Vocabulary Target Market Market Segment Market Share

Learning Target I can define target market and market segment. I can describe how businesses use market segmentation.

Determine the Target Market The first step in marketing a product is to determine who specifically ‘the customer’ is for the product. TARGET MARKET  a specific group of consumers you want to reach.

Focus Marketing Efforts Because it would be impossible to satisfy the needs of every consumer, business must narrow down the focus of its marketing efforts. MARKET SEGMENT  a group of consumers within a larger market who share one of more characteristics.

Market Segment Examples UK Basketball fans Snowbirds Die-hard Rolling Stones fans Rodeo fans

Market Segmentation Business do not try to satisfy the needs of all possible customers. Markets are segmented in various way: Geographic location Demographics Psychographics Behavioral-Based Segmentation

Geographic Segmentation Divides markets into physical locations. Eastern, Northern, Southern, Western regions of the US.

Demographic Segmentation Focuses on information that can be measured, such as age, income, profession, gender, education, marital status, and size of income. http://www.marketplace.org/topics/wealth-poverty/income-upshot

Psychographic Segmentation Focus on characteristics that cannot be physically measured, such as values, interests, and lifestyle choices. Example: Sports fans will buy more clothing bearing their team’s logo right after a big game. Restaurants experience more consumer traffic after a local team’s win.

Behavioral-Based Segmentation Focuses on a customer’s attitude toward products and services. Product Usage What products are used and how often. Product Benefits Benefits derived

Capture a Market Share Every business wants to sell to the maximum number of potential customers. MARKET SHARE  the percentage of total sales of a product or service that a company expects to capture in relation to its competitors.

Think Critically What is a good market segment to target for casinos during weekdays?

Think Critically Describe possible demographics, psychographics, and product usage for snowmobiles? Demographics: Psychographics: Product Usage: