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Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 4-* You should now: Know about defining generic markets and product-markets. Know what market segmentation is and how to segment product-markets into submarkets. Know three approaches to market-oriented strategy planning. Know dimensions that may be useful for segmenting markets. Know a seven-step approach to market segmentation that you can do yourself. Know what positioning is--and why it is useful. This slide relates to material on p. 90. Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 4-* Summary Overview These are key terms you should be familiar with based upon the material in this presentation. Key Issues Market: a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and/or services--that is, ways of satisfying those needs. Generic market: a market with broadly similar needs--and sellers offering various and often diverse ways of satisfying those needs. Product-market: a market with very similar needs--and sellers offering various close substitute ways of satisfying those needs. Market segmentation: a two-step process of: (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes. Segmenting: an aggregating process that clusters people with similar needs into a market segment. Market segment: a relatively homogeneous group of customers who will respond to a marketing mix in a similar way. Single target market approach: segmenting the market and picking one of the homogeneous segments as the firms target market. Multiple target market approach: segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix. Combined target market approach: combining two or more submarkets into one larger target market as
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