1. WF SEM II
Target Markets

2. How Product Competition is Used to Define a Market
Competition is becoming much more intense for most businesses. Businesses need to gather information about competitors' products and marketing activities in order to determine their strengths and weaknesses in order to help them to determine what they need to do to be more competitive.

3. Terms
Market:A customer or a potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Any circumstances under which buyers and sellers exchange goods or services for a price
Target Market: The group of consumers that a company desires to have as customers
Niche Market: smaller group of the target market that a business can select to market goods and services
PRODUCT(S): Marketing element referring to what goods, services, or ideas a business will offer its customers
COMPETITION: The rivalry between two or more businesses to attract scarce customer dollars.

4. Customer vs. Consumer Terms:
Customer: The person who buys or purchases the product
Consumer: The person who uses or consumes the product

5. Pros/Cons of Mass Marketing
Mass Marketing: A single marketing plan used to reach all consumers
Pros
Reach broad audience
Consistent message
Cons
Spend $$ reaching outside target market
Can’t tailor message to different segments

6. Market Segments
Market Segments: different groups of customers with one or more shared characteristics
Market Segmenting: Dividing the entire market into smaller groups (of people) who share similar characteristics.
Allows businesses to customize products and marketing strategies

7. Pros/Cons of Market Segments
Able to target message
Able to target media
Cons
May miss part of segment
Requires extra time to tailor message to market

8. Appealing to Target Markets in SEM
Interested in SEM products
Have disposable income to spend

9. The Increase of Segmented Markets
Increasingly fragmented media
Cable/satellite TV
Web sites
Magazines
Increasingly fragmented products

10. Demographic segmentation
Segmenting the market based on personal characteristics such as age, gender, income, ethnic background, education and occupation.
Example: middle class, males, ages , who are construction workers.

11. Market Segments 2-12 12-17 18-24 18-34 18-49 25-54 55+
Gender (M/F) Ethnicity Education level Income level

12. Geographic segmentation
Segmenting a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets.
Example: A small local store will segment to the surrounding area like a town, while big companies like Nike market Internationally.

13. Value of Geographic Segmentation
Limit marketing expenses to target consumers who live within certain area

14. Psychographic segmentation
Segmenting the market based on values, attitudes and lifestyles.
Example: People interested in professional football.

15. Psychographic Segmentation
Limit marketing expenses to customers that behave with an inclination to buy your product

16. Behavioral segmentation
Dividing consumers into groups according to their response to a product. Behavioral segmentation divides markets into groups based on what they are looking for in a product and why they buy the product.
Example: Purchasing Nike shoes because Michael Jordan wears them.