1. Markets
Mr. Thompson

2. Vocabulary
Market: all people who share similar needs/wants and have the ability to purchase a given product
Consumer market: purchase goods and services for personal use
Goals: save $$, make life easier, improve appearance, give status in community, etc.
Organizational market: business-to-business (B2B)- includes all businesses that buy products for use in their operations
Goals: increase productivity, sales, and/or efficiency, decrease expenses

3. Markets
What goals are the customers in the Consumer market trying to achieve?
Who are they? Give an example…
What goals are the customers in the Organizational market trying to achieve?

4. Market Share
A company’s percentage of the total sales volume generated by all companies that compete in a given market.

5. Market Share cont’d…
How does knowing its market share help a company in its decision making?
Helps to understand/analyze its competitors
Knows its status in the market
What can cause a market share to change?
Introduction of new competitors/products
Sales increase/decrease (company)
Increase/decrease in overall volume (market)

6. Market Share cont’d…
A company with a larger market share can take more risks than others
Development of new products
Spending to reach out to new segments
Leverage “brand” name to maximize profits
Leverage leading position to pressure competitors

7. Market Segmentation
The process of classifying customers by specific characteristics, breaking down a market into smaller groups.

8. Market Segmentation cont’d…
Groups of people often purchase the same products
People who bought _____ also bought ______
A group that is identified for a specific marketing program is called a target market
Properly identifying the target market is an important key to success
Can a product have more than one target market?
Cereal – target kids on Saturday morning – this food is FUN! – target parents in parenting magazine – this food is HEALTHY for your growing kid!

9. Customer Profile
Information about the target market: age, gender, income level, marital status, ethnic background, location data, attitudes, lifestyle, behaviours, etc. (Mkt’g Info Mgmt)

10. Target Customer Profiles
Declare a market in which You (the class) would be identified as customers Create a customer profile for a classmate
Target Customer Profiles

11. Target Customer Profiles cont’d…
Describe how businesses would use this profile to market:
New products/services
Product changes (price, format, rules of use, etc.)
Partner products (Coke/Pepsi restaurant)
Parents, siblings, kids…(sell related goods/services)
Interest groups (Outdoors, games, sports, etc.)
Income level (out of your range, or invite you up?)
Make a coupon that this customer would use (something that would be reasonable for a business, but impossible for this customer to ignore)