Term
| Target Market Selection Process |
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Definition
1. Identify the appropriate 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
| Undifferentiated Marketing |
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Definition
- appeals to a broad spectrum of people
- efficient due to economies of scale
- effective when most consumers have similar needs
- ex. Wal-Mart "Everyday Low Prices"
- never changes |
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Term
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Definition
- entails focusing efforts on offering one or more products to a single segment
- useful for smaller firms that do not have the resources to serve all markets
* or used to target Niche segment |
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Term
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Definition
- develops one or more products for each of several customer groups with different product needs
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Term
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Definition
| - the place a product occupies in consumers minds relative to the competition |
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Term
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Definition
| What the consumers' minds have derived from the product |
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Term
4 Segmentation Variables
- Consumer Segmentation |
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Definition
1. Demographic Variables
2. Geographic Variables
3. Psychographic Variables
4. Behavioristic Variables |
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Term
| Geodemographic Segmentation |
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Definition
| - Marketing segmentation that clusters people in zip codes and smaller neighborhood units based on lifestyle and demographic information |
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Term
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Definition
| - the number of potential customers within a unit of land area |
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Term
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Definition
| - customer product needs are influenced by climate, terrain, city size, population density, and urban/rural areas |
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Term
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Definition
- personality characteristics
- Motives
- Lifestyles |
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Term
| How do marketers use the personality characteristics, motives and lifestyles of consumers? |
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Definition
- personality characteristics
* marketers appeal to positive/favorable personal characteristics to influence the purchase decision
- motives
* marketers use individuals' differing purchase motives to segment a product market
- lifestyles
* marketers segment markets according to how individuals choose to spend their time in various activities, their income and their education |
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Term
| What Dimensions are used to segment markets? |
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Definition
1. Kind of relationship
2. type of customer
3. demographics
4. how customers will use the product
5. type of buying situation
6. purchasing methods |
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Term
| How is the demension "kind of relationship used"? |
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Definition
1. loyalty
2. reciprocity (exchanging things with others for mutual benefit) |
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Term
| What is the dimension "demographics" based on? |
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Definition
1. size
2. primary business or industry
3. number of facilities
ALSO!
- can be based on sales |
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Term
| What is the "type of buying situation" based on? |
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Definition
1. Decentralized
- buying from others (from plants, manufacturers)
2. Centralized
- local sellers |
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Term
Market and Sales Potential:
Sales Estimates |
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Definition
- Market Potential
- Company Sales Potential |
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Term
Market and Sales Potential:
Competitive Assessment |
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Definition
| - who, how many, how large, and how strong |
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Term
Market and Sales Potential:
Cost Estimates |
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Definition
- the expense of developing a marketing mix
- costs of reaching segment relative to competitors' costs
* is this a good thing for the company to do? |
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Term
| Issues in Selecting a Target Market |
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Definition
1. Do customers' needs differ enough to warrant the use of market segmentation
2. In which market segment(s) should the firm participate?
3. Does the firm have the resources and skills to compete effectively in the target market? |
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Term
| Criteria for Effective Segmentation |
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Definition
1. Measurability
2. Accessibility
3. Substantialness |
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Term
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Definition
| - reflects the degree to which the size and purchasing power of segments can be assessed |
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Term
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Definition
- describes the degree to which a firm can reach intended target segments efficiently
** refers to distribution and promotion |
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Term
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Definition
| refers to the degree to which identified target segments are large enough to have sufficient sales and profit over the long run |
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Term
| Criteria for Effective Segmentation |
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Definition
1. Durability
2. Differential Responsiveness |
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Term
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Definition
- the stability of segments
-- whether distinctions between segments will diminish or disappear as the product category or the markets themselves mature |
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Term
Define:
Differential Responsiveness |
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Definition
| - the extent to which market segments exhibit different responses to different marketing mixes |
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Term
Developing Forecasts:
Qualitative Procedures |
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Definition
1. Survey of Buyers' Intentions
2. Expert Opinions
3. Composite of Sales Forces estimates |
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Term
Developing Forecasts:
Quantitative Methods |
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Definition
1. Trend Analysis
2. Market Tests
3. Statistical Demand Analysis |
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