Intro to Business Ch.

11 Q2
You can use your Intro to Business book pages 338-343 to answer the below
questions.

1. What is a market?
A group of people who have a need, purchasing power, and the desire and authority to
spend money on goods, services and ideas.

2. What is a target market?

A specific group of consumers on whose needs and wants a company focuses its
marketing efforts.

3. Provide an example of a company's target market. What is the company? Who is their
target market and why?
Lego focuses on young boys for their target market because this narrows their strategic
focus allowing the company to tailor products to attract this demographic with much success.

4. What is the total-market approach?

An approach whereby a firm tries to appeal to everyone and assumes that all buyers
have similar needs.

5. What are 2 companies that use the total market approach?

Ford Motor Company and Rolls Royce

6. What is marketing segmentation?

A strategy whereby a firm divides the total market into groups of people who have
relatively similar product needs.

7. What is a market segment?

A collection of individuals, groups or organizations who share one or more
characteristics and thus have power relatively similar product needs and desires.

8. What are two examples of market segmentation being used?

Dodge’s advertising Campaign and Wendy’s target market being hispanic people

9. Define the 2 market segmentation approaches and provide an example of each:

a. Concentration approach- A market segmentation approach whereby a company
develops one marketing strategy for a single market segment.
b. Multi-Segment approach- A market segment approach whereby the marketer
aims its efforts at two or more segments, developing a marketing strategy for
each.
 10. What is niche marketing?
A narrow market segment focus when efforts are on one small, well-defined group that
has a unique, specific set of needs.

11. Describe the following market segments:

a. Demographic: Characteristics that are often closely related to customers product
needs and purchasing behavior, and they can be readily measured.
b. Geographic: Characteristics that influence consumers needs and product usage.
c. Psychographic: Personality characteristics, motives and lifestyles.
d. Behavioristic: Characteristics of the consumer’s behavior toward the product

12. What is the marketing mix?

The four marketing activities-product, place, promotion, and distribution-that the firm can
control to achieve specific goals within a dynamic marketing environment.

13. Describe each part of the marketing mix:

a. Product-A good, service, idea or combination of tangible or intangible attributes
that provide satisfaction and benefits.
b. Price- A value placed on an object exchanged between a buyer and a seller.
c. Distribution- Marketing products available to customers in the quantities desired.
d. Promotion- A persuasive form of communication that attempts to expedite a
marketing exchange by influencing individuals, groups and organizations to
accept goods, services or ideas.