Presentation on theme: "Chapter 2 the marketing plan Section 2.1 Marketing Planning"— Presentation transcript:
1 Chapter 2 the marketing plan Section 2.1 Marketing Planning Market Segmentation
2 Market SegmentationSection 2.2CONNECT Think of all the ways a marketer might describe you as a consumer. Begin with your age and gender, then get more specific about your shopping and requirements.
3 Market Segmentation Explain the concept of market segmentation. Section 2.2Explain the concept of market segmentation.Analyze a target market.Differentiate between mass marketing and market segmentation.
4 Market SegmentationSection 2.2The key to marketing is to know your customer or target market. Market segmentation helps identify the target market.
8 Identifying and Analyzing Markets Market SegmentationSection 2.2Identifying and Analyzing MarketsAgePricemarket segmentationThe process of classifying people who form a given market into even smaller groups.Market SegmentationDesired Features
9 A company gathers data from multiple sources. Market SegmentationSection 2.2Identifying and Analyzing MarketsGovernment DataPrivate ResearchTrade AssociationsCompany ResearchA company gathers data from multiple sources.
10 Market Segmentation Types of Segmentation Demographic Geographic Section 2.2Types of SegmentationDemographicGeographicPsychographicBehavioralAgeGenderIncomeMarital statusEthnic backgroundLocalStateRegionalNationalGlobalAttitudesOpinionsInterestsActivitiesPersonalityValuesShopping PatternsDecision- making processdemographicStatistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, and ethnic background.psychographicGrouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values.
11 Labels Used to Segment by Generation Market SegmentationSection 2.2Types of SegmentationLabels Used to Segment by GenerationBaby Boom GenerationGeneration XGeneration Y
12 Market Segmentation Types of Segmentation Income Disposable Income Section 2.2Types of SegmentationIncomeDisposable IncomeDiscretionary Incomedisposable IncomeMoney left after taking out taxes.discretionary incomeMoney left after paying for basic living necessities such as food, shelter, and clothing.
13 Comprehensive Customer Profile Market SegmentationSection 2.2Types of SegmentationDemographics+Psychographics+Geographics=Comprehensive Customer ProfilegeographicsSegmentation of the market based on where people live.
14 Market SegmentationSection 2.2Types of Segmentation
15 Market SegmentationSection 2.2Types of Segmentation
16 Attitudes and Opinions Market SegmentationSection 2.2Types of Segmentation+Personal Experiences=Attitudes and OpinionsChanging Times
17 Market Segmentation Types of Segmentation Section 2.2Types of Segmentation80 percent of a company’s sales...are generated by 20 percent of its loyal customers
18 Mass Marketing Vs. Segmentation Market SegmentationSection 2.2Mass Marketing Vs. SegmentationMass MarketingAdvantagesDisadvantageEconomics of scaleSimplified marketing planCompetitors can identify unmet needs and wants and then steal customersmass marketingUsing a single marketing strategy to reach all customers.
19 Mass Marketing Vs. Segmentation Market SegmentationSection 2.2Mass Marketing Vs. SegmentationNiche MarketingAdvantagesDisadvantageExtremely preciseIncreased chance for successCostResearchProductionPackagingAdvertising
20 Market SegmentationSection 2.2Section 2.21.Explain how much segmentation can help a company increase its market share.Market segmentation allows a company to more accurately target potential customers, thereby taking customers away from competitors who may not have done as good a job of meeting the needs of the targeted market segment.
21 Market SegmentationSection 2.2Section 2.22.Define the four factors that are used to describe a target market.Four factors used to describe a target market are demographics, geographics, psychographics, and behavioral characteristics.
22 Market SegmentationSection 2.2Section 2.23.List the advantages and disadvantages of niche marketing.An advantage of niche marketing is that it narrows and defines a market with extreme precision, thereby increasing the chances of success. A disadvantage is that niche marketing is expensive. Because the market is relatively small, niche marketing does not result in the economies of scale that can be obtained in mass marketing. Research is required to identify target markets and develop different marketing strategies.
23 Chapter 2 the marketing plan Section 2.1 Marketing Planning End ofChapter 2the marketing planSection 2.1Marketing PlanningSection 2.2Market Segmentation