Identifying Markets

Identifying Markets
Market Segmentation Pre Quiz
A market segment is a group of individuals or organizations that share similar
 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:
Need or desire for the product
Ability to pay for the product
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?
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
Segmentation Strategy
Business focuses on one clearly
defined market
Little competition in the
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
Age, race, income, education, gender
Cultural (Psychographics)
Lifestyles, values, attitudes, etc…
Climate, Economic Development,
Product Usage (Behaviorial)
How frequently a product is used, benefits of
Marketers pay close attention to trends when making decisions
Ads typically reflect the ideal lifestyle, not current ones
Industrial Markets
Segmentation Factor
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
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
Geographical Ties
Polish population in Chicago
Arab population in Dearborn, MI
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
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