Marketing Chapter 8

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Marketing Chapter 8


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people or organizations with needs or wants and the ability and willingness to buy
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar products needs
market segment
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
market segmentation
characteristics of individuals, groups, or organizations
segmentation bases (variables)
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
a series of stages determined by a combination of age, marital status, and the presence or absence of children
family life cycle (FLC)
market segmentation on the basis of personality, motives, lifestyles, and geodemographics
psychodemographic segmentation
segmenting potential customers into neighborhood lifestyle categories
geodemographic segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
benefit segmentation
dividing a market by the amount of product bought or consumed
usage-rate segmentation
a principle holding that 20 percent of all customers generate 80 percent of the demand
80/20 principle
Describe the characteristics of markets and market segments
a market is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants. A market segment is a group of individuals or organizations with similar product needs as a result of one ore more common characteristic.
business customer who place an order with the first familiar supplier to satisfy product and deliver requirements
business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
undifferentiated targeting strategy
a strategy used to select one segment of a market for targeting marketing efforts
concentrated targeting stategy
a situation that occurs when sales of a new product cut into sales of a firm's existing products
an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer
one-to-one marketing
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
changing customers' perception of a brand in relation to competing brands