WF SEM I Summarize ways to reach markets

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WF SEM ISummarize ways to reach markets
Market Segmentation
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What is a market?

• The group of all potential customers who have
  similar needs and wants and have the ability and
  willingness to buy the product
• Consumer Market
• Industrial Market

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What is market share?

• The percentage of the total sales revenue
  acquired by a business within a market
• For example Running Shoes
• Total sales by company
• Nike 3.6 million 28.4
• Reebok 2.7 million 21.1
• Adidas 2.1 million 16.4
• Fila 1.7 million 12.9
• Converse 1.5 million 11.9
• Others 1.2 million 9.5
• Total 12.8 million 100

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Mass Marketing vs. Niche/Target Marketing

• Mass marketing A single marketing plan used to
  reach all consumers
• For example Light Bulbs/Cleaning products
• What makes Mass Marketing a viable solution to
  our Marketing needs?
• Few features, universal usage, all choices
  similar
• Niche or Target marketing Narrowing markets, by
  identifying very specific characteristics, into a
  more specific group of people
• For example Aquatic Pet Stores

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WHY Target Marketing?

• Product
• Price 2.95 7.99 4.00
• Promotion
• Place

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Target Marketing Illustration
Demographics
Psychographics
Geographics
Behavioral
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And market segmentation is

• Dividing the entire market into smaller groups
  who share similar characteristics.
• For example Mini Van

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Market and Market Segmentation
Market for Minivans!!!!!
Question 4If you did market to all the
segments, what would that be an example of?
CAMPERS
Carpoolers
Question 1 What market is this illustrating?
Traveling salespeople
Small-item delivery business
Question 2Can you name one segment?
Question 5 What types of things should we now
consider when deciding which segments to target?
Young families with children
Question 3Would you market to all of the
segments and why?
LARGE FAMILIES
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Demographic segmentation is

• Dividing the market based on personal
  characteristics such as age, gender, income
  level, ethnic background (race), education, and
  occupation
• For example, Teen Vogue is marketed to

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Demographic Characteristics of Education and
Income Example
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Geographic Segmentation is

• Dividing a market based on where a person lives
  (local, regional, state, national, or global
  markets).
• Based on climate/terrain and population density
• For example, swimwear and body boards sell best?
• Snow skis
• Snow blowers

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Psychographic Segmentation is

• Dividing the market based on values (ethics,
  morals, standards), attitudes (personality), and
  lifestyles (how people spend their time)
• For example Schwinn Bicycle

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Behavioral Segmentation is

• Dividing the market into groups based on what
  they are looking for in a product and why they
  buy the product, ie. Rate of use, specific
  benefit, loyalty response, occasion response
• For example Wedding Dress

Pepsi vs. Coke