Identifying Markets

Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers in the same segment will have the same response to  Product design  Price  Distribution method  Promotional campaign  When you expand internationally your target markets tend to shift  Jeeps are targeted to off-roaders in America but not in Europe

Qualifying Market  Market segments must be qualified  Qualified markets have three characteristics: 1. Need or desire for the product 2. Ability to pay for the product 3. Authority to purchase *In some countries teens don’t have the ability or the authority

Qualifying Markets  Business markets are qualified the same way  Need, Ability, & Authority  Industry includes businesses that produce similar products  Same industry, same product needs

Segmentation Strategies  International Marketers follow three strategies:  Businesses look for profitable situations with low risk Segmentation StrategyWhat OccursWhy Implement? Undifferentiated Segmentation Strategy (Mass Marketing) All customers are viewed the sameMarket is too small to target, brand is dominant, or a small group uses the majority of the product Concentrated Segmentation Strategy Business focuses on one clearly defined market Little competition in the marketplace Differentiated Segmentation Strategy Company targets two or more segments with unique strategies Large or growing markets

Market Segmentation Variables Consumer Market VariablesFactors DemographicsAge, race, income, education, gender Cultural (Psychographics)Lifestyles, values, attitudes, etc… GeographicsClimate, Economic Development, Product Usage (Behaviorial)How frequently a product is used, benefits of product Marketers pay close attention to trends when making decisions Ads typically reflect the ideal lifestyle, not current ones

Industrial Markets Segmentation FactorExamples Type of organizationBusiness size, ownership, geographic location, & the amount of product being used. Industry being servedProduct categories and product benefits If selling to high schools, the needs are similar regardless of location Purchasing situationStage of the buying process & factors that affect the buying process such as culture. Example: First time customer versus Regular customer Trading BlocsLook at industrial markets by country groups Target countries in CAFTA, NAFTA, & EU

Domestic International Markets  United States can target international markets within America  Asian-American  Hispanic-Americans  Geographical Ties  Polish population in Chicago  Arab population in Dearborn, MI

Assignments  P. 109  Look at the characteristics that make up the Asian-American & Hispanic- American population in the United States.  Draw a picture of each group that illustrates at least 4 traits of that population group.  Label each picture based on the population you are identifying  Include at least one image that reflects a geographical area that cater to each group  Example: Hispanics are popular in the southwest, Illinois, & New York.

Cuba & The United States  President Barack Obama will ease sanctions imposed against Cuba under the U.S. embargo  Video looks at life in Cuba from a baseball players perspective 