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23 Cards in this Set
- Front
- Back
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what is a market?
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an aggregate of people who, as individuals or as organizations have needs for products in a product class and who have the ability, willingness, and authority to purchase such products
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what are the requirements for being a market
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needs for a product in a product category
ability to buy -must have buying power willingness to buy authority to buy -underaged customers with alcohol/ cigs |
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steps in the target market selection process
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identify the appropriate targeting strategy
determine which segmentation variables to use develop market segment profiles evaluate relevant market segments select specific target markets |
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consumer market
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purchasers and household member who intend to consume or benefit from the purchased products and do not buy products to make profits
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business market
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individuals or groups that purchase a specific kind of product for resale, direct use in producing other products or use in general daily operations
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targeting strategies
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undifferentiated strategy
concentrated strategy differentiated strategy |
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undifferentiated strategy
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a single marketing mix and is directed at the entire market for a particular product
-commodities -staple food items -farm produce take one marketing mix, aim it at everyone who is a part of that market " this marketing mix works for everyone" company must be able to identify a set of needs common to most customer in a total market and have the resources and managerial skills to reach a sizable portion of that market makes the assumption that people's needs are pretty much homogenous homogenous market -a large proportion of customer have similar needs for a product heterogenous market -individual or organizations with diverse needs for products in a specific product class |
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concentrated strategy
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aim a part of the marketing mix at a part of the target market
target a single market segment using one marketing mix |
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differentiated strategy
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multiple marketing mixes are aimed at multiple marketing segments (expansion of concentrated strategy)
target two or more segments by developing a marketing mix for each segment |
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demographic segmentation variables
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age
gender race ethnicity income education occupation family size family life cycle religion social class |
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geographic segmentation variables
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region
urban, suburban, rural city size county size state size market density climate terrain |
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psychographic segmentation variables
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personality attributes
motives lifestyles |
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behavioristic segmentation variables
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volume usage
end usage benefit expectations brand loyalty price sensitivity |
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market segment profile
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describes the similarities among potential customer within a segment
it may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates assess the degree to which their possible products can match or fit potential customers product needs determine which segment or segments are most attractive to the organization relative to the firm's strengths, weaknesses, objectives, and resources |
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sales estimates
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company sales potential
-maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product -market potential places absolute limits on the size of the company's sales potential -magnitude of industrywide marketing activities has an indirect but definite impact on company's sales potential -intensity and effectiveness of company's marketing activities relative to competitors affect the size of the company's sales potential breakdown approach -measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it |
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build up approach
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-measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiply the estimate times the number of buyers, add
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breakdown approach
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-measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
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developing a sales forecasts
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the amount of a product a company expects to sell during a specific period at a specified level of marketing activities
common forecasting techniques fall into five categories: executive judgement surveys time series analysis regression analysis market test |
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executive judgement
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forecasting method based on the intuition of one or more executives
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surveys
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customer forecasting
survey of customers regarding the types and quantities of products they intend to buy during a specific period sales force forecasting survey of firms sales force regarding anticipated sales in their territories for a specified period |
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time series analysis
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uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analysis
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regression analysis
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finds relationship between past sales and one or more independent variables, such as population or income
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market tests
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making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts
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