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Flashcards in Chapter 6 Deck (32):
1

Consumer Market

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits.

2

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.

3

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.

4

Homogeneous Market

A market in which a large proportion of customers have similar needs for a product.

5

Heterogeneous Market

A market made up of individuals or organizations with diverse needs for products in a specific product class.

6

Market Segmentation

The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs.

7

Market Segment

Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs.

8

Concentrated Targeting Strategy

A market segmentation strategy in which an organization targets a single market segment using one marketing mix.

9

Differentiated Targeting Strategy

A strategy in which an organization targets two or more segments by developing a marketing mix for each segment.

10

Segmentation Variables

Characteristics of individuals, groups, or organizations used to divide a market into segments.

11

Market Density

The number of potential customers within a unit of land area.

12

Geodemographic Segmentation

A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information.

13

Micromarketing

An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets.

14

Benefit Segmentation

The division of a market according to benefits that consumers want from the product.

15

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.

16

Company Sales Potential

The maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

17

Breakdown Approach

Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it.

18

Buildup Approach

Measuring company sales potential by estimated 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.

19

Product Positioning

Creating and maintaining a certain concept of a product in customer's minds.

20

Sales Forecast

The amount of a product a company expects to sell during a specific period at a specified level of marketing activities.

21

Executive Judgment

A sales forecasting method based on the tuition of one or more executives.

22

Customer Forecasting Survey

A survey of customers regarding the types and quantities of products they intend to buy during a specific period.

23

Sales Force Forecasting Survey

A survey of a firm's sales force regarding anticipated sales in their territories for a specified period.

24

Expert Forecasting Survey

Sales forecast prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors.

25

Delphi Technique

A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts.

26

Time Series Analysis

A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses.

27

Trend Analysis

An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales.

28

Cycle Analysis

An analysis of sales figures for a three to five year period to ascertain whether sales fluctuate in a consistent, periodic manner.

29

Seasonal Analysis

An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales.

30

Random Factor Analysis

An analysis attempting to attribute erratic sales variations to random, nonrecurrent events.

31

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.

32

Market Test

Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts.