warm-up: wednesday, 02/05/14
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Warm-up: Wednesday, 02/05/14. Overseeing how transportation will be taken care of is which marketing mix element? Distribution Transportation Channel Management Place . Market Segmentation. Market Segmentation. The key to marketing & selling is to know your customer - PowerPoint PPT PresentationTRANSCRIPT
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Warm-up: Wednesday, 02/05/141. Overseeing how transportation will be taken
care of is which marketing mix element?a) Distribution
b) Transportation
c) Channel Management
d) Place
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MARKET SEGMENTATION
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Market Segmentation
The key to marketing & selling is to know your customer You have to know what is cool, in order to
continually reach your audience
Not all customers are the same Use certain methods to reach certain
customers
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Market Segmentation
Market Segmentation is the process of identifying a target market by dividing the market into segments according to customer needs and characteristics. Basically you take a target market and
break down into even smaller markets.
This process is done so that marketers can sell their products or services more effectively.
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Market Segmentation Facts
Why do marketer’s use market segmentation? Very costly to target all groups
Must find the group of consumers who you have a clear competitive advantage
Use research to determine if the costs of development are effective Determine if a group is significant enough to target
Specific information allows you to know your customers: Buying Behavior, Values, Fashion Interests, etc… Yesterday the students that were more specific were easier to
create a product for
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Market Segmentation
There are four key factors that marketers use to determine how to segment a market:
1. Demographics
2. Geographic Variables
3. Psychographic Variables
4. Buying Behavior
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Demographics
Demographics: Refers to statistics that describe a population in terms of personal characteristics. Age (Baby Boom, Generation X, Generation Y,
Generation Z) Gender (Male v. Female) Occupation Education Income
Disposable: Money left after taxes Discretionary: Money left after taxes & basic needs have been
paid Marital Status Ethnic Background
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Age Demographics
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Gender Segmentation
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Income
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Ethnic Segmentation Ads
Geely Automobile Holdings Ltd
Pantene Pro-V
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Marital Status
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Psychographics
Psychographics involves grouping people with similar lifestyles, as well as shared attitudes, values, & opinions. Examples:
People that like to read
Play video games Travel Politics Religion
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Geographics
Geographics: Refers to segmenting customers based on where they live. Segment a market geographically can be done:
Locally, Regionally, Nationally, or Globally
Hispanic cultures are prevalent in L.A., Miami, New York, Texas, Arizona, etc..
African American cultures are prominent in the south
States with high teen percentages: Alaska, Utah, Arizona, Texas, California, & Idaho
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Examples of Geogrpahic Marketing
Restaurants offering menu items that reflect local taste interest
Cracker Barrel & McDonald’s alters menu to reflect local tastes Menu in south is different than menu in
Northeast
Miller Lite developed a True to Texas Marketing Campaign
Magazines like Midwest or Southwest Living
Pepsi packaging products based on NFL Cities
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Market Segmentation
Behavioral Segmentation: Involves looking at the benefits a customer desires, shopping patterns, & usage rate
Online, In-Store, Catalog, TV
Brand Preference Luxury items Always buy Apple, Nike, etc..
Usage Rate Most frequent, loyal customers are
marketed towards the most
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Low Carb v. High Protein v. Energy
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Mass Marketing v. Segmentation Mass Marketing: Occurs when a
company uses a single marketing strategy to reach all customers Products has universal appeal and few features
to differentiate them from competitors. Not as popular as it used to be because
companies prefer to cluster consumers.
Niche Marketing: Narrowing down your market and using precision to create your products
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AssignmentFind a picture(s) that
contains at least 3 people who share the following characteristics: Target market of Ardrey Kell
Demographics Age Gender Ethnic Background Income
Psychographics Activities
Play sports Clubs
Attitudes Workout Video games
Personality & Values Class Clowns Religious Drama
Geographics Does anyone have similar
characteristics based on a geographical location Dallas Cowboys Fans Students who have just
moved here Certain Middle Schools
Buying Behavior Brands Colors Fads
2 points if picture is original
1 point if picture is from the internet
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Target Market Assignment Part IICreate a 6 slide PowerPoint (Can work with a partner)
Title Slide, AK Target Market, Demographics, Geographics, Psychographics, & Behavioral Segmentation
Upload the picture you found that reflects the segmentation group targeted
Determine the following for each groupCharacteristics that connect this groupAn item that they would purchasePromotional methods you would use to attract them
Email: [email protected]
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Grading Sheet (two or less)
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ExamplesCrenshaw
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Demographics: Age & GenderHigh School Students
Female
Some characteristics of a product that would appeal to this audience are…..
An item that this demographic would purchase
Promotional methods that we would use for this demographic are….
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Psychographics: Basketball TeamCharacteristics that
appeal to this groupWorking out & basketball
merchandise
Product:
Basketball shirts with the motivational saying on back
Promote:
Poster in girls locker room
Flyers on players lockers
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GeographicsCharacteristics
that appeal to this group
An item that they would purchase
Promotional methods you would use to attract them
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Buying BehaviorCharacteristics that
appeal to this groupConverse Shoes
An item that they would purchaseAK SocksFlat billed hat
Promotional methods you would use to attract themBuy One, Get One ½ Off
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Commercials with Music
Old Navy: http://www.youtube.com/watch?v=v-7luX488iY Windows: http://www.youtube.com/watch?v=whF9It6HGPk
Rolling Stones, Madonna, Aerosmith, All-State: http://www.youtube.com/watch?v=LMExQgje9ck G-Star Raw: http://www.youtube.com/watch?v=MwP8vRckByQ Go Pro: http://www.youtube.com/watch?v=9mGzoG0CA5M Beats: http://www.youtube.com/watch?v=T1ybN91jJV4 Tropicana: http://www.youtube.com/watch?v=8pFfAvSH3_0 Budweiser:
http://www.youtube.com/watch?v=_GeiOdHsW_8 http://www.youtube.com/watch?v=qhX1NqhAkDM
Bud Light: http://www.youtube.com/watch?v=hD2STTFSgtw
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Car Companies
KIA: http://www.youtube.com/watch?v=OuSfLoXq22w Buick: http://www.youtube.com/watch?v=rt99ULx9iFM Hyundai:
http://www.youtube.com/watch?v=laoqANN3lmg Chevrolet:
http://www.youtube.com/watch?v=plqtYMwQQqI Cadillac:
http://www.youtube.com/watch?v=sKDapnoj0hM Ford:
http://www.youtube.com/watch?v=X8uXrwhWVOM http://www.youtube.com/watch?v=gUfN5fA-oWY
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Music in Commercials
Windows: http://www.youtube.com/watch?v=031-DOEop48
Gap: http://www.youtube.com/watch?v=Lfzl-2iSfbM
JC Penny: http://www.youtube.com/watch?v=EOYl5WPTNCY Coca-Cola:
http://www.youtube.com/watch?v=ib-Qiyklq-Q http://www.youtube.com/watch?v=dOkzRZWMLKA http://www.youtube.com/watch?v=TkHA2pf1gvc
Pepsi: http://www.youtube.com/watch?v=po0jY4WvCIc http://www.youtube.com/watch?v=B7YTkw2-aVc http://www.youtube.com/watch?v=_2smYVl0zrk http://www.youtube.com/watch?v=AKKM8sP24BE
Mountain Dew: http://www.youtube.com/watch?v=CcWnfduAS_E http://www.youtube.com/watch?v=SD-ecR9uv1Q http://www.youtube.com/watch?v=zGtIayHPWrM
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Warm-up: Thursday, 02/06/141. What is the marketing mix better known
as the 4'P's?a) Product, Place, Promotion, Price
b) Politics Promotion Price Product
c) Production Product Producing Promotion
d) Promotion Product Place Production