Term
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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 |
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Term
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Definition
| a market with broadly similar needs |
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Term
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Definition
| a market with very similar needs and sellers offering various close substitiute wasys of satisfying those needs. Has 4 parts: Product type, Customer needs, Customer types, Geographic Area |
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Term
| Product type (in a Product Market) |
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Definition
| describes the goods and/or services that customers want |
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Term
| Customer needs (in a product market) |
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Definition
| refers to the needs that the product type satisyfies for the customer |
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Term
| Customer type (in a Product Market) |
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Definition
| refers to the final consumer or user of a product type |
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Term
| Geographic area (in a Product Market) |
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Definition
| where a firm competes or plans to compete for customers |
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Term
| Market Segmentation (2 steps) |
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Definition
1. Naming broad product-markets
2. segmenting these broad product-mairkets in order to select target markets and develop suitable marketing mixes |
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Term
| segmenting/market segment |
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Definition
| clustering people with similar needs into a 'market segment' A market segment is a relatively homogenous group of customers who will respond to a marketing mix in a similar way |
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Term
| Characteristics of a "good" market segment |
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Definition
Customers Should Be:
1. Homogeneous within the segments
2. Heterogenous between the segments
Segments Should Be:
3. Substantial, 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
| 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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Term
| multiple target market approach |
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Definition
| segmenting the market and choosing two or more segments, then treating each as a separate target market needing a differnet marketing mix |
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Term
| Combinded target market approach- "Combiners" |
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Definition
| combining two ore more submarkets into one larger target market as a basis for one strategy; may help achieve some economies of scale -attractive for firms with limited resources |
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Term
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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
| Segmenting Dimensions-Qualifying |
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Definition
| those segmenting dimensions relevant to including a customer type in a product-market |
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Term
| Segmenting dimensions-Determining |
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Definition
| Those segmenting dimensions that actually affect the customer's pruchase of a specific product or brand in a product-market |
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Term
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Definition
| these techniqes try to find similar patterns within sets of data |
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Term
| Customer Relationship Management(CRM) |
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Definition
| the seller fine-tunes the marketing effort with information from a detailed customer database |
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Term
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Definition
| how customers think about proposed or present brands in a market |
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