Transcript 2.03 Summarize ways to reach markets.

2.03 Summarize ways
to reach markets
What is a market?
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The group of all potential customers
who have similar needs and wants
and have the ability and willingness
to buy the product
Consumer Market
Industrial Market
What is market share?
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The percentage of the total sales revenue acquired by a business within a
market
For example: Running Shoes
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Total sales by company:
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Nike $3.6 million
Reebok $2.7 million
Adidas: $2.1 million
Fila: $1.7 million
Converse: $1.5 million
Others: $ 1.2 million
Total $12.8 million
28.4%
21.1%
16.4%
12.9%
11.9%
9.5%
100%
Mass Marketing vs. Niche/Target
Marketing
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Mass marketing: A single marketing plan used to
reach all consumers
For example: Light Bulbs
What makes Mass Marketing a viable solution to
our Marketing needs?
Niche or Target marketing: Narrowing markets, by
identifying very specific characteristics, into a more
specific group of people
For example: Aquatic Pet Stores
WHY Target Marketing?
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Product
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Price
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Promotion
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Place
$2.95
$7.99
$4.00
Target Marketing Illustration
And market segmentation is…
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Dividing the entire market into
smaller groups who share similar
characteristics.
For example: Coca-Cola
Market and Market Segmentation
Market for Minivans!!!!!
Question #1:
What market is
this illustrating?
Question
#2:Can you
name one
segment?
Question
#3:Would you
market to all of
the segments
and why?
C
A
M
P
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S
Carpoolers
Traveling
salespeople
Young
families
with
children
Small-item
delivery
business
LARGE
FAMILIES
Question #4:If
you did market
to all the
segments,
what would
that be an
example of?
Question #5:
What types of
things should
we now
consider when
deciding which
segments to
“target”?
Demographic segmentation is…
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Dividing the market based on
personal characteristics such as
age, gender, income level, ethnic
background (race), education, and
occupation
For example, Teen Vogue is
marketed to…
Demographic Characteristics of
Education and Income
Geographic Segmentation
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Dividing a market based on where a
person lives (local, regional, state,
national, or global markets).
Based on climate/terrain and population
density
For example, swimwear and body boards sell
best?
 Snow skis
 Snow blowers
Psychographic Segmentation
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Dividing the market based on values
(ethics, morals, standards), attitudes
(personality), and lifestyles (how
people spend their time)
For example: Schwinn Bicycle
Behavioral Segmentation
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Dividing the market into groups based on
what they are looking for in a product and
why they buy the product, ie. Rate of use,
specific benefit, loyalty response,
occasion response
For example: Crest whitening toothpaste