Warm-up: Wednesday, 02/05/141. Overseeing how transportation will be taken

care of is which marketing mix element?a) Distribution

b) Transportation

c) Channel Management

d) Place 

MARKET SEGMENTATION

Market Segmentation

The key to marketing & selling is to know your customer You have to know what is cool, in order to

continually reach your audience

Not all customers are the same Use certain methods to reach certain

customers

Market Segmentation

Market Segmentation is the process of identifying a target market by dividing the market into segments according to customer needs and characteristics. Basically you take a target market and

break down into even smaller markets.

This process is done so that marketers can sell their products or services more effectively.

Market Segmentation Facts

Why do marketer’s use market segmentation? Very costly to target all groups

Must find the group of consumers who you have a clear competitive advantage

Use research to determine if the costs of development are effective Determine if a group is significant enough to target

Specific information allows you to know your customers: Buying Behavior, Values, Fashion Interests, etc… Yesterday the students that were more specific were easier to

create a product for

Market Segmentation

There are four key factors that marketers use to determine how to segment a market:

1. Demographics

2. Geographic Variables

3. Psychographic Variables

4. Buying Behavior

Demographics

Demographics: Refers to statistics that describe a population in terms of personal characteristics. Age (Baby Boom, Generation X, Generation Y,

Generation Z) Gender (Male v. Female) Occupation Education Income

Disposable: Money left after taxes Discretionary: Money left after taxes & basic needs have been

paid Marital Status Ethnic Background

Age Demographics

Gender Segmentation

Income

Ethnic Segmentation Ads

Geely Automobile Holdings Ltd

Pantene Pro-V

Marital Status

Psychographics

Psychographics involves grouping people with similar lifestyles, as well as shared attitudes, values, & opinions. Examples:

People that like to read

Play video games Travel Politics Religion

Geographics

Geographics: Refers to segmenting customers based on where they live. Segment a market geographically can be done:

Locally, Regionally, Nationally, or Globally

Hispanic cultures are prevalent in L.A., Miami, New York, Texas, Arizona, etc..

African American cultures are prominent in the south

States with high teen percentages: Alaska, Utah, Arizona, Texas, California, & Idaho

Examples of Geogrpahic Marketing

Restaurants offering menu items that reflect local taste interest

Cracker Barrel & McDonald’s alters menu to reflect local tastes Menu in south is different than menu in

Northeast

Miller Lite developed a True to Texas Marketing Campaign

Magazines like Midwest or Southwest Living

Pepsi packaging products based on NFL Cities

Market Segmentation

Behavioral Segmentation: Involves looking at the benefits a customer desires, shopping patterns, & usage rate

Online, In-Store, Catalog, TV

Brand Preference Luxury items Always buy Apple, Nike, etc..

Usage Rate Most frequent, loyal customers are

marketed towards the most

Low Carb v. High Protein v. Energy

Mass Marketing v. Segmentation Mass Marketing: Occurs when a

company uses a single marketing strategy to reach all customers Products has universal appeal and few features

to differentiate them from competitors. Not as popular as it used to be because

companies prefer to cluster consumers.

Niche Marketing: Narrowing down your market and using precision to create your products

AssignmentFind a picture(s) that

contains at least 3 people who share the following characteristics: Target market of Ardrey Kell

Demographics Age Gender Ethnic Background Income

Psychographics Activities

Play sports Clubs

Attitudes Workout Video games

Personality & Values Class Clowns Religious Drama

Geographics Does anyone have similar

characteristics based on a geographical location Dallas Cowboys Fans Students who have just

moved here Certain Middle Schools

Buying Behavior Brands Colors Fads

2 points if picture is original

1 point if picture is from the internet

Target Market Assignment Part IICreate a 6 slide PowerPoint (Can work with a partner)

Title Slide, AK Target Market, Demographics, Geographics, Psychographics, & Behavioral Segmentation

Upload the picture you found that reflects the segmentation group targeted

Determine the following for each groupCharacteristics that connect this groupAn item that they would purchasePromotional methods you would use to attract them

Email: melissa1.shaffer@cms.k12.nc.us

Grading Sheet (two or less)

ExamplesCrenshaw

Demographics: Age & GenderHigh School Students

Female

Some characteristics of a product that would appeal to this audience are…..

An item that this demographic would purchase

Promotional methods that we would use for this demographic are….

Psychographics: Basketball TeamCharacteristics that

appeal to this groupWorking out & basketball

merchandise

Product:

Basketball shirts with the motivational saying on back

Promote:

Poster in girls locker room

Flyers on players lockers

GeographicsCharacteristics

that appeal to this group

An item that they would purchase

Promotional methods you would use to attract them

Buying BehaviorCharacteristics that

appeal to this groupConverse Shoes

An item that they would purchaseAK SocksFlat billed hat

Promotional methods you would use to attract themBuy One, Get One ½ Off

Commercials with Music

Old Navy: http://www.youtube.com/watch?v=v-7luX488iY Windows: http://www.youtube.com/watch?v=whF9It6HGPk

Rolling Stones, Madonna, Aerosmith, All-State: http://www.youtube.com/watch?v=LMExQgje9ck G-Star Raw: http://www.youtube.com/watch?v=MwP8vRckByQ Go Pro: http://www.youtube.com/watch?v=9mGzoG0CA5M Beats: http://www.youtube.com/watch?v=T1ybN91jJV4 Tropicana: http://www.youtube.com/watch?v=8pFfAvSH3_0 Budweiser:

http://www.youtube.com/watch?v=_GeiOdHsW_8 http://www.youtube.com/watch?v=qhX1NqhAkDM

Bud Light: http://www.youtube.com/watch?v=hD2STTFSgtw

Car Companies

KIA: http://www.youtube.com/watch?v=OuSfLoXq22w Buick: http://www.youtube.com/watch?v=rt99ULx9iFM Hyundai:

http://www.youtube.com/watch?v=laoqANN3lmg Chevrolet:

http://www.youtube.com/watch?v=plqtYMwQQqI Cadillac:

http://www.youtube.com/watch?v=sKDapnoj0hM Ford:

http://www.youtube.com/watch?v=X8uXrwhWVOM http://www.youtube.com/watch?v=gUfN5fA-oWY

Music in Commercials

Windows: http://www.youtube.com/watch?v=031-DOEop48

Gap: http://www.youtube.com/watch?v=Lfzl-2iSfbM

JC Penny: http://www.youtube.com/watch?v=EOYl5WPTNCY Coca-Cola:

http://www.youtube.com/watch?v=ib-Qiyklq-Q http://www.youtube.com/watch?v=dOkzRZWMLKA http://www.youtube.com/watch?v=TkHA2pf1gvc

Pepsi: http://www.youtube.com/watch?v=po0jY4WvCIc http://www.youtube.com/watch?v=B7YTkw2-aVc http://www.youtube.com/watch?v=_2smYVl0zrk http://www.youtube.com/watch?v=AKKM8sP24BE

Mountain Dew: http://www.youtube.com/watch?v=CcWnfduAS_E http://www.youtube.com/watch?v=SD-ecR9uv1Q http://www.youtube.com/watch?v=zGtIayHPWrM

Warm-up: Thursday, 02/06/141. What is the marketing mix better known

as the 4'P's?a) Product, Place, Promotion, Price

b) Politics Promotion Price Product 

c) Production Product Producing Promotion 

d) Promotion Product Place Production