Presentation on theme: "UNIT 4 – MARKET SEGMENTATION"— Presentation transcript:
1UNIT 4 – MARKET SEGMENTATION THE MENU:Read and discuss the opening TICKETMARKETING BASICSThe Marketing ConceptWhat’s a Market?The Marketing Strategy FormulaMarketing SegmentationOUTCOMES:By the end of UNIT, you will be able to:Describe what the Marketing Concept is and why it is important.List & Describe the components of a Market.Describe the formula that makes Marketing Strategy work.
2Marketing Basics Some Key Definitions Marketing - is the process of developing, promoting, and distributing products to satisfy customers' wants and needs.Additionally, it’s the creation and maintenance of satisfying exchange relationshipsProduct –Customer –Consumer –
3Marketing Mix = The 4 “P”s Marketing mix - describes how a business blends the four marketing elementsProduct-what a business offers customers to satisfy needs (GSI)Price - the amount that customers pay for productsPlace (Distribution) - the locations and methods used to make products available to customersPromotion - ways to encourage customers to purchase products and increase customer satisfaction
5Satisfying Customer Needs Primary focusIdentify customer needsDevelop productsOperate a business profitably
6Determine the Target Market Target market—a specific group of people you want to reachUNIT 4
7How to Find a Target Market Disposable income-income that can be spent freely AFTER necessities are paid for (food, taxes, …)Demographics-specific customer informationUNIT 4
8The Marketing Concept The Marketing Concept Businesses must satisfy customers' needs and wants in order to make a profit.3 components of a MARKETAll potential customersShare common needs and wantsHave the ability and willingness to buy a product
9The Marketing Strategy Formula MS = TM + MMMS is Marketing StrategyTM is Target MarketMM is Marketing Mix (4Ps)
10Targeting the right people!! Target MarketingFocusing marketing decisions on a very specific group of peopleCustomer vs. Consumer?Customer buys the productConsumer uses the product
11Market SegmentationA group of individuals that share one or more important characteristics.These characteristics result in similar product or service needs.Businesses use market segmentation to focus their marketing efforts.
12Market SegmentationConsumers can be divided into specific, well-defined segments based on certain characteristics:
13Market Segmentation Geographic Segmentation Dividing consumers into markets based on where they live.The idea that individuals who live in a certain location might have the same wants and needs.Can be as large as a country, or as small as a zip code.
14Market Segmentation Demographic Characteristics age, gender, race, income, and education level.Disposable IncomeMoney left over after taxes & paying for basic living necessities
15Market Segmentation Psychographics People’s interests and values. The way you spend your time and your lifestyle choices.Responsible for bowling alleys, sports stores, swimming pools, religious book stores, etc.
16Market Segmentation Product Usage The frequency that a customer uses a product.Marketers communicate differently to consumers based on frequency of use.
17Market Segmentation Benefits Derived Divides the population into groups depending on the value they receive from the product or service.Customer ProfileThe combination of all the information about a customer