Chapter 6 Target Markets Segmentation Evaluation Positioning Consumer Market Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits 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 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 products in a specific product class Heterogeneous Market A market made up of individuals or organizations with diverse needs for Market Segmentation The process of dividing the total market into groups with relatively similar products needs to design a marketing mix that matches those needs Market Segment Individuals groups or organizations sharing one or more similar characteristics that cause them to have similar product needs single market segment using one marketing mix Concentrated Targeting Strategy A market segmentation strategy in which an organization targets a Differentiated Targeting Strategy A strategy in which an organization targets two or more segments by developing a marketing mix for each segment Segmentation Variables Characteristics of individuals groups or organizations used to divide a market into segments Market Density The number of potential customers within a unit of land area Geodemographic Segmentation A method of market 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 consumers want from the product Market Potential The total amount of a product that customers will purchase within a specified period at a specific level of industry wide marketing activity Company Sales Potential The maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product Breakdown Approach Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it Buildup Approach Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period multiplying the estimate by the number of potential buyers and adding the totals of all the geographic areas considered Product Positioning Creating and maintaining a certain concept of a product in customer s minds Sales Forecast The amount of a product a company expects to sell during a specific period at a specified level of marketing activities Executive Judgment A sales forecasting method based on the intuition of one or more executives Customer Forecasting Survey A survey of customers regarding the types and quantities of products they intend to buy during a specific period territories for a specific period Sales Force Forecasting Survey A survey of a firm s sales force regarding anticipated sales in their Expert Forecasting Survey Sales forecasts prepared by experts outside the firm such as economists management consultants advertising executives or college professors Delphi Technique A procedure in which experts create initial forecasts submit them to the company for averaging and then refine the forecasts Time Series Analysis A forecasting method that uses historical sales data to discover patterns in the firm s sales over time and generally involve trend cycle seasonal and random factor analysis Trend Analysis An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales sales fluctuate in a consistent periodic manner Cycle Analysis An analysis of sales figures for a three to five year period to ascertain whether or not Seasonal Analysis An analysis of daily weekly or monthly sales figures to evaluate the degree to which seasonal factors influence sales nonrecurring events Random Factor Analysis An analysis attempting to attribute erratic sales variations to random Regression Analysis A method of predicting sales based on finding a relationship between past sales and one or more independent variables such as population or income Market Test Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts Chapter 7 Consumer Buying Behavior Buying Behavior The decision processes and actions of people involved in buying and using products Consumer Buying Behavior The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes Consumer Buying Decision Process A five stage purchase decision process that includes problem recognition information search evaluation of alternatives purchase and postpurchase evaluation Internal Search An information search in which buyers search their memories for information about products that might solve their problem External Search An information search in which buyers seek information from sources other than their memories possible purchase right one Consideration Set A group of brands within a product category that buyer views as alternatives for Evaluative Criteria Objective and subjective product characteristics that are important to a buyer Cognitive Dissonance A buyer s doubts shortly after a purchase about whether the decision was the Situational Influences Influences that result from circumstances time and location that affect the consumer buying decision process their behavior as consumers Psychological Influences Factors that in part determine people s general behavior thus influencing Perception The process of selecting organizing and interpreting information inputs to produce Information Inputs Sensations received through sight taste hearing smell and touch Selective Exposure The process by which some inputs are selected to reach awareness and others are Selective Distortion An individual s changing or twisting of information that is inconsistent with Selective Retention Remembering information inputs that support personal feelings and beliefs and Motive An internal
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