Prelim 2 Outlines - Chapter 9 Market Segments - One...

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Chapter 9 Market Segments - One product, multiple markets o Cheaper o Examples are movies, magazines, and books - Multiple products, multiple markets o More expensive o Two-tier marketing strategy o Example is Reebok’s shoes - Mass customization o Tailoring goods or services to the tastes of individual customers on a high-volume scale o Customer relationship management o Built-to-order o Synergy – increased customer value achieved through performing organizational functions more efficiently Segmenting Markets - Group potential buyers into segments o Criteria Potential for increased profit Similarity of needs of potential buyers within a segment Difference of needs of buyers among segments Potential of a marketing action to reach a segment Simplicity and cost of assigning potential buyers to segments o Ways to segment consumer markets Geographic Demographic Psychographic o Buying situations Benefits sought Usage rate - Group products to be sold into categories o If a firm has many products, they must be grouped o Groupings are related to the way purchases are made - Develop a market-product grid and estimate size of markets o Markets (horizontal rows) and products (vertical columns) o Size must also be estimated o Usage rate analysis or “guesstimates” - Select target markets o Criteria to use Market size Expected growth Competitive position Cost of reaching the segment
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Compatibility with the organization’s objectives and resources o Choose segments - Take marketing actions to reach target markets o Decide what to do based on which markets and products you select o Market synergy – focusing on a single customer segment o Product synergy – focusing on a single product to market Sales Forecasting Techniques - Judgments of the decision maker o Direct forecast o Lost-horse forecast - Surveys of knowledgeable groups o Survey of buyers’ intentions forecast o Sales force survey forecast - Statistical methods o Trend extrapolation o Linear trend extrapolation Chapter 10 Types of Goods - Consumer goods o Convenience goods – minimum amount of shopping effort o Shopping goods – consumer compares alternatives based on attributes o Specialty goods – special efforts of consumers to search out and buy o Unsought goods – consumer does not know or does not want to buy initially - Business goods o Production goods – raw materials that become part of the final product o Support goods – item use to assist in producing other goods and services Installations Accessory equipment Supplies Industrial services Types of New Products - Compared with existing products o Functionally different from existing products o Additional features are added - In legal terms o FTC – up to six months after it enters regular distribution - From company’s perspective o Product line extension o Significant jump in the innovation or technology o True innovation – revolutionary new product - From consumer’s perspective
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This note was uploaded on 12/12/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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Prelim 2 Outlines - Chapter 9 Market Segments - One...

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