Download Identify Market Segments

3.04
Entrepreneurship 1
Advertising spending:
– Third largest expenditure
– Growing favoritism toward online
Most important online marketing tactics
• 69% Web sites
• 36% Search engine key words
• 24% E-mail marketing
Most important offline marketing tactics
• 35% Fostering good community relations
• 27% Public relations/ media coverage
Sources: www.emarketer.com, 2005 & www.MarketingPower.com
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Product
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Place
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Tip: Sales strategy
Price
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Example: Mature product
Example: New/introductory product
Internal/Cost perspective
External/market perspective
Promotion (continued….)
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Promotion
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Advertising
 Tip: Advertising value
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Publicity
 Tip: Made you look!
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Personal Selling
 Tip: Relationships
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The group of potential consumers who share
common needs and wants.
The target market has the ability and
willingness to buy the product.
Businesses strive to meet the needs and wants
of their customers.
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A single marketing plan used to reach all
consumers.
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The group of consumers that a company
desires to have as customers.
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Dividing the entire market into smaller groups
(of people) who share similar characteristics.
Allows businesses to customize products and
marketing strategies.
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Segmenting the market based on personal
characteristics such as age, gender, income,
ethnic background, education and occupation.
Example: middle class, males, ages 20-40,
who are construction workers.
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Segmenting the market based on values,
attitudes and lifestyles.
Example: People interested in professional
football.
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Segmenting a market based on where a
person lives. Geographic segmentation can
refer to local, regional, national or global
markets.
Example: A small local store will segment to
the surrounding area like a town, while big
companies like Nike market Internationally.
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Dividing consumers into groups according to
their response to a product. Behavioral
segmentation divides markets into groups
based on what they are looking for in a product
and why they buy the product.
Example: Purchasing Nike shoes because
Michael Jordan wears them.