Explain the concept of market and market identification. Marketing Explain the concept of market and market identification.

Market The description of the prospective customers a business wants to serve and the location of those customers.

Target Market A clearly identified segment of the market to which the company wants to appeal.

Mass Marketing Marketing strategy aimed at a broad population of potential consumers rather than a narrow segment of the population.

Market Segments A group of individuals or organizations within a larger market that share one or more important characteristics.

Market Segmentation Marketing strategy targeted to a group of potential consumers within a larger market who share significant characteristics that give them similar product needs.

Demographic Segmentation Dividing a market based on age, gender race, income and educational level.

Geographic Segmentation Dividing consumers into markets based on where they live (location).

Psychographic Segmentation A way of segmenting a market according to people’s interests and values.

Behavioral Segmentation Dividing the market into groups based on what they are looking for in a product and why they buy the product.

Explain the importance of target markets to businesses. Target markets must be established by businesses to help determine what products to produce, how to produce them, what promotional strategies will be most effective, where to make products available, and knowledge of consumer interests.

Describe advantages and disadvantages of mass marketing. Advantages- higher unit sales volume and efficiencies of scale. Disadvantages- more expensive per unit sold.

Describe advantages and disadvantages of using market segments. Advantages- closely matching consumer needs with product characteristics. Disadvantages- more expensive per unit cost.

Explain why the use of market segments is increasing. Market segments play a significant role in determining competition strategies. It allows consumers to be matched to products that meet their needs.

Describe demographic characteristics that are analyzed by marketers. Age Gender Race Income Educational level

Explain the value of geographic segmentation. It allows products to be marketed to customers that have needs and wants that need to be satisfied due to their location.

Discuss the value of psychographic segmentation. Psychographic segmentation is responsible for bowling alleys, sports stores, swimming pools, big screen televisions, and religious bookstores. These products are available because of the needs and wants of customers.

Describe types of behavioral segmentation. Crest whitening toothpaste is offered to customers because they are looking to get white teeth from using this product.

Performance Exercise 1 Create a phrase or description that you would use to promote a new skin cream to the following markets: Female athletes Physicians Men over 40 Teenage girls Women of other global regions (Asia, Europe, Latin America, etc.)

Performance Exercise 2 Select a national company, and search online to determine its target market. Identify 5 things the business does to appeal to that market. Record your findings, and discuss them with classmates, identify additional things the business could do to attract its target market.