1. Lesson 7

2.  Design a direct mail campaign based on market segments to gather information about specific customers  Identify survey segments and their percentage of the total market  Describe the benefits associated with targeted marketing based on demographics, geographics, and psychographics  Calculate disposable and discretionary income from gross income & expenses  Explain how the results of target marketing can impact a store’s product mix and merchandising

3.  The Market: Group of people who have common merchandise needs and want and the means to buy the merchandise  Target Market: The specific group of people a retailer wants as customers  A retailer directs its marketing efforts toward this group

4.  Demographics: Describes basic characteristics that identify and distinguish the people in a target market:  Age:  Gender:  Income:  Disposable Income: Normally used first to pay for necessities like food or housing  Discretionary Income: Amount of money left to spend after necessities are paid  Marital Status:  Ethnic Background:  Education and Occupation:

5.  Geographics: Physical location of customers  Tell retailers where their customers live and work  Psychographics: Analysis of customer lifestyles and how they spend their time and money  Activities:  Attitudes:  Opinions:

6.  Target Marketing and Product Mix: Studying the target market will give retailers a good picture of customer’s needs, wants and preferences

7.  1. Just think of your favorite store. Best Buy Nike Buckle