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Marketing 1.02-B Explain the concept of market and market identification.

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Presentation on theme: "Marketing 1.02-B Explain the concept of market and market identification."— Presentation transcript:

1 Marketing 1.02-B Explain the concept of market and market identification

2 Presentations Target Walmart Foot Locker Old Navy Macy’s K-Mart Best Buy Dick’s Home Depot Group Activity

3  A market are those who have:  A need or desire, and  The ability to pay, and  The willingness to buy (soon) What is a Market?

4  A target market are those who:  Are grouped within a market by what they have in common  Are the customers the business seeks to attract  Ipad Target Market

5  Every customer belongs to a number of markets  Customers are targeted in the consumer market, and businesses are targeted in the industrial market  The same customer or business can be included in more than one target market  Markets usually change over time Importance of Target Markets

6  Mass marketing is designing products and directing marketing activities to appeal to the whole market (lightbulbs)  Advantages: communicates a broad message to as many customers as possible  More cost-effective  Businesses don’t have to pay for the production of similar products  Can price and distribute one type of product more easily than many  Can send one promotional message to everyone Mass Marketing

7  Disadvantages:  The diversity of the audience  Only a small percentage of the mass market is likely to purchase the product Mass Marketing

8  Dividing the market into smaller groups in order to target each group individually  Advantages: meets the needs of customers, more precise than mass marketing, more effective communication  Provides an efficient way for smaller firms to compete with larger businesses Market Segments

9  Advantages: meets the needs of customers, more precise than mass marketing, more effective communication  Provides an efficient way for smaller firms to compete with larger businesses  Disadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money Market Segments

10  Segment marketing is more efficient in the long run  Customers today are more discerning about purchases  Not influenced by mass marketing alone  Meets customer’s needs  More opportunities for growth Why are market segments increasing?

11  Market segmentation is the division of a total market into smaller, more specific groups as a way to meet the needs of customers  Demographic segmentation  Geographic segmentation  Psychographic segmentation  Behavioral segmentation Market Segmentation

12  Demographic segmentation is dividing the market on the basis of its physical and social characteristics  Gender: indicates purchase preferences (female)  Origin or heritage: race, ethnicity, nationality (Caucasian)  Religion (Christian)  Social or economic status: education level, occupation, income (Middle-Class)  Life stage: age, generation, marital status, family life cycle, family size. (Teens) Demographic Segmentation

13  Geographic Segmentation is the division of a market on the basis of where consumers are located.  Determine customers’ purchase preferences according to climate, political boundaries, or population density  Marketers discover  Where their markets are located  Who their competitors are  Which media will reach their customers Businesses can market to customers based on location Geographic Segmentation

14  Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities.  Values, motives, attitudes, opinions, interests, activities, personalities, and lifestyles  It gives a clearer picture of customers’ needs and wants based on personality and lifestyle. Psychographic Segmentation

15  Behavioral segmentation is dividing a market on the basis of consumers’ response to a product.  Marketers look at the cause and effect nature of customers’ purchase decisions  Examine what customers respond to when they buy a particular product Behavioral Segmentation

16  Customer questions in behavioral marketing:  How will the product benefit me?  Am I ready to buy it?  When will I use the product/  On what occasions?  How often?  Am I in a comfortable buying pattern?  Do I feel loyal to a particular brand? Behavioral Segmentation

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18 setId=65737c58-fe4b-42d3-a47b-cc37ff1d769f The Persuaders Part II


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