| Market segments | Within the same general market, groups of customers with different wants, buying preferences, or product-use behavior.
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| Market segmentation | The process of dividing the total market for a good or service into several smaller groups, such that the members of each group are similar with respect to the factors that influence demand.
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| Micromarketing | The concept of marketing to a small segment of consumers.
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| Geographic segmentation | Subdividing markets into groups based on their locations.
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| Demographic segmentation | Subdividing markets into groups based on population factors such as size, age, and growth.
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| Psychographic segmentation | Subdividing markets into groups based on personality dimensions, life-style characteristics, and values.
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| Personality | An individual's pattern of traits that influences behavioral responses.
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| Lifestyle | Habits that relate to a person's activities, interests, and opinions.
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| Values | Intangible principles that are a reflection of people's needs, adjusted for the realities of the world in which they live.
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| Behavioral segmentation | Market segmentation based on consumers' product-related behavior, typically the benefits desired from a product and the rate at which the consumer uses the product.
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| Target market | A group of customers (people or organizations) for whom a seller designs a particular marketing mix.
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| Market-aggregation strategy | A plan of action under which an organization treats its total market as a single segment-that is, as one mass market whose members are considered to be alike with respect to demand for the product-and thus develops a single marketing mix to reach most of the customers in the entire market. Same as mass-market strategy and undifferentiated-market strategy.
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| Product differentiation | A strategy in which a firm uses promotion to distinguish its product from competitive brands offered to the same aggregate market.
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| Single-segment strategy | A plan of action that involves selecting one homogeneous segment from within a total market to be the firm's target market. Same as concentration strategy.
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| Niche marketers | Sellers that pursue single segments within the total market.
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| Niche markets | A small, targeted segment.
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| Multiple-segment strategy | A plan of action that involves selecting two or more different groups of potential customers as the firm's target markets.
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| Position | The way a product, brand, or organization is viewed in relation to the competition by current and prospective customers.
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| Positioning | A product's image in relation to directly competitive products as well as other products marketed by the same company. Alternatively, a firm's strategies and actions related to favorably distinguishing itself from competitors in the minds of selected groups of consumers. Same as product positioning.
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| Perceptual map | A visual representation of product or organization positioning research that locates a brand or organization relative to alternatives on dimensions reflecting the attributes.
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| Repositioning | Reestablishing a product's attractiveness in the target market.
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| Demand forecasting | The process of estimating sales of a product during some defined future period.
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| Market share | The proportion of total sales of a product during a stated time period in a specific market that is captured by a single firm.
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| Market factor | An item or element that (1) exists in a market, (2) may be measured quantitatively, and (3) is related to the demand for a good or service.
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| Market potential | The total sales volume that all organizations selling a product during a stated time period in a specific market could expect to achieve under ideal conditions.
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| Sales potential | The portion of market potential that a specific company could expect to achieve under ideal conditions.
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| Sales forecast | An estimate of probable sales for one company's brand of a product during a stated time period in a specific market and assuming the use of a predetermined marketing plan.
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| Market-factor analysis | A sales forecasting method that assumes the future demand for a product is related to the behavior of certain market factors and, as a result, involves determining what these factors are and then measuring their relationships to sales activity.
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| Direct-derivation method | An approach to demand forecasting that directly relates the behavior of a market factor to estimated demand.
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| Correlation analysis | A statistical refinement of the direct-derivation method, an approach to demand forecasting that takes into account how close the association is between potential sales of the product and the market factor affecting its sales.
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| Multiple correlation analysis | A more sophisticated form of correlation analysis that allows the inclusion of more than one market factor in the calculation.
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| Survey of buyer intentions | A form of sales forecasting in which a firm asks a sample of current or potential customers how much of a particular product they would buy at a given price during a specified future period.
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| Test marketing | A method of demand forecasting in which a firm markets its new product in a limited geographic area, measures the sales, and then- from this sample-projects the company's sales over a larger area. Alternatively, a marketing research technique that uses this same approach to judge consumers' responses to a strategy before committing to a major marketing effort.
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| Past sales analysis | A method of sales forecasting that applies a flat percentage increase to the volume achieved last year or to the average volume of the past few years.
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| Trend analysis | A statistical method of forecasting sales over the long term by using regression analysis or over the short term by using a seasonal index of sales.
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| Sales-force composite | A method of forecasting sales that consists of collecting from all sales people estimates of sales for their territories during the future period of interest.
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| Executive judgment | A method of sales forecasting that consists of obtaining opinions regarding future sales volume from one or more executives.
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| Delphi method | A forecasting technique, applicable to sales forecasting, in which a group of experts individually and anonymously assesses future sales, after which each member has the chance to offer a revised assessment as the group moves toward a consensus.
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