Download Ways to reach markets - Catawba County Schools

2.03 Summarize ways
to reach markets
What is a market?

The group of all potential customers
who have similar needs and wants
and have the ability to buy the
product
Candy
Who wants
some candy??
(Consumer Marketing & Industrial Market)
Consumer Market
 Consumers
making
purchases for personal use.

Example: Buying a computer to do
your homework and/or pay bills
online
Industrial Market
 Businesses
that buy products
to use in their own business
 Also referred to as Businessto-Business (B2B)
What is market share?


The percentage of the total sales
revenue acquired by a business
within a market
For example: Running Shoes
Mass Marketing vs. Niche Marketing
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Mass marketing: A single marketing plan
used to reach all consumers
For example: Light Bulbs
Niche marketing: Narrowing markets, by
identifying very specific characteristics, into
a more specific group of people
For example: Aquatic Pet Stores
And market segmentation is…

A niche is created through market segmentation

Dividing the entire market into
smaller groups who share similar
characteristics.

Companies can customize products to reach
specific markets

For example: Coca-Cola offers Diet Coke,
Caffeine Free Coke, etc.
Demographic segmentation is…


Dividing the market based on
personal characteristics such as
age, gender, income, ethnic
background, education, and
occupation. Also life stage.
For example, Teen Vogue is
marketed to…
Geographic Segmentation


Dividing a market based on where a
person lives (local, regional, state,
national, or global markets).
For example, swimwear and body
boards sell best…
Psychographic Segmentation
Dividing the market based on values
(ethics, morals, standards), attitudes
(personality), and lifestyles (how
people spend their time)


For example: Schwinn Bicycle advertising in
Cyclist Magazine
Behavioral Segmentation

Dividing the market into groups
based on what they are looking for in
a product and why they buy the
product

For example: Crest - Pro-Health, Cavity
Protection, Tartar Protection, Sensitive Teeth,
Baking Soda, Kids, Whitening, and more!.
Activity - 1
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Think of a totally new product idea
Answer the following questions about the new product.
What is the name of your product (product)?
Who will be your customers for your new product (target
market)?
What are some personal characteristics of your
customers (demographic segmentation)?
Where do your customers live (geographic
segmentation)?
Activity – 1 cont.
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What are the personalities and lifestyles of your
customers (psychographic segmentation)?
What are your customers looking for specifically when
buying the product (behavioral segmentation)?
How much will you charge (price)?
How will you let your customers know about your product
(promotion)?
Where will your customers go to buy your product
(place)?
What is the potential for success or failure of the new
product (SWOT analysis, include strengths,
weaknesses, opportunities, and threats).