Ch 5 Marketing Research And Targets

Front 1

consumer markets

Back 1

purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits. (B-2-C) business-to-consumer markets

Front 2

business market

Back 2

individuals or groups that purchase a specific kind of product for one of three purposes: 1. resale, 2. direct us in producing other products, or use in general daily operations. (B-2-B) business-to-business, industrial or organizational markets

Front 3

undifferentiated targeting strategy

Back 3

a strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product.

Front 4

5 steps in the Target Market Process

Back 4

1. identify the appropriate targeting strategy

2. determine which segmentation variables to use.

3. develop market segment profiles

4. evaluate relevant market segments

5. select specific target markets

Front 5

homogeneous market

Back 5

a market in which a large proportion of customers have similar needs for a product.

Front 6

heterogeneous market

Back 6

a market made up of individuals or organizations with diverse needs for products in a specific product class.

i.e - automobile industry because it has diverse needs for products in that product class cars.

Front 7

market segmentation

Back 7

the process of dividing a total market into groups, or segments, that consist of people organizations with relatively similar product needs.

Front 8

what is the purpose for market segmentation?

Back 8

the purpose is to enable a marketer to design a marketing mix that more precisely matches the needs of customers in the selected market segment.

Front 9

market segment

Back 9

consists of individuals, groups, or organizations that share one or more similar characteristics that cause them to have relatively similar product needs.

Front 10

price sensitive, bargain, functional, and fashionable needs

Back 10

segmenting the jean market based on customer needs

Front 11

For market segmentation to succeed, which 5 conditions must exist?

Back 11

1. customers' needs for the products must be heterogeneous, otherwise there is no reason to waste resources segmenting the market.

2. segments must be identifiable and divisible.

3. the marketer must be able to compare the different market segments with respect to estimated sales potential, costs, and profits.

4. at least one segment must have enough profit potential to justify developing & maintaining a special marketing mix.

Front 12

concentrated targeting strategy

Back 12

a market segmentation strategy in which an organization targets a single market segment using one marketing mix.

allows firms to specialize. i.e mont blanc vs. bic pens

Front 13

Differentiated targeting strategy

Back 13

a strategy in which an organization targets two or more segments by developing a marketing mix for each segment.

Front 14

segmentation variables

Back 14

are the characteristics of individuals, groups or organizations used to divide a market into segments.

Front 15

Segmentation variables can be grouped into four major categories.... What are the four groups?

Back 15

1. demographic

2. geographic

3. psychographic

4. behavioristic

Front 16

What are some demographic segmentation variables?

Back 16

age, gender, race & ethnicity, income, marital status, education, occupation, religion, social class, family size, family life cycle

Front 17

what is the family life cycle?

Back 17

the factors that influence house-hold income and product needs are marital status and the presence and age of children, these characteristics often combined are called the family life cycle

Front 18

What are geographic variables?

Back 18

climate, terrain, city size, population density, and urban/rural area

Front 19

why are consumers needs influenced geographically?

Back 19

because difference in location, climate, and terrain, influence consumer's needs.`

Front 20

market density

Back 20

refers to the number of potential customers within a unit of land area, such as a square mile.

Front 21

why is it that although market density relates generally to population density, the correlation isn't always exact?

Back 21

in two different geographic markets of approximately the equal size and population, market density for office supplies would be much higher in an area containing a large number of business customers, such as a downtown area vs. a suburb.

Front 22

geodemographic segmentation

Back 22

a method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information.

Front 23

how is targeting consumers via geodemographic segmentation effective?

Back 23

its effective because people choose to live in an area that shares their basic lifestyle and political beliefs which help marketers to market to their specific needs.

Front 24

micromarketing variable(s)

Back 24

involves focusing precise marketing efforts on very small geographic markets, such as communities and even individual neighborhoods.

Front 25

What are some psychographic variables?

Back 25

personality characteristics, motives, and lifestyles (to segment markets)

Front 26

why is segmenting a market by its consumers personality traits risky?

Back 26

its risky because although marketing practitioners have long believed consumer choice and product use vary with personality, marketing research has generally indicated only a weak relationship. It is difficult to measure personality traits accurately.

Front 27

what happens when marketers use motives to segment a market?

Back 27

when a market is segmented by a persons motives, it uses the consumer's reasons for making a purchase.

Front 28

what are some examples of motives?

Back 28

personal appearance, affiliation, status, safety, and health are examples of motives affecting the types of products purchased and the choice of stores in which they are bought.

Front 29

lifestyle segmentation

Back 29

groups individuals according to how they spend their time, the importance of things in their surroundings (homes or jobs, for example), beliefs about themselves and broad issues and some demographic characteristics, such as income and education.

Front 30

what type of view does lifestyle segmentation provide to marketers?

Back 30

provide a broad view of buyers because it encompasses numerous characteristics related to people's activities.

Front 31

What is one of the most popular psychographic systems used to today?

Back 31

VALS from Strategic Business Insights, can be used to segment existing markets, or to create new products.

Front 32

Behavioristic Variables

Back 32

firms can divide a market based on a consumers' behavior towards a product, which involves a consumer's product use.

Front 33

Benefit Segmentation

Back 33

is the division of a market according to benefits that consumers want from the product. Although most types of market segmentation assume a relationship between the variable and customer's needs, benefit segmentation differs in that the benefits customers seek ARE their product needs.

Front 34

What three conditions are present in order for benefit segmentation to be effective?

Back 34

1. the benefits sought must be identifiable

2. using these benefits, markets must be able to divide people into recognizable segments

3. one or more of the resulting segments must be accessible to the firm's marketing efforts.

Front 35

what are the variables for segmenting business markets?

Back 35

business markets are segmented according to geographic location, type of organization, customer size, and product use.

Front 36

What are market segment profiles and how are they used?

Back 36

market segment profiles describe the similarities among potential customers within a segment and explains the differences among people and organizations in different segments.

help determine which segment(s) are more attractive to a firm's strengths weaknesses objectives and resources.

Front 37

Evaluate Relevant Market Segments

Back 37

After analyzing market segment profiles, marketers should then examine the sales estimates, competition, and estimated costs associated with each of the segments that warrant further analysis.

Front 38

market potential

Back 38

the total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity.

Front 39

company sales potential

Back 39

is the maximum percentage share of a market that an individual firm within an industry can expect to obtain for a specific product.

Front 40

what are the two approaches that measure company sales potential?

Back 40

breakdown and buildup

Front 41

breakdown approach

Back 41

measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it.

Front 42

buildup approach

Back 42

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 all the geographic areas considered.

Front 43

In the 5th step: Selecting a Specific Target Market - what is the importance of this step?

Back 43

failing to identify the right target market can lead to low sales, high costs and severe financial losses. having a careful market analysis of a market places an organization in a strong position to serve customers needs and achieve its objectives.

Front 44

Sales Forecasts

Back 44

after a company selects a target market or markets, it must develop a sales forecast.

the amount of a product a company expects to sell during a specific period at a specified level of marketing activities.

Front 45

executive judgement

Back 45

is the intuition of one or more executives, it is unscientific, but an expedient and inexpensive approach to sales forecasting.