Retailing and E-tailing Unit 3, Lesson 1 Choosing a Target Market & Market Segmentation

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VS. Mass Market Segmentation Marketing Image: cooldesign / FreeDigitalPhotos.netImage: FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.

MARKET SEGMENTATION Geographic Demographic Psychographic Behavioral Copyright © Texas Education Agency, All rights reserved.

Geographic Variables Location Climate City size © RoboDread / StockFreeImages.com Copyright © Texas Education Agency, All rights reserved.

United States Map Image source: Castillo Dominici / FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.

Demographic Variables Age –Generations Gender Ethnicity Income –Disposable income –Discretionary income Family size Family life cycle Occupation Copyright © Texas Education Agency, All rights reserved.

Psychographic variables Hobbies Social activities Lifestyle Interests Attitudes Image: Clare Bloomfield / FreeDigitalPhotos.net Image: David Castillo Dominici / FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.

Behavioral Variables Features desired Usage rate –80/20 rule Brand loyalty Image: jannoon028 / FreeDigitalPhotos.net Image: digitalart / FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.

Combining Variables Targeting a market based on two or more variables. –Ex. Demographics with a psychographic variable Image: jannoon028 / FreeDigitalPhotos.net Image: photostock / FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.

Market Segment Profile Detailed description of the typical customer in a market segment. –Includes: geographic location, – demographics, – psychographics, – and behavior relevant to the product. It is a complete vivid picture of your customer. Image: Ambro / FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.

You have now defined your target market Image: / FreeDigitalPhotos.net Copyright © Texas Education Agency, All rights reserved.