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14 Cards in this Set
- Front
- Back
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What is market segmentation? |
The process of separating buyers into groups of people that have similar needs and respond similarly to marketing action. |
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What are market segments? |
Relatively homogenous groups of prospective buyers that result from market segmentation. |
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What is product differentiation? |
firm's strategy in using marketing mix activities to help consumer perceive their product as different/better than competing products |
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What are 3 ways to segment a market? |
1) One product & multiple market segments: books, cheaper than producing different products for everyone
2) Multiple products & multiple market segments: shoes, more expensive but satisfies needs better
3) Segments of one: mass customization: makes mass produced goods so affordable that customers are willing to sacrifice preferences and settle for standardized but cheap products |
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What are the 5 steps involved in segmenting target markets? |
1) Group potential buyers into segments 2) Group products to be sold in categories 3) Develop a market-product grid & estimate size of markets 4) Select target markets 5) Take marketing action to reach target markets
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What 5 main criteria should market segments meet? |
1) Potential for increased profit 2) Potential buyers in segment have similar needs 3) Different segments of buyers have different needs 4) Potential for marketing action to reach each segment 5) Simplicity/cost of assigning potential buyers to segments |
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Ways to segment business/consumer markets? |
Demographic Geographic Behavioral (And psychographic for consumers but not businesses) |
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Definition of product positioning/repositioning? |
The place that a product occupies in consumer's minds relative to important attributes and changing that place in their minds when needed. |
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What are 2 approaches to product positioning? |
Head to head positioning: competing directly with competitors in similar products in same target market
Differentiation positioning: seeking less competitive & smaller market niche in which to stress the unique qualities of the product |
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What is a perceptual map? |
Displaying the product in 2 dimensional graph so manager can see how consumers see it compared to competitor's products (chocolate milk example) |
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What are 3 techniques of developing a sales forecast for a company? |
1) judgments of the decision maker 2) surveys of knowledgeable groups 3) statistical methods |
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2 for judgments of the decision maker |
1) direct forecast: estimating value without any intervening steps
2) lost horse forecast: using last known value; modifying it according to positive/negative factors in the future |
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2 for surveys of knowledgeable groups |
1) survey of buyers' intention forecast: asking customers if they are likely to buy product in future
2) salesforce survey forecast: asking firm's salespeople to estimate sales during coming period |
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2 for statistical methods: |
1) trend extrapolation: extending a pattern observed in past data into the future
2) linear trend extrapolation: the pattern is described with a straight line |
