1. Promotional Methods For Target Markets

2. How are Marketers Grouping You? People share things in common and are often times segmented into groups by these things in common

3. A Market Those who have: a need or desire and the ability to pay and the willingness to buy

4. Target Market Those who: –Are grouped within a market by what they have in common –Are the customers the business seeks to attract

5. Target Markets consist of: Every customer belongs to a number of markets Customers are targeted in the consumer market and businesses are targeted in the industrial market Markets usually change over time

6. Target-Market Activities What marketers do to prepare for selecting target markets Weighing the advantages and disadvantages of each method of marketing to a particular segment of a market.

7. Mass Marketing Designing products and directing marketing to appeal to the whole market.

8. Advantages of Mass Marketing Used to communicate message to as many customers as possible Works best with products with wide appeal Cost effective because –Easier to produce and price one product –Can send one promotional message to everyone

9. Disadvantages of Mass Marketing Market is often diverse Product may not appeal to everyone Message doesn’t appeal to everyone

10. Market Segmentation The division of the total group into smaller more specific groups

11. Advantages of Segment Marketing Applies the marketing concept by meeting customer needs Allows for: –A finely tuned product –An appropriate price –Ease of distribution Encourages effective communications Small business can compete with larger business

12. Disadvantages of Segmentation Requires more resources to be effective Product development is more complex –Requires more creativity during design –And more money during production

13. Why is the use of Segmentation increasing? It’s more efficient in the long run Customers are more discerning than they used to be

14. How do Marketers divide their markets? They identify customer’s similarities They group customers by what they have in common

15. Common Ways to Group Customers

16. Demographic Segmentation Dividing a market on the basis of its physical and social characteristics

17. Demographic Characteristics Gender Origin or heritage Religion Social or Economic Status –Education, occupation, income Life stage –age, marital status, family life cycle, family size

18. Geographic Segmentation Sorting customers by where they live

19. Geographical Segments Marketers can determine buying preferences according to –Climate, political boundaries and population density In the process, marketers discover –Market location, competitors and best media to use

20. Behavioral Segmentation Dividing a market based on the consumers’ response to a product

21. Behavioral Segments Uses the customers’ point of view to make marketing decisions Examine responses to: –Product benefits, use, brand loyalty, frequency of use, etc. And use the information to group the customers

22. Psychographic Segmentation The division of a market on the basis of consumers’ lifestyles and personalities.

23. Psychographic Segments Marketers try and determine what drives the consumer –Attitude, motives, opinions, interests, activities, personalities and lifestyles. Adds to demographic information Gives a clearer picture of customer needs and wants

24. Once the market has been identified Determine how best to reach it –Mass Marketing or –Segmented Marketing If it is segmented –How best to divide the market Markets are ever changing