1. Who is the target market for each of these systems
Who is the target market for each of these systems? What features appeal to the target market?
Wii
X-Box
Playstation

2. Multiple target markets Combined target markets
Market Segmentation
All customer needs
Narrowing down to specific product-market
Some generic market
One broad product-market
Segmenting into possible target markets
Homogeneous (narrow) product-markets
Selecting target marketing approach
Single target market
Multiple target markets
Combined target markets

3. Market Segmentation
Broad product-market definition means determining the general product/service markets that the company will compete in. What is Ford’s broad product-market? What is Tide’s? What is Taco Bell’s?

4. Market Segmentation
Broad product-markets may be divided into submarkets. Here are submarkets for the bicycle product-market.

5. Segmenting
Segmenting means grouping people together with similar needs into a “market segment” or “target market”. Segmenting means a group of similar people that respond well to a particular marketing strategy.

6. Segmenting A good market segment is:
Homogeneous (similar) within the market segment
Heterogeneous (different) between market segments
Substantial – big enough to be profitable and worthwhile
Operational – able to implement marketing programs to this segment. “People with blue eyes” is not operational

7. Segmenting ≠ Small
Segmenting does not mean breaking the market into small segments. It means defining the broader market into smaller, manageable groups. In fact, good segmenting results in bigger sales and profits. Why?

8. Defining Market Segments
There are several dimensions we can use to define consumer target markets:
Demographic – descriptive data
Behavioral – the actual actions that consumers undertake
Geographic – the size and nature of consumer’s home location
Psychographic – attitudes, beliefs, hobbies (we will discuss later)

9. Defining Market Segments
Income
Gender or age
Demographic Segmentation Dimensions
Family size or family life cycle stage
Occupation or education
Ethnicity or social class

10. Defining Market Segments
Needs
Information required
Benefits Sought
Type of problem-solving
Behavioral
Segmenting
Dimensions
Thoughts
Kind of shopping
Rate of use
Brand familiarity
Purchase relationship

11. Defining Market Segments
Region of world or country
Region in a country
Geographic
Segmentation
Dimensions
Size of city

12. Target Market
Demographics: Female, Aged 18-21, College Student, Works Part-Time
Geographic: Lives in the Northeast U.S.
Behavioral: Shops at least once a week at the mall, buys clothes online, buys clothes 2-3x per month
Psychographic: Is Liberal, likes to go to concerts, hiking and practices Yoga actively

13. Pick 3 of the products below and identify the primary target market
Pick 3 of the products below and identify the primary target market. Be SPECIFIC. me your answers. Include Demographic, Geographic and Behavioral information
Ford Focus
Ford Mustang
Taco Bell
Jimmy Choo shoes
NSHA H.S.
Netflix

14. Ethical Issues
Marketers are sometimes criticized for selecting particular marketing segments
Is it ok to market expensive sneakers to lower income consumers?
Is it ok to market high sugar products (like cereal) to kids?
There is often not a clear cut “yes or no” answer.

15. CRM Technology has enabled smarter, more targeted marketing.
Internet marketing in particular has the ability to target individuals (1-1 Marketing). Amazon sends out custom s to individuals based on previous purchases.