Marketing Chapter 3.

True or false: Market segmentation has Been found to be much more effective than mass marketing .

True.

2 Disadvantages of mass marketing:

Doesn't take consumer differences and preferences into account, leaves brand vulnerable to changes in the market.

Mass marketing:

A strategy that assumes that there is 1 undifferentiated market, and that one product will appeal to all customers in that market. (One size fits all.)

A company with a large market share can:

Afford to take risks.

Knowing market share helps:

Companies analyze their status relative to their competition.

Industrial market:

Consists of businesses who purchase for use in the operation of their business. For resale, or making other goods.

Consumer market:

Consists of customers who purchase goods or services for personal use.

Develops a clear picture of the target market:

Customer profile.

Market share changes as new competitors:

Enter the market and the size of the market increases or decreases.

Without a target market, the marketing plan has no ______

Focus.

Pinpointing a target market: segmentation:

Identify the key target segments, evaluate the different target segments and decide which one is most profitable to pursue, positioning design a product or serve to meet the specific segments need and develop a marketing mix.

2 advantages of mass marketing:

Lower cost efficiency, and one advertising campaign is needed.

Aims to attract the highest number of potential customers while ignoring target markets.

Mass marketing.

Communicates to market with one broad message:

Mass marketing.

Focuses on higher volume of sales at lower prices to obtain maximum exposure for the product.

Mass marketing.

Marketers often understand that:

People often buy the same products, and they use the information to fine tune their approach and selling in that market.

Customers must be ________, _________, and _______ to be considered part of the market.

Ready, willing, able.

Name 2 benefits of market segmentation:

Stronger marketing messages, builds deeper customer loyalty.

Behavioral segmentation:

Tells HOW a person interacts with the marketplace: usage rate, brand loyalty, desired product benefits, frequency of purchase, time of year purchase, time spent researching, and making purchasing decision.

Demographic segmentation:

Tells WHAT a person is- considers age, gender, income, family lifestyle, ethnicity, religion, culture, education levels, occupation.

Psychographic segmentation:

Tells WHO a person is: considers hobbies, interests, attitudes, aspirations, goals, values, lifestyle, personality traits, concerns and anxiety's, etc.

Who is in the market:

The people who share similar needs and wants and have the ability to purchase a product.

A company's market share is:

The percentage of the total sales volume generated by all the companies that compete in a given market.

Market segmentation:

The process of breaking down the total market into smaller segments, and classifying customers by similar, specific characteristics.

Geographic segmentation:

WHERE a person is- divides people based on location. Countries, state, city, rural, suburban, urban, climate, population, etc.