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Market Segmentation

Market Segmentation. Marketing I Mr. Yates. What’s a Market Again?. Market – All the people who have similar needs and wants, and who have the ability to purchase a given product. Market Segmentation.

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Market Segmentation

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  1. Market Segmentation Marketing I Mr. Yates

  2. What’s a Market Again? • Market – • All the people who have similar needs and wants, and who have the ability to purchase a given product

  3. Market Segmentation • Market Segmentation – the division of a market into smaller, relatively homogenous (similar) groups • How do you do it?

  4. 4 Criterias for Segmentation • 1. The segment is homogenous within – customers within the segment should be as similar as possible in regard to how they would respond to a marketing mix

  5. 4 Criterias for Segmentation • 2. The segment is heterogeneous (different) between – the customer should be as different as possible in regard to how they would respond to a marketing mix

  6. Criteria for Segmentation • 3. Substantial – the segment should be large enough to be profitable

  7. Criteria for Segmentation 4. Operational – the segmenting dimensions (gender, income, age, etc.) should be useful for identifying customers and deciding on the proper marketing mix

  8. Segmenting David Douglas • What segments do we have here? • Age • Gender • Grades • Sports • Clubs • Languages • Ethnicity • Culture

  9. Target Market • The particular segment of a total population on which the retailer focuses its merchandising expertise to satisfy the submarket in order to accomplish its profit objectives • Or…who’smoney they’re trying to get

  10. 3 Approaches to Targeting Markets • 1. Single Target Market Approach – segmenting the market and going after on particular segment with a tailored marketing mix

  11. 3 Approaches to Targeting Markets • 2. Multiple Target Market Approach – segmenting the market and choosing 2 or more segments, using different methods of the marketing mix for each

  12. 3 Approaches to Targeting Markets • 3. Combined Target Market Approach – combining 2 or more segments, into 1 larger segment and use 1 marketing mix for them

  13. Cell Phone Segmenting Matrix

  14. Pick a Target Market • Men 19-29 • What do we know (or can generalize) about them? • More money to spend on gadgets (lack of family) • Tech-savvy • Use a lot of minutes and want extra features (internet, Wi-Fi, texting, navigation, music downloads) • It all means extra income for the carrier every month

  15. Your assignment…A Segmentation Matrix • In groups of 2 or 3 • Choose a product or service • Select 2 demographics (age, gender, lifestyle, income) to segment the market • Identify examples of products that would fit into each box • Similar to the cell phone example…

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