Transcript Market Segmentation

Chapter 2.1
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Customers – the individuals who purchase the
product
Consumers – the individuals who use the
product
Market – all individuals who share common
needs and wants, and who have the ability to
buy the product
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Target Marketing – focusing all marketing
decisions on a very specific group of people
who you want to reach
Customer Profile – includes information about
the target market with regard to the age,
income level, ethnic background, occupation,
attitudes, lifestyle, or geographic residence of
the targeted customer
Product
 Place
 Price
 Promotion
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Find a marker and a place on the
marker board
 Draw a target with four rings
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Market
Segmentation
Analyzing a market by specific
characteristics to create a target market
Demographics
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Age
Gender
Income
Ethnic Background
Age
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Baby Boom Generation (1946-1964)
Generation X (1965-1976)
Generation Y (1977-1997)
Baby Boomers
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Spending power increases with age
Many baby boomers reaching retirement
Generation X
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Dual career households
Affluent with media
Savvy, skeptical consumers
Better educated
Identify with sharp images, music, humor,
and irreverence
Generation Y
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Computer revolution
Interactivity, multi-tasking
Differentiation, identity
Influence family purchases
Gender
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Gender specific products
Co-gender marketing
Dual gender marketing
Income
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Disposable income – after taxes
Discretionary income – after necessities
Half of discretionary spending by top 5%
Ethnic Background
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Caucasian
African-American
Hispanic
Asian-American
Caucasian
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Majority of the population in US
Only large ethnicity declining in percentage
African-American
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Comprise 12.2% of US population
Promotion through community support
Cultural specifics: white to church
Hispanics
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21 nationalities – Mexican, Spanish, Puerto
Rican, Cuban, Dominican, Caribbean
Larger packaging
Spanish-language television
Music
Asian-American
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4 percent of US population
Fastest-growing group
16 nationalities – Chinese, Vietnamese,
Filipino, Japanese, Asian-Indian, Korean
Emphasis on education
Psychographics
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Study of consumers based on social and
psychological characteristics
Trends
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Dressing down
Health food
Time, efficiency
Luxury
Upscaling – buying name brands
Geographics
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Segmentation by location
National vs. International
Regional