Presentation on theme: "The Consumer Market Who do marketers target, and why? Reminder: Unit 1 Test will be on Friday (Feb 28)"— Presentation transcript:
The Consumer Market Who do marketers target, and why? Reminder: Unit 1 Test will be on Friday (Feb 28)
The more marketers know about their customers, the more they can cater and anticipate customer needs Consumer profiles: Category of people that are likely to be attracted to a certain product Divided into a primary market (regular customers) and the secondary market (other, occasional customers) Why we target?
Demographics is the study of obvious characteristics that categorize people: Age: Seven different age groups Pre consumers: (ages 0-9) Allowance customers (ages 10-15) Youth Market (ages 16-19) Postsecondary Market (20-25) Family formation (nesters – ages 25-40) Establishment (40-55) Mature Market (55+) Why is age the most important demographics factor? Demographics
Gender: Numerous products marketed exclusively to women and men separately Each gender has different needs or wants. Income: Grouped based on money earned. Ie: Mercedes and BMW focus on the upper-class whereas Honda Civic focuses on middle or lower class. Ethnicity and Culture: Especially important in international business Some products are targeted only for certain ethnic group. Can anyone think of an example? Demographics Continued..
We can classfiy consumers based on personality, attitude, lifestyles, religious beliefs and interests. For example: sports fans, gamers, bikers (hog) treckies, hippies, college students, hunters and fishers. Psychographics
People have different wants and needs depending on geographic area: Urban area – tiny parking space Suburban area – small parking space Rural area – big parking space with unpaved roads For example, if you were automaker, how would you differentiate your product so that you can target each of the 3 areas? Geographics
The usage of demographics, psychographics and geographic data collection to interpret (and to understand) the wants and needs of a targeted group of people The collection, analysis, and interpretation of information used to develop a marketing strategy or to solve a marketing problem What is Marketing Research?
Proper marketing research needs to: Be collected in a methodical, organized manner Use numerous different strategies and collect a wide range of data Market research provides hard data: information based on supportable facts. What is Marketing Research?
Ultimately makes marketing efforts more successful When a company wants to earn more money/expand/develop a new product, develop a product, etc If a strong competitor moves into the marketplace Ie: What is the best location for my store? What products should I sell? Should I advertise? Marketing research helps us answer these important questions! When is Marketing Research Needed?
Primary Research: Qualitative: used to measure peoples reactions, responses or feelings towards a given subject or problem Quantitative: involves collecting data by surveying a representative sample of a target-market population For example, survey is done to find out whether people will want to buy my magic pen. Gathering Data – Key Concepts
Data Mining: A research process marketers use to look for unknown connections and patterns among collected data Allows marketers to extract useful information from the volumes of data available Makes connections between marketing activities and consumer behaviour Gathering Data – Key Concepts
A survey is a set of carefully planned questions that are used to gather data Can be: written, oral, in person, on the phone, through the mail or internet Open ended questions: Are very difficult to analyze and take more time to answer Random Sampling: Is necessary: a survey that does not accurately represent the entire targeted market is biased Surveys