Target Marketing Students you will need a piece of line paper and a pen or pencil. All students are required to take notes. Every seven slides students will “pair and share” to create a full understanding of this lesson.

What is Marketing? Marketing is the process of developing, promoting, and distributing products in order to satisfy customer’s needs and wants. Products include: both goods and services.

What is target marketing? A target market is the specific group of customers at which a company aims its products and services. These are the people whose wants and needs are fulfilled by the products or services a business offers.

Why is target marketing important? When businesses determine their target markets, they can then begin to plan their marketing activities. They will be able to determine what promotions are best suited to reach their markets, what prices will attract the markets, how the products can be made available to them, and even what products will be desired by these customers.

What are the two, broad ways of planning target-market activities? Mass Marketing Marketing Segmentation

Mass Marketing A Mass Market is the overall market or group of people who might buy a product or service. Products that appeal to nearly everyone have mass markets.

Marketing Segments Marketers have become increasingly aware that people are not alike. People have different product needs and even different reasons for buying. Their needs and preferences are so varied, in fact that these could almost be as many differences in consumer likes and dislikes as there are consumers.

Pair & Share What is Marketing? What is Target Marketing? What is Mass Marketing? What is Segmentation Marketing?

Marketing Segments Categories

Demographic Segmentation Life Stages Gender S s Educational Level Age Occupation Income

Consumers Age Groups Children market – children up to age 10. Teenage market – youngsters ages 10-19 Young adults market – Adults ages 20-34 Middle-aged market – Adults 35-54 Young old market – Adult ages 55-64 Middle old market – Adult ages 65-74 Senior market – Adult ages 75-84 Elderly market – Adult ages 85 +

Gender Customers are often grouped by gender because men and women tend to have different needs and wants. There are products and services preferred by men, women or both.

EDUCATIONAL LEVEL Education level is another way to segment a market. A person with a high school education may have very different wants or needs than someone with a bachelor degree. Somebody with a bachelor degree may have very different wants or needs than someone with a doctoral degree. Eighth-grade education or less High school diploma Some college work College Degree Advanced degree beyond 4 yrs. of college.

Life Stages The life stages of family or household can create new markets for products. The life stages that are used, include the following groups: Young, single people Young, married couples without children Families with children at home. Older, married couples without children living at home. Older, single people.

People in different jobs often have similar wants and needs based on the job type. The terms blue collar and white collar are common. Blue collar generally refers to a job in which a person must wear work clothes or protective gear. White collar usually refers to a job in an office environment where business clothing is required. A person’s job may affect his or her buying behavior. Many occupations are often related to certain products-auto mechanics with auto parts, accountants with calculators, teachers with books, etc. OCCUPATION

Demographic Segmentation Pair & Share Consumer Age Group What is? Gender Education Level Life Stages Occupation Demographic Segmentation

GEOGRAPHIC SEGMENTATION Segmenting a market based on where customers live is called geographic segmentation. This is one of the oldest methods of marketing segmentation. It also includes how far they will travel to do business. Customers can be segmented by region, climate, and population density. Consumers may be grouped by states, cities, rural area, etc..

Psychographic Segmentation d Values and Attitudes Values are what a person believes in. An attitude is how a person feels about something. Example, customers who feel fashionable clothing is important, so they may shop at high-end. People who like that same activities or have the same interest or hobbies tend to have similar busying patterns. Example, people who enjoy basketball will tend to buy basketball-related items. Activities and Interests

Psychographic Segmentation d Psychographics are data about the preferences or choices of a group of people. Customers have psychological and emotional characters that affect their buying habits. Psychographic segmentation is dividing the market by certain preferences or life style choices.

Psychographic Segmentation d Example of some of the activities that marketers might be interested in examining are: sports, travel, fashion, or hobbies. A consumers who is interested in running, for example, is a natural market for running clothes, shoes, magazines, and health products. For other products, geographic segmentation marketing determine where to concentrate their making efforts. Should a company be marketing in cities of a certain size? Should a company be marketing in focused on rural areas? Are more products sold on the east coast than on the west coast? These types of questions can be answered through geographic segmentation.

Behavioral Segmentation Customers differ in how they use products. Behavioral segmentation divides a market by the relationships between customers and the product or service. Behavioral variables include benefits sought, usage rate, buying statue, brand loyalty and special occasions. Buying Status Brand Loyalty Rate of Use Benefits Sought Special Occasions

Behavior Segmentation Pair & Share Geographic Segmentation What is? Psychographic Segmentation Behavior Segmentation

Rate of Use The usage rate is how often a customer buys or uses a product or service. Usage rates are classified as heavy, moderate, light, and nonuser. A heavy usage rate means the person buys the product often. A light usage rate means the person rarely busy the product. A moderate usage rate falls somewhere between heavy and light. A nonuser usage rate means the person never buys the product. Marketers send different messaged to people based on how offer they buy the product.

BRAND LOYALTY Customers vary in how loyal they are to a brand or store. As amazing as it might seem, for many businesses 80% of total sales tend to come from 20% of the customers. This is the 80/20 rule. Loyal customers are generally the source of most company sales. Example: a mother buys only one brand of baby food for her child because she believes it is the best. Regardless of the price and availability of other brands of baby food, the mother will only purchase the one brand. The mother is exhibiting a loyalty response to the product.

Benefits Sought Many customers choose the same products, but often for entirely different reasons. One customer may want a computer with a great gaming platform. A second customer may want a computer with a great sound system to play music. A third customer may only want a computer to check e-mail. All of these customers are buying a computer, but each is seeking a different benefit from the product.

Buying status describes when a customer will buy a product or service Buying status describes when a customer will buy a product or service. The most common are potential, first time, occasional, and regular. A potential customer is one who has not bought the product, but is thinking about it. A first-time customer is one who has bought the product once. An occasional customer is one who rarely buys the product. A regular customer is one who buys the product often or on a predictable based. Buying Status

Pair & Share Rate of Use Brand Loyalty Benefits Sought Buying Status What is? Brand Loyalty Benefits Sought Buying Status

F f Any Questions?