Business Term 2 Final Flashcards

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Concentration approach

Back

◦ Company develops one marketing strategy for a single market segment

◦ Allows a firm to specialize

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Multisegment approach

Back

◦ Marketing efforts are aimed at two or more segments with a marketing strategy for each

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Niche marketing

Back

◦ One small, well-defined market segment with unique needs

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Requirements for a successful concentration or multisegment marketing approach

Back

1- Consumers’ needs for the product must be heterogeneous.

2- The segments must be identifiable and divisible.

3- The total market must be divided in a way that allows estimated sales potential, cost, and profits of the segments to be compared.

4- At least one segment must have enough profit potential to justify developing and maintaining a special marketing strategy.

5- The firm must be able to reach the chosen market segment with a particular market strategy.

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Four Bases for Segmenting Markets

Back

-- Demographic

-- Geographic

-- Psychographic

-- Behavioristic

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Demographic market segmentation bases

Back

age, gender, race, education, income

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Geographic market segmentation bases

Back

climate, terrain, natural resources, population density

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Psychographic market segmentation bases

Back

personality characteristics, motives, lifestyles

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Behavioristic market segmentation base

Back

some characteristic of the consumer’s behavior toward the product

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Psychological Variables of Buying Behavior

Back

• Perception.

• Motivation.

• Learning.

• Attitude.

• Personality.