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Explain the concept of market and market identification

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1 Explain the concept of market and market identification
Marketing 1.02-B Explain 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, and The willingness to buy (soon)

3 Target Market A target market are those who:
Are grouped within a market by what they have in common Customers the business seeks to attract Ipad

4 Importance of Target Markets
Customers belong to a number of markets Customers targets = consumer market Business target = industrial market Markets usually change over time Female Young Adult Middle Class Like Vacations

5 Mass Marketing designing products and directing marketing activities to appeal to the whole market (Ex: lightbulbs) Advantages: communicates a broad message to as many customers as possible More cost-effective Businesses don’t have to pay for the production of similar products Can price and distribute one type of product more easily than many Can 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 Segments Dividing the market into smaller groups in order to target each group individually Advantages: meets the needs of customers, more precise than mass marketing, more effective communication Provides an efficient way for smaller firms to compete with larger businesses

8 Market Segments Disadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money

9 Market Segmentation Demographic Geographic
Division of a total market into smaller, more specific groups as a way to meet the needs of customers Behavioral Geographic Psychographic

10 Demographic Segmentation
basis of its physical and social characteristics Gender: 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) Demographic

11 Geographic Segmentation
basis of where consumers are located. Climate (City) Political Boundaries (Democratic State) Population Density (High per capita) Marketers discover Where their markets are located ? Who their competitors are? Which media will reach their customers? Geographic

12 Psychographic Segmentation
basis of consumers’ lifestyles personalities. Values Motives Attitudes Opinions Interests (Sports) Activities (Winter Sports) Personalities (Adventurous) Lifestyles (Outgoing) It gives a clearer picture of customers’ needs and wants based on personality and lifestyle. Psychographic

13 Behavioral Segmentation
basis of consumers’ response to a product. Cause and effect nature of customers’ purchase decisions Examine what customers respond to when they buy a particular product Behavioral

14 Behavioral Segmentation (Cont)
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?

15 Why are market segments increasing?
Segment marketing is more efficient in the long run… Customers today are more discerning about purchases Not influenced by mass marketing alone Meets customer’s needs More opportunities for growth

16 Student Response: Super Bowl Target Markets
Find a website highlighting the top 10 Super Bowl commercials for this year. As you are watching the commercial Identify target markets used and why Demographic Geographic Physiographic Behavioral As a group compare notes and fill in any target markets

17 Student Response: 4’s & Target Market- Part 2
Each group will use their assigned topic from 4P’s (luxury, economy, sports, truck, green and SUV automobiles). Groups are to research the marketing segmentation and create an illustrative poster reflecting their findings. Must show at least 3 segments Must show research of the industry’s or company’s Marketing Must be detailed by identifying subcategories of marketing segments from presentation 1.02

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