1. Competition is Everywhere!
7-1
Competition is Everywhere!

2. Visual Focus
How Is Kapiti trying to suggest it is different and better than other brands?
What type of consumer is attracted to this ad?
Is this ad effective? Why or why not?

3. Marketing Matters
Businesses focus their marketing efforts on potential customers who are most likely to buy their products and services.
They identify market segments or groups of consumers that share certain characteristics.
May be personal factors such as age, education, wage, gender

4. Pair and Share
Create a list of 6 personal characteristics that describe who you are and what your think would be important factors if you were shopping for a new car.
How would those characteristics affect your purchasing decision?

5. Market Segmentation
In order to compete, businesses direct all their efforts and resources towards achieving specific goals.
To achieve these goals, they devise marketing strategies to compete for sales dollars, customers, market share or whatever goal they have set.

6. Market Segmentation
Businesses use marketing information and market research to complete market segmentation
Market Segmentation is the process of dividing a large group of consumers into subgroups based on specific characteristics and common needs.
Once those needs are identified a business can develop marketing strategies that match the needs

7. Benefits of Segmentation
A market segment is a group of individuals or organizations within a larger market that share one or more important characteristic.
These shared characteristics result in similar product or service needs.
Everyone belongs to many market segments
Ex: I listen to country, and drink pop

8. Segmentation Categories
Geographic Segmentation
Demographic Characteristics
Psychographics
Product Usage
Benefit Expectations

9. Segmenting the Business Market
Just as marketers segment the consumer market, they also segment the business markets.
Business markets are segmented by the type of company and the major activities and operations of the business.
Segmentation criteria may include:
The size of the business
Type of products and services purchased
Geographic location

10. Activity - Get a World View

11. Identifying and Analyzing Market Segments
There are two reasons to segment a market.
A Business can better understand the market and the potential customers
A business can identify the best market opportunities

12. Market Opportunity
Market Opportunity – an identified market with excellent potential based on careful research

13. Market Potential
Once market segments have been identified, they must be analyzed.
To be an effective market segment, there must be potential to be profitable.
Each segment should be evaluated on the following criteria:
Number of potential customers
Customers interest
Amount of capital available from customers
Businesses ability to communicate and distribute the product to the customers

14. Market Share
The portion of the total market potential that each company expects in relation to its competitors.

15. Lets do the Math!
The total market potential for a new camera in FL is $1,850,000 per year.
We are introducing a new camera in the city and expects to capture 12% of the total market in the first year.
To calculate the planned market share:
$1,850,000 x 0.12 = $222,000

16. Units
The company can also determine the market potential and market share in units instead of dollars.
If the average price of the camera is $9.25
Market potential is still $1,850,000
$1,850,000 / 9.25 = 200,000
That means the market potential in units is 200,000 units

17. Units The companies planned market share in year one is still 12%
200,000 x 0.12 = 24,000 units or cameras
The company has the potential of selling 24,000 cameras in this market segment in this city.

18. #1
34,000,000*.74= 25,160,000 Units for Apple
34,000,000*.09= 3,060,000 Units for Samsung
34,000,000*.04= 1,360,000 Units for Nokia
34,000,000*.03= 1,020,000 Units for Microsoft
34,000,000*.02= 680,000 Units for NELLIS!

19. #2
*.14 =
No presentation needed

20. Research : Marketing Current Events- Market Segmentation
Find an article related to Market Segmentation
One page double spaced
Record the Title
Link
Summary
How does it relate to Market Segmentation
What did you find interesting, or your opinion