marketing 311 Evans/Berman Ch 10

market
all possible consumers for a good or service
What are the phases of developing a target market strategy?
1. Analyzing consumer demand
2. Targeting the market
3. Develop a marketing strategy
undifferentiated marketing (mass marketing)
targeting the whole market with a single strategy; designed to have mass appeal
concentrated marketing
tailoring one well-defined market segmented with one tailored marketing strategy
differentiated marketing (multiple segmentation)
targeting two or more well-defined market segments with a strategy tailored to each segment
What are the three targeting approaches?
undifferentiated, concentrated, differentiated marketing
What are the seven steps in planning a market strategy?
1. determine demand patterns
2. establish possible bases of segmentation
3. indentify possible market segments
4. choose a target market approach
5. select the target market
6. position to the company’s offering in relation to the competition
7. outline the appropriate marketing mixes
demand patterns
patterns that indicate the unformity or diversity of consumer needs & desires for particular categories of goods/services
clustered demand
consumer needs & desires can be divided into two or more clusters (segments) each having distinct purchasing criteria (most often encountered)
diffused demand
consumer needs & desires are so diverse that clear clusters cannot be defined
geographic demographics
basic identifiable characteristics of towns, cities, etc.
personal demographics
basic identifiable characteristics of individual final consumers and organizational consumers
heavy half
a consumer group that aqccounts for a large proportion of a good/service sales relative to the size of the market
benefit segmentation
groups consumers based on thier reasons for using products
VALS and Social Styles model
describe market segments in terms of a broad range of factors
majority fallacy
the fallacy that pursuing the largest segment is the best option
sales forecast
predicts company sales over a specified period
jury of executive (expert) opinion
has informed people estimate sales
chain-ratio method
a firm starts with general market information and then computes more specific information
market buildup method
a firm gathers data from small, separate segments and then combines the data
sales penetration
the degree to which a firm is meeting its sales potential
diminishing returns
where the cost of attracting new consumers may outweigh the revenues
What are the 5 requirements for good segmentation?
1. measure segment needs
2. making segments homogeneous
3. differences between segments
4. enough people in the segment to be profitable
5. reachable
What are the 5 methods of sales forecasting?
1. simple trend analysis
2. jury of executives
3. sales force surveys
4. consumer surveys
5. test market