1.03 - market segmentation
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DESCRIPTION1.03 - Market Segmentation. Objective A Explain target marketing Objective B Explain the ways to segment a market. 1.03EssentialQuestions. What is target marketing and what has caused sports businesses to increase this marketing tactic? In what ways do sport marketers segment a market? - PowerPoint PPT Presentation
1.03 - Market Segmentation
What is target marketing and what has caused sports businesses to increase this marketing tactic?In what ways do sport marketers segment a market? How does a consumers socioeconomic status play a significant role in how sport marketers implement marketing tactics?
Explain target marketing
A MARKET is a customer or potential customer who has an unfulfilled desire and is FINANCIALLY ABLE AND WILLING to satisfy that desire. Businesses strive to meet the needs and wants of their customers.
When sellers offer one-size-fits-all products that will appeal to the ENTIRE MARKET.
A GROUP OF CUSTOMERS THE BUSINESS SEEKS TO ATTRACT. The same person can be included in more than one Target Market
Women make up 44 percent of NFLs Fan base.
Divide markets and primarily notice CATEGORIES or specific groups with common interests
Marketers tailor their product price placeand promotion activities to the segments they target
Customers are not influenced bymass marketing because theyareDISCERNING: (the skill of having good judgement.) with product purchases.
WAYS TO SEGMENT A MARKET.
Marketers divide their markets by grouping customers according to their similaritiesnot their differences. Customers may be similar in theiroccupations or hobbies.
Economic and sociological measure of a persons income, education, and occupation.
education, and jobs, marketers can determine what different customers are likely to buy.1) Better educated individuals, for instance, are more likely to demand higher quality products.2) High-income customers have more money to spend on such products as expensive jewelry, vacation packages, and cars.
Age (Teen, young adult, senior)Generation (Gen. X or Gen. Y)marital status (single, married, divorced)family size (no kids, 1-2 kids)marketers want to know where customers fit in the day-to-day buying routine.
1) Are customers buying baby shoes, walkers, or running equipment?
2) Do they need retirement-planning assistance, car-pooling opportunities, or diaper-cleaning services?
When marketers categorize customers by where they are in life, they can quickly find out their needs and what to do to meet them.
baby boomer is a person who was born during PostWorld War II baby boom between 1946 and 1964. About 74 Million people.
The financial security of this market offers continuing opportunities for marketers of travel and luxury products.
80% of luxury travel and 48 % of all luxury car purchases are made by boomers
Generation X are the 44 to 50 million Americans born between 1965 and 1980.Members of Generation X are largely in their 30s and early 40s.
More ethnically diverse and better educated than the Baby Boomers.
Over 60% of Generation X attended college.
Is the demographic cohort following Generation X. There are no precise dates for when Generation Y starts and ends. From the early 1980s to the early 2000s.
With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of todays workforce.
division or group of people or things regarded as having particular shared characteristics.
Segmenting the market based on physical and social characteristics such as:
Age (18- 25)Gender (Females) Income ($35,000 - $45,000)Ethnic background (Hispanic, Caucasian, African-American)Marital Status (Single, married, divorced)Education (high school, 4-year degree, Masters, Ph.D.) Occupation (Teacher, Engineer, Nurse)
Segmenting the market based on values, attitudes and lifestyles.Example: People interested in professional football.
Segmenting a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets.
Example: A small local store will segment to the small town like Matthews.
While big companies like Nike, market internationally.
Behavioral segmentation divides markets into groups based on what they are looking for in a product and why they buy the product.
Occasions like holidays, birthdays & events that stimulate purchases
Behavior towards a productBenefits sought by the customerUsage Rate: How often do they purchase?Brand Loyalty: They expect somethingUser status: Potential, first-time or regularReadiness to buy: Urgency
Cohort -is a group of subjects who have shared a particular event together during a particular time span*