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Target marketing

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Part 3 of the Definition of Marketing Series on Market Segmentation and Target Marketing

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Target marketing

  1. 1. Definition of Marketing Series<br />Segmentation/ Target Market<br />
  2. 2. What is Market Segmentation ?<br />Aggregating prospective buyers into groups that:<br />Share a problem<br />Are similar – in terms of demographics, geography, or psychographics (attitudes and beliefs)<br />Respond similarly to market forces<br />
  3. 3. What is a “Target Market” ?<br />One or more groups toward which a firm focuses its marketing efforts?<br />McDonalds<br />Everyone – price conscious, convenience<br />Happy Meals for kids<br />Salads for moms<br />Angus burgers for men<br />
  4. 4. Why Segment the Market?<br />One size fits all (mass) markets are ineffective<br />They may please no one<br />They’re expensive to serve<br />Fail to match customer desires with firm competencies<br />
  5. 5. How to Segment the Market.<br />Identify market needs<br />Features/ benefits<br />Price<br />Options<br />Form<br />Tylenol chooses to some segments to target and develops a product aimed at each target market<br />Pain Reliever Example<br />Relief from headache, arthritis, cold, etc<br />Branded, generic<br />Large bottle, small bottle<br />Capsules, pills, liquid, powder<br />
  6. 6. How to Segment Market<br />Form Segments<br />Substantial – the size and purchasing power of the segment must have potential for profit<br />Accessible – the segment can be effectively reached and served (ie. They read the same magazine or frequent the same stores, etc.)<br />Actionable – programs can effectively be developed to reach the segment<br />
  7. 7. Segmentation Variables<br />Demographics<br />Age – cruises focus on seniors<br />Gender – women watching sports<br />Income – bottom of the pyramid<br />Ethnicity - grocery stores carry more Hispanic foods<br />Education, life cycle, religion, family size …<br />
  8. 8. Segmentation Variables <br />Geographic <br />Country<br />Region – NE, SW, …<br />Population density<br />Climate<br />Rural versus Urban<br />MSA<br />
  9. 9. Segmentation Variables<br />Psychographic<br />Social class – middle class striving <br />Lifestyle – achievers<br />Personality - introverted<br />
  10. 10. Segmentation Variables<br />Behavioral<br />Loyalty<br />Attitude toward Brand<br />Usage occasion<br />Usage rate – 80/20<br />Readiness stage<br />
  11. 11. Targeting Options <br />Mass market – 1 product to all segments <br />1 product to multiple segments (book translations, split runs)<br />Multiple products to multiple segments (Coke, P& G)<br />Mass customization – individualized products (Mac computers, Sabre)<br />
  12. 12. How Can This Help You Succeed?<br />Products targeted at a specific segment are likely more valuable to that segment<br />Promotions aimed at a segment convert at higher rates<br />Results in better allocation of firm resources<br />
  13. 13. More questions?<br />Check out other videos in this series<br />http://www.MarketingThatWorks.TV<br />

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