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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  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?

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

4  Customers belong to a number of markets  Customers targets = consumer market  Business target = industrial market  Markets usually change over time Importance of Target Markets Young Adult Middle Class Like Vacations Female

5 designing products and directing marketing activities to appeal to the whole market (Ex: 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

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

7 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

8  Disadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money Market Segments

9 Division of a total market into smaller, more specific groups as a way to meet the needs of customers Market Segmentation Behavioral. Demographic Psychographic Geographic

10  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 Demographic

11 basis of where consumers are located.  Climate (City)  Political Boundaries (Democratic State)  Population Density (High per capita)  Marketers discover  Where their markets are located ?  Who their competitors are?  Which media will reach their customers? Geographic Geographic Segmentation

12 Psychographic basis of consumers’ lifestyles personalities.  Values  Motives  Attitudes  Opinions  Interests (Sports)  Activities (Winter Sports)  Personalities (Adventurous)  Lifestyles (Outgoing)  It gives a clearer picture of customers’ needs and wants based on personality and lifestyle. Psychographic Segmentation

13 Behavioral basis of consumers’ response to a product.  Cause and effect nature of customers’ purchase decisions  Examine what customers respond to when they buy a particular product Behavioral Segmentation

14 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 (Cont)

15 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?

16  Find a website highlighting the top 10 Super Bowl commercials for this year.  As you are watching the commercial Identify target markets used and why  Demographic  Geographic  Physiographic  Behavioral  As a group compare notes and fill in any target markets Student Response: Super Bowl Target Markets

17  Each group will use their assigned topic from 4P’s (luxury, economy, sports, truck, green and SUV automobiles).  Groups are to research the marketing segmentation and create an illustrative poster reflecting their findings.  Must show at least 3 segments  Must show research of the industry’s or company’s Marketing  Must be detailed by identifying subcategories of marketing segments from presentation 1.02 Student Response: 4’s & Target Market- Part 2

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