Segmentation
Type of segmentation that is based on where consumers are located
What is Geographic Segmentation
Marketing aimed at a large, heterogeneous group of consumers
What is Mass Marketing
What is the formula for market share
Market share=(company sales/total market sales)x100
Occurs when a business competes with other companies offering products that are not in the same product category but that satisfy similar customer needs.
What is Indirect Competition
T/F Each person is a part of only one market segment that influences all of his or her purchase decisions.
What is False
Age, gender, race, income
What is Demographic Segmentation
The process of dividing a large group of consumers into subgroups based on specific characteristics and common needs
What is Market Segmentation
Suppose the average price for a new disposable cell phone is $20, and the total market potential for that product is $4 million. Topco, Inc. has a planned market share of 10 percent.
How many phones does Topco have the potential to sell in this market?
4,000,000 / 20 = 200,000
200,000 x .10 = 20,000
Is competition in a market with businesses that offer the same type of product or service.
What is Direct Competition
The process of gaining competitive market information is called
What is Market Intelligence
Segments customers based on what values or benefits they expect from the usage of a product.
What is Benefit Expectations Segmentation
Portion of the total market that each company controls
What is Market Share
Suppose the total market potential for DVD players in Chaffee is estimated at $150,000 per year. One manufacturer that is introducing a new DVD player in the city expects to capture 23 percent of the total market in the first year. Calculate the company’s planned market share in dollars.
$150,000 x .23 = $34,500
Rivalry among businesses on the basis of price and value.
What is Price Competition
Name one type of Competitive Information
What is Pricing Strategy, Distribution Decisions, Product and Service Planning, Promotional Efforts, Competitive Market Position
People’s interest and values (your hobbies or lifestyle)
What is Psychographic Segmentation
total revenue that can be obtained from a market segment.
What is Market Potential
In a certain city last year, sales of bikes were 50,000 units. Exercise Unlimited had a market share of 75 percent, followed by Rico’s Sporting Goods with 17 percent, and The Sweat Shop with 8 percent. How many treadmills did Rico’s Sporting Goods sell last year?
50,000 x .17 = 8,500
Occurs when businesses decide to emphasize factors of their marketing mix other than price.
What is Non-Price Competition
Marcus Theaters competing against Family Video is an example of
What is Indirect Competition
Based on how much of a product a consumer uses
What is Product Usage Segementation
The unique image of a product or service in a consumer’s mind relative to similar competitive offerings
What is Market Position
Westrich's Cycles sold 50,000 bikes last year at an average price of $350. Whereas the whole industry sold 750,000 units. What is Westrich's market share in Percent form.
(50,000/750,000)x100 = 6.67%
What are the six different methods for effectively positioning a product
Attribute
Price and Quality
Use of Application
Product User
Product Classification
Competitor
Name 2 ways companies gain market intelligence
What is
Direct Salespeople and other Employees
Purchase competitors products to analyze them
Collect and study public documents in order to gather info
Newspapers, magazine articles, gov. and university research reports, etc.
Subscribe to professional associations and trade group publications
Study their customers and their habits
Attend trade shows