Market & Market ID

All people who share similar needs and
wants and who have the ability to
purchase a given product are a
MARKET.
 You can be part of the market for video
games, but not be a part of the market for an
expensive car. Even though you may want
it, you may not have the means to buy one.
Consumer Market

The consumer market consists of consumers
who purchase goods and services for personal
use.

Needs and wants reflect their lifestyles

Consumers are interested in products that will:





Save them money
Make their lives easier
Improve their appearance
Create status
Provide satisfaction
Organizational Market

AKA Business to Business market

Includes all businesses that buy products for
use in their operations

Goals and objectives of business firms are
different than the consumer market.





Improving profits
Improving productivity
Increase sales
Decrease expenses
Increase efficiency
Market Share

A company’s MARKET SHARE is its
percentage of the total sales volume
generated by all companies that
compete in a given market.

Knowing market share helps companies
analyze their competition as well as their
status in a given market.
Market Share

A company with a large market share
can afford to take risks that other
companies cannot.
Market Segmentation

Businesses look for ways to sell their
products to different consumers who
may be potential customers.

This involves SEGMENTING, or
breaking down, the market into smaller
groups with similar characteristics.
Market Segmentation
The process of dividing a
total market into groups
with relatively similar
product needs to design a
marketing mix that
matches those needs.
 Market Segment
Gender-Based Segmentation (Page 274)
TARGET MARKET SELECTION
PROCESS

The goal of market segmentation is to
identify the group of people most likely
to become customers.

The group that is identified for a specific
marketing program is the TARGET
MARKET.
Undifferentiated
Targeting Strategy
Figure 10.2
 Homogeneous Market
Undifferentiated
strategy satisfies
most customers with
a single marketing
mix
Courtesy of The Beef Checkoff Program
Concentrated Targeting Strategy Through
Market Segmentation
Figure 10.2
 Heterogeneous Market
Differentiated Targeting Strategy Through
Market Segmentation
FOUR SEGMENTATION VARIABLES:
Figure 10.3
Demographic Variables
 Age
 Occupation
 Gender
 Family
 Race
 Ethnicity
 Income
 Education
size
 Family life cycle
 Religion
 Social class
Gender is a common target in marketing
to a demographic
Reprinted with permission of The Dial Corporation.
Family Life Cycle Stages
Source: Jason Fields, “America’s Families and Living Arrangements:
2003,” Current Population Reports, U.S. Census Bureau, 2003.
Geographic Variables

Climate

Terrain

City size

Population density

Urban/rural areas
Micromarketing
An approach to market
segmentation in which
organizations focus
precise marketing efforts
on very small geographic
markets.
Psychographic Variables

Personality characteristics

Motives

Lifestyles

Cultures and subcultures
More on Psychographic
Variables:
*How people live or want to live –
health, youth, controlling your life,
alternative thinking and/ behavior.
*Assess AIO dimensions: activities,
interests, and opinions.
VALS Types
(values, attitudes, and lifestyles)
Toothpaste Product Positions
“Don’t put a cold back
in your pocket.”
Pocket-sized Kleenex
Jumbo, Man-sized Kleenex
Kleenex® facial tissue
Kimberly-Clark sought to give the public
as many reasons to buy their product as
possible….in 1927, K-C proposed a new
use for Kleenex®: ‘absorbent kerchiefs.’
Consumers discovered new benefits:
…..and even benefits.
PRODUCT POSITIONING AND
REPOSITIONING
 Product
positioning
 creating and maintaining a certain concept of a
product in customers minds.
 Perceptual
 Bases
Mapping
for Positioning
 Repositioning
Perceptual Map
For Pain Relievers
Figure 10.8