Transcript Marketing and the Marketing Concept

Warm-up: Wednesday, 02/05/14
1.
Overseeing how transportation will be taken
care of is which marketing mix element?
a)
b)
c)
d)
Distribution
Transportation
Channel Management
Place
MARKET SEGMENTATION
Market Segmentation

The key to marketing & selling is to know your
customer
 You
have to know what is cool, in order to continually
reach your audience
 Not
all customers are the same
 Use
certain methods to reach certain customers
Market Segmentation

Market Segmentation is the process of identifying
a target market by dividing the market into
segments according to customer needs and
characteristics.
 Basically
you take a target market and break down
into even smaller markets.
 This
process is done so that marketers can sell their
products or services more effectively.
Market Segmentation Facts

Why do marketer’s use market segmentation?

Very costly to target all groups

Must find the group of consumers who you have a clear
competitive advantage

Use research to determine if the costs of development are
effective


Determine if a group is significant enough to target
Specific information allows you to know your customers:


Buying Behavior, Values, Fashion Interests, etc…
Yesterday the students that were more specific were easier to create
a product for
Market Segmentation

There are four key factors that marketers use to
determine how to segment a market:
1.
Demographics
2.
Geographic Variables
3.
Psychographic Variables
4.
Buying Behavior
Demographics

Demographics: Refers to statistics that describe a
population in terms of personal characteristics.
Age (Baby Boom, Generation X, Generation Y, Generation Z)
 Gender (Male v. Female)
 Occupation
 Education
 Income



Disposable: Money left after taxes
Discretionary: Money left after taxes & basic needs have been paid
Marital Status
 Ethnic Background

Age Demographics
Gender Segmentation
Income
Ethnic Segmentation Ads
Geely Automobile Holdings Ltd
Pantene Pro-V
Marital Status
Psychographics

Psychographics
involves grouping
people with similar
lifestyles, as well as
shared attitudes,
values, & opinions.

Examples:





People that like to read
Play video games
Travel
Politics
Religion
Geographics

Geographics: Refers to segmenting customers
based on where they live.

Segment a market geographically can be done:
 Locally, Regionally, Nationally, or Globally

Hispanic cultures are prevalent in L.A., Miami, New York, Texas,
Arizona, etc..

African American cultures are prominent in the south

States with high teen percentages:
 Alaska, Utah, Arizona, Texas, California, & Idaho
Examples of Geogrpahic Marketing

Restaurants offering menu items that reflect
local taste interest

Cracker Barrel & McDonald’s alters menu to
reflect local tastes


Menu in south is different than menu in Northeast
Miller Lite developed a True to Texas
Marketing Campaign

Magazines like Midwest or Southwest Living

Pepsi packaging products based on NFL Cities
Market Segmentation

Behavioral Segmentation:
Involves looking at the benefits a
customer desires, shopping
patterns, & usage rate

Online, In-Store, Catalog, TV

Brand Preference
Luxury items
 Always buy Apple, Nike, etc..


Usage Rate

Most frequent, loyal customers are
marketed towards the most
Low Carb v. High Protein v. Energy
Mass Marketing v. Segmentation

Mass Marketing: Occurs when a company uses a
single marketing strategy to reach all customers
Products has universal appeal and few features to
differentiate them from competitors.
 Not as popular as it used to be because companies prefer
to cluster consumers.


Niche Marketing: Narrowing down your market and
using precision to create your products
Assignment
 Find a picture(s) that contains at
least 3 people who share the
following characteristics:
 Target market of Ardrey Kell
 Demographics
 Age
 Gender
 Ethnic Background
 Income
 Psychographics
 Activities


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Attitudes
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

Play sports
Clubs
Workout
Video games
Personality & Values



Class Clowns
Religious
Drama
 Geographics
 Does anyone have similar
characteristics based on a
geographical location



Dallas Cowboys Fans
Students who have just moved
here
Certain Middle Schools
 Buying Behavior
 Brands
 Colors
 Fads
 2 points if picture is original
 1 point if picture is from the
internet
Target Market Assignment Part II
 Create a 6 slide PowerPoint (Can work with a partner)
 Title Slide, AK Target Market, Demographics, Geographics,
Psychographics, & Behavioral Segmentation
 Upload the picture you found that reflects the segmentation group
targeted
 Determine the following for each group
 Characteristics that connect this group
 An item that they would purchase
 Promotional methods you would use to attract them
 Email: [email protected]
Grading Sheet (two or less)
Examples
 Crenshaw
Demographics: Age & Gender
 High School Students
 Female
 Some characteristics of a
product that would appeal to
this audience are…..
 An item that this demographic
would purchase
 Promotional methods that we
would use for this demographic
are….
Psychographics: Basketball Team
 Characteristics that
appeal to this group
 Working out & basketball
merchandise
 Product:
 Basketball shirts with the
motivational saying on back
 Promote:
 Poster in girls locker room
Geographics
 Characteristics that
appeal to this group
 An item that they
would purchase
 Promotional methods
you would use to
attract them
Buying Behavior
 Characteristics that appeal
to this group
 Converse Shoes
 An item that they would
purchase
 AK Socks
 Flat billed hat
 Promotional methods you
would use to attract them
 Buy One, Get One ½ Off
Commercials with Music


Old Navy: http://www.youtube.com/watch?v=v-7luX488iY
Windows: http://www.youtube.com/watch?v=whF9It6HGPk
 Rolling Stones, Madonna, Aerosmith,
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All-State: http://www.youtube.com/watch?v=LMExQgje9ck
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G-Star Raw: http://www.youtube.com/watch?v=MwP8vRckByQ
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Go Pro: http://www.youtube.com/watch?v=9mGzoG0CA5M

Beats: http://www.youtube.com/watch?v=T1ybN91jJV4

Tropicana: http://www.youtube.com/watch?v=8pFfAvSH3_0

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Budweiser:
 http://www.youtube.com/watch?v=_GeiOdHsW_8
 http://www.youtube.com/watch?v=qhX1NqhAkDM
Bud Light: http://www.youtube.com/watch?v=hD2STTFSgtw
Car Companies

KIA: http://www.youtube.com/watch?v=OuSfLoXq22w

Buick: http://www.youtube.com/watch?v=rt99ULx9iFM

Hyundai: http://www.youtube.com/watch?v=laoqANN3lmg

Chevrolet: http://www.youtube.com/watch?v=plqtYMwQQqI

Cadillac: http://www.youtube.com/watch?v=sKDapnoj0hM
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Ford:

http://www.youtube.com/watch?v=X8uXrwhWVOM

http://www.youtube.com/watch?v=gUfN5fA-oWY
Music in Commercials

Windows: http://www.youtube.com/watch?v=031-DOEop48

Gap: http://www.youtube.com/watch?v=Lfzl-2iSfbM

JC Penny: http://www.youtube.com/watch?v=EOYl5WPTNCY

Coca-Cola:



http://www.youtube.com/watch?v=ib-Qiyklq-Q

http://www.youtube.com/watch?v=dOkzRZWMLKA

http://www.youtube.com/watch?v=TkHA2pf1gvc
Pepsi:

http://www.youtube.com/watch?v=po0jY4WvCIc

http://www.youtube.com/watch?v=B7YTkw2-aVc

http://www.youtube.com/watch?v=_2smYVl0zrk

http://www.youtube.com/watch?v=AKKM8sP24BE
Mountain Dew:
Warm-up: Thursday, 02/06/14
1.
What is the marketing mix better known as
the 4'P's?
a)
b)
c)
d)
Product, Place, Promotion, Price
Politics Promotion Price Product
Production Product Producing Promotion
Promotion Product Place Production