Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four...
-
Upload
reginald-randolf-bruce -
Category
Documents
-
view
218 -
download
3
Transcript of Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four...
![Page 1: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/1.jpg)
Section 2.2 – Market Segmentation
What You’ll Learn
• What market segmentation is and the four methods used to segment a market
• Analyze a target market
• Differentiate between mass marketing and market segmentation
![Page 2: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/2.jpg)
Identifying and Analyzing Markets
• Businesses look for ways to connect with current and potential customers.
• Marketers must know where their customers live(region), their income level, age, ethnic background, activities, values, and what interests them.
![Page 3: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/3.jpg)
Analyzing Markets
Market segmentation is a way of analyzing a market by specific characteristics in order to create a target market
![Page 4: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/4.jpg)
Analyzing Markets
• Companies study data generated by governments, private research firms, trade associations, and their own research to determine if a given target market is large enough to justify expense.
![Page 5: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/5.jpg)
Types of Segmentation:
• Demographics
• Psychographics
• Geographics
• Behavioral
![Page 6: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/6.jpg)
Demographics – statistics that describe a population in terms of personal characteristics.
• Demographics include– Age– Gender– Income– Marital Status
• Age– Baby Boom Generation
• Born between 1946-1964
• Targets for all types of products, such as technological gadgets, cosmetics and products to enhance lifestyle.
![Page 7: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/7.jpg)
Demographics
• Generation X – Known as the baby bust generation– Most members are children of dual career
households or divorced parents– Savvy purchasers and skeptical consumers.– To reach this group marketers must use
sharp images, music, a sense of humor and meet them on their terms.
![Page 8: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/8.jpg)
Demographics
• Generation Y– Sons and daughters of the later baby
boomers– Known as Echo Boomers or Millennium
Generation– More racially and ethnically diverse with
spending power.– Most members of this generation use email
and surf the Web
![Page 9: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/9.jpg)
Income• Marketers want to know how much
money they have to spend on different products.
Disposable income – money left after taking out taxes
Discretionary income – money left after paying for basic living necessities such as food, shelter, and clothing
Demographics
![Page 10: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/10.jpg)
Demographics
• Gender– Helps create market segments.
![Page 11: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/11.jpg)
• Marital Status – US Census reports 49.7% of total households are married couples.
• Down from 80% in 1950. • Married couples with kids represent 25%
of the population.
Demographics
![Page 12: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/12.jpg)
• Ethnic Background – US is becoming more diverse
![Page 13: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/13.jpg)
U.S. Trend – The percentage of the Caucasian population is declining, while
other ethnic populations increase.
![Page 14: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/14.jpg)
Psychographics
• Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.– Activities: ex. Magazines– Attitudes: Consumers attitudes, such as taking
responsibility for one’s health, eating healthier, and becoming physically fit, are trend setting issues
– Personality & Values
![Page 15: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/15.jpg)
Music teachers, dancers, and other
music lovers would be one category of people who share
psychographic characteristics.
![Page 16: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/16.jpg)
Behavioral Segmentation• Looking at the benefits desired by
consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product.
• Many people regardless of status, desire luxury and premium merchandise
![Page 17: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/17.jpg)
Behavioral Segmentation
• Research shows that teenagers spend $50 a month on entertainment. Girls spend $15 more than boys on music.
• Many businesses find that the 80/20 rule applies.
• 80 % of a company’s sales are generated by 20 % of its loyal customers.
![Page 18: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/18.jpg)
Geographics – Segmentation based on where people live-May market locally, regionally, nationally, or globally
![Page 19: Section 2.2 – Market Segmentation What You’ll Learn What market segmentation is and the four methods used to segment a market Analyze a target market Differentiate.](https://reader035.fdocuments.in/reader035/viewer/2022062718/56649e895503460f94b8e3bd/html5/thumbnails/19.jpg)
Mass Marketing Vs Segmentation
• Mass marketing not as popular as it once was.
• Niche marketing (the current trend) – markets are narrowed down and defined with extreme precision.