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Definition
| A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services - that is, ways of satisfying those needs. |
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| A market with broadly similar needs - and sellers offering various, often diverse, ways of satisfying those needs. |
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| A market with very similar needs and sellers offering various close substitute ways of satifying those needs. |
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Definition
| A two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes. |
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Definition
| An aggregating process - clustering people with similar needs into a "market segment." |
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| A (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way. |
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| Single Target Market Approach |
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Definition
| Segmenting the market and picking one of the homogeneous segments as the firm's target market. |
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| Multiple Target Market Approach |
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Definition
| Segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix. |
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| Combined Target Market Approach |
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Definition
| Combining two or more submarkets into one larger target market as a basis for one strategy. |
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Definition
| Try to increase the size of their target markets by combining two or more segments. Combiners look at various submarkets for similarities rather than differences. |
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Definition
| Aim at one or more homogeneous segments and try to develop a different marketing mix for each segment. |
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Term
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Definition
| Dimensions that are relevant to including a customer type in a product-market. |
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Definition
| Dimensions that actually affect the customer's purchase of a specific product or brand in a product-market. |
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Definition
| Try to find similar patterns within sets of data. Clustering groups customers who are similar on their segmenting dimensions into homogeneous segments. |
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Definition
| Refers to how customers think about proposed or present brands in a market. |
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Term
| What are the two basic types of markets? |
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Definition
| Generic and product-market |
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| How broad of a market should be considered? |
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Definition
| Bigger than the firm's present product-market - but not so big that the firm couldn't expand and be an important competitor. |
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Term
| How should a market be defined? |
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Definition
| Try to match opportunities to a firm's resources and objectives. |
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Term
| What are the 4 parts of a product-market description? |
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Definition
What: Product type
To meet what: Customer (user) needs
For whom: Customer types
Where: Geographic area |
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Term
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Definition
| A visual representation of a product-market and sub-markets. A broad product-market is a rectangle with smaller, more homogeneous sub-markets represented as boxes inside the rectangle. |
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Term
| What is some criteria for segmenting a broad-product market? |
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Definition
(1) Homogeneous (similar) within - the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.
(2) Heterogeneous (different) between - the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.
(3) Substantial - the segment should be big enough to be profitable.
(4) Operational - the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables. |
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Term
| What are the 3 basic ways to develop market-oriented strategies in a broad product-market? |
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Definition
(1) Single target market approach
(2) Multiple target market approach
(3) Combined target market approach |
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| What are potential target market dimensions? |
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Definition
(1) Behavioral needs, attitudes, and how present and potential goods and services fit into customers' consumption patterns.
(2) Urgency to get need satisfied and desire and willingness to seek information, compare, and shop.
(3) Geographic location and other demographic characteristics of potential customers. |
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Term
| What is the effect of the behaviorial needs dimension on strategy decision areas? |
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Definition
| Affects Product (features, packaging, product line assortment, branding) and Promotion (what potential customers need and want to know about the firm's offering, and what appeals should be used). |
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Term
| What is the effect of urgency dimension on strategy decision areas? |
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Definition
| Affects Place (how directly products are distributed from product to consumer, how extensively they are made available, and the level of service needed) and Price (how much potential customers are willing to pay). |
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Term
| What is the effect of geographic/demographic characteristics on strategy decision areas? |
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Definition
| Affects size of Target Markets (economic potential), Place (where products should be made available), and Promotion (where and to whom to target with advertising, publicity, sales promotion, and personal selling). |
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Term
| What are some possible segmenting dimensions for consumer markets? |
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Definition
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| What are some possible segmenting dimensions for business/organizational markets? |
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Definition
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Term
| What is perceptual mapping? |
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Definition
A positioning technique. Plotting customers judgement or perceptions of different brands based on two or three product features.
Circles on graph show different sets (submarkets) of consumers clustered near their ideal brand or product preference.
A product-oriented approach, not a segmenting approach. |
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Term
| What is a positioning statement? |
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Definition
| A postioning statement concisely identifies the firm's deisred target market, product type, primary benefit or point of differentiation, and the main reasons a buyer should believe the firm's claims. |
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