4. Markets
MARKET SEGMENTS
MARKET SEGMENTS
Groups of customers with different wants,
Groups of customers with different wants,
buying preferences or product-use behavior
buying preferences or product-use behavior
TARGET MARKET
TARGET MARKET
A market segment for which
A market segment for which
the seller designs a marketing mix
the seller designs a marketing mix
MARKET SEGMENTATION
MARKET SEGMENTATION
The process of identifying and describing
The process of identifying and describing
potential target markets
potential target markets
6-4
5. Market Segmentation
Process of dividing the total market
Process of dividing the total market
for a good or service into several smaller
for a good or service into several smaller
internally homogeneous groups
internally homogeneous groups
Members of each group are
Members of each group are
similar with respect to the factors
similar with respect to the factors
that influence demand
that influence demand
6-5
6. Process of Market Segmentation
Identify wants within a market
Identify wants within a market
Identify characteristics
Identify characteristics
Determine size and satisfaction
Determine size and satisfaction
6-6
7. Market Segmentation Conditions
Measurable
Measurable Segment is
Segment is
and
and Accessible
Accessible
Obtainable Data
Obtainable Data
Large enough
Large enough
to be
to be
Profitable
Profitable
MICROMARKETING
MICROMARKETING
Treat each single customer
Treat each single customer
as a separate segment
as a separate segment
6-7
8. Market Segmentation - First Cut
Customer’s reason for buying
Customer’s reason for buying
CONSUMER
CONSUMER
Purchase for personal use
Purchase for personal use
BUSINESS
BUSINESS
Purchase to use in organizations,
Purchase to use in organizations,
to resell, or to make other products
to resell, or to make other products
6-8
14. Selecting a Target Market
Guidelines
Compatible
Compatible
with company’s goals
with company’s goals
Match
Match
market opportunity
market opportunity
with resources
with resources
Profit that
Profit that
justifies investment
justifies investment
Competitors
Competitors
are few and/or weak
are few and/or weak
6-14
15. Positioning
Firm creating and maintaining
Firm creating and maintaining
in the minds of a target market a particular
in the minds of a target market a particular
image relative to competing products
image relative to competing products
THREE STEPS
Select position concept
Design the feature that
conveys position
Coordinate the marketing mix
to convey position
6-15
17. Forecasting Market Demand
MARKET SHARE
Proportion of total sales of a product
during a stated period
in a specific market
that is captured by a single firm
brand x brand y
our company brand z
MARKET FACTOR
1) exists in the market
2)is measurable
3)is related to the demand
for a product in a known way
6-17
18. Forecasting Market Demand
MARKET POTENTIAL
MARKET POTENTIAL
Total product sales
Total product sales
of a product
of a product
during a period
during a period
in a market
in a market
under ideal conditions
under ideal conditions
6-18
19. Forecasting Market Demand
SALES POTENTIAL
SALES POTENTIAL
Portion of market potential
Portion of market potential
that a specific company
that a specific company
could expect
could expect
under ideal conditions
under ideal conditions
6-19
20. Forecasting Market Demand
SALES FORECAST
SALES FORECAST
Estimate of sales
Estimate of sales
For one company
For one company
a stated period
a stated period
during a period
during a period
in a specific market
in a specific market
assuming
assuming
a defined marketing plan
a defined marketing plan
6-20
21. Methods of Sales Forecasting
Market-Factor
Market-Factor Survey of
Survey of
Analysis
Analysis Buyer Intentions
Buyer Intentions
Test Past Sales
Past Sales
Test
Marketing and
and
Marketing
Trend Analysis
Trend Analysis
Sales-Force
Sales-Force Executive
Executive
Composite
Composite Judgment
Judgment
6-21
