* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download File
Youth marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Pricing strategies wikipedia , lookup
Street marketing wikipedia , lookup
Service parts pricing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Perfect competition wikipedia , lookup
First-mover advantage wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Multicultural marketing wikipedia , lookup
Grey market wikipedia , lookup
Green marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Market analysis wikipedia , lookup
Darknet market wikipedia , lookup
Sensory branding wikipedia , lookup
Market penetration wikipedia , lookup
Target audience wikipedia , lookup
Global marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Advertising campaign wikipedia , lookup
Product planning wikipedia , lookup
Market segmentation wikipedia , lookup
Marketing strategy wikipedia , lookup
WF SEM II Target Markets 4.04 How Product Competition is Used to Define a Market • Competition is becoming much more intense for most businesses. Businesses need to gather information about competitors' products and marketing activities in order to determine their strengths and weaknesses in order to help them to determine what they need to do to be more competitive. Terms Market:A customer or a potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Any circumstances under which buyers and sellers exchange goods or services for a price Target Market: The group of consumers that a company desires to have as customers Niche Market: smaller group of the target market that a business can select to market goods and services PRODUCT(S): Marketing element referring to what goods, services, or ideas a business will offer its customers COMPETITION: The rivalry between two or more businesses to attract scarce customer dollars. Customer vs. Consumer • Terms: – Customer: The person who buys or purchases the product – Consumer: The person who uses or consumes the product Pros/Cons of Mass Marketing Mass Marketing: A single marketing plan used to reach all consumers •Pros •Reach broad audience •Consistent message •Cons •Spend $$ reaching outside target market •Can’t tailor message to different segments Market Segments Market Segments: different groups of customers with one or more shared characteristics Market Segmenting: Dividing the entire market into smaller groups (of people) who share similar characteristics. Allows businesses to customize products and marketing strategies Pros/Cons of Market Segments •Pros •Able to target message •Able to target media •Cons •May miss part of segment •Requires extra time to tailor message to market Appealing to Target Markets in SEM • Interested in SEM products • Have disposable income to spend The Increase of Segmented Markets Increasingly fragmented media Cable/satellite TV Web sites Magazines Increasingly fragmented products Demographic segmentation Segmenting the market based on personal characteristics such as age, gender, income, ethnic background, education and occupation. Example: middle class, males, ages 2040, who are construction workers. Market Segments •2-12 12-17 18-24 18-34 18-49 25-54 55+ •Gender (M/F) Ethnicity Education level Income level Geographic segmentation 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. Value of Geographic Segmentation Limit marketing expenses to target consumers who live within certain area Psychographic segmentation Segmenting the market based on values, attitudes and lifestyles. Example: People interested in professional football. Psychographic Segmentation Limit marketing expenses to customers that behave with an inclination to buy your product Behavioral segmentation 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.