Retailing and E-tailing Unit 3, Lesson 1 Choosing a Target Market & Market Segmentation

Retailing and E-tailingUnit 3, Lesson 1

Choosing a Target Market & Market Segmentation

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VS.

Mass Market

SegmentationMarketing

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MARKET SEGMENTATION

Geographic

Demographic

Psychographic

Behavioral


Geographic Variables

•Location

•Climate

•City size© RoboDread / StockFreeImages.com


Alica Panning

The second statement in the comment area below, is a repeat of the same statement in the previous slide.

United States Map

Image source: Castillo Dominici / FreeDigitalPhotos.net


Demographic Variables

• Age– Generations

• Gender• Ethnicity• Income

– Disposable income– Discretionary

income• Family size• Family life cycle• Occupation


Psychographic variables

• Hobbies • Social

activities• Lifestyle• Interests• Attitudes

Image: Clare Bloomfield / FreeDigitalPhotos.net

Image: David Castillo Dominici / FreeDigitalPhotos.net


Behavioral Variables

• Features desired

• Usage rate–80/20 rule

• Brand loyalty

Image: jannoon028 / FreeDigitalPhotos.net

Image: digitalart / FreeDigitalPhotos.net


Combining VariablesTargeting a market based on two or more variables.

–Ex. Demographics with a psychographic variable

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Market Segment Profile• Detailed description of the

typical customer in a market segment.– Includes: geographic

location,– demographics,– psychographics, – and behavior relevant to

the product.• It is a complete vivid

picture of your customer.

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You have now defined your target market

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Documents

Retailing and E-tailing Unit 3, Lesson 1 Choosing a Target Market & Market Segmentation