Chapter 4: Developing market opportunities Flashcards
(15 cards)
Market penetration
- the total number of customers who have entered a market at a specific point in time.
Market potential
the total number of customers who have entered a market , given a specific market definition..
Market share
a company’s share divided by the total sales of all companies for a specified product market.
Product life cycle (PLC)
the way in which products and services pass through a number of distinct stages from their introduction through to their removal from the market.
Stages of the PLC
introduction, growth, maturity, and decline.
Rate of entry
the rate at which new customers enter a market.
Sales forecast
the expected sales for a defined product market during a specified time period.
Above the line
integrated massive campaigns
= raise brand awareness
= reach more people
Below the line
smaller, highly targeted marketing
= aimed at individuals
= easy to track returns
Introduction
- introducing the product to the market
- streaming services such as HBO and online healthcare services
Growth
begins with a sharp increase in sales and strategic marketers should focus on gaining market share
- Tesla electric vehicles and apple tv
Maturity
Sales plateau
- netflix
Decline
as sales decline, costs increase and drastic efforts are needed to reduce costs
- CD players and landline phones
Five major forces that can restrict a market from reaching its full market potential
- awareness
- availability
- ability to use
- benefit deficiency
- affordability
Market growth potential
determined by market penetration and rate of entry
