1. December 20 & 21 Objectives Today’s Agenda Closure
53 – Define target market.
54 – Examine market segmentation.
55 – Explain how market segmentation is used to identify a target market.
Homework
None 
Today’s Agenda
Market Segmentation PowerPoint & Notes.
Customer Profile Assignment
Closure
Why is it important to create a customer profile for the marketing mix?

2. Introduction to Business & Marketing
Market Segmentation
Introduction to Business & Marketing

3. You can’t sell your product if you don’t know who your customers are!
Review!
A target market is a specific group of consumers who have similar wants and needs.
The goal is to convert consumers into customers.
The purpose of marketing is to connect businesses with their customers.

4. Define target market. Task #53
Definition should emphasize that a target market is a specific group of consumers who have similar needs and wants.
Process/Skill Questions
What questions help to identify a target market?
Why is it important for a business to use a scientific research process to identify its target market?
Task #53

5. Think About It! What questions help to identify a target market?
Think like a marketer… what do you need to know about your customers or potential customers?
How do businesses collect this kind of information?

6. Market Segmentation
Marketing research is used for market segmentation, which is the process of classifying consumers in a market into smaller groups.

7. Stand Up! Push in your chair. Leave your notes where they are.
Listen for instructions 

8. Move to the…
FRONT
BACK
You consider yourself to have more traditional tastes.
You know what you like, and you tend to stick with it!
You consider yourself to have trendier tastes.
You like change, and you look for a fun or modern appeal.

9. RIGHT LEFT Move to the… You are a relatively health-conscious eater.
You prefer to eat whatever tastes good.

10. What’s your cereal of choice?
Chee rios
Spec ial K
Raisi n Bran
Total
Fros ted Flak es Rice Krisp ies Froo t Loop s Mini Whe ats
Kash i Hon ey Bunc hes Life Orga nic Cere als
Luck y Char ms Cook ie Crisp Cap’ n Crun ch Cinn amo n Toas t Crun ch

11. Back to Center!
Move back toward the center of the room, and wait for instructions 
Let’s try one more!

12. Move to the…
FRONT
BACK
You tend to enjoy entertainment, such as going to the movies or shopping.
You tend to enjoy sports and / or outdoor activities.

13. Move to the…
LEFT
RIGHT
You like warm weather.
You enjoy cold weather.

14. Where would you vacation?
Flori da
Las Vega s, Neva da
Calif orni a Citie s
Was hing ton, D.C.
New York
Chic ago, Illino is
Texa s
Calif orni a Mou ntai ns
Colo rado
Main e

15. Examine market segmentation.
Definition
Examination should include explanation of the following different types of market segmentation: Geographic (e.g., location, climate, city or community size)
Demographic (e.g. age, gender, ethnicity, income bracket, marital status, family size)
Psychographic (e.g. activities, attitudes, personality and values, lifestyle)
Behavioral (e.g. features desired, usage rate, brand loyalty)
Process/Skill Questions
What is market segmentation?
What are common methods of market segmentation?
Why is market segmentation important?
Task #54

16. Market Segmentation
Classification of consumers by needs and wants
Creates smaller, more precise target markets

17. Segmentation Factors
Demographic
Geographic
Psychographic
Behavioral

18. Demographic Characteristics
Definition
Examples
Refers to statistics that objectively describe a population
Age
Gender
Income
Marital Status
Education or Occupation
Ethnicity

19. Geographic Characteristics
Definition
Examples
Based on where consumers live, travel or shop
Location
Climate
City or Community Size
Local or Regional
National or Global

20. Psychographic Characteristics
Definition
Examples
Grouping consumers with similar lifestyle choices
Shared attitudes, values, interests or opinions
Hobbies or Activities
Political or Religious Affiliations
Personality Traits
Priorities or Values
“People who like…”

21. Behavioral Characteristics
Definition
Examples
Also known as Product Benefit Segmentation
Examines data to consider:
Benefits desired by consumers
Shopping patterns
Usage rates
Teenage girls spend 15% more on music than teenage boys.
College graduates and young professionals desire affordable luxuries.
Teenagers spend about $50 per month on entertainment.

22. See What You Know! Refer to your handout.
Decide which characteristic describes each item and label it accordingly.
Demographic (D)
Geographic (G)
Psychographic (P)
Behavioral (B)

23. Explain how market segmentation is used to identify a target market.
Definition
Explanation should include how market segmentation is used to divide a population into subgroups according to common characteristics in order to discover and focus on a promising target market.
Process/Skill Questions
What is the benefit of segmenting a market?
How does new computer technology help with market segmentation?
Is customer profiling beneficial to the customer as well as the seller? Why, or why not?
Task #55

24. Customer Profiles
Market segmentation is used to divide a population into subgroups according to common characteristics in order to focus on a promising target market.
A customer profile is a list of information or characteristics about a target market.

25. Profile Project
Identify products that could be targeted to your customer profile description.

26. Customer Profile: Target Marketing
You and your partner will use a customer profile to identify products targeted to your customer on a sheet of construction paper
On the Front:
Customer Profile
5 Products
On the Back:
Your Name
5 Explanations
why is this customer likely to buy the product?

27. For each product…
S/he might [ want or need ] a [ product ] because [ D – P – G – B characteristic ].
She might need a minivan because she has three young children.