Understanding Market and Target Market Identification
This article provides an explanation of the concept of market and market identification. A market is defined as a group of people who have a need or desire, the ability to pay, and the willingness to
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Slide1Marketing1.02-B Explain the concept of market and market identification
Slide2A market are those who have: A need or desire, and The ability to pay, and The willingness to buy (soon) What is a Market?
Slide3A target market are those who: Are grouped within a market by what they have in common Customers the business seeks to attract Ipad Target Market
Slide4Customers belong to a number of markets Customers targets = consumer market Business target = industrial market Markets usually change over time Importance of Target Markets Young Adult Middle Class Like Vacations Female
Slide5designing products and directing marketing activitiesto appeal to the whole market (Ex: 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
Slide6Disadvantages: The diversity of the audience Only a small percentage of the mass market is likely to purchase the product Mass Marketing
Slide7dividing the market into smaller groups in order totarget 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
Slide8Disadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money Market Segments
Slide9Division of a totalmarket into smaller, more specific groups as a way to meet the needs of customers Market Segmentation Behavioral . Demographic Psychographic Geographic
Slide10basis 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 Demographic
Slide11basis of where consumers are located. Climate (City) Political Boundaries (Democratic State) Population Density (High per capita) Marketers discover Where their markets are located ? Who their competitors are? Which media will reach their customers? Geographic Geographic Segmentation
Slide12Psychographicbasis of consumers’ lifestyles personalities. Values Motives Attitudes Opinions Interests (Sports) Activities (Winter Sports) Personalities (Adventurous) Lifestyles (Outgoing) It gives a clearer picture of customers’ needs and wants based on personality and lifestyle. Psychographic Segmentation
Slide13Behavioralbasis of consumers’ response to a product. Cause and effect nature of customers’ purchase decisions Examine what customers respond to when they buy a particular product Behavioral Segmentation
Slide14Customer 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 (Cont)
Slide15segment 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?
Slide16Find a website highlighting the top 10 Super Bowl commercials for this year. As you are watching the commercial Identify target markets used and why Demographic Geographic Physiographic Behavioral As a group compare notes and fill in any target markets Student Response: Super Bowl Target Markets
Slide17Each group will use their assigned topic from 4P’s (luxury, economy, sports, truck, green and SUV automobiles). Groups are to research the marketing segmentation and create an illustrative poster reflecting their findings. Must show at least 3 segments Must show research of the industry’s or company’s Marketing Must be detailed by identifying subcategories of marketing segments from presentation 1.02 Student Response: 4’s & Target Market- Part 2