Targeting a Market Who do we sell it to???

Learning Goals To explain the importance of understanding your target market. To identify typical market segments. To explain why and how research happens.

Target Market When starting the marketing process, first you have to know who you’re selling to! The Target Market is the group of consumers you plan to sell to Since there are thousands of different consumers out there, target markets are usually broken into groups called segments

Typical Segments Geography – Where are the buyers physically located Psychographics – What are the lifestyles, beliefs, and habits of buyers Socio-Economic – what occupation or social “class” are the buyers Demographics – Measurable statistics such as age, sex, income, marital status

Understanding Your Market To effectively reach the target market, marketers have to figure out: What they want How much they’ll spend Where they are What’s important to them Understanding Buying Motives (the reasons consumers decide to purchase things) will also be helpful

Market Research Getting to know your target market takes some work… Market Research helps give marketers the details about consumers they need to effectively reach them Common market research tools include: Surveys Focus Groups Observations Experiments

Typical Research Model Surveys Questionnaires Focus Groups Test Market Launch

Why Research??? Effective market research provides a way to learn about your target market BEFORE you spend the money on marketing Prevents your product from being a “famous failure”

Applying Research Knowing your target market will help you decide: Where to advertise What appeals to use in your advertisements Important product features Where to sell your product How much to charge

Use It!!! Using what you now know about target markets (the four segments,) see if you can figure out or predict the target market for each product you’re about to see

Geographic, Psychographic, Socioeconomic, Demographic Who are they selling to? Geographic, Psychographic, Socioeconomic, Demographic

Who are they selling to?

Who are they selling to? Geographic: Urban/Suburban Pyschographic: Sophisticated, active, well-travelled Socio-economic: Professional/white collar, upper class Demographic: Males & Females, married and single 25 – 45, HH income level $150K+

Who are they selling to?

Who are they selling to? Geographic: Urban/Suburban Pyschographic: Athletic, unpretentious, average Socio-economic: Blue collar, lower to middle class Demographic: Males & Females, single 15 – 29, HH income $35K to $55K.

Who are they selling to?

Who are they selling to? Geographic: Suburban Pyschographic: Active, health-conscious Socio-economic: Middle to upper class Demographic: Females, M/S, 25 – 55, HH income $85K+

Who are they selling to?

Who are they selling to? Geographic: Suburban/Urban Pyschographic: Active Socio-economic: Lower to middle class Demographic: M/F 8 - 13

Who are they selling to?

Who are they selling to? Geographic: Suburban/Urban Pyschographic: Active, gamers, athletic Socio-economic: Middle to upper class Demographic: Males, unmarried, 16 - 35