Presentation on theme: "TARGET MARKET AND MARKET SEGMENTATION"— Presentation transcript:
1TARGET MARKET AND MARKET SEGMENTATION Marketing Foundations – Target D
2TARGET MARKETThe group of customers whose needs and wants you will try to satisfyExamples….teens, babies, business people, college students
3Target Market should have: Clearly defined wants and needs that your company can meetMoney to buy your productWillingness and authority to buy your productEnough customers n the market to be profitable
4+ Marketing Mix Marketing Strategy Target Market *Remember, the Marketing Mix is all the decisions you make about the 4 P’s.
5Mass MarketingThe development of only one marketing mix for a specific productAssumes that everyone has exactly the same wants and needs for the product
6Target marketing approach Has marketers analyze the mass marketThen, segment (divide up) the market based on the different needs and wants of the customers in that marketThe 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
8Demographic Segmentation Statistics that describe the characteristics of a population of peopleAgeGenderEthnicityFamily sizeIncomeDisposable – money left after taxesDiscretionary – money left after taxes and necessities taken out (what you have left to spend)
9Psychographic Segmentation based on psychological characteristics that affect needs and wantsHobbiesSocial activitiesLifestyleInterestsAttitudesIf you show the target market in ads, people see themselves and relate better to the promotional message
10Geographic Segmentation Based on where customers liveLocationClimateCity size
11Product Benefitsbased on the perceived value or advantage consumers receive from a good or service over alternatives.QualityPerformanceImageServiceSpecial features
12Combining VariablesMarketers find it useful to target a market based on two or more segmentsGeographic + demographic(city + income)Example: marketers of luxury products can get zip codes of people with the highest income levels.