WF SEM ISummarize ways to reach markets

Market Segmentation

What is a market? The group of all potential customers

who have similar needs and wants and have the ability and willingness to buy the product

Consumer Market Industrial Market

What is market share? The percentage of the total sales revenue acquired by a business within a

market For example: Running Shoes

Total sales by company: Nike $3.6 million 28.4% Reebok $2.7 million 21.1% Adidas: $2.1 million 16.4% Fila: $1.7 million 12.9% Converse: $1.5 million 11.9% Others: $ 1.2 million 9.5% Total $12.8 million 100%

Mass Marketing vs. Niche/Target Marketing

Mass marketing: A single marketing plan used to reach all consumers

For example: Light Bulbs/Cleaning products What makes Mass Marketing a viable solution to our

Marketing needs?

* Few features, universal usage, all choices similar

Niche or Target marketing: Narrowing markets, by identifying very specific characteristics, into a more specific group of people

For example: Aquatic Pet Stores

WHY Target Marketing? Product

Price$2.95 $7.99 $4.00

Promotion

Place

Target Marketing Illustration

And market segmentation is…

Dividing the entire market into smaller groups who share similar characteristics.

For example: Mini Van

Market and Market Segmentation

Carpoolers

Traveling salespeople

Small-item delivery business

LARGE FAMILIES

Young families

with children

CAMPERS

Question #1: What market is this illustrating?

Question #2:Can you name one segment?

Question #3:Would you market to all of the segments and why?

Question #4:If you did market to all the segments, what would that be an example of?

Question #5:

What types of things should we now consider when deciding which segments to “target”?

Market for Minivans!!!!!

Demographic segmentation is… Dividing the market based on

personal characteristics such as age, gender, income level, ethnic background (race), education, and occupation

For example, Teen Vogue is marketed to…

Demographic Characteristics of Education and Income Example

Geographic Segmentation Dividing a market based on where a

person lives (local, regional, state, national, or global markets).

Based on climate/terrain and population density

For example, swimwear and body boards sell best?

Snow skis Snow blowers

Psychographic Segmentation Dividing the market based on values

(ethics, morals, standards), attitudes (personality), and lifestyles (how people spend their time)

For example: Schwinn Bicycle

Behavioral Segmentation Dividing the market into groups based on

what they are looking for in a product and why they buy the product, ie. Rate of use, specific benefit, loyalty response, occasion response

For example: Wedding Dress

Pepsi vs. Coke