1. Market Identification
Have We Met?
Market Planning
LAP 3
Market Identification

2. Objectives Explain the importance of market identification.
Discuss ways that a market can be segmented.

3. Explain the importance of market identification.
Objective
Explain the importance of market identification.

4. Think about two very different people.
They have several things in common.
Individuals can be grouped based on similarities.

5. Marketers use grouping to:
Find their customers
Meet customers’ needs

6. What Is a Market? A customer or potential customer who:
Has an unfulfilled desire
Is financially able to satisfy that desire
Is willing to satisfy that desire soon

7. Group customers by their similarities
How Marketers Meet Customer Needs
Group customers by their similarities
Pinpoint the particular group of customers to attract (a.k.a., the target market)

8. What Is Target Marketing?
The identification and selection of markets for a business or for a product

9. Mass Marketing Involves:
Designing products that will appeal to most buyers
Directing marketing activities to the whole market
Is sometimes called undifferentiated marketing
Focuses on appealing to many types of customers through one marketing plan

10. Advantages of Mass Marketing
Communicates a broad message to a large audience
Allows a business to produce one product for everyone
Provides the most possibilities for success at the least cost

11. Disadvantages of Mass Marketing
Diverse mass marketing audience
Small percentage of audience likely to purchase the product

12. Segment Marketing
Involves planning activities for specific, well-defined groups of customers (a.k.a., market segments)

13. Advantages of Segment Marketing
Aligns with the marketing concept
Is more precise than mass marketing in determining customers’ needs
Allows for:
A finely-tuned product
An appropriate price
Ease of distribution

14. Advantages of Segment Marketing
Encourages effective communication
Helps businesses to make more efficient use of their resources
Allows small firms to be competitive

15. Disadvantages of Segment Marketing
Requires more resources
Makes producing the product more difficult

16. Why Is the Use of Segments Increasing?
Today’s customers are:
Better educated
More discerning in the purchases that they make
These customers want to know, “How will the good or service benefit us directly?”

17. Discuss ways that a market can be segmented.
Objective
Discuss ways that a market can be segmented.

18. Segmenting Markets
Ways to learn about markets and divide markets into smaller groups:
Demographic segmentation
Geographic segmentation
Psychographic segmentation
Behavioral segmentation

19. Demographic Segmentation
Divides a market on the basis of its physical and social characteristics, such as:
Gender
Origin or heritage
Religion
Socioeconomic status
Life stage

20. Geographic Segmentation
Customers are grouped on the basis of geographic divisions, such as:
Regions
States
Cities
Neighborhoods

21. Psychographic Segmentation
Lifestyle
The way in which people lead their daily lives as determined by their income, interests, and activities
Personality
Is defined by a person’s individual qualities or traits and behavior
Affects the person’s buying behavior

22. Behavioral Segmentation
Divides customers into groups according to:
Their response to a product
What they are looking for in a product
Why they buy the product

23. Behavioral Segmentation
Includes:
Rate of use
Benefits derived
Loyalty response
Occasion response

24. If marketers were grouping you:
What categories would they use?
Where would you fit?
What would marketers do to target you?

25. Color-coded toy aisles
Is the toy manufacturers’ approach to selling toys appropriate and ethical?
Are they shrewd business professionals?
Are they perpetuating gender stereotypes?
What do you think?

26. MBAResearch Acknowledgments Original Developers
Christopher C. Burke, April J. Miller, MBAResearch
Version 2.0
Copyright © 2012
MBA Research and Curriculum Center®

27. Digital-based photography sources:
DIGITAL VISION LTD.
Teenager Today
Obj. B: #130271
Photos copyright Digital Vision Ltd., all rights reserved.
833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada T2P 3T5
ThinkStock Photos
Various images used in this presentation are ©2010 Think Stock Photos. All rights reserved

28. Copyright:
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