1. Physical Distribution
What is marketing?
Pricing
Research
Inventory Management
Promotion
Marketing Activities
Branding
Sales
Physical Distribution
Storage
Packaging
Product development

2. Consumer Profiling

3. Who is the market? Why know your target market?
Distribution Methods – how to best deliver product
Advertising – helps create meaningful messages
Product Design – consumers in a target market tend to like similar designs
Media – know which media to use for promotions
Target Market
Entire Market

4. Consumer Profiles - Demographics
“Demographics is the study of obvious characteristics that categorize people.”
Age
Baby Boomers (born ) make up the largest age group in Canada
Gender
Some products are no longer exclusively marketed to one gender
Ex: cars, boxer shorts
Family Life Cycle
Single, married, kids, blended family
Income Level
Ethnicity & Culture

5. Consumer Profiles - Psychographics
“Psychographics is a system for measuring consumers’ beliefs, opinions, and interests.”
Much more difficult to measure than demographics
Religious Beliefs
Musical Tastes
Lifestyle
Attitudes towards health
Personality Traits
Other Psychological Factors

6. Consumer Profiles - Geographics
Geographics – where consumers live.
Urban Consumers
Live within the boundaries of the city.
They usually live in apartments, condos, or houses with small yards.
Spend on cultural events, restaurants, public transportation
Suburban Consumers
Typically owns a car (is a commuter), owns house with larger yards
Spends on household furnishings, BBQs, gardens
Rural Customers
Often farmers with trucks and extremely large properties.

7. How frequently does the consumer use the product?
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.
Medium & Light Users:
Attempt to turn them into Heavy Users with pricing deals, special contests, informative ads.
Non-users:
Those entering category for the first time (ex: new mothers buying diapers).
Those who do not plan on using the products.

8. Value Equation Total Benefits – Total Costs = Value
Example: 1990’s parent deciding to buy a cell phone for a teenager
Benefits: emergency aid, ability to contact family, convenience, ability to keep in touch with friends
Costs: high monthly monetary costs, high start up costs, safety issues, time wasting
Value: Costs outweigh Benefits
Result: Not buying the phone!

9. 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.

10. Consumer Profiles – LEGO
Demographics:
Young children (12 or younger)
Both genders
Psychographics:
Kids who like:
to build things
lots of colours
to touch things with their hands
Geographics:
All Geos

12. Consumer Profiles – Rolex Watches
Demographics:
Adults (30+)
More male oriented
Higher income ($75K+)
Psychographics:
Luxurious lifestyle
Businessmen
Likely to play golf, tennis or polo
Geographics:
Urban & Suburban

15. Consumer Profiles – Mountain Dew
Demographics:
Teenagers/Young Adults (14-25)
Both genders
Middle income
Psychographics:
Extreme lifestyle
Creative
Outgoing
Enjoys punk/rock music
Geographics:
Urban & Suburban

17. 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

18. McDonalds – Young Children

19. McDonalds – Teens/Young Adults

20. McDonalds – Cost/Time Conscious Adults

21. 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.

22. Changes in Consumer Groups
Sometimes the target market will change
New target market
Ex: Manicures for men
New uses for products
Ex: Orange juice now with more vitamin C