Marketing

Market

Target Market

Mass Marketing

Market Segments

Demographics

Key Terms

A market are those who have:

A need or desire, and

The ability to pay, and

The willingness to buy (soon)

What is a Market?

A target market are those who:

Are grouped within a market by what they have in common

Are the customers the business seeks to attract

Target Market

Mass marketing is designing products and directing marketing activities to appeal to the whole market (lightbulbs)

Mass Marketing

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

Mass Marketing

Disadvantages:

The diversity of the audience

Only a small percentage of the mass market is likely to purchase the product

Mass Marketing

Dividing the market into smaller groups in order to target each group individually

Market Segments

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

Market Segments

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

Market Segments

Market segmentation is the division of a total market into smaller, more specific groups as a way to meet the needs of customers

Demographic segmentation

Geographic segmentation

Psychographic segmentation

Behavioral segmentation

Market Segmentation

Demographic segmentation is dividing the market on the basis of its physical and social characteristics

Demographic Segmentation

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 Segmentation

Geographic Segmentation is the division of a market on the basis of where consumers are located.

Determine customers’ purchase preferences according to climate, political boundaries, or population density

Geographic Segmentation

Marketers discover

Where their markets are located

Who their competitors are

Which media will reach their customers

Geographic Segmentation

Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities.

Values, motives, attitudes, opinions, interests, activities, personalities, and lifestyles

It gives a clearer picture of customers’ needs and wants based on personality and lifestyle.

Psychographic Segmentation

Behavioral segmentation is dividing a market on the basis of consumers’ response to a product.

Marketers look at the cause and effect nature of customers’ purchase decisions

Examine what customers respond to when they buy a particular product

Behavioral Segmentation

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?

Behavioral Segmentation