Market Segmentation Introduction to Business & Marketing

Review Marketing Mix ◦ Product ◦ Place ◦ Price ◦ Promotion

Marketing Segmentation Market Segmentation: “dividing the total market into smaller groups of people who share specific needs & characteristics” ◦ Demographics ◦ Geographics ◦ Psychographics

Demographics Demographics: “statistics that describe a population in terms of personal characteristics” (WHO your buyer is) ◦ Age ◦ Race ◦ Gender ◦ Income level Used to describe Target Market Example: demographics for The School Store: ◦ Age: ◦ Race: All races ◦ Gender: Male & Female ◦ Income Level: middle income

Target Market Target Market: “focuses all marketing decisions on the specific group of people you want to reach” EXAMPLE: The target market for the School Store is high school students, parents, and Falcon fans. Student writes 2 more examples in notes of what they are the Target Market for

Target Market Nordstrom ◦ Offers high-end brands of fashion items  Ralph Lauren, Louis Vuitton, Gucci ◦ More affluent year-olds Sears ◦ Overwhelming selection of products ◦ Adult female homeowners (25 & up) ◦ Bargain/discount shoppers who want reliable quality

Geographics Geographics: “based on where people in the market live” ◦ Local ◦ Regional ◦ National ◦ Global Example: geographics for Ashburn Ice House ◦ Local hockey teams & fans ◦ Regional hockey teams

Psychographics Psychographics: “studies of consumers based on social & psychological characteristics” (WHY we buy) ◦ Attitudes ◦ Values ◦ Lifestyles Example: psychographics for me ◦ Attitude: positive outlook on life ◦ Values: honesty, hard work ◦ Lifestyle: budget-conscious, lives close to family, full- time employee

Vocab. Notebook – cont. Vocabulary Terms: 8. Market segmentation 9. Geographic 10. Demographic 11. Psychographic VOCAB TERMDEFINITIONPHOTO 8. Marketing concept states that to make a profit a business must focus all efforts on satisfying the needs & wants of the customer You will draw a photo of something that helps you remember this term – keep it simple! profit