Chapter 4 Marketing Basics

Goals The student will define a target market The student will identify the four methods used to segment a market

Who is the Target Market? Brinks: http://www.youtube.com/watch?v=1K8DKH7tCRU Budweiser https://www.youtube.com/watch?v=7p_3lITiK_Q Old Spice https://www.youtube.com/channel/UC3V6vcmjv20XJcK80g5K5ow?v=mVKP25UPp78

Marketing Up Front A plan that identifies how a company expects to achieve its goals is known as a strategy. Must revolve around the Marketing Concept! 4 P’s around the NEEDS of the customer!

Market Segmentation The process of dividing a larger market into smaller parts

Target Market The target market is a clearly defined segment of the market to which a business wants to appeal.

Primary Market A primary target market is the segment of a marketplace a business believes will give it the best chance to sell. A primary target market may not be the largest segment of a marketplace. For example, the majority of people who play golf may be men under age 50. The primary target market for a company that makes women's golf clothing for seniors would be women age 50 and older

80/20 Rule The majority of a business’s profits come from a small number of customers. 80% of sales come from 20% of the customers

Secondary Market The secondary market includes future primary buyers, those buying at a high rate within a small segment and people who influence primary buyers. Their characteristics and buying behaviors usually differ from those of the primary market.

How to get your Ideas to spread https://www.youtube.com/watch?v=xBIVlM435Zg How does this video relate to Marketing in general? How can the ideas from this video link to market segmentation?

Breaking up your Segments:

Psychographics Traits, habits, and experiences of the potential buyer Religious Sports Video games Healthy

Demographics Statistics that describe a population Age Race Income Gender

Geographic's Segmenting a market based on where people live

Behavioral Dividing a market based on the way customers USE a product or act towards a product.

Assignment