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CHAPTER 4 READING ASSIGNMENT
1. What is a market?
- A group of people (or organizations) with both the desire and ability to acquire a specific
product (good, service or idea.)
- What is the difference between consumer and business markets?
- Consumer markets – People who buy products for their own or someone else’s personal use.
- Business markets- Organizations that buy goods and services that they resell, use to conduct
their business, or use to manufacture another product.
- Give examples of each.
- Consumers- buy nondurable goods, durable goods, services.
- Business – buy inventory, office equipment, raw materials.
- How might advertising differ when trying to reach consumer and business markets?
- Consumer – Most of the advertising we see in the mass media targets consumers.
- Business – B2B advertising tends to appear in specialized business publications, direct mail, and
trade shows.
2. Companies rarely try to appeal to all consumers in an entire market with just on product, brand, or
service. Why not?
- Its mainly because few of any products can satisfy the needs of people making up any particular
market. We don’t all want the same things
3. What is market segmentation?
- Dividing up a market into distinct groups that have common needs and will respond similarly to a
marketing action.
- What is a target market?
- One or more specific groups of potential buyers toward which an organization directs its marketing
program.
o Concentrated Strategy – Concentrate on satisfying the needs of one particular market
segment.
o Differentiated Strategy – Satisfy the needs of multiple market segments with multiple
marketing programs.
- What is a target audience?
- The specific group of individuals to whom the message is directed. Often the same group as the
target market, but not always.
