1. Focusing on Market Segments Making an Impact with the Ultimate Customers Copyright © Texas Education Agency, 2011. All rights reserved.

2. Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. 2 Copyright © Texas Education Agency, 2011. All rights reserved.

3. Goals for this Lesson Define demographic segmentation Define psychographic segmentation Define geographic segmentation 3 Copyright © Texas Education Agency, 2011. All rights reserved.

4. Goals for this Lesson Define product usage segmentation Define benefits derived segmentation Explain how to evaluate market potential and calculate market share 4 Copyright © Texas Education Agency, 2011. All rights reserved.

5. Demographic Segmentation Education AgeIncomeRaceGender 5 Copyright © Texas Education Agency, 2011. All rights reserved.

6. Psychographic Segmentation Lifestyle How individuals spend their spare time Social interests Emotional well being 6 Copyright © Texas Education Agency, 2011. All rights reserved.

7. Geographic Segmentation ZIP Code Dividing consumers into markets based on where they live Congressional district Climate and land (examples: moderate and plains) 7 Copyright © Texas Education Agency, 2011. All rights reserved.

8. Product Usage Segmentation How frequently a product or service is used Quantity purchased or consumed Usually based upon customer’s experience 8 Copyright © Texas Education Agency, 2011. All rights reserved.

9. Benefit Segmentation/Expectations Consumer market –Shampoo for oily hair, dry hair, or normal hair –Product frequency of use Business market –Size of business –Geographic location of business –Products and services offered by the business 9 Copyright © Texas Education Agency, 2011. All rights reserved.

10. Evaluating Market Potential Market Opportunity –Number of potential customers –Customers’ interest in the product or service and other mix elements –Amount of money customers have available to make the purchase –Business’s ability to communicate with and distribute the product to consumers 10 Copyright © Texas Education Agency, 2011. All rights reserved.

11. Calculating Market Share Portion of total market potential that each company expects in relation to its competitors Percentage of total sales of a particular good or service Percentage of total units sold for a given product or service 11 Copyright © Texas Education Agency, 2011. All rights reserved.

12. Assignments Students will complete the First Part of the “Marketing to the Generations” project. Students will match goods and services to the demand of different market segments. Using the Product/Service Inventions for an Aging Population Assignment, students will research different market segments to identify products or services that will be in high demand for an aging population. 12 Copyright © Texas Education Agency, 2011. All rights reserved.