3. 3
Market Segmentation
Market
Market
Segment
Market
Segmentation
People or organizations with
needs or wants and the ability and
willingness to buy
A subgroup of people or organizations
sharing one or more characteristics that
cause them to have similar product needs.
The process of dividing a market into
meaningful, relatively similar, identifiable
segments or groups.
5. Market Research and
Analysis
The Customer Profile
Demographics
– Age, gender, income
Psychographics
– Innovative, risk-averse, etc.
User-term Characteristics
– Heavy/passive users, level of usage
6. Market Research and
Analysis
The Customer Profile Continued
Buying Behavior
Where?
When?
What?
How?
Why?
What problem(s) are you solving?
7. Market Research and
Analysis
Knowing Your Competition
Who are they
Where are they
What are their strengths and weaknesses
Who are their customers
How do they advertise and promote
What is the basis of competition
8.
9.
10. 10
Target Market
A group of people or
organizations for which an
organization designs,
implements, and maintains a
marketing mix intended to
meet the needs of that group,
resulting in mutually satisfying
exchanges.
11. A target market is...
Your ideal group of customers, and who a
business attempts to sell to
A target market is not…
Everyone that can, has the means to, or will
buy the product
** On the BMC, your target market is referred to as “Customer Segments”
12. Know who you are selling to
Are you selling to
● The User - consumer
● The Buyer - customer
● The Influencer
● The Decision Maker
17. Geographics
Where your customers live
Examples include (but are not
limited to):
● City-dweller
● Suburban
● Rural
● International /domestic
18. The Basis of Market
Segmentation
Geographic – the study of the
market based on where
customers live
–Region, city, area, county, state,
country
19. Demographics
Who your customer is
Examples include (but are not
limited to):
● Age
● Gender
● Ethnic Background
● Income
● Marital Status
**Found on US Census, SBA,
SBDC
20. Demographic- personal
characteristics of a population
– Age,
– Gender
– Family size
– Marital Status
– Family life cycle
– Household income
– Occupation
– Education
– Religion
– Nationality, social
class
– Home Value
– Social Class
– Geographic
Region(s)
21. Demographics, con’t
Age Cohorts
– Baby Boom generation – 1946 - 1964
– Generation X – Baby Bust generation
– Generation Y – Echo Boomers or
Millennium Generation
– Ethnic Segmentation – ethnic makeup &
cultural tastes
– Socioeconomic – social status or economic
position
• Income, Occupation, Class or social position
22. Psychographics
Why your customers buy
Examples include (but are not
limited to):
● Attitudes, Beliefs
● Lifestyle, Interests
● Hobbies, Activities
● Social status
26. Buying Behavior
How they buy; How they use a
product
Examples include (but are not
limited to):
● Needs vs Wants
● Spending patterns
● Usage trends
● Brand preferences
● Advertising influence
Editor's Notes
Teacher Notes -
Knowing who you are selling to will help you identify what methods will be most productive in reaching (features, promotion, selling price, etc.)
A customer buys a product, where a consumer uses it
EX: School district buys computers, desks for students to use
EX: Parent buys child clothes, a toy
An Influencer is someone who may not buy a product themselves, but does encourage the purchase to be made
EX: “60% of all tweens today have substantially influenced their parents’ final decision on which car to buy”
https://www.democraticmedia.org/sites/default/files/The-Next-Generation-of-Consumers.pdf
The Decision Maker does exactly as this title implies, although another individual may be physically completing the transaction
EX: Accounting department (decision maker) may authorize a purchase to be made by a salesperson
Teacher Notes -
Prompt students that they may want to make notes of these definitions and examples
Details provided on following slides