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Market Segmentation. November 11, 2010. Previously…. Definition of Marketing Purpose of Marketing Marketing Concept 7 Functions of Marketing. Channel Management Financing Marketing Information Management Pricing Product / Service Management Promotion Selling. - PowerPoint PPT Presentation
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November 11, 2010
Market Segmentation
Previously…Definition of
MarketingPurpose of
MarketingMarketing
Concept7 Functions of
Marketing
1. Channel Management2. Financing3. Marketing Information
Management4. Pricing5. Product / Service
Management6. Promotion7. Selling
Includes marketing researchYou can’t sell your product if you
don’t know who your customers are!Marketing research is used for market segmentation, the process of classifying customers in a market into smaller groups.
Marketing Info Management
Stand Up!Push in your chair.Line up in the middle of the classroom, from the front to the back. Order does not matter.
Listen for instructions
Move to the FRONT of the room if…
You consider yourself to have more traditional tastes. You know what you like, and you stick with it.
Move to the BACK of the room if…
You consider yourself to have trendier tastes. You like change, and you look for a fun or modern appeal.
Move to the LEFT side of the room if…
You are a health-conscious eater.
Move to the RIGHT side of the room if…
You prefer to eat what tastes good.
Marketing Cereal Brands
CheeriosSpecial K
Raisin BranTotal
Frosted Flakes
Rice KrispiesFroot LoopsMini-Wheats
KashiHoney
BunchesLife
Organic Cereals
Lucky Charms
Cookie CrispCap’n Crunch
Cinnamon Toast Crunch
Healthy TastyTr
adit
iona
lTr
endy
Back to Center!Line up in the middle of the classroom, from the front to the back. Order does not matter.
Listen for instructions
Move to the FRONT of the room if…
You prefer the busy, fast pace life of the city.
Move to the BACK of the room if…
You prefer the calm, laid back pace of the country.
Move to the LEFT side of the room if…
You prefer warm weather.
Move to the RIGHT side of the room if…
You prefer cold weather.
Marketing Vacation Trips
FloridaNevada
California
Washington
New YorkIllinois
TexasCalifornia
ColoradoMaine
Warm ColdCi
tyCo
untr
y
Market SegmentationClassification of
customers by wants and needs
Creates smaller, more precise target markets
What is a Target Market?Group of people
identified as the most likely to become customers
These are the people a business wants to reach with their goods or services!
Demographic Geographic
Psychographic
Behavioral
Ways to Segment a
Market
Segmentation Factors
Definition
Refers to statistics that describe a population in terms of personal characteristics
AgeGenderIncomeMarital StatusEthnic BackgroundEducationOccupation
DemographicExamples
Definition
Based on where people live
LocalRegionalNationalGlobal
GeographicExamples
Definition
Grouping people with similar lifestyles
Grouping people with shared attitudes, values, opinions
ActivitiesAttitudesPersonalityValues
PsychographicExamples
Definition
Involves looking at the benefits desired by consumers, at shopping patterns, and at usage rates
Sometimes referred to as Product Benefit segmentation
Teenagers spend about $50 a month on entertainment.
Teenage girls spend 15% more on music than teenage boys.
Today’s young adults desire affordable luxuries.
BehavioralExamples
On your handout, decide if each item is:oDemographicoGeographicoPsychographicoBehavioral
Label each with a D, G, P, or B.
See What You Know!
Where have you seen or completed a survey like this before?
How can marketers use this information?
How else can businesses collect this kind of information from customers?
Let’s Talk About It!
Market segmentation characteristics help to create customer profiles.
A customer profile is a list of information or common characteristics about a target market.
Customer Profiles
Profile Project!You will use a profile to identify products potentially targeted to your customer.
Market SegmentationTarget MarketSegmentation FactorsCustomer Profiles
Summary
