Journal Make a list of all extended family members (aunts, uncles, cousins, grandparents) and where they live as well as their ages, occupations (if applicable), and interests or hobbies.
Marketing Essentials, 3E Section 2.2
Identify market segmentation Identify market segmentation Identify and demonstrate the four methods used to segment a market Identify and demonstrate the four methods used to segment a market Identify mass marketing Identify mass marketing
Why it’s Important Businesses must know who their customers are to achieve success. In other words, they must know their markets. This section will introduce you to the U.S. marketplace and the different ways businesses classify and characterize its segments.
Way of analyzing a market by specific characteristics in order to create a target market.
Methods to Segment o Demographics o Psychographics o Geographics o Product Benefits
DEMOGRAPHICS Age Easy for toys, clothing, food products Classify according to generations Age – under 10; 10-19; 20-34; 35-65, over 65
DEMOGRAPHICS Gender: Male or Female Question: Name some gender neutral products that are promoted to both sexes with the same main theme but with slightly different approaches.
DEMOGRAPHICS Income 1.disposable income: money left over after taxes 2. discretionary income: money left over after paying for basic living necessities Income – low (under $30,000); middle ($30, ,000); upper (over$100,000)
DEMOGRAPHICS Ethnic background understand culture and background Question: What ethnic foods do you like to eat?
OTHER DEMOGRAPHICS Level of Education – less than high school; high school graduate; some college; college graduate Marital Status – single, married, children Occupation – nonprofit; government; business; not employed Home Ownership – rent; own
PSYCHOGRAPHICS Involves studies of consumers based on social and psychological characteristics Similar attitudes= similar interests AttitudesValuesLifestyles How time & money is spent?
5 minute partner activity A shabby dressed couple enters a luxury automobile showroom, but the sales associates are not eager to approach them. A younger sales associate finally does and eventually sells them a $50,000 car. The couple puts down $20,000 cash as a down payment. What is the point of this story? What does it say about how lifestyle characteristics can be misleading?
Geographics Segmentation of the market based on where people live City, Rural, Urban, Suburban City, Rural, Urban, Suburban Local, regional, national & global markets Northeast, Midwest, South, etc. Northeast, Midwest, South, etc.
Studying consumers’ behaviors, needs, and wants Markets the product benefits for that specific market
Using a single marketing plan to reach all customers. Products have universal appeal Few features to differentiate them from competitors Not as popular as it used to be Advertising costs low Theme must be general
Worksheet Complete Understanding Market Segmentation worksheet –When done, glue in notebook
Prepare a customer profile for a new soft drink, breakfast food, automobile, or video game, of your choice. Include demographic, psychographic, and geographic information. Journal
Review market segmentation Review the four methods used to segment a market Review mass marketing Review for test
Define the following terms in your journal Market segmentation Mass marketing Marketing Products Services Goods Exchange Consumer Promotion Distribution Competition Marketing mix Financing Demographics Psychographics Pricing Product service mgt Marketing info mgt Selling Geographics Disposable income Discretionary income Age Product benefits
Write each word only one time on your BINGO card. Each box should have one word when you are completed. Market segmentation Mass marketing Marketing Products Services Goods Exchange Consumer Promotion Distribution Competition Marketing mix Financing Demographics Psychographics Pricing Product service mgt Marketing info mgt Selling Geographics Disposable income Discretionary income Age Product benefits
TEST NEXT CLASS!!