Identifying Markets
Market Segmentation Pre Quiz

A market segment is a group of individuals or organizations that share similar
characteristics
 Customers in the same segment will have the same response to
 Product design
 Price
 Distribution method
 Promotional campaign

When you expand internationally your target markets tend to shift
 Jeeps
are targeted to off-roaders in America but not in Europe
Qualifying Market

Market segments must be qualified

Qualified markets have three characteristics:
1.
Need or desire for the product
2.
Ability to pay for the product
3.
Authority to purchase
*In some countries teens don’t have the ability or the authority
Qualifying Markets

Business markets are qualified the same way


Need, Ability, & Authority
Industry includes businesses that produce similar products

Same industry, same product needs
Segmentation Strategies

International Marketers follow three strategies:
Segmentation Strategy
What Occurs
Why Implement?
Undifferentiated
Segmentation Strategy
(Mass Marketing)
All customers are viewed the same
Market is too small to target,
brand is dominant, or a small group
uses the majority of the product
Concentrated
Segmentation Strategy
Business focuses on one clearly
defined market
Little competition in the
marketplace
Differentiated
Segmentation Strategy
Company targets two or more
segments with unique strategies
Large or growing markets

Businesses look for profitable situations with low risk
Market Segmentation Variables
Consumer Market Variables
Factors
Demographics
Age, race, income, education, gender
Cultural (Psychographics)
Lifestyles, values, attitudes, etc…
Geographics
Climate, Economic Development,
Product Usage (Behaviorial)
How frequently a product is used, benefits of
product
Marketers pay close attention to trends when making decisions
Ads typically reflect the ideal lifestyle, not current ones
Industrial Markets
Segmentation Factor
Examples
Type of organization
Business size, ownership, geographic location, & the amount of
product being used.
Industry being served
Product categories and product benefits
If selling to high schools, the needs are similar regardless of
location
Purchasing situation
Stage of the buying process & factors that affect the buying
process such as culture.
Example: First time customer versus Regular customer
Trading Blocs
Look at industrial markets by country groups
• Target countries in CAFTA, NAFTA, & EU
Domestic International Markets


United States can target international markets within America

Asian-American

Hispanic-Americans
Geographical Ties

Polish population in Chicago

Arab population in Dearborn, MI
Assignments

P. 109

Look at the characteristics that make up the Asian-American & HispanicAmerican population in the United States.

Draw a picture of each group that illustrates at least 4 traits of that
population group.

Label each picture based on the population you are identifying

Include at least one image that reflects a geographical area that cater to each
group

Example: Hispanics are popular in the southwest, Illinois, & New York.
Cuba & The United States

President Barack Obama will ease sanctions imposed against Cuba under
the U.S. embargo

Video looks at life in Cuba from a baseball players perspective

https://www.youtube.com/watch?v=dHBws98Iv-I