test 2 Flashcards
What is a Market?
A market includes people who have a desire, willingness, ability, and authority to buy a particular product
Consumer market
Includes of purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit
A business market
consists of individuals or groups that purchase a specific kind of product for one of three purposes: 1. resale, 2 direct use in producing other products, 3. use in general daily operations
Target market selection process: Step 1 - identify appropriate targeting strategy
Three basic target strategies: undifferientiated, concentrated, differentiated
undifferentiated targeting strategy
A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product
concentrated targeting strategy
An organization targets a single market segment using one marketing mix. (bic vs Mont Blanc)
Differentiated strategy
An orgaizaion targets two or more segments by developing into a marketing mix for each segement (Enterprise rent a motorcycle)
What are the steps in the target market selection process?
Identify the appropriate targeting strategy
Determine which segmentation variables to use
develop market segment profiles
Evaluate relevant market segments
Select specific target markets
What is market segmentation
The process of dividing a total market into groups with relatively similar product needs.
Level of involvement
An individuals degree of interest in a product and the importance of thee product for that person
Three types of consumer problem solving
Rutinized reponse behavior, limited decision making, extended decision making
Routinized response behavior
A consumer decision making process that involves very low levels of planning and thinking (soda and chips to buy)
Limited decision making
This happens when buyers only buy the products occasionally, or when they are unfamiliar with the brand that they are buying
exteneded decision making
These are products like a car, a home, or college education
Framing
describing the alternative and why the consumer should purchase the alternative
The four business market categories
producer markets, reseller markets, government markets, institutional markets
Producer markets
These are markets with products that are used to help make other products that will sell to make money
Reseller markets
These are companies that buy finished goods and resell them for a profit
government markets
These are government markets, dumb dumb
Institutional markets
Organizations with charitable, educational, community, or other nonbusiness goals
New task purchase
An organizations initial purchase of an item to be used to perform a new job or solve a new probem
Straight rebuy purchase
A routine purchase of the same products under approximately the same terms of sale by a business buyer
Modified rebuy purchase
A new task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
Derived demand
Demand for business products that stems from demand for consumer products
Inelastic demand
Demand that is not altered by price
Buying center
The people within an organization who make business purchase decisions
Embargo
A governments suspension of trade in a particular product or with a given country
