IDENTIFY MARKET SEGMENTS

3.04Entrepreneurship 1

Sales & Marketing Strategy

Advertising spending:– Third largest expenditure – Growing favoritism toward online

Most important online marketing tactics • 69% Web sites • 36% Search engine key words• 24% E-mail marketing

Most important offline marketing tactics• 35% Fostering good community relations• 27% Public relations/ media coverage

Sources: www.emarketer.com, 2005 & www.MarketingPower.com

4 P’s of Marketing

Product Example: Mature product Example: New/introductory product

Place Tip: Sales strategy

Price Internal/Cost perspective External/market perspective

Promotion (continued….)

Promotion

Promotion Advertising

Tip: Advertising value Publicity

Tip: Made you look! Personal Selling

Tip: Relationships

Target Market

Market

The group of potential consumers who share common needs and wants.

The target market has the ability and willingness to buy the product.

Businesses strive to meet the needs and wants of their customers.

Mass Marketing

A single marketing plan used to reach all consumers.

Target Market

The group of consumers that a company desires to have as customers.

Market Segmentation

Dividing the entire market into smaller groups (of people) who share similar characteristics.

Allows businesses to customize products and marketing strategies.

Demographics

Segmenting the market based on personal characteristics such as age, gender, income, ethnic background, education and occupation.

Example: middle class, males, ages 20-40, who are construction workers.

Psychographics

Segmenting the market based on values, attitudes and lifestyles.

Example: People interested in professional football.

Geographic

Segmenting a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets.

Example: A small local store will segment to the surrounding area like a town, while big companies like Nike market Internationally.

Behavioral Segmentation

Dividing consumers into groups according to their response to a product. Behavioral segmentation divides markets into groups based on what they are looking for in a product and why they buy the product.

Example: Purchasing Nike shoes because Michael Jordan wears them.