Targeted MarketingLesson 7

Objectives Design a direct mail campaign based on market

segments to gather information about specific customers

Identify survey segments and their percentage of the total market

Describe the benefits associated with targeted marketing based on demographics, geographics, and psychographics

Calculate disposable and discretionary income from gross income & expenses

Explain how the results of target marketing can impact a store’s product mix and merchandising

Identifying the Customer The Market:

• Group of people who have common merchandise needs and want and the means to buy the merchandise

Target Market:• The specific group of people a retailer wants

as customers A retailer directs its marketing efforts toward this

group

Demographics:• Describes basic characteristics that identify

and distinguish the people in a target market: Age: Gender: Income:

Disposable Income: Normally used first to pay for necessities like food or housing

Discretionary Income: Amount of money left to spend after necessities are paid

Marital Status: Ethnic Background: Education and Occupation:

Geographics:• Physical location of customers

Tell retailers where their customers live and work Psychographics:

• Analysis of customer lifestyles and how they spend their time and money Activities: Attitudes: Opinions:

Target Marketing and Product Mix:• Studying the target market will give

retailers a good picture of customer’s needs, wants and preferences

WRITTEN EXERCISES 1. Just think of your favorite store.

• Best Buy• Nike• Buckle