Presentation on theme: "Ch. 9.1. Market Segment- A group of people who have the ability and the desire to purchase a specific product. First step in the marketing mix is."— Presentation transcript:
Market Segment- A group of people who have the ability and the desire to purchase a specific product. First step in the marketing mix is collecting info about the largest market segment for the product Customizing-Changing a product to fit the needs or wants of a particular market Example…in the 90’s CBS cancelled shows pop to women and families…attempt to attract a greater share of the young male audience
Local television is generally considered of amateur quality and of no interest to viewers nationally. Barry Diller, head of USA Networks has other ideas for local TV Begun a new format of locally produced programming featuring talk shows with ties to local sports, newspapers etc… The shows are made at a fraction of the cost, so a much smaller audience is required to make a profit. Can then be duplicated in other local markets or sold nationally
For local programming to be successful, knowledge of the interest of the market segment is required. What are some benefits of marketing to a small audience rather than the masses? Can you think of any examples in Lincoln?
One of the best known market segments is the Baby Boomers The generation born in the United States between 1946-1964 76 million will reach their peak spending at age 46 Boomer spending began in 1993 and continued to grow into 2008. This is when the number of 46 year olds began to decline
Baby Boomers are expected to soften the line between complete retirement and work. Many will continue to work beyond normal retirement age, and others will serve as volunteers or will work part time or both. Baby Boomers are expected to stay active throughout their lives This group enjoys recreational activities and all types of entertainment. Most important, these consumers have the discretionary income to pay for the pastimes, products, and services.
Plans for an entertainment product are developed after careful examination of available research about the market segment. Knowledge of customer’s preferences, spending habits, incomes, occupations, and areas of residence can provide info necessary to focus the marketing message Marketers must be careful in creating target markets for a group as large as the Baby Boomers. The average age in the U.S. was 34 in 1994, 35.5 in 2000, and will be 39.1 in 2035
Must be careful to not exclude a part of the group you want to reach. To assume all people in a group as large as the Baby Boomers have the same tastes in entertainment is a major mistake A message aimed at a subgroup of Boomers offer a huge potential customer base. Boomers will continue to be a major target of entertainment through 2020