Marketing 6621

1. Marketing

2. Key Terms
Market
Target Market
Mass Marketing
Market Segments
Demographics

3. What is a Market?
A market are those who have:
A need or desire, and
The ability to pay, and
The willingness to buy (soon)

4. Target 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

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

6. 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

7. Mass Marketing
Disadvantages:
The diversity of the audience
Only a small percentage of the mass market is likely to
purchase the product

8. Market Segments
Dividing the market into smaller groups in
order to target each group individually

9. 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

10. Market Segments
Disadvantages: takes more resources to be
successful, more difficult to reproduce, requires more
creativity and money

11. Market Segmentation
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

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

13. 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)

14. Geographic 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

15. Geographic Segmentation
Marketers discover
Where their markets are located
Who their competitors are
Which media will reach their customers

16. Psychographic 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.

17. Behavioral 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

18. 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?