Presentation on theme: "Explain the concept of market and market identification"— Presentation transcript:
1 Explain the concept of market and market identification Marketing 1.02-BExplain the concept of market and market identification
2 What is a Market? A market are those who have: A need or desire, and The ability to pay, andThe willingness to buy (soon)
3 Target Market A target market are those who: Are grouped within a market by what they have in commonAre the customers the business seeks to attractIpad
4 Importance of Target Markets Every customer belongs to a number of marketsCustomers are targeted in the consumer market, and businesses are targeted in the industrial marketThe same customer or business can be included in more than one target marketMarkets usually change over time
5 Mass MarketingMass marketing is designing products and directing marketing activities to appeal to the whole market (lightbulbs)Advantages: communicates a broad message to as many customers as possibleMore cost-effectiveBusinesses don’t have to pay for the production of similar productsCan price and distribute one type of product more easily than manyCan send one promotional message to everyone
6 Mass Marketing Disadvantages: The diversity of the audience Only a small percentage of the mass market is likely to purchase the product
7 Market SegmentsDividing the market into smaller groups in order to target each group individuallyAdvantages: meets the needs of customers, more precise than mass marketing, more effective communicationProvides an efficient way for smaller firms to compete with larger businesses
8 Market SegmentsAdvantages: meets the needs of customers, more precise than mass marketing, more effective communicationProvides an efficient way for smaller firms to compete with larger businessesDisadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money
9 Why are market segments increasing? Segment marketing is more efficient in the long runCustomers today are more discerning about purchasesNot influenced by mass marketing aloneMeets customer’s needsMore opportunities for growth
10 Market SegmentationMarket segmentation is the division of a total market into smaller, more specific groups as a way to meet the needs of customersDemographic segmentationGeographic segmentationPsychographic segmentationBehavioral segmentation
11 Demographic Segmentation Demographic segmentation is dividing the market on the basis of its physical and social characteristicsGender: indicates purchase preferences (female)Origin or heritage: race, ethnicity, nationality (Caucasian)Religion (Christian)Social or economic status: education level, occupation, income (Middle-Class)Life stage: age, generation, marital status, family life cycle, family size. (Teens)
12 Geographic Segmentation Geographic Segmentation is the division of a market on the basis of where consumers are located.Determine customers’ purchase preferences according to climate, political boundaries, or population densityMarketers discoverWhere their markets are locatedWho their competitors areWhich media will reach their customersBusinesses can market to customers based on location
13 Psychographic Segmentation Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities.Values, motives, attitudes, opinions, interests, activities, personalities, and lifestylesIt gives a clearer picture of customers’ needs and wants based on personality and lifestyle.
14 Behavioral Segmentation Behavioral segmentation is dividing a market on the basis of consumers’ response to a product.Marketers look at the cause and effect nature of customers’ purchase decisionsExamine what customers respond to when they buy a particular product
15 Behavioral Segmentation Customer questions in behavioral marketing:How will the product benefit me?Am I ready to buy it?When will I use the product/On what occasions?How often?Am I in a comfortable buying pattern?Do I feel loyal to a particular brand?