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Business Studies 2.6

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Simple powerpoint on market segmentation

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Business Studies 2.6

  1. 1. Quick Write<br />What is market research?<br />What is the purpose of doing market research?<br />
  2. 2. Market Segmentation<br />Business Studies 2.6<br />
  3. 3. Goal for today<br />That you can both define and describe market segmentation and consumer profiles.<br />
  4. 4. Market Segmentation<br />Sort of like “heat-seeking missile”.<br />Companies try and divide the market up into sub-groups based on key defining characteristics.<br />This allows them to be more targeted in its marketing efforts.<br />Can you name some market segments that businesses might deal with?<br />
  5. 5. Market Segments<br />Geographical region<br />Age<br />Income level<br />EX: Volkswagen-Audi group.<br />They own a number of brands that are targeted at specific types of consumers.<br />
  6. 6. It’s about consolidation<br />Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behaviour / characteristics<br />The world is made up from billions of buyers with their own sets of needs / wants and behaviour. <br />Segmentation aims to match groups of purchasers with the same set of needs and buyer behaviour. Such a group is known as a &apos;segment&apos;.<br />
  7. 7. Audi<br />What type of consumer are we targeting?<br />
  8. 8. VW<br />What type of consumer are we targeting?<br />
  9. 9. Seat and Skoda<br />What types of consumers are we targeting?<br />
  10. 10. Niche marketing<br />This type of approach is known as niche marketing (target marketing).<br />Can you think of other businesses who take similar approaches?<br />
  11. 11. The Gap Inc.<br />
  12. 12. The alternative to niche marketing<br />The other option is to look at the market as a whole rather than segmenting. <br />Businesses can generate profits by reducing costs through huge volumes of sales. <br />This is known as mass marketing.<br />
  13. 13. EX: Burger King<br />The menu around the globe is pretty much the same. <br />This saves them money in promotional activity, product development, packaging, etc.<br />In this way they can generate more profit per whopper sold.<br />Minor changes do exist though (dietary needs such as lamb for beef)<br />
  14. 14. Consumer profiles<br />In order to know who to target, businesses try to figure out who consumers are.<br />To do this, they create consumer profiles (detailed breakdowns of the demographics of consumers).<br />A good consumer profile should include<br />Age<br />Gender<br />Income<br />Social group<br />
  15. 15. Consumer profiles<br />Once a business knows who the key consumers are, it can target marketing activity specifically at them. <br />Real-world example:<br />Consider Sony Playstation. What does the consumer profile look like for their products?<br />
  16. 16. Sony’s use of consumer profiles<br />No coincidence that Sony deliberately chooses certain events to sponsor.<br />

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