9-11 - 2)Determine which segmentation variables to use...

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CH8 Target Markets: Segmentation and Evaluation What are Markets? -A group of people who have needs for products in a product class Types of Markets -Consumer Market-A group of consumers who buy products for their personal use -Organizational or business to business markets- Businesses that buy products to A) use in the organaization B) buy products to resell for a profit What are Markets? -Requirements of a martket -Need -Financial Ability -Willingness -Authority Target Market Selection Process 1)Identify the appropriate targeting strategy (plan) A)Undifferentiated Stategy-Orgnaization has chosen to use a single marketing mix to satisfy the target market B)Concentrated strategy through market segmentation- Oraganization to sell products with a single marketing mix but concentrates on one segment of the target market.(ex: men/women) C)Differentialed strategy through market segmentation-Organization to sell products with multiple marketing mixes(2-12) trying to satisfy mulitiple target segments
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Unformatted text preview: 2)Determine which segmentation variables to use Variables for segmenting consumer markets-Demographic-Age, Genger, Race, Ethnicity, Income, Education, Occupation, family Size, Religon, Social Class.-Geographic-Region, Urban, Suburban, Rural, City Size, County Size, State size, Market Density, Climate, Terrain.-Behavioristic(Ussage)-Volume ussage, end use, brand loyalty. 3)Develop market Segment Profiles Write out each segment 4)Evaluate Relevant Market Segments-Sales Estimates-Market Potential-the total amount of a product that will be purchased-overall market -Company Sales Potential-how much of a piece of the overall market can be achieved-Competitive Assement-Who are my competitors-What are our competitors strengths and weaknesses-Do a few suppliers control the majority of the market?-Are other competitors likely to enter the Market?-Cost Estimates 5)Select Specific Target Markets...
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