Market Segmentation. Introduction to Business & Marketing

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1 Market Segmentation Introduction to Business & Marketing

2 Review Marketing Process of developing, promoting & distributing goods & services to meet consumer wants & needs

3 Review Marketing Functions: 1. Financing 2. Marketing Information Management (MIM) 3. Product/Service Management (PSM) 4. Pricing 5. Distribution 6. Promotion 7. Selling

4 Review Marketing Concept Business should: 1) strive to satisfy customer needs and wants while 2) generating a profit for the business

5 Review Marketing Mix (aka the 4 Ps) Product what Place where Price how much Promotion awareness

6 o Products Key Vocab - goods & services that have monetary value o Consumer - person who uses goods or services o Customer - person who purchases goods or services

7 Target Market A specific group of consumers who have similar wants and needs Goal is to convert consumers into customers. Purpose of marketing to connect businesses with their customers

8 Target Market The target market for the Briar Woods School Store is high school students, parents, and Falcon fans.

9 Target Market Nordstrom Offers high-end brands of fashion items Ralph Lauren, Louis Vuitton, Gucci More affluent year-olds Sears Overwhelming selection of products Adult female homeowners Bargain/discount shoppers who want reliable quality

10 Think About It! What questions help to identify a target market? Think like a marketer what do you need to know about your customers or potential customers? How do businesses collect this kind of information?

11 Stand Up! Push in your chair. Leave your notes where they are. Listen for instructions J

12 Move to the FRONT You consider yourself to have more traditional tastes. You know what you like, and you tend to stick with it! BACK You consider yourself to have trendier tastes. You like change, and you look for a fun or modern appeal.

13 Move to the LEFT You are a relatively health-conscious eater. RIGHT You prefer to eat whatever tastes good.

14 What s your cereal? Cheerios Special K Raisin Bran Total Kashi Honey Bunches Life Organic Cereals Frosted Flakes Rice Krispies Froot Loops Mini Wheats Lucky Charms Cookie Crisp Cap n Crunch Cinnamon Toast Crunch

15 Back to Center! Move back toward the center of the room, and wait for instructions.

16 Move to the FRONT You tend to enjoy entertainment, such as going to the movies or shopping. BACK You tend to enjoy sports and / or outdoor activities.

17 Move to the LEFT You like warm weather. RIGHT You enjoy cold weather.

18 Where Would You Vacation? Florida Las Vegas, Nevada California Cities Texas California Mountains Washington, D.C. New York Chicago, Illinois Colorado Maine

19 Market Segmentation Dividing/classifying the total market into smaller groups of people who share specific needs & characteristics Creates smaller, more precise target markets

20 Demographics Statistics that objectively describe a population in terms of personal characteristics WHO your buyer is Age Gender Income Marital Status Education or Occupation Ethnicity

21 Demographics Demographics for The Briar Woods School Store: Age: Race: all races Gender: male & female Income level: middle income

22 Geographics Based on where people live, travel or shop Location Climate City or Community Size Local or Regional National or Global

23 Geographics Geographics for The Ashburn Ice House Local hockey teams & fans Regional hockey teams

24 Psychographics Base on social & psychological characteristics (WHY we buy) Attitudes Values Interests Opinions Lifestyles

25 Psychographics Hobbies or activities Political or religious affiliations Personality traits Priorities or values

26 Psychographics My psychographics: Attitude: positive outlook on life Values: honesty, hard-work, family Lifestyle: budget-conscious, lives 15-miles from family, full-time employee

27 Review Product Consumer Customer Target Market Market Segmentation

28 Vocab. Notebook cont. VOCAB TERM DEFINITION PHOTO 8. Marketing concept states that to make a profit a business must focus all efforts on satisfying the needs & wants of the customer Vocabulary Terms: 8. Market segmentation 9. Geographic 10. Demographic 11. Psychographic You will draw a photo of something that helps you remember this term keep it simple!

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