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Chapter 6 target markets

Chapter 6 target markets. Market & Market ID. All people who share similar needs and wants and who have the ability to purchase a given product are a MARKET.

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Chapter 6 target markets

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  1. Chapter 6target markets

  2. Market & Market ID • All people who share similar needs and wants and who have the ability to purchase a given product are a MARKET. • You can be part of the market for video games, but not be a part of the market for an expensive car. Even though you may want it, you may not have the means to buy one.

  3. Consumer Market • The consumer market consists of consumers who purchase goods and services for personal use. • Needs and wants reflect their lifestyles • Consumers are interested in products that will: • Save them money • Make their lives easier • Improve their appearance • Create status • Provide satisfaction

  4. Organizational Market • AKA Business to Business market • Includes all businesses that buy products for use in their operations • Goals and objectives of business firms are different than the consumer market. • Improving profits • Improving productivity • Increase sales • Decrease expenses • Increase efficiency

  5. Market Share • A company’s MARKET SHARE is its percentage of the total sales volume generated by all companies that compete in a given market. • Knowing market share helps companies analyze their competition as well as their status in a given market.

  6. Market Share • A company with a large market share can afford to take risks that other companies cannot.

  7. Market Segmentation • Businesses look for ways to sell their products to different consumers who may be potential customers. • This involves SEGMENTING, or breaking down, the market into smaller groups with similar characteristics.

  8. Market Segmentation The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs. • Market Segment Gender-Based Segmentation (Page 274)

  9. TARGET MARKET SELECTION PROCESS • The goal of market segmentation is to identify the group of people most likely to become customers. • The group that is identified for a specific marketing program is the TARGET MARKET.

  10. When a business does not identify a target market, its marketing plan has no focus.

  11. UndifferentiatedTargeting Strategy • Homogeneous Market Figure 10.2

  12. Undifferentiated strategy satisfies most customers with a single marketing mix Courtesy of The Beef Checkoff Program

  13. Concentrated Targeting Strategy Through Market Segmentation • Heterogeneous Market Figure 10.2

  14. Differentiated Targeting Strategy Through Market Segmentation

  15. FOURSEGMENTATION VARIABLES: Figure 10.3

  16. Age Gender Race Ethnicity Income Education Occupation Family size Family life cycle Religion Social class Demographic Variables

  17. Gender is a common target in marketing to a demographic Reprinted with permission of The Dial Corporation.

  18. Family Life Cycle Stages Source: Jason Fields, “America’s Families and Living Arrangements: 2003,” Current Population Reports, U.S. Census Bureau, 2003.

  19. Geographic Variables • Climate • Terrain • City size • Population density • Urban/rural areas

  20. Micromarketing An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets.

  21. Psychographic Variables • Personality characteristics • Motives • Lifestyles • Cultures and subcultures

  22. More on Psychographic Variables: *How people live or want to live – health, youth, controlling your life, alternative thinking and/ behavior. *Assess AIO dimensions: activities, interests, and opinions.

  23. VALSTypes (values, attitudes, and lifestyles)

  24. Toothpaste Product Positions

  25. “Don’t put a cold back in your pocket.”

  26. Pocket-sized Kleenex Jumbo, Man-sized Kleenex

  27. Kleenex® facial tissue Kimberly-Clark sought to give the public as many reasons to buy their product as possible….in 1927, K-C proposed a new use for Kleenex®: ‘absorbent kerchiefs.’

  28. Consumers discovered new benefits:

  29. …..and even benefits.

  30. PRODUCT POSITIONING AND REPOSITIONING • Product positioning • creating and maintaining a certain concept of a product in customers minds. • Perceptual Mapping • Bases for Positioning • Repositioning

  31. Perceptual MapFor Pain Relievers Figure 10.8

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