2 Market products to consumers Select products to purchase How does it work?Market products to consumersConsumersBusinessSelect products to purchase
3 Who is the market? Why know your target market? Distribution Methods – how to best deliver productAdvertising – helps create meaningful messagesProduct Design – consumers in a target market tend to like similar designsMedia – know which media to use for promotionsTarget MarketEntire Market
4 Consumer Profiles - Demographics Demographics is the study of obvious characteristics that categorize people.AgeCultureGenderIncome
5 AgeBaby Boomers (born ) make up the largest age group in CanadaWould you market the same product to a baby as you would an adult?Examples?
6 GenderGenderSome products are no longer exclusively marketed to one genderEx: cars, boxer shorts
7 Others… Family Life Cycle Income Level Ethnicity & Culture Single, married, kids, blended familyIncome LevelEthnicity & Culture
8 Consumer Profiles - Psychographics “Psychographics is a system for measuring consumers’ beliefs, opinions, and interests.”Much more difficult to measure than demographicsReligious BeliefsMusical TastesLifestyleAttitudes towards healthPersonality TraitsOther Psychological Factors
9 Consumer Profiles - Geographics Geographics – where consumers live.Urban ConsumersLive within the boundaries of the city.They usually live in apartments, condos, or houses with small yards.Spend on cultural events, restaurants, public transportationSuburban ConsumersTypically owns a car (is a commuter), owns house with larger yardsSpends on household furnishings, BBQs, gardensRural CustomersOften farmers with trucks and extremely large properties.
10 Activity: Who’s the Consumer? Get into your Challenge GroupsUsing the advertisement given to your group, identify the target consumer group.Present to the class both the ad and the proposed consumer group. Don’t forget to explain how you came to your conclusion!Here is a sample:
11 What is the target consumer for People magazine? Profile CategoryProfile GroupTargeted ConsumerDemographicsAge25-40GenderFemaleIncomeMiddleFamily Life CycleSingle or Married, No ChildrenCulture‘Western’ culture oriented. Hollywood references.PsychographicsLifestyle/ValuesWatches movies and television. Follows fashion. Buys name brands.GeographicsCountry/CityNorth America, urban./suburbanObservationsChallenges
12 Prepare a consumer profile for a product/service. Select an advertisement for a product or service that you think you would use. Explain how the advertising may be geared to the consumer.Profile CategoryProfile GroupTargeted ConsumerAgeGenderIncomeFamily Life CycleCultureLifestyle/ValuesCountry/CityObservationsChallenges
13 How frequently does the consumer use the product? Heavy UsersMedium & Light UsersNon-users
14 Heavy Users Often most lucrative segment. Example: 30% of bottled water market are heavy users who account for 80% of all bottled water sold.Marketers try to build brand loyalty in this group.
15 Medium & Light UsersAttempt to turn them into Heavy Users with pricing deals, special contests, informative ads.
16 Non-Users2 Kinds…1) Those entering category for the first time (ex: new mothers buying diapers).2) Those who do not plan on using the products.
17 Value Equation Total Benefits – Total Costs = Value Example: 1990’s parent deciding to buy a cell phone for a teenagerBenefits: emergency aid, ability to contact family, convenience, ability to keep in touch with friendsCosts: high monthly monetary costs, high start up costs, safety issues, time wastingValue: Costs outweigh BenefitsResult: Not buying the phone!
18 What changed?Ads in the late 90’s showed teens in a broken down car at night being able to contact their parents only because they had a cell phone.Benefits all of a sudden out weighed the costs.
19 Consumer Profiles – LEGO Demographics:Young children (12 or younger)Both gendersPsychographics:Kids who like:to build thingslots of coloursto touch things with their handsGeographics:All Geos
21 Consumer Profiles – Rolex Watches Demographics:Adults (30+)More male orientedHigher income ($75K+)Psychographics:Luxurious lifestyleBusinessmenLikely to play golf, tennis or poloGeographics:Urban & Suburban
26 Primary vs. Secondary Markets Primary market is made up of the most likely consumers to buy a specific product.Secondary markets consist of other or occasional consumers.Most of a marketing department’s budget is based on targeting the primary market, although some is spent on secondary markets.
27 McDonalds – Who is their target market? 1. Young children who enjoy clowns, small toys and playtowns.2. Teens/Young adults who are cost conscious.3. Adults who are cost conscious and are in need of a quick meal.4. Other/Don’t Know