Podcast
Questions and Answers
Which of the following statements is true of generic markets?
Which of the following statements is true of generic markets?
- The generic market does not include product type. (correct)
- The generic market includes product type.
- The generic market includes all aspects of the product-market definition.
- The generic market includes customer needs, customer types, and geographic area. (correct)
Why is it sometimes hard to understand and define generic markets?
Why is it sometimes hard to understand and define generic markets?
Different product types may compete with each other.
Which of the following is a characteristic of a product-market?
Which of the following is a characteristic of a product-market?
- A market with a broad set of customers who have a wide variety of needs. (correct)
- A market with a single seller but multiple buyers. (correct)
- A market in which sellers offer very similar methods of satisfying customer needs. (correct)
- A market where only tangible goods are sold.
What characteristics does a generic market have?
What characteristics does a generic market have?
What does a complete product-market definition include?
What does a complete product-market definition include?
What is the goal of segmenting?
What is the goal of segmenting?
What is the first step in the market segmentation process?
What is the first step in the market segmentation process?
When segmenting a broad product-market, what is particularly important?
When segmenting a broad product-market, what is particularly important?
Which of the following represents a broad product-market within the generic market of outdoor adventures?
Which of the following represents a broad product-market within the generic market of outdoor adventures?
What approach to developing market-oriented strategies is Martinez Corp. applying?
What approach to developing market-oriented strategies is Martinez Corp. applying?
What do target marketers who are 'combiners' do?
What do target marketers who are 'combiners' do?
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Study Notes
Generic Markets vs. Product Markets
- A generic market comprises customer needs, customer types, and geographic area, excluding product type.
- A product-market encompasses a specific product type, user needs, customer types, and geographic area, offering close substitutes to satisfy customer needs.
- Customers in generic markets may have broadly similar needs but can fulfill them in various ways, leading to competition among different product types.
Market Segmentation
- Segmenting groups individuals with similar needs into a market segment, which represents a homogeneous customer group responding similarly to marketing mixes.
- The initial step in market segmentation is identifying broad product-markets, which is followed by the segmentation process.
- Effective segments should be operational, meaning they can be applied to identify customers and adjust marketing strategies accordingly.
Broad Product-Market Examples
- An example of a broad product-market in outdoor adventures is individuals purchasing fly fishing equipment, which represents a submarket within the larger generic market of outdoor activities.
- Narrower markets can be identified, such as loyal customers of a specific fly fishing brand, which represent specific homogeneous target markets.
Target Market Strategies
- The multiple target market approach involves selecting two or more segments from a broad product-market and formulating distinct marketing mixes for each.
- Marketers may adopt a combiner strategy, utilizing a single marketing mix across multiple submarkets.
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