The Consumer Market

Marketing Segmentation

QCC’s 57, 58

Objectives

• Define mass marketing, and market segmentation

• Explain how marketers use Geographic's, Demographics, and Psychographics to reach their customers

• Develop a customer profile and understand how to use it in the promotion of a product

Reaching the consumer

• Mass Marketing

• Market Segmentation

Mass Marketing

Using a single marketing plan for one product to reach all customers.

• Network TV

• Network Radio• National Newspapers (USA Today, NY Times)

• Magazines with broad appeal (People)

What is a Market?

• All potential customers that share common needs and wants, and have the willingness and ability to buy the product.

Market Segmentation

• Identifying specific markets and “targeting” your efforts to those potential customers.

–Geography (location)

–Demographics

–Psychographics

Geography

• Based on where people live– Local (3 mile radius)– Regional (Southeast)– National (United States)– Global

Demographics

• Age– Baby Boom

– Generation X

– Generation Y

• Ethnicity

• Income

• Life Cycle– Single

– Married

– Empty Nest

• Education

• Occupation

Describes a population in terms of personal characteristics

Psychographics

Describes a population in terms of behavior, attitudes and values (Lifestyles)

• Leisure-time activities (sports, hiking, computer)

• Eating Healthy

Why do marketers use consumer segmentation?

Target Marketing: Focusing all marketing decisions (4 P’s) on a vary specific group of people who you want to reach.

Customer Profile

• Information about the target market with regard to the age, income level, ethnic background, occupation, attitudes, lifestyle, or geographic residence of the targeted consumer.

Putting market segmentation to use

• Development of products

• Development & placement of advertising– Newspaper– Magazine– Radio – Television

Review

Pick a product or a retailer and develop a customer profile based on what you know about their consumer.