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 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  76 million will reach their peak spending at age 46  Boomer spending began in 1993 and continued to grow into  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

 information#data information#data