Chapter 2 Test Outline (IDC4U2)
Section 2.3: Target Markets
(Provide examples for all of the markets)
Term | Definition |
Target Market | A specific group of consumers a business wants to reach |
Market Segment | A group of consumers within a larger market who share one or more characteristics |
Mass Marketing | An attempt to appeal to a large, general group of consumers |
Market Segmentation | Most businesses do not try to satisfy the needs of all possible customers They recognize that individuals have different wants and needs and view product choices quite differently |
Market Segment #1: | Geographic Segmentation: Divides markets into physical locations, such as Eastern, Northern, Southern and Western regions or urban and rural areas Example: A national clothing store chain may offer a different mix of clothing in northern states than in southern A sporting goods chain in the South may stock a larger number and variety of watersports equipment Sports fans are likely to be loyal to their own region when purchasing team-related products A local newspaper publisher may segment markets by different areas of the city Travel and tourism industries |
Market Segment #2: | Demographic Segmentation: Focuses on information that can be measured, such as age, income, profession, gender, education, marital status and size of household Example: Income information might be used to target advertising for upscale hotels to those who can afford them Advertisements for animated films will target children Aging population is likely to attend an event if it is promoted as a package deal (transportation and meals) |
Market Segment #3: | Psychographics Segmentation: Focus on characteristics that cannot be measured physically, such as values, interest, and lifestyles choices Example: Consumers make decisions based on their values and interests If a ballgame falls on a holy day of your faith, will you attend the game? Sports-themed restaurants/bars attract those who enjoy watching the games in a setting with other fans |
Market Segment #4: Behavioural-Based Segmentation | Behavioural-Based Segmentation: Focuses on a consumer’s attitude toward products and services |
Product Usage | Product Usage: Reflects what products you use and how often Example: People may visit amusement parks frequently while others visit them only occasionally. Frequency of use determines promotional strategies for a market segment. One promotion may encourage frequent visitors to continue to visit the park by purchasing a season pass. Another promotion may encourage infrequent visitors to visit the park more often
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Market Share | Market Share: The percentage of total sales of a product or service that a company expects to capture in relation to its competitors Two markets that marketers should take advantage of: 1. AGING POPULATION 2. TEENAGERS Aging Population Living longer, healthier, more money to spend Special discounts and vacation packages Special prices at restaurants, movie theatres and other businesses Teenagers Spend billions of dollars each year on clothing, food and other entertainment goods Clothing industries have to constantly keep up with changing tastes |
2.4: Customer Service (pgs. 52 - 57)
Term | Definition |
| The difference between customer expectations and the service that is received Some examples of poor customer service include: Chatting on the phone or with others while customers are waiting to be served Dismissing a customer by saying “it’s not my department” Placing a customer on hold for long periods and transferring the customer from department to department Failing to follow up with customers on time to ensure satisfaction |
| Which communicates values through high performance and excellent customer service |
| 1. Demonstrate a values-based culture, which communicates values through high performance and excellent customer service. Ads for the company consist of the word “TODAY” which means that customers will receive delivery of the furniture on the day they purchase it, even if that means they have to make deliveries late into the night. |
| Follow the “FAST” (Focus, Action, Search, Tenacity) strategy. They focus on concepts such as promises made, being friendly, the customer is right, and listening to what the customer is saying. Focus on these targets gives them a goal, and then they put these into action by searching for ways to increase customer satisfaction. Tenacity is necessary to survive in a highly competitive environment. (Example: When you have frustrated customers at a crowded sporting event). |
| Passion results in energy Passion energizes people, so you must have a passion for what you do. |
| Demonstrate pride in every sale Anyone working in the customer service field must be proud of what they do because that pride will resonate for customers.
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| Remember the value of long-term positive relationships Customers appreciate employees who hold the mentality “no question is a dumb question.” |