1. Vocabulary
Target Market
Market Segment
Market Share

2. Learning Target I can define target market and market segment.
I can describe how businesses use market segmentation.

3. Determine the Target Market
The first step in marketing a product is to determine who specifically ‘the customer’ is for the product.
TARGET MARKET  a specific group of consumers you want to reach.

4. Focus Marketing Efforts
Because it would be impossible to satisfy the needs of every consumer, business must narrow down the focus of its marketing efforts.
MARKET SEGMENT  a group of consumers within a larger market who share one of more characteristics.

5. Market Segment Examples
UK Basketball fans
Snowbirds
Die-hard Rolling Stones fans
Rodeo fans

6. Market Segmentation
Business do not try to satisfy the needs of all possible customers.
Markets are segmented in various way:
Geographic location
Demographics
Psychographics
Behavioral-Based Segmentation

7. Geographic Segmentation
Divides markets into physical locations.
Eastern, Northern, Southern, Western regions of the US.

8. Demographic Segmentation
Focuses on information that can be measured, such as age, income, profession, gender, education, marital status, and size of income.

9. Psychographic Segmentation
Focus on characteristics that cannot be physically measured, such as values, interests, and lifestyle choices.
Example: Sports fans will buy more clothing bearing their team’s logo right after a big game.
Restaurants experience more consumer traffic after a local team’s win.

10. Behavioral-Based Segmentation
Focuses on a customer’s attitude toward products and services.
Product Usage
What products are used and how often.
Product Benefits
Benefits derived

11. Capture a Market Share
Every business wants to sell to the maximum number of potential customers.
MARKET SHARE  the percentage of total sales of a product or service that a company expects to capture in relation to its competitors.

12. Think Critically
What is a good market segment to target for casinos during weekdays?

13. Think Critically
Describe possible demographics, psychographics, and product usage for snowmobiles?
Demographics:
Psychographics:
Product Usage: