1. Market Identification Project #2: Marketing Plan Analysis

2. What is a Market?  Definition – a customer or potential customer who:  has an unfulfilled desire (needs a good or service),  is financially able to satisfy that desire (has the resources to purchase the good or service), and  is willing to satisfy that desire (is willing to purchase the good or service to meet a need)

3. What is a Target Market?  A particular group of customers that a business seeks to attract; the customers who fall into a particular target market share similar needs and characteristics  Women over the age of 50  Teens between the ages of 13-18  Mothers of newborns  Men between the ages of 40-55

4. Importance of Target Markets  Businesses identify target markets in order to make products that will effectively meet the needs of the targeted customers

5. Mass Marketing  Mass marketing is designing products and directing marketing activities to appeal to the whole market, which is everyone  Advantages:  Can be used to communicate a broad message to as many customers as possible  Allows a business to produce one product for everyone, which is more cost-effective than producing and marketing several products to several target markets  Provides the most possibilities for success at the least cost  Disadvantages:  Audience is very diverse  Only small percentage of that mass market is likely to purchase the product

6. Market Segmentation  Uses the division of a total market into smaller, more specific groups; the needs and concerns of each market segment can be met more directly and carefully  Advantages:  More precise than mass marketing  Allows for a finely tuned product, an appropriate price, and ease of distribution for the targeted market segment  Encourages effective communication because its message is targeted to a specific market segment  Disadvantages:  Requires more money  Targeted at a more specific group of people with more specific needs and expectations, the product is often more complex to produce

7. Use of Segment Marketing  Today’s customers are more discerning with product purchases; they are more educated and less swayed by mass marketing  They want to know how the good or service will benefit them directly  Marketers are turning to segment marketing to address those concerns

8. Ways to Segment Markets  D________________ Segmentation  G________________ Segmentation  B________________ Segmentation  P________________ Segmentation

9. Demographic Segmentation  Involves dividing a market on the basis of it physical and social characteristics:  Gender  Origin or heritage  Religion  Social or economic status  Life stage

10. Geographic Segmentation  The division of a market on the basis of where consumers are located – grouping customers based on where they live  Allows marketers to determine customers’ purchase preferences according to things like their climate, their political boundaries, or the population density of their area  Helps marketers discover where their markets are located, who their competitors are and which media will reach their customers

11. Behavioral Segmentation  Division of a market on the basis of consumers’ response to a product  Marketers look into the cause-and-effect nature of customers’ purchase decisions  What do customers respond to when they buy a certain product?  Useful because it lines up with the marketing concept, which uses the customer’s point of view to make marketing decisions  Customers typically ask themselves one or more of the following questions when buying a particular product:  How will the product benefit me?  Am I ready to buy it?  When will I use the product?  Am I in a comfortable buying pattern?  Do I feel loyal to a particular brand?

12. Psychographic Segmentation  The division of a market on the basis of consumers’ lifestyles and personalities  Helps marketers find out what’s driving their customers to make the choices they do  Customers’ buying decisions are influenced by their:  Values  Motives  Attitudes  Opinions  Interests  Activities  Personalities  Lifestyles  What motivates YOU???