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CHAPTER 7 Target Markets: Segmentation and Evaluation OVERVIEW: This chapter covers 1) a review of the definition of a market, 2) how organizations identify target markets, and 3) how to estimate market potential and forecast sales. First, we discuss the characteristics that groups must possess to be considered a market. Then, we describe in detail the five steps in the target market selection process. In discussing the process, we describe three targeting strategies: undifferentiated, concentrated, and differentiated. We examine in some detail the process of choosing segmentation variables and the types of variables that marketers use. Finally, we consider how to evaluate market potential and how to forecast sales.
OBJECTIVES: 1.Learn what a market is.
2.Understand the differences among general targeting strategies.
3.Become familiar with the major segmentation variables.
4.Know what segment profiles are and how they are used.
5.Understand how to evaluate market segments.
6.Identify the factors that influence the selection of specific market segments for use as target markets.
7.Become familiar with sales forecasting methods.
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Class Prep: Read Chapter 7 |
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