Chapter 2.1

Customers – the individuals who purchase the product Consumers – the individuals who use the product Market – all individuals who share common needs and wants, and who have the ability to buy the product

Target Marketing – focusing all marketing decisions on a very specific group of people who you want to reach Customer Profile – includes information about the target market with regard to the age, income level, ethnic background, occupation, attitudes, lifestyle, or geographic residence of the targeted customer

Product Place Price Promotion

Find a marker and a place on the marker board Draw a target with four rings

Market Segmentation Analyzing a market by specific characteristics to create a target market

Demographics Age Gender Income Ethnic Background

Age Baby Boom Generation ( ) Generation X ( ) Generation Y ( )

Baby Boomers Spending power increases with age Many baby boomers reaching retirement

Generation X Dual career households Affluent with media Savvy, skeptical consumers Better educated Identify with sharp images, music, humor, and irreverence

Generation Y Computer revolution Interactivity, multi-tasking Differentiation, identity Influence family purchases

Gender Gender specific products Gender neutral product Gender neutral marketing Gender specific marketing Dual gender marketing

Income Disposable income – after taxes Discretionary income – after necessities Half of discretionary spending by top 5%

Ethnic Background Caucasian African-American Hispanic Asian-American

Caucasian Majority of the population in US Only large ethnicity declining in percentage

African-American Comprise 12.2% of US population Promotion through community support Cultural specifics: white to church

Hispanics 21 nationalities – Mexican, Spanish, Puerto Rican, Cuban, Dominican, Caribbean Larger packaging Spanish-language television Music

Asian-American 4 percent of US population Fastest-growing group 16 nationalities – Chinese, Vietnamese, Filipino, Japanese, Asian-Indian, Korean Emphasis on education

Psychographics Study of consumers based on social and psychological characteristics

Trends Dressing down Health food Time, efficiency Luxury Upscaling – buying name brands

Geographics Segmentation by location National vs. International Regional

Movie Assignment At the end of your notes, identify at least two characteristics of the target market for each film.

Product Challenge Divide into four groups yr old, Hispanic, female, household income $70, yr old, White, male, income $15, yr old, Black, female, h.i. $23, yr old, Asian, male, h.i. $30,000

Rules One group will be the target market The other three groups will be given a shape or category and have to come up with a product to market to that group The group will vote for which product is best for their demographic group