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Criteria to Use in Selecting Target MarketsMarket SizeExpected GrowthCompetitive PositionCost of Reach SegmentCompatibility with Organizational Goals and ResourcesChoose the Products and SegmentsSTEPS IN SEGMENTING AND TARGETING MARKETSSTEP 5: TAKE MARKETING ACTIONS TO REACH TARGET MARKETSImmediate Wendy’s Segmentation StrategyDay CommutersBetween- Meal SnacksDinners to Night CommutersESTIMATING MARKET SALES POTENTIALMarket sales potential: the maximum level of sales that might be available to all organizations serving a defined market in a specific time period given:1.The marketing- mix activities and related expenditures of all organizations2.A set of environmental conditions, such as consumer disposable income, government regulations, socioeconomic trends, etc.Variables used to estimate market sales potential:1.Buyers (B): the number of prospective buyers who are willing and able to purchase an offering2.Quantity (Q): the quantity of an offering purchased by an average buyer in a specific time period, typically one calendar year3.Price (P): the price (P) of an average unit of the offeringMarket Sales Potential: B x Q x PChain Ratio Method: involves multiplying a base number by several adjusting factors thatare believed to influence market sales potential
3 main purposes1.Yields a quantitative estimate of market sales potential2.Highlights factors that are uncontrollable (ex: advertising and pricing) and not controllable by organizations (ex: population)3.Is flexible in estimating market sales potential for different buyer groups and offerings SALES AND PROFIT FORECASTINGSales Forecast:1.Is the level of sales a single organization expects to achieve based on a chosen marketing strategy and an assumed competitive environment2.Is some fraction of estimated market sales potential3.Reflects the assumed number of competitors and competitive intensity in the chosen target market(s)SEGMENTING AND TARGETING MARKETSSTEP 5: TAKE MARKETING ACTIONS1.Apple’s Ever- Changing Segmentation Strategy2.Market- Product Synergies: A Balancing Acta.Market Synergiesb.Product SynergiesPOSITIONING THE PRODUCT1.Product Positioning 2.Product Repositioning 3.Two Approaches to Product Positioning a.Head-to-Head Positioning b.Differentiation Positioning 4.Writing a Positioning StatementProduct positioning: the place an offering occupies in consumers’ minds on important attributes relative to competitive productsPerceptual Map: a means of displaying or graphing in two dimensions the location of
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Marketing, Strategic Marketing Process, marketing actions, Collect Relevant Data