Marketing
1.04-B
Explain the concept of market and market
identification
What is a Market?
 A market are those who have:
 A need or desire, and
 The ability to pay, and
 The willingness to buy (soon)
Target Market
 A target market are those who:
 Are grouped within a market by what they have in
common
 Are the customers the business seeks to attract
 Ipad
Importance of Target Markets
 Every customer belongs to a number of markets
 Customers are targeted in the consumer market, and
businesses are targeted in the industrial market
 The same customer or business can be included in
more than one target market
 Markets usually change over time
Mass Marketing
 Mass marketing is designing products and
directing marketing activities to appeal to
the whole market (lightbulbs)
 Advantages: communicates a broad
message to as many customers as possible
 More cost-effective
 Businesses don’t have to pay for the
production of similar products
 Can price and distribute one type of product
more easily than many
 Can send one promotional message to
everyone
Mass Marketing
 Disadvantages:
 The diversity of the audience
 Only a small percentage of the mass market is likely to
purchase the product
Market Segments
 Dividing the market into smaller groups in
order to target each group individually
 Advantages: meets the needs of
customers, more precise than mass
marketing, more effective communication
 Provides an efficient way for smaller firms
to compete with larger businesses
Market Segments
 Advantages: meets the needs of customers, more
precise than mass marketing, more effective
communication
 Provides an efficient way for smaller firms to compete
with larger businesses
 Disadvantages: takes more resources to be
successful, more difficult to reproduce, requires more
creativity and money
Why are market segments
increasing?
 Segment marketing is more efficient in the long run




Customers today are more discerning about purchases
Not influenced by mass marketing alone
Meets customer’s needs
More opportunities for growth
Market Segmentation
 Market segmentation is the division of a total market
into smaller, more specific groups as a way to meet
the needs of customers




Demographic segmentation
Geographic segmentation
Psychographic segmentation
Behavioral segmentation
Demographic Segmentation
 Demographic segmentation is
dividing the market on the basis
of its physical and social
characteristics
 Gender: indicates purchase
preferences (female)
 Origin or heritage: race,
ethnicity, nationality (Caucasian)
 Religion (Christian)
 Social or economic status:
education level, occupation,
income (Middle-Class)
 Life stage: age, generation,
marital status, family life cycle,
family size. (Teens)
Geographic Segmentation
 Geographic Segmentation is the
division of a market on the basis of
where consumers are located.
 Determine customers’ purchase
preferences according to climate,
political boundaries, or population
density
 Marketers discover
 Where their markets are located
 Who their competitors are
 Which media will reach their
customers
Businesses can market to customers
based on location
Psychographic Segmentation
 Psychographic segmentation
is the division of a market on
the basis of consumers’
lifestyles personalities.
 Values, motives, attitudes,
opinions, interests, activities,
personalities, and lifestyles
 It gives a clearer picture of
customers’ needs and wants
based on personality and
lifestyle.
Behavioral Segmentation
 Behavioral segmentation is dividing a market on the
basis of consumers’ response to a product.
 Marketers look at the cause and effect nature of
customers’ purchase decisions
 Examine what customers respond to when they buy a
particular product
Behavioral Segmentation
 Customer questions in behavioral marketing:
 How will the product benefit me?
 Am I ready to buy it?
 When will I use the product/
 On what occasions?
 How often?
 Am I in a comfortable buying pattern?
 Do I feel loyal to a particular brand?