Basic Marketing Chapter 4 Vocab

a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services who can satisfy those needs. p 89
generic market
market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs. p 89
product market
market with very similar needs and sellers offering various close substitute ways of satisfying those needs. p 89
Names of product market–naming=disaggregating
1 product type
2 Customer needs
3 Customer types
4. Geographic Areas
p. 91
market segmentation
A two step process of naming broad product markets and then segmenting them in order to select target markets and develop suitable marketing mixes. p 92
An aggregating process–clustering people with similar needs into a market segment. p 94
market segment
A relatively homogeneous group of customers who will respond to a marketing mix in a similar way. p 94
Criteria for good market segments
Homogeneous within, heterogeneous between, substantial, operational (for place and promotion decisions.) p 95
single target market approach
Segmenting the market and picking ONE of the homogeneous segments as the firm’s target market. 96
multiple target market approach
Segmenting the market and choosing two or more of the segments, then treating each as a separate target market needing a different marketing mix. p 96
combined target market approach
Combining two or more submarkets into one larger market as a basis for one strategy. p 96
Those who try to increase the size of their target markets by combining two or more segments. p 96
Those who aim at one or more homogeneous segments and try to develop a different marketing mix for each segment. p 97
qualifying dimensions
Those things that are relevant to including a customer type in a product market. p 99
determining dimensions
Those things that actually affect the customer’s purchase of a specific product or brand in a product market. p 99
clustering techniques
Used to find similar patterns within sets of data, by grouping customers who are similar on their segmenting dimensions into homogeneous segments. p 108
Customer Relationship Management (CRM)
Helps the seller fine-tune the marketing effort with information from a detailed customer database. Variation of clustering approach. p 108
refers to how customers think about proposed or present brands in a market. Helps marketers differentiate. p, 110

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