Basic Marketing 18E Ch.4 Key Terms

Front 1

• Market:

Back 1

a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services

Front 2

• Generic market:

Back 2

a market with broadly similar needs—and sellers offering various, often diverse, ways of satisfying those needs

Front 3

• Product market:

Back 3

a market with very similar needs and sellers offering various close substitute ways of satisfying those needs

Front 4

• Market segmentation (2 step process)

Back 4

a 2 step process of 1) naming broad product-markets and 2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes

Front 5

• Segmenting:

Back 5

as an aggregating process—clustering people with similar needs into a “market segment”

Front 6

• Market segment:

Back 6

a (relatively) homogenous group of customers who will respond to a marketing mix in a similar way

Front 7

3 basic ways to develop market-oriented strategies in a broad product-market

Back 7

o Single target market approach
o Multiple target market approach
o Combined target market approach

Front 8

o Single target market approach:

Back 8

segmenting the market and picking one of the homogenous segments as the firm’s target market

Front 9

o Multiple target market approach:

Back 9

segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix

Front 10

o Combined target market approach:

Back 10

combining two or more submarkets into one larger target market as a basis for one strategy

Front 11

• Combiners:

Back 11

try to increase the size of their target markets by combining two or more segments

Front 12

• Segmenters:

Back 12

aim at one or more homogenous segments and try to develop a different marketing mix for each segment

Front 13

o Qualifying dimensions:

Back 13

those relevant to including a customer type in a product-market

Front 14

o Determining dimensions:

Back 14

those that actually affect the customer’s purchase of a specific product or brand in a product-market

Front 15

• Clustering techniques:

Back 15

try to find similar patterns within sets of data; groups customers who are similar on their segmenting dimensions into homogenous segments

Front 16

• Customer relationship management (CRM):

Back 16

an approach where the seller fine-tunes the marketing effort with information from a detailed customer database

Front 17

• Positioning:

Back 17

refers to how customers think about proposed or present brands in a market