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?
