Transcript A target market is the specific group of customers at

Target Marketing
• Students you will need a piece of
line paper and a pen or pencil.
• All students are required to take
notes.
• Every seven slides students will
“pair and share” to create a full
understanding of this lesson.
Marketing is the process of developing,
promoting, and distributing products
in order to satisfy customer’s needs
and wants.
Products include: both goods and
services.
A target market is the specific group of customers
at which a company aims its products and
services. These are the people whose wants
and needs are fulfilled by the products or
services a business offers.
When businesses determine their target markets, they
can then begin to plan their marketing activities.
They will be able to determine what promotions are
best suited to reach their markets, what prices will
attract the markets, how the products can be made
available to them, and even what products will be
desired by these customers.
What are the two, broad ways of
planning target-market activities?
1. Mass Marketing
2. Marketing Segmentation
Mass Marketing
A Mass Market is the
overall market or group of
people who might buy a
product or service.
Products that appeal to
nearly everyone have
mass markets.
Marketers have become increasingly aware that
people are not alike. People have different product
needs and even different reasons for buying.
Their needs and preferences are so varied, in fact
that these could almost be as many differences in
consumer likes and dislikes as there are consumers.
Pair & Share
What is
Marketing?
What is Target
Marketing?
What is Mass
Marketing?
What is
Segmentation
Marketing?
Categories
Demographic Segmentation
Gender
Life Stages
S
S
s
Educational Level
Age
Occupation
Income
1.
2.
3.
4.
5.
6.
7.
8.
Children market – children up to age 10.
Teenage market – youngsters ages 10-19
Young adults market – Adults ages 20-34
Middle-aged market – Adults 35-54
Young old market – Adult ages 55-64
Middle old market – Adult ages 65-74
Senior market – Adult ages 75-84
Elderly market – Adult ages 85 +
Customers are often grouped by gender because
men and women tend to have different needs
and wants. There are products and services
preferred by men, women or both.
1.
2.
3.
4.
5.
Eighth-grade education or less
High school diploma
Some college work
College Degree
Advanced degree beyond 4
yrs. of college.
Education level is another way to
segment a market. A person with
a high school education may have
very different wants or needs
than someone with a bachelor
degree. Somebody with a
bachelor degree may have very
different wants or needs than
someone with a doctoral degree.
The life stages of family or household can create
new markets for products. The life stages that
are used, include the following groups:
1.
2.
3.
4.
Young, single people
Young, married couples without children
Families with children at home.
Older, married couples without children
living at home.
5. Older, single people.
People in different jobs often
have similar wants and needs
based on the job type. The terms
blue collar and white collar are
common. Blue collar generally
refers to a job in which a person
must wear work clothes or
protective gear. White collar
usually refers to a job in an office
environment where business
clothing is required. A person’s
job may affect his or her buying
behavior.
Many occupations are often
related to certain products-auto
mechanics with auto parts,
accountants with calculators,
teachers with books, etc.
Pair & Share
What is?
Consumer
Age Group
Gender
Education
Level
Life Stages
Occupation
Demographic Segmentation
Segmenting a market based on where customers live is called
geographic segmentation. This is one of the oldest methods of
marketing segmentation. It also includes how far they will travel to
do business. Customers can be segmented by region, climate, and
population density. Consumers may be grouped by states, cities,
rural area, etc..
Values and Attitudes
Values are what a person believes in.
An attitude is how a person feels about
something.
Example, customers who feel fashionable
clothing is important, so they may shop at
high-end.
Activities and Interests
People who like that same activities or have the
same interest or hobbies tend to have similar
busying patterns.
Example, people who enjoy basketball will tend
to buy basketball-related items.
• Psychographics are data about the
preferences or choices of a group of
people.
• Customers have psychological
and emotional characters that affect
their buying habits.
• Psychographic segmentation is
dividing the market by certain
preferences or life style choices.
Example of some of the activities that marketers might b
interested in examining are: sports, travel, fashion,
or hobbies.
A consumers who is interested in running, for example,
is a natural market for running clothes, shoes,
magazines, and health products.
For other products, geographic segmentation marketing
determine where to concentrate their making efforts.
Should a company be marketing in cities of a certain size
Should a company be marketing in focused on rural
areas?
Are more products sold on the east coast than on the wes
coast?
These types of questions can be answered through
geographic segmentation.
Customers differ in how they use products. Behavioral segmentation
divides a market by the relationships between customers and the product
or service. Behavioral variables include benefits sought, usage rate,
buying statue, brand loyalty and special occasions.
Pair & Share
Geographic
Segmentation
What is?
Psychographic
Segmentation
Behavior
Segmentation
The usage rate is how often a customer buys or uses a product or
service. Usage rates are classified as heavy, moderate, light, and
nonuser.
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•
•
•
•
A heavy usage rate means the person buys the product often.
A light usage rate means the person rarely busy the product.
A moderate usage rate falls somewhere
between heavy and light.
A nonuser usage rate means the person
never buys the product.
Marketers send different messaged to
people based on how offer they buy the
product.
Customers vary in how loyal they are to a
brand or store. As amazing as it might seem,
for many businesses 80% of total sales tend to
come from 20% of the customers. This is the
80/20 rule. Loyal customers are generally the
source of most company sales.
Example: a mother buys only one
brand of baby food for her child
because she believes it is the best.
Regardless of the price and availability
of other brands of baby food, the
mother will only purchase the one
brand.
The mother is exhibiting a loyalty
response to the product.
Many customers choose the same
products, but often for entirely
different reasons. One customer may
want a computer with a great gaming
platform.
A second customer may want a
computer with a great sound system to
play music.
A third customer may only want a
computer to check e-mail. All of these
customers are buying a computer, but
each is seeking a different benefit from
the product.
Buying status describes when a customer
will buy a product or service. The most
common are potential, first time,
occasional, and regular.
A potential customer is one who has not
bought the product, but is thinking about
it.
A first-time customer is one who has
bought the product once. An occasional
customer is one who rarely buys the
product.
A regular customer is one who buys the
product often or on a predictable based.
Pair & Share
Rate of Use
What is?
Brand Loyalty
Benefits Sought
Buying Status
F
F
F
F
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