Announcement

•Quiz will be next Wed, Feb 19.

•“Marketing you” assignment was due Feb 12. Feb 19 is the absolute deadline for this assignment.

Target Market:

• Definition: A target market is a group of customers that the business has decided to sell their product (or service) or to aim its marketing efforts.

•For example, what is the target market of BMW?

•In other words, which group of customers do BMW marketers target?

Market Segments:

•Definition: Group of customers, which have similar needs or wants.

•What are the factors marketers use to separate market segments?

•Urban area vs rural area or East vs West

•Age, Gender, family size, marital status, income level, occupation, education, race, personality, etc…

Steps in choosing your target market:

1.Group potential buyers into segments.

2.Group products to be sold into categories

3.Select target markets

4.Take marketing actions to reach target markets

Steps in choosing your target market:

1.Group potential buyers into segments.

2.Group products to be sold into categories

3.Select target markets

4.Take marketing actions to reach target markets

Steps in choosing your target market:My example is Toyota Lexus (63000), Toyota Highlander SUV (45000) Toyota Camry (35000) and Toyota Corolla (24000). (4 products)

1.Group potential buyers into segments. :

*Low = Their income is between 0 to 40000 a year

*Medium = Their income is between 40000 to 90000 a year

*High = Their income is between 90000 or higher

Age Income Segments

15 to 30 = A Low, Medium, High AL, AM, AH

31 to 45 = B Low, Medium, High BL, BM, BH

46 to 60 = C Low, Medium, High CL, CM, CH

61+ = D Low, Medium, High DL, DM, DH

Steps in choosing your target market:My example is Toyota Lexus (63000), Toytoa Highlander (45000) Toyota Camry (35000) and Toyota Corolla (24000). (4 products)

•Lexus will target AH, BH, CH, DH

•Highlander will target BM, BH, CM, CH

•Camry will target BM,. CM, DM

•Corolla will target AL, BL, CL, DL

Group Work:

You will get into groups of max 3 people per group. Each group will choose a topic from the handout. You will teach the class with your topic tomorrow.