1. TARGET MARKET AND MARKET SEGMENTATION
Marketing Foundations – Target D

2. TARGET MARKET
The group of customers whose needs and wants you will try to satisfy
Examples….teens, babies, business people, college students

3. Target Market should have:
Clearly defined wants and needs that your company can meet
Money to buy your product
Willingness and authority to buy your product
Enough customers n the market to be profitable

4. + Marketing Mix Marketing Strategy Target Market
*Remember, the Marketing Mix is all the decisions you make about the 4 P’s.

5. Mass Marketing
The development of only one marketing mix for a specific product
Assumes that everyone has exactly the same wants and needs for the product

6. Target marketing approach
Has marketers analyze the mass market
Then, segment (divide up) the market based on the different needs and wants of the customers in that market
The company will choose one segment to develop a marketing mix (the 4 P’s) that will meet the unique wants and needs of that market segment

7. Market Segmentation Marketers segment (divide up) possible markets by:
Demographics
Geographics
Psychographics
Product benefits

8. Demographic Segmentation
Statistics that describe the characteristics of a population of people
Age
Gender
Ethnicity
Family size
Income
Disposable – money left after taxes
Discretionary – money left after taxes and necessities taken out (what you have left to spend)

9. Psychographic Segmentation
based on psychological characteristics that affect needs and wants
Hobbies
Social activities
Lifestyle
Interests
Attitudes
If you show the target market in ads, people see themselves and relate better to the promotional message

10. Geographic Segmentation
Based on where customers live
Location
Climate
City size

11. Product Benefits
based on the perceived value or advantage consumers receive from a good or service over alternatives.
Quality
Performance
Image
Service
Special features

12. Combining Variables
Marketers find it useful to target a market based on two or more segments
Geographic + demographic
(city + income)
Example: marketers of luxury products can get zip codes of people with the highest income levels.