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UNIT 4 – MARKET SEGMENTATION
THE MENU: Read and discuss the opening TICKET MARKETING BASICS The Marketing Concept What’s a Market? The Marketing Strategy Formula Marketing Segmentation OUTCOMES: By the end of UNIT, you will be able to: Describe what the Marketing Concept is and why it is important. List & Describe the components of a Market. Describe the formula that makes Marketing Strategy work.
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Marketing Basics Some Key Definitions
Marketing - is the process of developing, promoting, and distributing products to satisfy customers' wants and needs. Additionally, it’s the creation and maintenance of satisfying exchange relationships Product – Customer – Consumer –
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Marketing Mix = The 4 “P”s
Marketing mix - describes how a business blends the four marketing elements Product-what a business offers customers to satisfy needs (GSI) Price - the amount that customers pay for products Place (Distribution) - the locations and methods used to make products available to customers Promotion - ways to encourage customers to purchase products and increase customer satisfaction
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The 4 Ps…
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Satisfying Customer Needs
Primary focus Identify customer needs Develop products Operate a business profitably
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Determine the Target Market
Target market—a specific group of people you want to reach UNIT 4
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How to Find a Target Market
Disposable income-income that can be spent freely AFTER necessities are paid for (food, taxes, …) Demographics-specific customer information UNIT 4
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The Marketing Concept The Marketing Concept
Businesses must satisfy customers' needs and wants in order to make a profit. 3 components of a MARKET All potential customers Share common needs and wants Have the ability and willingness to buy a product
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The Marketing Strategy Formula
MS = TM + MM MS is Marketing Strategy TM is Target Market MM is Marketing Mix (4Ps)
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Targeting the right people!!
Target Marketing Focusing marketing decisions on a very specific group of people Customer vs. Consumer? Customer buys the product Consumer uses the product
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Market Segmentation A group of individuals that share one or more important characteristics. These characteristics result in similar product or service needs. Businesses use market segmentation to focus their marketing efforts.
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Market Segmentation Consumers can be divided into specific, well-defined segments based on certain characteristics:
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Market Segmentation Geographic Segmentation
Dividing consumers into markets based on where they live. The idea that individuals who live in a certain location might have the same wants and needs. Can be as large as a country, or as small as a zip code.
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Market Segmentation Demographic Characteristics
age, gender, race, income, and education level. Disposable Income Money left over after taxes & paying for basic living necessities
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Market Segmentation Psychographics People’s interests and values.
The way you spend your time and your lifestyle choices. Responsible for bowling alleys, sports stores, swimming pools, religious book stores, etc.
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Market Segmentation Product Usage
The frequency that a customer uses a product. Marketers communicate differently to consumers based on frequency of use.
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Market Segmentation Benefits Derived
Divides the population into groups depending on the value they receive from the product or service. Customer Profile The combination of all the information about a customer
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