50 CHAPTER 2 UNDERSTANDINGANDAPPROACHINGTHEMARKET
Motive Areasonfor behavior.
Lifestyle Apatternofattitudes,interests,andopinions heldbya person.
Organizational markets Amarketconsistingofthoseorganizationswhobuyproductsorserv-
icesfortheirbusinesses,foruseinmakingotherproducts,orforre sale.
Standardindustrialclassification(SIC) AU.S. government publication thatclassifiesbusiness
firms bythe mainproductorservice provided.
Single-base segmentationstrategy Theuseofa singlebasetosegmentmarkets.
Multi-basesegmentation strategy Theuseoftwoormorebasestosegment markets.
Clar ity ofidentification Thedegreetowhich onecan identifythoseinside andthoseoutsidethe
marketsegment.
Actualneed Overtdemandforexistinggoodsorservices.
Potentialneed Aneedthatcanbechangedintoperceivedwantsthrough suchmeansaseduca-
tionorpersuasion.
Effectivedemand Actualorpotentialneedsexistingalong withpurchasingpower(income,sav-
ings,andcredit)belongingtomembersofa marketsegment.
Economicaccessibility Membersofa marketsegmentmustbereachable andprofitable.
DiscussionQuestions
- Whatmakestheconceptofmarketsegmentationdifferent fromthatofproductdifferentiation?
- Whataretheadvantages thatmarket segmentationhas overaggregateormassmarketing?
3.Whatcriteriawouldyouusetodetermine whetherthetoothpaste marketshouldbegrouped into
a "drinker'stoothpaste"segment?A" businessperson's toothpaste" segment?
- Whyis demographicsegmentationalonenotalwaysa sufficientmeansoftargetmarketidenti-
fication?Suggesta bettermethod.
5.Assume thatyouhavebeen hiredbyafilmtosegmentthe marketforreplacementtires.What
segmentationbaseswouldyouuse?Whatpitfallsshouldyoubesusp iciousof?
6.Listthestepsinthe marketsegmentationprocess.
7.Describe th e meansby which industrialresellermarkets can besegmented.
8.Segmentation is reallyanaggregationprocess.Explain.
9.Is amulti-basesegmentation approachalwaysbetterthantheuseofa singlesegmentationbase?
10.Doyouthinkthattherearedistinctmarket segmentsforpersonalcomputers?Ifso,whatarethe
characteristics?Ifnot,whynot?
