Market: a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and/or services—that is, ways of satisfying those needs.
Generic market: a market with broadly similar needs—and sellers offering various and often diverse ways of satisfying those needs.
Product-market: a market with very similar needs—and sellers offering various close substitute ways of satisfying those needs.
Market segmentation: a two-step process of: (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
Segmenting: an aggregating process that clusters people with similar needs into a market segment.
Market segment: a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.
Single target market approach: segmenting the market and picking one of the homogeneous segments as the firm's target market.
Multiple target market approach: segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.
Combined target market approach: combining two or more submarkets into one larger target market as a basis for one strategy.
Combiners: firms that try to increase the size of their target markets by combining two or more segments.
Segmenters: aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.
Qualifying dimensions: the dimensions that are relevant to including a customer-type in a product-market.
Determining dimensions: the dimensions that actually affect the customer's purchase of a specific product or brand in a product-market.
Clustering techniques: approaches used to try to find similar patterns within sets of data.
Customer relationship management (CRM): an