Marketing Chapter10

undifferentiated targeting strategy
A strategy in which an organization defines an entire market for a particular product as its target arket, designs a single marketing mix, and directs it at that market.
homogenous market
A market in which a large proportion of customers have similar needs for a product.
heterogeneous market
A market made up of individual or organizaionts with diverse needs for products in a specific product class.
market segmentation
The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs.
market segment
Individuals, groups, or organizations sharing one or more similar charateristics that cause them to have similar product needs.
concentrated targeting strategy
A market sementaion strategy in which an organization targets a single market segment using one marketing mix.
differentiated targeting strategy
A strategy in which an organization targets two or more segments by developing a marketing mix for each segment.
sementation variables
Characteristics of individuals, groups, or organizations used to divide a market into segments.
market density
The number of potential customers within aunit of land area.
geodemographic segmentation
A method of maret segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information.
micromarketing
An approach to market segmentation in which organizations focus precise marketingefforts on very small geographic markets.
benefit segmentation
The division of a market according to benefits that consumers want from the product.
market potential
The total amount of a product that customers will purchase within a specified period at a specific level of industrywide marketing activity.
company sales potential
the maximum percentage of market potential that an individual firm within a n industry can expect to obtain for a specific product.
breakdown approach
Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it.
buildup approach
Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of the geographic areas considered.
product positioning
Creating and maintaining a certain concept of a product in customers minds
sales forecast
The amount of a product a company expects to sell during a specific period at a specified level of marketing activities.
executive judgment
A sales forecasting method based on the intuition of one or more executives.
customer forecasting survey
A survey of customers regarding the quantities of products they intend to buy during a specific period.
sales force forecasting survey
A survey of a firm’s sales force regarding anticipated sales in their territories for a specified period.
expert forecasting survey
Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors.
Delphi technique
A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts.
time series analysis
A forecasting method that uses historical sales data to discover patterns in the firm’s sales over time and generally involves trend, cycle, seasonal, and random factor analyses.
trend analysis
An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
cycle analysis
An analysis of sales figures for a period of three to five years to ascentain whether sales fluctuate in a consistent, periodic manner.
seasonal anlysis
An analysis of daily,weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales.
Random factor analysis
An analysis attempting to attribute erractic sales variations to random, nonrecurrent events.
regression analysis
A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income.
market test
Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts.