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Marketing (MKC1200) > Chapter 6 - Done > Flashcards

Chapter 6 - Done Flashcards

1
Q

What is a market?

A

A group of people, who as individuals or as organisations have needs for products in a product class and have the ability, willingness and authority to purchase such products

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2
Q

What is a consumer market?

A

Purchasers and household members who intend to consume or benefit from the purchased products and do not purchase products to make profits

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3
Q

What is a business market?

A

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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4
Q

What is market segmentation?

A

The process of dividing a total market into meaningful groups with relatively small product needs and wants

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5
Q

What is a homogeneous market?

A

A market in which a large proportion of customers are considered to have similar needs and wants

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6
Q

What is a heterogeneous market?

A

Markets made up of individuals or organisations with diverse needs for products in a specific product class

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7
Q

What is a market segment?

A

Individuals, groups or organisations with one or more similar characteristics that cause them to have similar product needs

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8
Q

What are the conditions to be met for market segmentation?

A
  • Customer needs must be heterogeneous
  • Segments must be identifiable and divisible
  • Market segments must be comparable
  • At least one segment needs to be worth it
  • Company must be able to reach a market segment with a given marketing mix
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9
Q

What are segmentation variables?

A

The characteristics of individuals, groups or organisations used to divide a market into segments

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10
Q

What are the four characteristics of variables that are often used in segmentation?

A

Demographic - age, gender, income, education and ethnicity
Geographic - national boundaries, regional districts or even suburban postcode, market density, climate
Psychographic - Motives, lifestyle segments
Behaviouristic - Benefit segmentation

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11
Q

What are some of the variables that can be used to segment business markets?

A

Geographic location
Type of organisation
Customer size
Product use

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12
Q

What is the target market selection process

A
  1. Identify the appropriate targeting strategy
  2. Determine which segmentation variables to choose
  3. Develop market segmentation profiles
  4. Evaluate relevant market segments
  5. Select specific target markets
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13
Q

What are the different targeting strategies?

A

Undifferentiated
Differentiated
Concentrated

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14
Q

What is an undifferentiated targeting strategy?

A

A strategy in which an organisation designs a single marketing mix and directs this strategy at the entire market for a particular product

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15
Q

What is a differentiated targeting strategy?

A

A strategy where an organisation targets two or more segments by developing a marketing mix for each segment

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16
Q

What is a concentrated targeting strategy?

A

A strategy in which an organisation targets a single market segment using one marketing mix for one segment

17
Q

What is mass customisation?

A

Combines the personalisation and flexibility of custom made products at the level of mass production, which offers a lower unit cost

18
Q

What is collaborative customisation?

A

Involves talking to customers to help them recognize what they need, how to fulfill those needs and for the purposes of creating customized products

19
Q

What is adaptive customisation?

A

Offers includes one standard product that are supplemented with a few customization options

20
Q

What is cosmetic customization?

A

Advertises a standard product differently to different market segments

21
Q

What is transparent customization?

A

Provides customized products to individual clients that are produced exclusively for them

22
Q

What does a market profile do?

A

Describes the similarities between potential customers within a segment and looks at the differences between people in segments

23
Q

How does one evaluate a market segment?

A

Using Sales estimates, Competitive assessment, Cost estimates

24
Q

What is market potential?

A

The total amount of a product that customers will purchase within a specified time period at a specific level of industry wide marketing activity

25
Q

What is customer sales?

A

It is the maximum percentage of the market potential that an individual company within an industry can expect to obtain for a specific product

26
Q

What is the breakdown approach to sales potential?

A
  • Marketing manager considers the current market sales as the penetrated market
  • The company’s sales potential is then derived from the general economic forecast and estimate of market potential
27
Q

What is the build-up approach to sales potential?

A
  • Marketing manager begins by estimating how much product a potential buyer in a specific geographic area will buy in a given period
  • Then they will multiply that by the total amount of potential buyers in that area
28
Q

What is competitive assessment?

A

Assessment of the competition within the market

  • How many are there?
  • Strengths and weaknesses?
  • Do they share or does one dominate?
  • Can we go up against the competitors?
  • Is it likely that there will be newbies that come into this market?
29
Q

What are cost estimates?

A

Estimating the costs and therefore assessing whether the endeavour is worth it

30
Q

What is product positioning?

A

Product positioning is creating and maintaining a certain concept of a product in customer’s minds

31
Q

What is perceptual mapping?

A

A product’s position is the result of customers’ perceptions of the product’s attributes relative to those of competing brands

32
Q

How can products be positioned?

A

There are many different bases for positioning that can be adopted by an organisation such as price, quality, specific products and/or attributes

33
Q

What is repositioning?

A

Evaluating the positions of existing products and changing them appropriately if necessary

Marketing (MKC1200) (13 decks)

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