Market Segmentation Introduction to Business & Marketing

Review � Marketing ◦  Process of developing, promoting &

distributing goods & services to meet consumer wants & needs

Review � Marketing Functions:

1.  Financing

2.  Marketing Information Management (MIM)

3.  Product/Service Management (PSM)

4.  Pricing

5.  Distribution

6.  Promotion

7.  Selling

Review •  Marketing Concept •  Business should:

1)  strive to satisfy customer needs and wants while

2)  generating a profit for the business

Review � Marketing Mix (aka the 4 Ps) ◦  Product � what ◦  Place

where ◦  Price �  how much

◦  Promotion �  awareness

Key Vocab o  Products

-  goods & services that have monetary value

o  Consumer - person who uses goods or services

o  Customer - person who purchases goods or services

Target Market � A specific group of consumers who

have similar wants and needs

� Goal is to convert consumers into customers.

� Purpose of marketing to connect businesses with their customers

Target Market �  The target market for the Briar Woods

School Store is high school students, parents, and Falcon fans.

Target Market � Nordstrom ◦ Offers high-end brands of fashion items �  Ralph Lauren, Louis Vuitton, Gucci ◦ More affluent 20-40 year-olds

� Sears ◦ Overwhelming selection of products ◦ Adult female homeowners ◦  Bargain/discount shoppers who want reliable

quality

Think About It! � What questions help to

identify a target market? � Think like a marketer…what

do you need to know about your customers or potential customers?

� How do businesses collect this kind of information?

Stand Up! � Push in your chair.

� Leave your notes where they are.

� Listen for instructions J

Move to the … FRONT �  You consider yourself to

have more traditional tastes.

�  You know what you like, and you tend to stick with it!

BACK �  You consider yourself to

have trendier tastes.

�  You like change, and you look for a fun or modern appeal.

Move to the … LEFT

� You are a relatively health-conscious eater.

RIGHT

� You prefer to eat whatever tastes good.

What’s your cereal?

Cheerios Special K Raisin Bran Total

Frosted Flakes Rice Krispies Froot Loops Mini Wheats

Kashi Honey Bunches Life Organic Cereals

Lucky Charms Cookie Crisp Cap’n Crunch

Cinnamon Toast Crunch

Back to Center! �  Move back toward the center of the room, and

wait for instructions.

Move to the … FRONT

� You tend to enjoy entertainment, such as going to the movies or shopping.

BACK

� You tend to enjoy sports and / or outdoor activities.

Move to the … LEFT

� You like warm weather.

RIGHT

� You enjoy cold weather.

Where Would You Vacation?

Florida Las Vegas, Nevada California Cities

Washington, D.C. New York

Chicago, Illinois

Texas California Mountains

Colorado Maine

Market Segmentation ◦ Dividing/classifying the total market into

smaller groups of people who share specific needs & characteristics

◦ Creates smaller, more precise target markets

Demographics �  Statistics that objectively describe a population

in terms of personal characteristics �  WHO your buyer is ◦  Age ◦  Gender ◦  Income ◦  Marital Status ◦  Education or Occupation ◦  Ethnicity

Demographics •  Demographics for The Briar Woods

School Store: ◦ Age: 14-18 ◦ Race: all races ◦ Gender: male & female ◦  Income level: middle income

Geographics � Based on where people live, travel or

shop ◦  Location ◦ Climate ◦ City or Community Size ◦  Local or Regional ◦ National or Global

Geographics � Geographics for The Ashburn Ice House ◦  Local hockey teams & fans ◦ Regional hockey teams

Psychographics � Base on social & psychological

characteristics (WHY we buy) ◦ Attitudes ◦ Values ◦  Interests ◦ Opinions ◦  Lifestyles

Psychographics � Hobbies or activities � Political or religious affiliations � Personality traits � Priorities or values

Psychographics � My psychographics: ◦ Attitude: positive outlook on life ◦ Values: honesty, hard-work, family ◦  Lifestyle: budget-conscious, lives 15-miles from

family, full-time employee

Review

� Product � Consumer � Customer � Target Market � Market Segmentation

Vocab. Notebook – cont.

Vocabulary Terms: 8. Market segmentation 9. Geographic 10. Demographic 11. Psychographic

VOCAB TERM DEFINITION PHOTO

8. Marketing concept states that to make a profit a business must focus all efforts on satisfying the needs & wants of the customer

You will draw a photo of something that helps you

remember this term – keep it simple!