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Marketing
            1.02-B
Explain the concept of market and market
              identification
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)
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
  Ipad
Importance of Target Markets


Every customer belongs to a number of markets
Customers are targeted in the consumer market, and
businesses are targeted in the industrial market
The same customer or business can be included in
more than one target market
Markets usually change over time
Mass Marketing
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
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
Market Segments

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 communication
Provides an efficient way for smaller firms
to compete with larger businesses
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
Disadvantages: takes more resources to be
successful, more difficult to reproduce, requires more
creativity and money
Why are market segments
          increasing?


Segment marketing is more efficient in the long run
  Customers today are more discerning about purchases
  Not influenced by mass marketing alone
  Meets customer’s needs
  More opportunities for growth
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
Demographic Segmentation
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)
  Religion (Christian)
  Social or economic status:
  education
  level, occupation, income
  (Middle-Class)
  Life stage:
  age, generation, marital
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
  Marketers discover
    Where their markets are located
    Who their competitors are
    Which media will reach their
    customers
Businesses can market to customers
based on location
Psychographic Segmentation
Psychographic segmentation
is the division of a market on
the basis of consumers’
lifestyles personalities.
  Values, motives, attitudes, opi
  nions, interests, activities, per
  sonalities, and lifestyles
  It gives a clearer picture of
  customers’ needs and wants
  based on personality and
  lifestyle.
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
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?

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Marketing 1.02 b

  • 1. Marketing 1.02-B Explain the concept of market and market identification
  • 2. 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)
  • 3. 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 Ipad
  • 4. Importance of Target Markets Every customer belongs to a number of markets Customers are targeted in the consumer market, and businesses are targeted in the industrial market The same customer or business can be included in more than one target market Markets usually change over time
  • 5. Mass Marketing 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 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
  • 6. Mass Marketing Disadvantages: The diversity of the audience Only a small percentage of the mass market is likely to purchase the product
  • 7. Market Segments 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 communication Provides an efficient way for smaller firms to compete with larger businesses
  • 8. 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 Disadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money
  • 9. Why are market segments increasing? Segment marketing is more efficient in the long run Customers today are more discerning about purchases Not influenced by mass marketing alone Meets customer’s needs More opportunities for growth
  • 10. 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
  • 11. Demographic Segmentation 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) Religion (Christian) Social or economic status: education level, occupation, income (Middle-Class) Life stage: age, generation, marital
  • 12. 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 Marketers discover Where their markets are located Who their competitors are Which media will reach their customers Businesses can market to customers based on location
  • 13. Psychographic Segmentation Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities. Values, motives, attitudes, opi nions, interests, activities, per sonalities, and lifestyles It gives a clearer picture of customers’ needs and wants based on personality and lifestyle.
  • 14. 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
  • 15. 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?