Chapter3 - Outline of Chapter 3 Opportunities, especially...

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Outline of Chapter 3 Opportunities, especially breakthrough opportunities, come from understanding markets thoroughly. Market 1. customers who are willing to exchange something of value. 2. a group of potential customers with similar needs. 3. sellers offering substitute/various ways of satisfying customer needs. Generic market: a market with broadly similar needs and sellers offering various –often diverse --ways of satisfying those needs. may include sellers who compete in different product-markets; 1. probably be broader than the firm's target market. 2. might be composed of several different product-markets. 3. products from different industries compete for customers by trying to satisfy the same basic need. 4. may have only a tiny market share in the generic market but a large share in its product-market Ie: sports: skis, roller blades, bicycles, and ice skates. Entertainment: television, restaurant, movies, bowling, etc. . Seasonings: garlic powder. pepper. tabasco sauce. salt. Personal Expression: Long-stem roses, Champagne, A greeting card, A telegram Photo reproduction: digital camera, a computer video-cam, and a computer scanner Recording devices: A pencil, a dictating machine, and a word processor Music: transistor radio, an MP3 player, and a portable CD player Junk food: Popcorn, soda, ice cream, cookies Should not include competitor’s names. Product-market: a market with very similar needs and sellers offering physically or conceptually close substitute ways of satisfying those needs. Must have information about consumer needs, information about the final customer (or user) of the product, a description of the type of product Ie: The young adult exercise market . A basic difference between a "generic market" and a "product-market" is how similar the competing sellers' products are. NAMING PRODUCT-MARKETS AND GENERIC MARKETS A complete product-market definition includes four parts: 1. Product type --good/service offered should meet customer needs . 2.
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This note was uploaded on 03/29/2012 for the course BUSINESS S 4302 taught by Professor None during the Spring '11 term at University of Houston - Downtown.

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Chapter3 - Outline of Chapter 3 Opportunities, especially...

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