Marketing 1.02-B

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Marketing 1.02-B Explain the concept of market and market identification

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Marketing 1.02-B. Explain the concept of market and market identification . What is a Market?. A market are those who have: A need or desire, and The ability to pay, and The willingness to buy (soon). Target Market. A target market are those who: - PowerPoint PPT Presentation

Transcript of Marketing 1.02-B

Page 1: Marketing 1.02-B

Marketing1.02-B

Explain the concept of market and market identification

Page 2: Marketing 1.02-B

A market are those who have: A need or desire, and The ability to pay, and The willingness to buy

(soon)

What is a Market?

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A target market are those who: Are grouped within a market by what they

have in common Are the customers the business seeks to

attract Ipad

Target Market

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Every customer belongs to a number of markets

Customers are targeted in the consumer market, and businesses are targeted in the industrial market

The same customer or business can be included in more than one target market

Markets usually change over time

Importance of Target Markets

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Mass marketing is designing products and directing marketing activities to appeal to the whole market (lightbulbs)

Advantages: communicates a broad message to as many customers as possible

More cost-effective Businesses don’t have to pay for the

production of similar products Can price and distribute one type of

product more easily than many Can send one promotional message to

everyone

Mass Marketing

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Disadvantages: The diversity of the audience Only a small percentage of the mass market is

likely to purchase the product

Mass Marketing

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Dividing the market into smaller groups in order to target each group individually

Advantages: meets the needs of customers, more precise than mass marketing, more effective communication

Provides an efficient way for smaller firms to compete with larger businesses

Market Segments

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Advantages: meets the needs of customers, more precise than mass marketing, more effective communication Provides an efficient way for smaller firms to

compete with larger businesses Disadvantages: takes more resources to be

successful, more difficult to reproduce, requires more creativity and money

Market Segments

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Segment marketing is more efficient in the long run Customers today are more discerning about

purchases Not influenced by mass marketing alone Meets customer’s needs More opportunities for growth

Why are market segments increasing?

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Market segmentation is the division of a total market into smaller, more specific groups as a way to meet the needs of customers Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation

Market Segmentation

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Demographic segmentation is dividing the market on the basis of its physical and social characteristics Gender: indicates purchase

preferences (female) Origin or heritage: race,

ethnicity, nationality (Caucasian)

Religion (Christian) Social or economic status:

education level, occupation, income (Middle-Class)

Life stage: age, generation, marital status, family life cycle, family size. (Teens)

Demographic Segmentation

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Geographic Segmentation is the division of a market on the basis of where consumers are located. Determine customers’ purchase

preferences according to climate, political boundaries, or population density

Marketers discover Where their markets are located Who their competitors are Which media will reach their

customersBusinesses can market to customers based on location

Geographic Segmentation

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Psychographic segmentation is the division of a market on the basis of consumers’ lifestyles personalities. Values, motives, attitudes,

opinions, interests, activities, personalities, and lifestyles

It gives a clearer picture of customers’ needs and wants based on personality and lifestyle.

Psychographic Segmentation

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Behavioral segmentation is dividing a market on the basis of consumers’ response to a product.

Marketers look at the cause and effect nature of customers’ purchase decisions

Examine what customers respond to when they buy a particular product

Behavioral Segmentation

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Customer questions in behavioral marketing: How will the product benefit me? Am I ready to buy it? When will I use the product/

On what occasions? How often?

Am I in a comfortable buying pattern? Do I feel loyal to a particular brand?

Behavioral Segmentation