Marketing1.02-B
Explain the concept of market and market identification
A market are those who have: A need or desire, and The ability to pay, and The willingness to buy
(soon)
What is a Market?
A target market are those who: Are grouped within a market by what they
have in common Are the customers the business seeks to
attract Ipad
Target Market
Every customer belongs to a number of markets
Customers are targeted in the consumer market, and businesses are targeted in the industrial market
The same customer or business can be included in more than one target market
Markets usually change over time
Importance of Target Markets
Mass marketing is designing products and directing marketing activities to appeal to the whole market (lightbulbs)
Advantages: communicates a broad message to as many customers as possible
More cost-effective Businesses don’t have to pay for the
production of similar products Can price and distribute one type of
product more easily than many Can send one promotional message to
everyone
Mass Marketing
Disadvantages: The diversity of the audience Only a small percentage of the mass market is
likely to purchase the product
Mass Marketing
Dividing the market into smaller groups in order to target each group individually
Advantages: meets the needs of customers, more precise than mass marketing, more effective communication
Provides an efficient way for smaller firms to compete with larger businesses
Market Segments
Advantages: meets the needs of customers, more precise than mass marketing, more effective communication Provides an efficient way for smaller firms to
compete with larger businesses Disadvantages: takes more resources to be
successful, more difficult to reproduce, requires more creativity and money
Market Segments
Segment marketing is more efficient in the long run Customers today are more discerning about
purchases Not influenced by mass marketing alone Meets customer’s needs More opportunities for growth
Why are market segments increasing?
Market segmentation is the division of a total market into smaller, more specific groups as a way to meet the needs of customers Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation
Market Segmentation
Demographic segmentation is dividing the market on the basis of its physical and social characteristics Gender: indicates purchase
preferences (female) Origin or heritage: race,
ethnicity, nationality (Caucasian)
Religion (Christian) Social or economic status:
education level, occupation, income (Middle-Class)
Life stage: age, generation, marital status, family life cycle, family size. (Teens)
Demographic Segmentation
Geographic Segmentation is the division of a market on the basis of where consumers are located. Determine customers’ purchase
preferences according to climate, political boundaries, or population density
Marketers discover Where their markets are located Who their competitors are Which media will reach their
customers
Businesses can market to customers based on location
Geographic Segmentation
Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities. Values, motives,
attitudes, opinions, interests, activities, personalities, and lifestyles
It gives a clearer picture of customers’ needs and wants based on personality and lifestyle.
Psychographic Segmentation
Behavioral segmentation is dividing a market on the basis of consumers’ response to a product.
Marketers look at the cause and effect nature of customers’ purchase decisions
Examine what customers respond to when they buy a particular product
Behavioral Segmentation
Customer questions in behavioral marketing: How will the product benefit me? Am I ready to buy it? When will I use the product/
On what occasions? How often?
Am I in a comfortable buying pattern? Do I feel loyal to a particular brand?
Behavioral Segmentation