FOOD 2010 Lecture Notes - Lecture 9: Niche Market
14 Jul 2018
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Document Summary
Usage rate: quantity consumed or patronage store visits during a specific period; varies significantly among different customer groups. 80/20 rule: a concept that suggests 80 percent of a firm"s sales are obtained from 20 percent of its customers. Step 2: group products to be sold into categories. A firm must organize its products sold into categories that aid the customer in relating to them. A supermarket does this by creating departments for produce, canned goods, beverages etc. Another example would be a clothing company creating a catalogue for a winter clothing line. Step 3: develop a market-product grid and estimate size of markets. This starts with developing a market-product grid to organize segments. The segments can be evaluated to determine their respective size, opportunities for profit and market-product combinations. This information is organized to allow marketers to determine which markets/segments are worth targeting. Using the information from step 3, the firm can decide which segments are the best to target.
