1. MARKETS
Standard 2

2. All people who share similar needs and wants and who have the ability to purchase a given product.
MARKET

3. The group of people most likely to become customers, identified for a specific marketing program.
TARGET MARKET

4. Concentrating all marketing efforts on a small but specific and well defined segment of the population.
Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them.
Niche Marketing

5. Example of Niche Marketing
Sports channels like ESPN, Fox Sports, NBC Sports, and CBS Sports target a niche of sports enthusiasts.
The niche market is highly specialized.
Example of Niche Marketing

6. BUSINESS TO BUSINESS VS BUSINESS TO CONSUMER
A business that markets its products or services to other businesses.
Business To Consumer
A business that markets its products or services to consumers.

7. MARKET SEGMENTATION

8. The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs.
Businesses may segment a market by:
Demographics
Psychographics
Geographics
Behavioral
MARKET SEGMENTATION

9. Demographics refers to statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, and occupation.
DEMOGRAPHICS

10. Marketers classify everyone according to certain generations.
Generations tend to have common bonds.
Baby Boom Generation
Generation X
Generation Y - Millennial
Generation Z
DEMOGRAPHICS - AGE

11. BABY BOOMERS Born between 1943-1964 (Ages 51-72) 76 Million Americans
Control 2.6 trillion and 51% of the wealth of this country
Prime targets for luxuries and recreational items
Americans over 65 will double by 2030
Products related to an aging population
BABY BOOMERS

12. GENERATION X Born between 1965-1978 (Ages 37-50) 40 Million Americans
Dual-career households or divorced parents
Bombarded with media from an early age
Savvy and skeptical consumers
Better educated than previous generations
More financially cautious and conservative
Marketers must use sharp images, music, a sense of humor, and a little irreverence
GENERATION X

13. GENERATION Y - MILLENNIAL
Born Between 1979 – 2000 (Ages 15 – 36)
71 Million
Experience is EVERYTHING
Friends = Family
Prefer Groups to One-on-One Interaction
Nurtured
Unique – Special/Important
Entitled
Celebrate Diversity
High Expectations
GENERATION Y - MILLENNIAL

14. GENERATION Y – MILLENNIAL -CONTINUED
Rewrite the Rules
Limited Loyalty to Employers
Extremely Tech Savvy
Connected with Education/Workforce Issues
Team Oriented – Works Well in Groups
Good Multitaskers
Insist on a Stimulating Job Environment
Expect Frequent Rewards
Work to Live, Not Live to Work
GENERATION Y – MILLENNIAL -CONTINUED

15. GENERATION Z Born Between 2001 – Present (Ages 0 – 14)
The “I” Generation
GENERATION Z

16. Companies can expand their markets by marketing to the other gender, or by marketing their products differently to men and women
Example: Jockey, Gillette
DEMOGRAPHICS - GENDER

17. Disposable Income is the money left after taking out taxes
Disposable Income is the money left after taking out taxes. Important for companies that produce and distribute necessities.
Discretionary Income is the money left after paying for basic living necessities such as food, shelter, and clothing. Important for companies that produce and distribute luxury items.
DEMOGRAPHICS - INCOME

18. DEMOGRAPHICS – ETHNIC BACKGROUNDS
More diverse due to increased immigration
Caucasian population declining

19. AFRICAN - AMERICAN Spend $400 billion annually
Ethnic magazines and television targeted
Promotional activities with community support
AFRICAN - AMERICAN

20. Hispanics will surpass African-Americans as largest ethnic group
Hispanics culture and diversity comprises 21 nationalities
Approximately 70% of Hispanics are Roman Catholic
Centers around family – larger families (3.4 vs. 2.6 people) – Live with families
Food Marketing
Spanish-language TV – 4 hours on weekdays mostly on Spanish programming
HISPANICS

21. ASIAN-AMERICANS Fastest Growing Most Affluent
16 different nationalities
More college graduates than other ethnic groups
Professional Jobs
Financial services, computers, telecommunications, and new vehicles marketed
Prefer to communicate in native languages
ASIAN-AMERICANS

22. Psychographics involves grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values.
PSYCHOGRAPHICS

23. PSYCHOGRAPHICS Trend Setting Issues: Health Eating Properly Exercising
Vacations
Entertainment (concerts, museums, theater, theme parks, sports, and electronics)
PSYCHOGRAPHICS

24. Geographics refers to segmentation of the market based on where people live.
Segmented by:
Local
Regional
National
Global Market
GEOGRAPHICS

25. Marketers must study where people live to decide which media to use and where to market their products.
Marketers study Geographics in relation to:
Ethnic Concentrations
Age
Income
Ethnic Background
GEOGRAPHICS

26. Involves analyzing your customers with regard to sales generated, shopping patterns, and purchase decision-making processes.
BEHAVIORAL