Marketing Management Midterm 1

The subdivision of a market into discrete customer groups that share similar characteristics

The identification of which segments to serve (you cannot serve everyone!)

• How (the firms hope that) the target market “sees” the product (happens in the mind of the target market)
• Must identify Target Segments before implimenting

• Offers both an internal and an external assessment.
• The firm therefore must possess expertise in both what the firm can provide and what the market wants the firm to provide.
• (Positive / Opportunities) (Negative / Threats)

Marketing tool created to Products and services in relation to their markets.

• When a company enters/penetrates a market in which current products already exist.
• (Same products being sold to the same customers)
• (Low Risk)

• Growth strategy where a business aims to introduce new products into existing markets.
• (Medium Risk)

• Growth strategy where the business seeks to sell its existing products into new markets.
• (Medium Risk)

• Growth strategy where a business markets new products in new markets.
• (High Risk)

• Chart created to help corporations with analyzing their business units or product lines.
• Contains (Cash Cows / Dogs) & (Stars / Question Marks)

• When a company is financially doing bad in a failing market
• (ex. In the declining market of CD players and are not selling any)

• When a company is in a failing market but is doing really well
• (ex. being the top seller of CD players)

• When a company is not doing well but is in a fast growing market
• (ex. Not selling enough smart phones in at your company)

• When a company is doing very well finacially in a fast growing market
• (ex. Being the top seller of Smart Phones)

An understanding of consumers and their needs and purchasing behavior

• Physiological Needs – Survival needs of all humans
• Safety Needs– Protection from harm, ill health, etc..
• Belongingness – Need for companionship
• Esteem needs – Needs for things that reflect self esteem, personal worth, & social recognition
• Self-actualization –To actualize all that a person can become….need for personal growth

• Always from Top to Bottom
• (Cannot skip a step)

• To allow the marketing program to focus on the subset of prospects that are "most likely" to purchase the offering / “least likely” to be served by competition
• If done properly, can ensure highest return for marketing expendetures

• Choose dimensions important to the target segment
• Choose dimensions where firm has a competitive advantage