Chapter 9 Flashcards
What is Market Segmentation
Process of putting people in groups that:
- have similar needs
- respond to certain marketing mix in similar ways
What does market segmentation do
Defines possible target markets
When to segment markets
- One product, Multiple market segments
- Multiple products, multiple market segments
- Segments of One (Person): Mass customization
4 Criteria used to Segment Markets
- Homogeneous within
- Heterogenous between
- Substantial
- Operational
4 Categories to Segment a Market
- Geographic
- Demographic
- Behavioural
- Psychographic
3 Steps once Market is Segmented
- estimate size of market
- determine which segments to focus
- take marketing action
Define Positioning
What customers think about your products
2 Types of Positioning
Head-to-head positioning
Differentiation positioning
8 Types of Sales Forecasting Techniques
Market (Industry) Potential Sales (Company) Forecast Direct Forecast Lost Horse Forecast Survey of Buyers Intentions Survey of Sales Force Trend Extrapolation Linear Trend Extrapolation
Define Market (Industry) Potential
Max total sales of product by all firms to a segment during specific time under specific environmental conditions and marketing efforts
Define Sales (Company) Forecast
total sales of product firm expects to sell during specific time under specific environmental conditions and its own marketing efforts
Define Direct Forecast
estimating value to be forecast without intervening steps
Define Lost-Horse Forecast
forecast using last known value and modifying it according to positive or negative expected future factors
Define Survey of Buyers’ Intentions Forecast
survey prospective customers on likelihood to buy product during future time period
Define Salesforce Survey Forecast
survey firm’s salespeople to estimate sales in coming period
