geographic variables, psychographic variables, and behavioristic variables |
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Term
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Definition
| age, gender, race income, education, occupation, family size and life style, region and social class |
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Term
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Definition
| region, urban, suburban, rural, city size, county size, state size, market density, climate, terrain |
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Term
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Definition
| personality attributes, motives, lifestyles |
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Term
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Definition
| volume usage, end use, benefit expectations, brand loyalty, price sensitivity |
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Term
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Definition
| the number of potential customers within a unit of land area (relevant to geographic variables) |
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Term
| geodemographic segmentation |
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Definition
| a method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information (relevant to geographic variables) |
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Term
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Definition
| an approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets (relevant to geographic variables) |
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Term
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Definition
| the division of a market according to benefits that consumers want from the product (relevant to behavioristic variables) |
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Term
| the effectiveness of benefit segmentation depends on what three conditions? |
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Definition
1. the benfits sought must be identifiable,
2. using three benefits, marketers must be able to divide people into recognizable segments, and
3. one or more of the resulting segments must be accesible to the firm;s marketing efforts |
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Term
| variables for segmenting business markets |
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Definition
| geographic location, type of organization, customer size, and product use |
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