Define market segments and the different types of segmentation possible.

1. Market Segments

2. “Your most unhappy customers are your greatest source of learning”
-Bill Gates

3.  Mass
Marketing: Using the same marketing
strategy to appeal to everyone
 Market
Segment: A group of individuals
within a larger market that share one or
more important characteristics

4.  Geographic

Climate, urban vs. rural, population
 Demographic

Age, ethnicity, occupation, gender, income
 Psychographic

Moral values, attitudes, lifestyle choices

5. When determining your market segments, ask
yourself…
1. Is it identifiable?
•
Can your group be measured and studied?
Is it accessible?
2.
•
Can you communicate with your segment?
Is it substantial?
3.
•
Is your group large enough to make a
difference?
Is it unique?
4.
•
Does the segment have distinct needs?

6.  What
is the difference between mass
marketing and market segmentation?
 What
are three types of market
segmentation?
 What
are four questions you should ask
yourself?

7. So, you‟ve figured out who your best
customers would be (based on segmentation)
but now you need to *find* those customers.
How do you find them?

8.  Customer
Data: Look at the information you
have on your current customers
 Industry Research: Trade groups collect
consumer data for their members

Trade group is a „club‟ for people in your industry



American Dental Association
Bread Bakers Guild of America
National Restaurant Association
 Giveaways:
Entice customers to give you
their information in exchange for free stuff!
 Outsourcing: Pay someone else to do it

9. Consider the four industry ways to find your
customer data and answer the following
questions.
1. Which is the most expensive? Why?
2. Which is the easiest? Why?
3. Which is the most helpful? Why?

11.  What
is Market Segmentation and How Can It
Increase Sales?

Inuit Small Business Blog, July 12, 2013
 Segmentation,
Targeting, and Positioning –
McDonald‟s

YouTube, March 6, 2013

12. In the K-Drive, open the file „Choosing the
Right Customer‟ and answer the questions.
Save: Choosing the Right Customer Last Name
Upload to Dropbox when complete