On October 23rd, 2014, we updated our
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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)
A target market are those who:
Are grouped within a market by what they have in
Are the customers the business seeks to attract
Mass marketing is designing products and
directing marketing activities to appeal to the
whole market (lightbulbs)
Advantages: communicates a broad message
to as many customers as possible
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
The diversity of the audience
Only a small percentage of the mass market is likely to
purchase the product
Dividing the market into smaller groups in
order to target each group individually
Advantages: meets the needs of customers, more
precise than mass marketing, more effective
Provides an efficient way for smaller firms to compete
with larger businesses
Disadvantages: takes more resources to be
successful, more difficult to reproduce, requires more
creativity and money
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 is
dividing the market on the basis of
its physical and social characteristics
Gender: indicates purchase preferences (female)
Origin or heritage: race, ethnicity, nationality (Caucasian)
Social or economic status: education level, occupation,
Life stage: age, generation, marital status, family life cycle,
family size. (Teens)
Geographic Segmentation is the division of a
market on the basis of where consumers are
Determine customers’ purchase preferences
according to climate, political boundaries, or
Where their markets are located
Who their competitors are
Which media will reach their customers
Psychographic segmentation is the division of a
market on the basis of consumers’ lifestyles
Values, motives, attitudes, opinions, interests,
activities, personalities, and lifestyles
It gives a clearer picture of customers’ needs and
wants based on personality and lifestyle.
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
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?
Am I in a comfortable buying pattern?
Do I feel loyal to a particular brand?