1. Marketing-Information Management LAP 9
Have We Met?
Marketing-Information Management LAP 9

2. Objectives:
Explain the importance of market identification.
Discuss ways that a market can be segmented.

3. Explain the importance of market identification.

4. Grouping people by their similarities:
How marketers discover the best ways to match producers with their customers

5. A Market Is… A customer who: Has an unfulfilled desire
Is financially able to satisfy that desire
Is willing to satisfy that desire
Marketers look carefully at which customers want their needs met in the very near future.

6. A Target Market Is…
The particular group of customers the business seeks to attract
Customers who have similar, specific needs
Marketers group customers by target market in order to meet customer needs effectively.

7. How To Pinpoint a Target Market
Look at the entire market.
Identify the categories you see.
Select the category (or categories) to fit your goals.

8. The Significance of Target Marketing
Targeting is necessary for accurate marketing.
The same person can be included in more than one target market.
As target markets change over time, marketers update their categories.
Businesses are targeted in the industrial market.
Customers are targeted in the consumer market.

9. Carry out target-market activities:
How To Prepare for Target Marketing
Carry out target-market activities:
Some marketers suggest what works and what doesn’t.
Others fit their method to the individual marketing situation.

10. Target- Market Activities
Mass marketing
Target- Market Activities
Segment marketing

11. Appealing to the whole market by:
Mass Marketing Is…
Designing products
Appealing to the whole market by:
Directing marketing activities

12. Advantages of Mass Marketing
Communicate a broad message
Address the largest audience available
Produce one product for all
Provide the most possibilities for success—without breaking the bank

13. Disadvantages of Mass Marketing
Diversity of the audience—everyone
Probability of purchase is a small percentage

14. Appealing to the market one segment at a time by:
Segment Marketing Is…
Dividing the market into smaller groups
Targeting each group individually
Appealing to the market one segment at a time by:

15. Segment marketing works because:
Advantages of Segment Marketing
It uses the marketing concept.
It is more precise than mass marketing.
It allows for:
A finely tuned product
An appropriate price
Ease of distribution
Segment marketing works because:

16. In addition, segment marketing:
Advantages of Segment Marketing
Encourages effective communication
Allows product specialization
Enables smaller businesses to compete with larger ones.
In addition, segment marketing:

17. Disadvantages of Segment Marketing
It takes more resources to pull it off successfully.
It can be difficult to produce— requiring more
Creativity
Money

18. The Use of Segment Marketing
Because…
It is more efficient than mass marketing.
Customers are more discerning.
Marketing research has improved.
Modern technology is available.

19. Discuss ways that a market can be segmented.

20. How do marketers divide their markets?
Identify their customers’ similarities.
Group their customers by what they have in common.
How do marketers divide their markets?

21. Some Common Ways To Group Customers
Demographic Segmentation
Some Common Ways To Group Customers
Geographic Segmentation
Behavioral Segmentation
Psychographic Segmentation

22. Demographic Segmentation
Gender
Origin or heritage
Religion

23. Demographic Segmentation
Gender
Origin or heritage
Religion
Social or economic status
Life stage

24. Dividing a market on the basis of where consumers are located
Geographic Segmentation
Dividing a market on the basis of where consumers are located
In the process, marketers discover specifically:
Where their markets are located
Who their competitors are
Which media will reach their customers

25. Dividing a market on the basis of consumers’ response to a product
Behavioral Segmentation
Dividing a market on the basis of consumers’ response to a product
With this method, marketers:
Find out how consumers respond
Use that information to group them effectively

26. Psychographic Segmentation
Dividing a market on the basis of consumers’ lifestyles and personalities
How it works:
Customers want what they feel will give them the best in life.
Marketers try to find out what’s driving their customers to make the choices they do.
Marketers group customers by their similarities—according to their motives, attitudes, opinions, interests, activities, personalities, and lifestyles.

27. What do you think marketers would do to target you?
If marketers were grouping you, where would you fit in the demographic, geographic, behavioral, and psychographic segments?
How are you similar to, or different from, your family members and friends?
How do you think your similarities and differences affect your purchase decisions?
What do you think marketers would do to target you?

28. Credit-card companies are one example.
Sometimes, when businesses identify (and target) their markets, their methods raise eyebrows.
Credit-card companies give credit to college students who don’t yet have a full-time job.
Should credit-card companies use this method to target college students?
Credit-card companies offer colleges money in return for helping them distribute credit-card applications to students.

29. Lelia Ventling, Mary C. Hollaway MarkED
Acknowledgments
Original Developers:
Lelia Ventling, Mary C. Hollaway MarkED
Version 1.0
MarkED Resource Center
Copyright © 2006

30. Digital-based photography sources:
PHOTODISC
Meeting and Groups, Vol. 69
#69190, 69086, 69087, 69090, , 69085, Photos ©1998 Corbis Corp.
Photos ©PhotoDisc, Inc 2013 Fourth Ave., Seattle, WA 98121
HEMERA PHOTO OBJECTS
Teens, Students
Photos copyright Hemera technologies Inc., P.O. Box Hull, Quebec, Canada J8Y 6V2
LIQUID LIBRARY
Various images used in this presentation are ©2004 Liquid Library. All rights reserved
MICROSOFT CLIP GALLERY LIVE
Various clipart used in conjunction with ©PowerPoint 2000®, ©Microsoft® All rights reserved One Microsoft Way Redmond, WA USA

31. Copyright:
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