1. Explain the concept of market and market identification
Marketing 1.02-B
Explain the concept of market and market identification

2. What is a Market? A market are those who have: A need or desire, and
The ability to pay, and
The willingness to buy (soon)

3. Target Market A target market are those who:
Are grouped within a market by what they have in common
Are the customers the business seeks to attract
Ipad

4. Importance of Target Markets
Every customer belongs to a number of markets
Customers are targeted in the consumer market, and businesses are targeted in the industrial market
The same customer or business can be included in more than one target market
Markets usually change over time

5. Mass Marketing
Mass marketing is designing products and directing marketing activities to appeal to the whole market (lightbulbs)
Advantages: communicates a broad message to as many customers as possible
More cost-effective
Businesses don’t have to pay for the production of similar products
Can price and distribute one type of product more easily than many
Can send one promotional message to everyone

6. Mass Marketing Disadvantages: The diversity of the audience
Only a small percentage of the mass market is likely to purchase the product

7. Market Segments
Dividing the market into smaller groups in order to target each group individually
Advantages: meets the needs of customers, more precise than mass marketing, more effective communication
Provides an efficient way for smaller firms to compete with larger businesses

8. Market Segments
Advantages: meets the needs of customers, more precise than mass marketing, more effective communication
Provides an efficient way for smaller firms to compete with larger businesses
Disadvantages: takes more resources to be successful, more difficult to reproduce, requires more creativity and money

9. Why are market segments increasing?
Segment marketing is more efficient in the long run
Customers today are more discerning about purchases
Not influenced by mass marketing alone
Meets customer’s needs
More opportunities for growth

10. Market Segmentation
Market segmentation is the division of a total market into smaller, more specific groups as a way to meet the needs of customers
Demographic segmentation
Geographic segmentation
Psychographic segmentation
Behavioral segmentation

11. Demographic Segmentation
Demographic segmentation is dividing the market on the basis of its physical and social characteristics
Gender: indicates purchase preferences (female)
Origin or heritage: race, ethnicity, nationality (Caucasian)
Religion (Christian)
Social or economic status: education level, occupation, income (Middle-Class)
Life stage: age, generation, marital status, family life cycle, family size. (Teens)

12. Geographic Segmentation
Geographic Segmentation is the division of a market on the basis of where consumers are located.
Determine customers’ purchase preferences according to climate, political boundaries, or population density
Marketers discover
Where their markets are located
Who their competitors are
Which media will reach their customers
Businesses can market to customers based on location

13. Psychographic Segmentation
Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities.
Values, motives, attitudes, opinions, interests, activities, personalities, and lifestyles
It gives a clearer picture of customers’ needs and wants based on personality and lifestyle.

14. Behavioral Segmentation
Behavioral segmentation is dividing a market on the basis of consumers’ response to a product.
Marketers look at the cause and effect nature of customers’ purchase decisions
Examine what customers respond to when they buy a particular product

15. Behavioral Segmentation
Customer questions in behavioral marketing:
How will the product benefit me?
Am I ready to buy it?
When will I use the product/
On what occasions?
How often?
Am I in a comfortable buying pattern?
Do I feel loyal to a particular brand?