Marketing Chapter 7 Terminology

Marketing Chapter 7 Terminology - Market: group of people...

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Market: group of people who, as individuals or as organizations, have needs for product class and have the ability, willingness, and authority to purchase such products Consumer Market: Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profit. Business-to-Consumer markets Business Market: Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations. Business-to-Business markets Undifferentiated targeting strategy: A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product Homogeneous Market: A market in which a large proportion of customers have similar needs for a product Heterogeneous Market: Markets made up of individuals or organizations with diverse needs for products in a specific product class Market segmentation: The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs Market segment: Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs Differentiated Targeting Strategy: A strategy in which an organization targets two or more segments by developing a marketing mix for each Segmentation Variables: Characteristics of individuals, groups or organizations used to divide a market into segments Demographic – Age, gender, race, education, income. Geographic – Region, country size, climate Psychographic – Personality, motives, lifestyles. Behavioristic – Volume usage, end use, brand loyalty Market Density: The number of potential customers within a unit of land area Geodemographic segmentation: Marketing segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information Micromarketing: An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets Benefit Segmentation: The division of a market according to benefits that customers want from the product – geographic location, type of organization, customer size, product use Market Potential: The total amount of a product that customers will purchase within a specified period at a specific level of industrywide marketing activity Company sales potential: The maximum percentage of market potential that an individual firm can expect to obtain for a specific product
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This note was uploaded on 11/12/2011 for the course BUSMK 256 taught by Professor M.laham during the Spring '09 term at Diablo Valley College.

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Marketing Chapter 7 Terminology - Market: group of people...

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