target market and market segmentation
DESCRIPTION
TARGET MARKET AND MARKET SEGMENTATION. Marketing Foundations – Target D. TARGET MARKET. The group of customers whose needs and wants you will try to satisfy Examples….teens, babies, business people, college students. Target Market should have:. - PowerPoint PPT PresentationTRANSCRIPT
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TARGET MARKET ANDMARKET SEGMENTATION
Marketing Foundations – Target D
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TARGET MARKETThe group of customers whose
needs and wants you will try to satisfy◦Examples….teens, babies, business
people, college students
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Target Market should have:
Clearly defined wants and needs that your company can meet
Money to buy your productWillingness and authority to buy
your productEnough customers in the market
to be profitable
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Target Market + Marketing Mix
Marketing Strategy
*Remember, the Marketing Mix is all the decisions you make about the 4 P’s.
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Mass MarketingThe development of only one
marketing mix for a specific product
Assumes that everyone has exactly the same wants and needs for the product
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Target marketing approachHas marketers analyze the mass
marketThen, segment (divide up) the market
based on the different needs and wants of the customers in that market
The company will choose one segment to develop a marketing mix (the 4 P’s) that will meet the unique wants and needs of that market segment
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Market SegmentationMarketers segment (divide up)
possible markets by:◦Demographics◦Geographics◦Psychographics◦Product benefits
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Demographic SegmentationStatistics that describe the
characteristics of a population of people◦Age◦Gender◦Ethnicity◦Family size◦Income
Disposable – money left after taxes Discretionary – money left after taxes and
necessities taken out (what you have left to spend)
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Psychographic Segmentationbased on psychological
characteristics that affect needs and wants◦Hobbies◦Social activities◦Lifestyle◦Interests◦AttitudesIf you show the target market in ads, people see themselves and relate better to the promotional message
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Geographic SegmentationBased on where customers live
◦Location◦Climate◦City size
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Product Benefitsbased on the perceived value or
advantage consumers receive from a good or service over alternatives. ◦Quality◦Performance◦Image◦Service◦Special features
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Combining VariablesMarketers find it useful to target
a market based on two or more segments◦Geographic + demographic (city + income)
Example: marketers of luxury products can get zip codes of people with the highest income levels.