1. Target Markets and Market Segmentation
Who is buying our stuff and why?
Gregory Falls
THS, GSWLA

2. Target Market Target Market
A specific group of customers on whom an organization focuses its marketing efforts
It is the group you are trying to attract; the focus of your marketing efforts; your main customer group. Where you get most of your money!

3. Market Segment
A group of customers with certain characteristics in common, whose needs or wants can be met with a specific marketing mix. Remember the 4 P’s?
Market Segmentation, or Target Marketing, is identifying a group based on certain characteristics and then designing a plan to appeal to that specific group.

4. Market Segments MUST:
Be Identifiable and Measurable: can you tell them apart, can you count them?
Be Accessible: able to reach them through communication and distribution channels.
Be Substantial: a large enough group so you can make a profit.
Be Unique: different from other buying groups
Be Durable: the group’s characteristics don’t change too quickly

5. GREAT! So, how do we do this?
Simple….just ask a few questions.
Who is buying our stuff?
What are they buying?
Where are they buying it?
Why are they buying it?
THEN, Is this the group we really want to be buying our stuff?

6. Ways to Segment the Market
Geographic: WHERE they live or shop, and the local characteristics.
Demographic: Dividing the market based on Population characteristics. WHO are they?
Behavioral: Dividing them based on HOW they buy.
Psychographic: Categorizing based on psychological factors. WHY do they do the things they do?

7. Demographics What does your customer look like? Easy things like: Age
Gender
Race / Ethnicity
Education
Religion
Income / Occupation
Family size or life cycle

8. Behavioral HOW they Buy: Heavy or light usage Price sensitivity
Brand loyalty
Benefits Sought from the product
Occasion
User status: first time buyer, repeat user

9. Psychographic No, not THAT kind of psycho…you don’t have to be crazy to buy the product!
Dude, it’s all about the lifestyle, man.
Activities
Interests
Opinions
Values
Attitudes

10. Got it, Now what? STP time Segments: Define them.
Target: Pick the most appropriate for your product.
Position: Remember the 4 P’s?…go back through them for each product you sell or segment you are targeting.

11. Need more? Resources: http://www.sba.gov/ http://www.score.org/