The student will be able to...  Define demographics  Discuss the difference between psychographics and demographics  Discuss the importance of segmentation of demographics  Identify and interpret sources of demographic data

Market segmentation helps marketers sell more efficiently. HOW? A. Identifying a target market by dividing the market into segments according to customer needs and characteristics

4 Consumers Consumers Marketing mix Marketing mix Business Environment Business Environment Who will buy the product? Protecting the health and safety of the employees and customers.

Types of Segments Knowing your own countries market better than other countries. Studying another countries market determines how effective you are. Global Market Become more difficult and intense Obtain information about competitors products, marketing activities S.W.O.T Analysis Competition Needs are always changing More focused on satisfying the desires and wants of the consumer. Before developing a Marketing Mix (4 “P’s”) Understand the consumers choices Changing Markets Correct decision can be very profitable Wrong choice can result in losses for a company. Changing features in a product or service

Categories of Information

Characteristics about the consumer: 76 million “Baby Boomers” % of wealth 40 million “Generation X” Conservative $ 77 million “Generation Y” Computerized Disposable income: $ after taxes Discretionary income: $ after paying all living costs US Population is changing: California 1 st state that Caucasians are the minority. Research indicates that there are almost 2 women to Each guy in the United States.

Geographic Variables - statistics about where people live people who live in the same area have similar needs It is said that ½ of the American population will be living in CA, TX and FL. Why do you think this would be true or false? Businesses look at 4 states for Hispanic markets: NY, TX, CA, and FL

 used when segmentation by age and gender is not sufficient  involves family criteria  focuses on attitudes and values - personalities and lifestyles Have values changed in the past 10 years? How has this influenced marketers? What are some of the value changes?

Segmenting the market by what does the product do for you. Shoe MFGs divide the market based on the demands made on shoes Of each activity. Oily, dry, normal, dandruff, Are product benefits.

Costs more to differentiate packaging, promotion, etc. to more than one market Research and identification is costly Production costs increase when the product is changed to meet the needs of more than one market. Only used when the potential sales will exceed sales from marketing to one larger group. Risk is involved with smaller diversified markets