1. SEM
Select a target market appropriate for venture/product to obtain the best return on marketing investment

2. Terms
Terms
Market – includes the group of all potential customers who share common needs
Target market – group of very specific customers that a company desires to have as consumers
Mass marketing – single marketing plan to reach all consumers – Ex: bottled water
Marketing segments – groups of unique individuals that share common characteristics
Market segmentation – dividing the entire market into smaller groups that share common characteristics & to create a target market – niche market would be an example

3. The importance of target markets to SEM & why is it increasing
Provides them with a group of potential or existing customers in which to communicate
About their good or service to match, understand & satisfy customer needs –
Who is buying, what do they buy and why do they buy.

4. How Types of Customers Can be Used to Define a Market
MARKET SEGMENTATION: The division of a total market into smaller, more specific groups.
geographics
demographics
psychographics
behavioral

5. Geographic Market Segmentation
Region: by continent, country, state, city, neighborhood or street
Size of metropolitan area: segmented according to size of population
Population density: often classified as urban, suburban or rural
Climate: according to weather patterns common to certain geographic regions

6. Demographic Market Segmentation
Age
Generation
Baby-boomers (‘46 – ’64)
X (‘65 – ’76)
Y (‘77 – ’93)
Z (‘94 – ’04) techies
Gender
Family size
Family life cycle
Income
Disposable & Discretionary
Occupation
Education
Ethnicity
Nationality
Religion
Social Class

7. Psychographic Market Segmentation

8. Behavioral Market Segmentation
Behavior towards a product
Benefits sought by the customer
Usage Rate – how often do they purchase?
Brand Loyalty – they expect something
User status – potential, first-time or regular
Readiness to buy – urgency
Occasions like holidays, birthdays & events that stimulate purchases

9. Niche Market Concentrating all marketing efforts on a small but
specific and well defined segment of the population
Are a small part of the market
May attract a few competitors
Ex: Cleats for young children playing soccer

10. How Product Competition is Used to Define a Market
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.

11. Profile a Target Market
Here are three steps to follow when identifying your market:
Identify Why A Customer Would Want To Buy Your Product/Service
Segment Your Overall Market
Research Your Market

12. Identify Why A Customer Would Want To Buy Your Product/Service
When a business selects a target market, the most useful or desirable market segments to the business are
those that are
measurable and accessible
Event marketers should consider culture when identifying target markets for specific events. Why?

13. Segment Your Overall Market
A question that a business must answer when identifying a potentially profitable target market is the market responsive to your product/service.
One aspect of identifying a segment of a sport/event target market that would want to buy your product/service involves identifying the heavy users

14. Research Your Market
Sports and Entertainment marketers should identify their target markets after they have carefully examined all available data and research about the segment

15. Determine who your ideal fan/customer is going to be
Conduct market research to obtain objective information
that can be used in creating a
target-market profile of that fan/customer.
Identify potential market segments to address.
Present your profile in a visual presentation
including pictures that represent your customer’s profile.