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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:.

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TARGET MARKET AND MARKET SEGMENTATION

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  1. TARGET MARKET ANDMARKET SEGMENTATION Marketing Foundations – Target D

  2. TARGET MARKET • The group of customers whose needs and wants you will try to satisfy • Examples….teens, babies, business people, college students

  3. Target Market should have: • Clearly defined wants and needs that your company can meet • Money to buy your product • Willingness and authority to buy your product • Enough customers in the market to be profitable

  4. Target Market + Marketing Mix Marketing Strategy *Remember, the Marketing Mix is all the decisions you make about the 4 P’s.

  5. Mass Marketing • The development of only one marketing mix for a specific product • Assumes that everyone has exactly the same wants and needs for the product

  6. Target marketing approach • Has marketers analyze the mass market • Then, segment (divide up) the market based on the different needs and wants of the customers in that market • The company will choose one segment to develop a marketing mix (the 4 P’s) that will meet the unique wants and needs of that market segment

  7. Market Segmentation • Marketers segment (divide up) possible markets by: • Demographics • Geographics • Psychographics • Product benefits

  8. Demographic Segmentation • Statistics that describe the characteristics of a population of people • Age • Gender • Ethnicity • Family size • Income • Disposable – money left after taxes • Discretionary – money left after taxes and necessities taken out (what you have left to spend)

  9. Psychographic Segmentation • based on psychological characteristics that affect needs and wants • Hobbies • Social activities • Lifestyle • Interests • Attitudes If you show the target market in ads, people see themselves and relate better to the promotional message

  10. Geographic Segmentation • Based on where customers live • Location • Climate • City size

  11. Product Benefits • based on the perceived value or advantage consumers receive from a good or service over alternatives. • Quality • Performance • Image • Service • Special features

  12. Combining Variables • Marketers find it useful to target a market based on two or more segments • Geographic + demographic (city + income) Example: marketers of luxury products can get zip codes of people with the highest income levels.

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