Chapter 6 (New Unit) Flashcards
What are markets?
People who have desire/need for products in a product class with the ability, willingness, and authority to buy (must have all requirements).
What are B2C markets?
Household members, end users.
What are B2B markets?
Buy for resale, buy for use in other products, buy for daily operations.
What is market segmentation?
Dividing up market into groups with similar needs. Members share similar characteristics, needs, and design marketing mix to meet needs (smaller group the more tailed marketing mix).
What are the requirements for successful market segmentation?
Market has heterogeneous needs, segments are identifiable and divisible, comparable to one another with respect to estimate sales, potential costs and profits, reachable segment.
What is identify targeting strategy (1st step of target market selection)?
Undifferentiated (single marketing mix, target market has similar needs), concentrated (target single market segment using one marketing mix, know segment well), differentiated (two or more segments unique strategy for all).
What is determine segmentation variables (2nd step of target market segmentation)?
Characteristics used to divide total market into segments (use variables in combination, variables relate to product use and should be measurable).
What are the variables associated with determining segmentation?
Demographic, geographic, psychographic, behavioristic.
What are psychographic variables?
Personality attributes, motives, lifestyles.
What are behaviorist variables?
Volume usage, end use, benefit expectations, brand loyalty, price sensitivity.
What are the B2B Segmentation variables?
Geographic location, type of organization, customer size, product use.
What is develop market segment profiles (3rd step of target market selection)?
Describe similarities within segment, understand which segments are most attractive, product meets needs and serves customer group.
What is evaluate relevant segments (4th step of target market selection)?
Sales estimates (market potential, company sales potential) competitive assessment (how/what are competitors doing with that assessment), cost estimates (satisfy segment without spending too much).
What is select specific target markets (5th step of target market selection)?
If homogenous no market segmentation, if heterogeneous use careful consideration, think long-term, align with goals, potential for issues, needed for successful strategy implementation.
What are the types of sales forecasts?
Executive judgment (intuition of execs, cheap and quick), surveys (questioning about expectations for future purchases), time series analysis (use historical data to look for patterns over time, trend, seasonal, or random factor analysis).
