Presentation on theme: "SEM 2 - 4.04 Select a target market appropriate for venture/product to obtain the best return on marketing investment."— Presentation transcript:
1 SEMSelect a target market appropriate for venture/product to obtain the best return on marketing investment
2 TermsTermsMarket – includes the group of all potential customers who share common needsTarget market – group of very specific customers that a company desires to have as consumersMass marketing – single marketing plan to reach all consumers – Ex: bottled waterMarketing segments – groups of unique individuals that share common characteristicsMarket segmentation – dividing the entire market into smaller groups that share common characteristics & to create a target market – niche market would be an example
3 The importance of target markets to SEM & why is it increasing Provides them with a group of potential or existing customers in which to communicateAbout their good or service to match, understand & satisfy customer needs –Who is buying, what do they buy and why do they buy.
4 How Types of Customers Can be Used to Define a Market MARKET SEGMENTATION: The division of a total market into smaller, more specific groups.geographicsdemographicspsychographicsbehavioral
5 Geographic Market Segmentation Region: by continent, country, state, city, neighborhood or streetSize of metropolitan area: segmented according to size of populationPopulation density: often classified as urban, suburban or ruralClimate: according to weather patterns common to certain geographic regions
8 Behavioral Market Segmentation Behavior towards a productBenefits sought by the customerUsage Rate – how often do they purchase?Brand Loyalty – they expect somethingUser status – potential, first-time or regularReadiness to buy – urgencyOccasions like holidays, birthdays & events that stimulate purchases
9 Niche Market Concentrating all marketing efforts on a small but specific and well defined segment of the populationAre a small part of the marketMay attract a few competitorsEx: Cleats for young children playing soccer
10 How Product Competition is Used to Define a Market Businesses need to gather information about competitors' products and marketing activities in order to determine their strengths and weaknesses in order to help them to determine what they need to do to be more competitive.
11 Profile a Target Market Here are three steps to follow when identifying your market:Identify Why A Customer Would Want To Buy Your Product/ServiceSegment Your Overall MarketResearch Your Market
12 Identify Why A Customer Would Want To Buy Your Product/Service When a business selects a target market, the most useful or desirable market segments to the business arethose that aremeasurable and accessibleEvent marketers should consider culture when identifying target markets for specific events. Why?
13 Segment Your Overall Market A question that a business must answer when identifying a potentially profitable target market is the market responsive to your product/service.One aspect of identifying a segment of a sport/event target market that would want to buy your product/service involves identifying the heavy users
14 Research Your MarketSports and Entertainment marketers should identify their target markets after they have carefully examined all available data and research about the segment
15 Determine who your ideal fan/customer is going to be Conduct market research to obtain objective informationthat can be used in creating atarget-market profile of that fan/customer.Identify potential market segments to address.Present your profile in a visual presentationincluding pictures that represent your customer’s profile.