1. CHAPTER 4 DISCUSSION QUESTIONS
1) What is the difference between a generic market & a
product-market?
2) What are the product-market "names?"
3) What is the 2-step process of market segmentation?
4) Define "market segment.”
5) Explain each of the criteria for "good" market segments:
A) Homogeneous within
B) Heterogeneous between
C) Substantial
D) Operational
6) State & explain the 3 basic ways to develop market-
oriented strategies in a broad product market.

2. MARKET
“A GROUP OF POTENTIAL CUSTOMERS WITH SIMILAR
NEEDS WHO ARE WILLING TO EXCHANGE SOMETHING OF
VALUE WITH SELLERS OFFERING VARIOUS GOODS OR
SERVICES.”
-MARKETING MANAGERS MUST DEVELOP AN
UNDERSTANDING OF THE NEEDS & CHARACTERISTICS OF
SPECIFIC GROUPS OF TARGET CUSTOMERS WITHIN THE
BROADER MARKET.

3. NINTENDO ENTERTAINMENT SYSTEM
-RELEASED IN 1985.
-AIMED AT THE BROAD ENTERTAINMENT SEEKERS MARKET.

4. NINTENDO GAME BOY
-RELEASED IN 1989.
-AIMED AT THE KIDS MARKET.

5. NINTENDO GAMECUBE
-RELEASED IN 2001.
-AIMED AT THE HARD-CORE GAMERS MARKET.

6. NINTENDO DS (DUAL SCREEN)
-RELEASED IN 2004.
-AIMED AT THE CASUAL GAMERS MARKET.
BOYS GIRLS BABY BOOMERS

7. NINTENDO WII
-RELEASED IN 2006.
-AIMED AT EVERYONE.

8. GENERIC MARKET VS PRODUCT-MARKET

9. GENERIC MARKET
“A MARKET WITH BROADLY SIMILAR NEEDS--& SELLERS
OFFERING VARIOUS, OFTEN DIVERSE, WAYS OF SATISFYING
THOSE NEEDS.”
-LOOKS AT MARKETS BROADLY & FROM A CUSTOMER’S
VIEWPOINT.
MARKET: ENTERTAINMENT SEEKERS

10. PRODUCT-MARKET
“A MARKET WITH VERY SIMILAR NEEDS & SELLERS OFFERING
VARIOUS CLOSE SUBSTITUTE WAYS OF SATISFYING THOSE
NEEDS.”
MARKET: TRAVELERS/TOURISTS

11. MARKET SEGMENTATION
“A 2-STEP PROCESS IN ORDER TO SELECT TARGET MARKETS &
DEVELOP SUITABLE MARKETING MIXES.”
2 STEPS:
1) NAMING BROAD PRODUCT-MARKETS
2) SEGMENTING THE BROAD PRODUCT-MARKETS

12. MARKET SEGMENT
“A (RELATIVELY) HOMOGENEOUS GROUP OF CUSTOMERS WHO WILL
RESPOND TO A MARKETING MIX IN A SIMILAR WAY.”

13. “GOOD” MARKET SEGMENTS MEET THE FOLLOWING CRITERIA
1) HOMOGENEOUS WITHIN
-THE CUSTOMERS IN A MARKET SEGMENT SHOULD BE AS SIMILAR AS
POSSIBLE WITH RESPECT TO THEIR LIKELY RESPONSES TO MARKETING
MIX VARIABLES & THEIR SEGMENTING DIMENSIONS.
2) HETEROGENEOUS BETWEEN
-THE CUSTOMERS IN DIFFERENT SEGMENTS SHOULD BE AS DIFFERENT
AS POSSIBLE WITH RESPECT TO THEIR LIKELY RESPONSES TO
MARKETING MIX VARIABLES & THEIR SEGMENTING DIMENSIONS.
3) SUBSTANTIAL
-THE SEGMENT SHOULD BE BIG ENOUGH TO BE PROFITABLE.
4) OPERATIONAL
-THE SEGMENTING DIMENSIONS SHOULD BE USEFUL FOR IDENTIFYING
CUSTOMERS & DECIDING ON MARKETING MIX VARIABLES.

14. 3 BASIC WAYS TO DEVELOP MARKET-ORIENTED STRATEGIES IN A
BROAD PRODUCT-MARKET
______________________________________________________________
1) SINGLE TARGET MARKET APPROACH
-SEGMENTING THE MARKET & PICKING ONE OF THE
HOMOGENEOUS SEGMENTS AS THE FIRM’S TARGET MARKET.
2) MULTIPLE TARGET MARKET APPROACH
-SEGMENTING THE MARKET & CHOOSING 2 OR MORE SEGMENTS,
& THEN TREATING EACH AS A SEPARATE TARGET MARKET
NEEDING A DIFFERENT MARKETING MIX.
3) COMBINED TARGET MARKET APPROACH
-COMBINING 2 OR MORE SUBMARKETS INTO ONE LARGER TARGET
MARKET AS A BASIS FOR ONE STRATEGY.