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Identify the major componentsof a marketing system.
Understand how marketers canimprove marketing decisionsthrough intelligence systems,
marketing research, andmarketing decision supportsystems.
Understanding Markets
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Essential Aspects
The marketMarket demandCompany demand
and sales forecastsCurrent demandFuture demand
Market
Potential marketAvailable marketTarget market (servedmarket)
Qualified availablemarketPenetrated market
Forecasting and Demand Measurement
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Essential Aspects
The marketMeasuring demandCompany demand andsales forecastsCurrent demandFuture demand
Market demandMarket minimumMarket forecastMarket potentialNonexpansible vs.expansible marketsPrimary vs.secondary demand
Market forecastMarket potential
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Essential Aspects
The marketMeasuring demand
Company demand and salesforecastsCurrent demandFuture demand
Company demandCompany sales forecast
Sales quotaSales budgetCompany sales potential
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Essential Aspects
The marketMeasuring demand
Company demand and salesforecastsCurrent demandFuture demand
Total market potentialArea market potential
Market-buildupmethod
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Essential Aspects
The market
Measuring demandCompany demand and salesforecastsCurrent demandFuture demand
Many Forecasting Methods:
Buyer intentions surveyComposite of sales forceopinionsExpert opinion
Past-sales analysisMarket-test method
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Identifying Market Segments and
Selecting Target Markets
Dr. Rakesh Premi
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Objectives
Learn how companies identify thesegments that make up a market.
Understand the criteria companiesuse to choose the most attractivemarket segments.
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Target Marketing
Target marketing requires marketers to take three
major steps:
Market segmentation:Identifying and profilingdistinct groups of buyers who differ in their
needs and preferences.
Market targeting: Selecting one or more marketsegments to enter.
Market positioning: Establishing andcommunicating the key distinctive benefit(s) ofthe companys market offering to each target.
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Market Segmentation
Mass marketing is losing popularityMicromarketing can be undertaken at four levels:
Segment marketing
Niche marketing
Local marketing
Individual marketing
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MARKET SEGMENTATION
Dr. Rakesh Premi
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Three patterns of preference segmentsare typically identified:
Homogeneous preferences
Diffused preferences
Clustered preferences
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Needs-based Segmentation Process
Needs-basedsegmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
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Useful market segments share certain characteristics:
Measurable
Substantial
Accessible
Differentiable
Actionable
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Bases for Segmentation
Geographic
DemographicPsychographicBehavioral
Nation or country
State or regionCity or metro sizeDensityClimate
Demographic Age, race, genderIncome, educationFamily sizeFamily life cycleOccupationReligion,nationalityGeneration
Social class
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Bases for Segmentation
Psychographic LifestyleActivitiesInterestsOpinions
PersonalityCore values
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Bases for Segmentation
Behavioral OccasionsBenefits
User statusUsage rateLoyalty statusBuyer-readiness
Attitude
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Segmenting Consumer Markets
Multi-attribute segmentation via geoclusteringcombines multiplevariables to identify smaller, better-defined target groups
PRIZM Geoclustering system uses demographic, geographic,lifestyle, and behavioral characteristics
Segmenting Business Markets
Operating variables
Purchasing approaches
Situational factorsPersonal characteristics
Demographic variables
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Segmenting Business Markets
Rackman and Vincentis proposed a segmentation
scheme that classifies business buyers into threegroups:
Price-oriented customers:best served via
transactional selling
Solution-oriented customers:best served bymeans of consultative selling
Strategic-value customers:best served bymeans of enterprise selling
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TARGETING
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Market Targeting Strategies
Evaluating and selecting market segments requires
assessing the segments overall attractiveness in lightof companys objectives and resources.
Five patterns of target market selection can then be
considered
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Market Targeting Strategies
Patterns of Target Market Selection
Single-segment concentration
Selective specialization
Product specialization
Market specialization
Full market coverage