1. The Consumer Market Marketing Segmentation QCC’s 57, 58 Set Induction:
If I created the perfect tennis shoe for women. This shoe is so great it comes in all sizes and in a variety of colors. The great thing about this shoe is that it molds to your foot for additional comfort and never wears out. Who would buy this shoe?
Where would I advertise?
What TV shows?
What magazines.
What radio stations?
When we try and answer these questions we make a mental picture of who it is that buys these products and we think about the things that these people do. What we are doing is trying to define our market.
This is what all marketers must do if they want to successfully reach the people who buy their products. The marketer or business owner must first know WHO THEIR CUSTOMER IS.
QCC’s 57, 58

2. Objectives Define mass marketing, and market segmentation
Explain how marketers use Geographic's, Demographics, and Psychographics to reach their customers
Develop a customer profile and understand how to use it in the promotion of a product

3. Reaching the consumer Mass Marketing Market Segmentation
When marketers have a product they wish to advertise they have to think about the best way to spend their money
A lot of that has to do with the product they have to offer.
Is it something with a wide appeal that everyone needs?
Or, is it specific to a group of people

4. Mass Marketing
Using a single marketing plan for one product to reach all customers.
Network TV
Network Radio
National Newspapers (USA Today, NY Times)
Magazines with broad appeal (People)
Very few products use a blanket Mass marketing approach. However some retailer do:
Can any of you name some mass market retailers:
JCPenny, Kohl’s, Target, Wal-mart, What makes these Mass Marketers
These stores offer a wide range of merchandise, with some designed to specific groups that are considered proftitable, such as teen girls.
It is expensive and advertisers usually are not happy with the number of people who see the advertisement who are not their customer
Remember when we defined a market we defined it as . . .

5. What is a Market?
All potential customers that share common needs and wants, and have the willingness and ability to buy the product.
All potential customers that share common needs and wants, and have the willingness and ability to buy the product.
Marketers like to use the things their customers have in common and try to use that to their advantage

6. Market Segmentation
Identifying specific markets and “targeting” your efforts to those potential customers.
Geography (location)
Demographics
Psychographics
When companies want to define who their customer is they do that trying to find out what it is that their customers have in common.
This is called Market Segmentation.
Most marketers use three types of segmentation to identify their customers

7. Geography Based on where people live Local (3 mile radius)
Regional (Southeast)
National (United States)
Global
Geography is important because consumers are only going to drive so far.
Have any of you been asked what your zip code is at a store. They are trying to find out how far people are willing to drive to shop in their store.
This is important marketing purposes and for store placement reasons.
For marketing:
Helps marketers narrow down the local papers they may want to advertise in or how far out they will want to do a direct mail piece.
Store placement:
You do not want to place stores so close together that you are taking customers from your own store

8. Demographics
Describes a population in terms of personal characteristics
Age
Baby Boom
Generation X
Generation Y
Ethnicity
Income
Life Cycle
Single
Married
Empty Nest
Education
Occupation
Everyone is familiar with using Demographics to segment the population. Especially in the Fashion and apparel industry.
Think about how Macys is divided up.
Have students name different departments in Macy’s
Men? Women
Baby? Toddler? Children/ Teens/ Adult
Department Stores also segment things in another way.
Lifestyle

9. Psychographics
Describes a population in terms of behavior, attitudes and values (Lifestyles)
Leisure-time activities (sports, hiking, computer)
Eating Healthy
Malls also segment based on how people live.
Where do you find the athletic clothing ?
A really good example of this are the stores in and around the mall.
If you go into Sports Authority it is segmented by different sports.
Think about the Brookstone store, Who is their customer?
Primarily male older 30-60
For people who may already have everything
Have money to spend on gadgets

10. Why do marketers use consumer segmentation?
Target Marketing: Focusing all marketing decisions (4 P’s) on a vary specific group of people who you want to reach.
The more information you have about your consumer the greater your chances of successfully marketing to them
You want to develop a picture of who your customer is
When marketers are able to do this they have developed what is called a customer profile

11. Customer Profile
Information about the target market with regard to the age, income level, ethnic background, occupation, attitudes, lifestyle, or geographic residence of the targeted consumer.

12. Putting market segmentation to use
Development of products
Development & placement of advertising
Newspaper
Magazine
Radio
Television
How do marketers use this information?
They use this information to find out which radio stations and TV shows their consumers watch
Which newspapers, magazines they read
Where they drive
So they can create messages about their products and put it somewhere that their customers can see it.
How much good does it do me to develop a lipstick that never comes off and then advertise it on the Biker Build Off? How many of my consumers do I really reach?

13. Review
Pick a product or a retailer and develop a customer profile based on what you know about their consumer.
Ideas: Hollister, Wall-mart, Lord & Taylor , Gucci hand bags
Crest toothpaste with whitener
Oil of Olay cleansing cream
When you walk into Hollister how do you know it’s a place targeted to you?
What’s on the walls, Do they have music playing?