TARGET MARKET AND MARKET SEGMENTATION
TARGET MARKET AND MARKET SEGMENTATION. Marketing Foundations Target D. TARGET MARKET. The group of customers whose needs and wants you will try to satisfy Examples.teens, babies, business people, college students. Target Market should have:. - PowerPoint PPT Presentation
TARGET MARKET AND MARKET SEGMENTATIONTARGET MARKET ANDMARKET SEGMENTATIONMarketing Foundations Target DTARGET MARKETThe group of customers whose needs and wants you will try to satisfyExamples.teens, babies, business people, college studentsTarget Market should have:Clearly defined wants and needs that your company can meetMoney to buy your productWillingness and authority to buy your productEnough customers n the market to be profitable Target Market + Marketing Mix Marketing Strategy*Remember, the Marketing Mix is all the decisions you make about the 4 Ps.Mass MarketingThe development of only one marketing mix for a specific productAssumes that everyone has exactly the same wants and needs for the productTarget marketing approachHas marketers analyze the mass marketThen, segment (divide up) the market based on the different needs and wants of the customers in that marketThe company will choose one segment to develop a marketing mix (the 4 Ps) that will meet the unique wants and needs of that market segmentMarket SegmentationMarketers segment (divide up) possible markets by:DemographicsGeographicsPsychographicsProduct benefitsDemographic SegmentationStatistics that describe the characteristics of a population of peopleAgeGenderEthnicityFamily sizeIncome Disposable money left after taxesDiscretionary money left after taxes and necessities taken out (what you have left to spend)Psychographic Segmentationbased on psychological characteristics that affect needs and wantsHobbiesSocial activitiesLifestyleInterestsAttitudesIf you show the target market in ads, people see themselves and relate better to the promotional messageGeographic SegmentationBased on where customers liveLocationClimateCity sizeProduct Benefitsbased on the perceived value or advantage consumers receive from a good or service over alternatives. QualityPerformanceImageServiceSpecial featuresCombining VariablesMarketers find it useful to target a market based on two or more segmentsGeographic + demographic (city + income)Example: marketers of luxury products can get zip codes of people with the highest income levels.