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WF SEM ISummarize ways to reach markets
Market Segmentation
What is a market? The group of all potential customers
who have similar needs and wants and have the ability and willingness to buy the product
Consumer Market Industrial Market
What is market share? The percentage of the total sales revenue acquired by a business within a
market For example: Running Shoes
Total sales by company: Nike $3.6 million 28.4% Reebok $2.7 million 21.1% Adidas: $2.1 million 16.4% Fila: $1.7 million 12.9% Converse: $1.5 million 11.9% Others: $ 1.2 million 9.5% Total $12.8 million 100%
Mass Marketing vs. Niche/Target Marketing
Mass marketing: A single marketing plan used to reach all consumers
For example: Light Bulbs/Cleaning products What makes Mass Marketing a viable solution to our
Marketing needs?
* Few features, universal usage, all choices similar
Niche or Target marketing: Narrowing markets, by identifying very specific characteristics, into a more specific group of people
For example: Aquatic Pet Stores
WHY Target Marketing? Product
Price$2.95 $7.99 $4.00
Promotion
Place
Target Marketing Illustration
And market segmentation is…
Dividing the entire market into smaller groups who share similar characteristics.
For example: Mini Van
Market and Market Segmentation
Carpoolers
Traveling salespeople
Small-item delivery business
LARGE FAMILIES
Young families
with children
CAMPERS
Question #1: What market is this illustrating?
Question #2:Can you name one segment?
Question #3:Would you market to all of the segments and why?
Question #4:If you did market to all the segments, what would that be an example of?
Question #5:
What types of things should we now consider when deciding which segments to “target”?
Market for Minivans!!!!!
Demographic segmentation is… Dividing the market based on
personal characteristics such as age, gender, income level, ethnic background (race), education, and occupation
For example, Teen Vogue is marketed to…
Demographic Characteristics of Education and Income Example
Geographic Segmentation Dividing a market based on where a
person lives (local, regional, state, national, or global markets).
Based on climate/terrain and population density
For example, swimwear and body boards sell best?
Snow skis Snow blowers
Psychographic Segmentation Dividing the market based on values
(ethics, morals, standards), attitudes (personality), and lifestyles (how people spend their time)
For example: Schwinn Bicycle
Behavioral Segmentation Dividing the market into groups based on
what they are looking for in a product and why they buy the product, ie. Rate of use, specific benefit, loyalty response, occasion response
For example: Wedding Dress
Pepsi vs. Coke