Chapter 4 (Book)

Question 1

Market

Answer 1

A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services - that is ways of satisfying those needs

Question 2

Generic market

Answer 2

A market with broadly similar needs - and sellers offering various, often diverse, ways of satisfying those needs

Question 3

Product-market

Answer 3

A market with very similar needs and sellers offering various close substitute ways of satisfying those needs

Question 4

A complete product-market definition (4 parts)

Answer 4

What: 1. Product type (type of good and service)
To meet what: 2. Customer (user) needs
For whom: 3. Customer types
Where: 4. Geographic area

Question 5

Market segmentation (2 parts)

Answer 5

1. Naming broad product-markets and

2. Segmenting these broad product-market in order to select target markets and develop suitable marketing mixes

Question 6

Segmenting

Answer 6

An aggregating process clustering people with similar needs into a “market segment”

Question 7

Market segment

Answer 7

A (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way

Question 8

Single target market approach

Answer 8

Segmenting the market and picking one of the homogeneous segments as the firm’s target market

Question 9

Multiple target market approach

Answer 9

Segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix

Question 10

Combined target market approach

Answer 10

Combining two or more submarkets int one larger target market as a basis for one strategy

Question 11

CRM (customer relationship management)

Answer 11

The seller fine-tunes the marketing effort with information from a detailed customer database