chapter 6 target markets
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Chapter 6 target markets. Market & Market ID. All people who share similar needs and wants and who have the ability to purchase a given product are a MARKET. - PowerPoint PPT PresentationTRANSCRIPT
CHAPTER 6
TARGET MARKETS
Market & Market ID All people who share similar needs and
wants and who have the ability to purchase a given product are a MARKET.
You can be part of the market for video games, but not be a part of the market for an expensive car. Even though you may want it, you may not have the means to buy one.
Consumer Market The consumer market consists of consumers who
purchase goods and services for personal use.
Needs and wants reflect their lifestyles
Consumers are interested in products that will:Save them moneyMake their lives easier Improve their appearanceCreate statusProvide satisfaction
Organizational Market AKA Business to Business market
Includes all businesses that buy products for use in their operations
Goals and objectives of business firms are different than the consumer market.Improving profitsImproving productivityIncrease salesDecrease expensesIncrease efficiency
Market Share A company’s MARKET SHARE is its
percentage of the total sales volume generated by all companies that compete in a given market.
Knowing market share helps companies analyze their competition as well as their status in a given market.
Market Share A company with a large market share
can afford to take risks that other companies cannot.
Market Segmentation Businesses look for ways to sell their
products to different consumers who may be potential customers.
This involves SEGMENTING, or breaking down, the market into smaller groups with similar characteristics.
Market Segmentation
The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs.
Market Segment
Gender-Based Segmentation (Page 274)
TARGET MARKET SELECTION PROCESS
The goal of market segmentation is to identify the group of people most likely to become customers.
The group that is identified for a specific marketing program is the TARGET MARKET.
WHEN A BUSINESS DOES NOT IDENTIFY A TARGET MARKET,
ITS MARKETING PLAN HAS NO FOCUS.
UndifferentiatedTargeting Strategy
Homogeneous Market
Figure 10.2
Undifferentiated strategy satisfies most customers with a single marketing mix
Courtesy of The Beef Checkoff Program
Concentrated Targeting Strategy Through Market Segmentation
Figure 10.2
Heterogeneous Market
Differentiated Targeting Strategy Through Market Segmentation
FOUR SEGMENTATION VARIABLES:
Figure 10.3
Demographic Variables Age Gender Race Ethnicity Income Education
Occupation Family size Family life cycle Religion Social class
Gender is a common target in marketing to a demographic
Reprinted with permission of The Dial Corporation.
Family Life Cycle Stages
Source: Jason Fields, “America’s Families and Living Arrangements: 2003,” Current Population Reports, U.S. Census
Bureau, 2003.
Geographic Variables Climate Terrain City size Population density Urban/rural areas
MicromarketingAn approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets.
Psychographic Variables Personality characteristics Motives Lifestyles Cultures and subcultures
More on Psychographic Variables:
*How people live or want to live – health, youth, controlling your life, alternative thinking and/ behavior.
*Assess AIO dimensions: activities, interests, and opinions.
VALS Types (values, attitudes, and lifestyles)
Toothpaste Product Positions
“Don’t put a cold back in your pocket.”
Jumbo, Man-sized Kleenex
Pocket-sized Kleenex
Kleenex® facial tissueKimberly-Clark sought to give the public as many reasons to buy their product as possible….in 1927, K-C proposed a new use for Kleenex®: ‘absorbent kerchiefs.’
Consumers discovered new benefits:
…..and even benefits.
PRODUCT POSITIONING AND REPOSITIONING
Product positioning creating and maintaining a certain concept of a
product in customers minds. Perceptual Mapping Bases for Positioning Repositioning
Perceptual MapFor Pain Relievers
Figure 10.8