Learning Objectives Chapter 6 Marketing Research

• Requirements for effective segmentation
– Measurable, accessible, substantial, differentiable, and actionable
Learning Objective 6-3
Explain how companies identify attractive market segments and choose a market-targeting strategy.
– Geographic location – Economic factors – Political and legal factors – Cultural factors
• Intermarket (cross-market) segmentation: Grouping consumers with similar needs and buying behaviors irrespective of their location
Multiple Segmentation Bases
• Segmentation bases help companies to
– Identify smaller, better-defined target groups – Identify and understand key customer segments – Reach customers more efficiently by tailoring market
Learning Objective 6-1 Summary
• Customer value-driven marketing strategy
– Identifying which customers to serve – Determining a value proposition

Size of Order or Purchase
Number of Potential Buyers
Organizational Buying Objectives
• Profits
• y • Environment Suppliers/Vendors
• 5-3
•BUYING IS MARKETING, TOO! PURCHASING PUBLICATION PAPER AT JCPENNEY
• 5-4
•THE NATURE AND SIZE OF
•LO1
ORGANIZATIONAL MARKETS
Business Marketing
Organizational Buyers
• 5-6
•MEASURING DOMESTIC AND GLOBAL
•LO1
INDUSTRIAL, RESELLER, AND
GOVERNMENT MARKETS
North American Industry Classification System (NAICS)
• 5-7
•FIGURE 6-1 NAICS breakdown for the information industries sector: NAICS code 51 (abbreviated)
•Describe the key characteristics of organizational buying that make it different from consumer buying.
• 5-2
•LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:

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A Labour Market with a Minimum Wage
Minimum Wage Brings Unemployment If the minimum wage is set above the equilibrium wage rate, the quantity of labour supplied by workers exceeds the quantity demanded by employers. There is a surplus of labour. The quantity of labour hired at the minimum wage is less than the quantity that would be hired in an unregulated labour market. Because the legal wage rate cannot eliminate the surplus, the minimum wage creates unemployment.
A Housing Market with a Rent Ceiling
Increased Search Activity The time spent looking for someone with whom to do business is called search activity. When a price is regulated and there is a shortage, search activity increases. Search activity is costly and the opportunity cost of housing equals its rent (regulated) plus the opportunity cost of the search activity (unregulated). Because the quantity of housing is less than the quantity in an unregulated market, the opportunity cost of housing exceeds the unregulated rent.

$90M
$80M $10M
Bank Capital
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$10M
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– Suppose a bank’s required reserves are 10%.
– If a bank has ample excess reserves, a deposit outflow does not necessitate changes in other parts of its balance sities
Required reserves
Loans
+$10 +$90
Checkable deposits
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+$100
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• Asset transformation: selling liabilities with one set of characteristics and using the proceeds to buy assets with a different set of characteristics
• The bank borrows short and lends long
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General Principles of Bank Management
• Liquidity Management • Asset Management • Liability Management • Capital Adequacy Management • Credit Risk • Interest-rate Risk