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Market Segmentation

Market Segmentation. Chapter 2. Why would marketers want to target teens?. Impulse buyers Disposable income Building brand loyalty. Identifying Your Consumers. What is market segmentation?. D ividing a broad target market into subsets of consumers who have common needs.

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Market Segmentation

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  1. Market Segmentation Chapter 2

  2. Why would marketers want to target teens? • Impulse buyers • Disposable income • Building brand loyalty

  3. Identifying Your Consumers

  4. What is market segmentation? • Dividing a broad target market into subsets of consumers who have common needs. • Depending on the specific characteristics of the product, these subsets may be divided by other variables. • Marketing campaigns can then be designed and implemented to meet the needs of these specific customer segments.

  5. Two Variables Used in Market Segmentation • Profilers– descriptive, measurable customer characteristics • Needs – most common way to segment

  6. Profilers • Demographic – age, gender, family size, occupation • Geographic – region of country, urban/rurall • Behavioral – brand loyalty, product usage • Psychographic – social class, lifestyle

  7. Criteria for Segmenting • Is the segment viable? (Can we make a profit from it?) • Is the segment accessible? (How easy is it for us to get into the segment?) • Is the segment measurable? (Can we obtain realistic data to consider its potential?)

  8. Why segment a market? • Need to understand customers before marketing • Stay ahead of competition • Directly satisfy potential customers wants and needs

  9. Steps in Market Segmentation • Identify the market (broad) • Break the market into the possible profilers • Determine your specific market profile • Analyze your specific market profile and meet the customers needs

  10. Market Segmentation Example • An investing group would like to open a state of the art, 21st Century gym. Their ideal vision for this gym would be a ‘tech-savvy’, sleek, and convenient. • Who should be your market segment?

  11. Market Segmentation Example • Health conscious individuals looking for a gym. • Demographic – male/female, 16+ Geographic – Urban or rural Behavioral – after/before work, weekends Psychographic – tech-savvy, middle/upper • Our market segment will include urban males and females, who are into technological advances, and currently live a healthy lifestyle. • Build your product/brand

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