warm-up define target market is it possible to target everyone?

Warm-upDefine Target Market

Is it possible to target everyone?

Paper SummaryNeeded to be turned in by 2:45 pm

Late if sent after

Electronic versions were emailed back. Comments at end of sections or paperComments embedded within paper

A few things I noticed….Watch multiple writer syndromeUse transitions when combing facts (if needed)All information provided should be geared towards

companyUnderstand target markets

Final Drafts due by 2:45 Friday (Formal Assessment)

Paper Summary

Each section worth 25 pts

(20% of Paper)

Strategic Marketing

Objective 1.01

Basic Marketing Terms

There are nine basic marketing terms that should be introduced before moving on to further understanding of marketing concepts. These terms are:-Marketing -Consumer -Needs -Customer-Wants -Goods-Market -Services-Target market

Basic Marketing Terms, cont..

Marketing: The process of developing, promoting,

pricing, selling, and distributing products to satisfy customer’s wants and needs.

Marketing involves all the activities necessary to get a product from the manufacturer to the consumer.

The goal of marketing is to attract new customers and create a lasting relationship through customer satisfaction.

Basic Marketing Terms, cont..

Marketing Concept: Satisfy customers wants and needs while generating a profit

Needs: A necessity for living.

Wants: Products that are not necessities, but are simply desired by the consumer.

Basic Marketing Terms Goods: Tangible items that satisfy customer’s

needs and wants. Durable – e.g., DVD player (last a long time)

Nondurable – e.g., gasoline (typically consumed within a short period)

Services: Intangible items that satisfy customer’s needs and wants.

Example(s): Delivery Service, Haircut, Salon, Oil Change, etc…

Consumer v. Customer

A product may have more than one target market.Example: Low Sugar Fruity Pebbles

Identify the consumer: ChildrenIdentify the customer: Parents*Most five year olds do not purchase their Fruity Pebbles

Same Product--- Different Approach

To target parents you would use commercials that advertise how healthy they are and air them on a Saturday night.

To target children you would use commercials that focus on how fun the cereal is, the bright colors, the cool characters and air this commercial on Saturday mornings.

Basics of MarketingMarketers realize that not every product can

appeal to everyone.

Marketers examine two key factors to define their market:Who is interested in a product?Who can afford their product?

A market is made up of all people who share similar needs and wants and who have the ability to purchase your product.MUST MEET BOTH CRITERIA TO BE INCLUDED

Examples of a MarketLuxury Suites at Yankees Stadium

Prices range from $600,000 and $850,000Rich, Men, Sports Fans

Malt-O-Meal Frosted Flakes$1.41/box at DollarDays International

Lower Income, Kids/Single Parents

Hollister Co. Santa Monica Jacket$140 jacket

Teenage Girls, Colder climate areas, Medium-High Income Families

Target Market & Market SegmentationMarket Segmentation is the process of

classifying customers by needs and wants.Goal is to identify the group of people who are

most likely to become customers.This specific group is known as a Target

Market#1 Buying Group

All marketing strategies are directed towards the target market.Provides the focus of your marketing campaign. Marketer’s must develop a clear target market before

developing a marketing strategy.

Market Segmentation Facts

Why do marketer’s use market segmentation?Very costly to target all groups

Must find the group of consumers who you have a clear competitive advantage

Use research to determine if the costs of development are effective

Specific information allows you to know your customers:Buying Behavior, Values, Fashion Interests, etc…

Target MarketTo develop a clear picture of their target

market, businesses create customer profile lists of information about the target market.AgeIncome LevelEthnic BackgroundOccupationAttitudesLifestyleGeographic Residence

Understanding these characteristics allows you to make better choices

Market Segmentation = Jeans

Most people in America wear JeansNot everyone wears the same type of jeans

Market Segmentation: Price

Market Segmentation

There are four key factors that marketers use to determine how to segment a market:

1. Demographics

2. Geographic Variables

3. Psychographic Variables

4. Buying Behavior

Demographics

Demographics: Refers to statistics that describe a population in terms of personal characteristics.Age (Baby Boom, Generation X, Generation Y,

Generation Z)Gender (Male v. Female)OccupationEducationIncome

Disposable: Money left after taxesDiscretionary: Money left after taxes & basic needs have been

paidMarital Status Ethnic Background

PsychographicsPsychographics

involves grouping people with similar lifestyles, as well as shared attitudes, values, & opinions. Examples:

Latest Diet TrendsEnvironmental

Concerns

Geographics

Geographics: Refers to segmenting customers based on where they live. Segment a market geographically can be done:

Locally, Regionally, Nationally, or Globally

Hispanic cultures are prevalent in L.A., Miami, New York, Texas, Arizona, etc..

African American cultures are prominent in the south

States with high teen percentages: Alaska, Utah, Arizona, Texas, California, & Idaho

Market SegmentationBehavioral Buyers:

Accounting for the type of shopping they prefer.

Online, In-Store, Catalog

Safety Issues concerning identity

Usually three factorsPrice ConsciousBrand DrivenQuality & Reliability

The Marketing Mix

The marketing mix is a combination of decisions a business makes in order to best reach its target market. The marketing mix is also referred to as the “four Ps”:

Product - Include both goods and services. Price – The amount a business charges for a

product.Place – Having the product available at the right

time at the location. Also known as distribution or logistics.

Promotion – Informing and reminding customers of products available to them and persuading them to purchase. Promotion consists of advertising, public relations, sales promotion, and personal selling.

Selling

Feature v. Benefit

Feature-Benefit SellingMatch the characteristics of a product with the customer’s needs and wants

Customers don’t buy products – they buy what products can do for them.

Product FeaturesMay be basic, physical, or extended

attributes

The most basic feature is the product’s intended use

Additional features add more value to the product

Examples of Features2-Door ModelBetter gas mileageLeather seatsAutomatic

transmissionPower steeringSatellite radioAntilock brakes

Obvious FeatureThis car is a bright shade of red

Customer BenefitsThe advantages or personal satisfaction a

customer will get from a good or service

Benefits become selling points

How does the feature help the product’s performance?

How does the performance information give the customer a personal reason to buy?

Obvious Benefit

This bright red car will attract the

guys/girls

Feature Benefit Chart