Activity 2-1: Product-Markets vs. Generic Markets Introduction A practical first step in the segmentation and targeting process is to define the firm's present (or potential) markets. Markets consist of potential customers with similar needs and sellers offering various ways of satisfying those needs. Markets can be defined very broadly (generic market) or very narrowly (product-market). While there is no simple and automatic way to define a firm's relevant market, marketers should start by defining the relevant generic market and product market using the three- and four-part definitions discussed in Mondays lecture. Using the three- and four-part definitions of generic markets and product-markets, suggest possible market names in the blanks. Generic markets should not include any product-related terms. A generic market can have several related product-markets, and a product is offered to a product-market that is a part of a larger generic market.

1. Generic market: Family entertainment for middle- and upper-income people in the United States.

a) Product-market: ________________________________________________________

b) Product-market: ________________________________________________________

c) Product-market: ______________________________________________________

2. Product: The Tonight Show Starring Jimmy Fallon TV show.

a) Product-market: ________________________________________________________

b) Generic market: ____________________________________________

3. Product: An airline ticket for a flight from Chicago to San Francisco over Labor Day weekend.

a) Product-market: ________________________________________________________

b) Generic market: ____________________________________________________