2ndprelim_Study_Guide - SEGMENTATION STRATEGIES 1 one product and multiple market segments 2 multple products and multiple market segments 3 segments of

SEGMENTATION STRATEGIES 1. one product and multiple market segments 2. multple products and multiple market segments 3. segments of one (mass customization) STEPS IN SEGMENTING AND TARGETING MARKETS 1. Group Potential buyers into segments a. Ways to segment i. Geographic ii. Demographic iii. Psychographic iv. Behavioral 2. Group products to be sold into categories 3. Develop a market product grid and estimate the size of markets 4. Select target markets a. Criteria used to select target segments i. Market size ii. Expected growth iii. Competitive position iv. Costs of reaching a segment v. Compatibility with the organization’s objectives and resources b. Choose the segments 5. Take marketing actions to reach target market TECHNIQUES OF SALES FORECASTING 1. judgements of the decision maker a. direct forecast b. lost-horse forecast 2. surverys of knowledgable groups a. survey of buyers’ intentions forecast b. salesforce survey forecast 3. statistical methods a. trend extrapolation b. linear trend extrapolation