UNIT 4 – MARKET SEGMENTATION THE MENU: Read and discuss the opening TICKET MARKETING BASICS The Marketing Concept What’s a Market? The Marketing Strategy Formula Marketing Segmentation OUTCOMES: By the end of UNIT, you will be able to: Describe what the Marketing Concept is and why it is important. List & Describe the components of a Market. Describe the formula that makes Marketing Strategy work.

Marketing Basics Some Key Definitions Marketing - is the process of developing, promoting, and distributing products to satisfy customers' wants and needs. Additionally, it’s the creation and maintenance of satisfying exchange relationships Product – Customer – Consumer –

Marketing Mix = The 4 “P”s Marketing mix - describes how a business blends the four marketing elements Product-what a business offers customers to satisfy needs (GSI) Price - the amount that customers pay for products Place (Distribution) - the locations and methods used to make products available to customers Promotion - ways to encourage customers to purchase products and increase customer satisfaction

The 4 Ps…

Satisfying Customer Needs Primary focus Identify customer needs Develop products Operate a business profitably

Determine the Target Market Target market—a specific group of people you want to reach UNIT 4

How to Find a Target Market Disposable income-income that can be spent freely AFTER necessities are paid for (food, taxes, …) Demographics-specific customer information UNIT 4

The Marketing Concept The Marketing Concept Businesses must satisfy customers' needs and wants in order to make a profit. 3 components of a MARKET All potential customers Share common needs and wants Have the ability and willingness to buy a product

The Marketing Strategy Formula MS = TM + MM MS is Marketing Strategy TM is Target Market MM is Marketing Mix (4Ps)

Targeting the right people!! Target Marketing Focusing marketing decisions on a very specific group of people Customer vs. Consumer? Customer buys the product Consumer uses the product

Market Segmentation A group of individuals that share one or more important characteristics. These characteristics result in similar product or service needs. Businesses use market segmentation to focus their marketing efforts.

Market Segmentation Consumers can be divided into specific, well-defined segments based on certain characteristics:

Market Segmentation Geographic Segmentation Dividing consumers into markets based on where they live. The idea that individuals who live in a certain location might have the same wants and needs. Can be as large as a country, or as small as a zip code.

Market Segmentation Demographic Characteristics age, gender, race, income, and education level. Disposable Income Money left over after taxes & paying for basic living necessities

Market Segmentation Psychographics People’s interests and values. The way you spend your time and your lifestyle choices. Responsible for bowling alleys, sports stores, swimming pools, religious book stores, etc.

Market Segmentation Product Usage The frequency that a customer uses a product. Marketers communicate differently to consumers based on frequency of use.

Market Segmentation Benefits Derived Divides the population into groups depending on the value they receive from the product or service. Customer Profile The combination of all the information about a customer