The document discusses marketing strategies and target markets. It explains that the marketing mix includes the 4 P's - product, price, place, promotion. Market segmentation involves dividing a larger market into smaller subgroups that share characteristics. There are four main types of market segmentation: demographic, psychographic, geographic, and behavioral. Understanding segmentation allows businesses to better target their marketing to specific customer groups.

1. Indicator 1.04 – Employ marketing
information to develop a marketing plan
Marketing
Part II

2. THE MARKETING MIX REVIEW
 Includes four basic
 P?
strategies called the 4
P’s or elements of  P?
marketing. For each
strategy, decisions  P?
have to be made for
each product the  P?
business offers to
best reach their target
market.

3. WHY ARE MARKETING
STRATEGIES IMPORTANT IN THE
MARKETING MIX?
 Marketing plan is created with marketing
strategies for the marketing mix. Marketing
strategies are important because they are the
framework of conducting business. They
guide the allocation of a business’s resources.
It unites the marketing activities throughout
the business and everyone is on the same
page. Eliminates chaos and confusion.

4. 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)

5. MASS MARKETING
 Mass Market is when the group is considered as
a whole with all the marketing activities; using a
single marketing plan.
 Ex. Chewing gum & light bulbs

6. MASS MARKETING
 Advantages  Disadvantages:
 Don’t have to pay for  Diversity of the
the production of similar audience
products  Unable to track return,
 Can price and distribute low response rates
one type of product  Nonpersonal
more easily than many  Beliefs that everyone is
 Can send one the same
promotional message to  Low profit margins
everyone
 High competition
 Easier to manage, cost
effective
 Predictable response
rates
 Easy to set up.

7. WHAT IS A TARGET MARKET?
 Identified segments of
the market that a
business wants to have
as their customers.
 For example,
teenagers, mothers-to-
be, single mothers,
American Family, men
.vs. women, or college
freshman. Each
example has wants and
needs that can be
targeted and utilized to
develop effective
strategies to reach

8. 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

9. IMPORTANCE OF TARGET
MARKETS
 A target market
represents the people
most likely to buy
what you sell. These
people have
something in common
that solidifies their
desire for your
product or service.
And that something
distinguishes them
from the market at
large.

10. 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

11. SEGMENTATION
 Market Segmentation  Market segment is a
is the process of subgroup of a larger
dividing a larger market that share one
market into smaller or more
parts. characteristics.

12. MARKET SEGMENTATION
 Advantages:  Disadvantages:
 Providing the  More expensive,
products customers more difficult to
want produce
 Effective  Expensive to set up
communication  Requires more
 Higher response rate, marketing research
 Repeat and loyal
customers
 Personal

13. WHY IS MARKET SEGMENTATION
BEING USED MORE?
 Better matching of customer’s needs
 Better profits & opportunities for growth
 Repeat customers
 Target market communication
 More businesses operating globally creates more
competition & greater market share via market
segments
 It is more efficient in the long run.

14. 4 TYPES OF MARKET
SEGMENTATION
Demographic
Psychographic
Geographic
Behavioral

15. DEMOGRAPHIC
SEGMENTATION
 Statistics that
describe a population
by personal
characteristics such
as age, gender,
income, marital
status, ethnicity,
education, &
occupation.

16. DEMOGRAPHIC Example:
 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)

17. PSYCHOGRAPHIC
SEGMENTATION
 Defined: Markets  Characteristics reflect
divided by social and consumer buying
psychological behaviors. The
characteristics. characteristics are
(Lifestyles, morals, valu Interests, Habits, Activiti
es, & interests) es, Lifestyles, Opinions,
& Hobbies. These
reflect who your
customers are.
Businesses that use
Marketing principles to
guide their decision
making must evaluate
and reevaluate their
customer’s wants and
needs continuously to

18. PSYCHOGRAPHIC Example:
 It gives a clearer picture of customers’ needs and
wants based on personality and lifestyle.
 Snowboarder: LOVES cold and outdoors, free-
spirited, not into authority, fun-loving, has lots of
friends

19. GEOGRAPHIC SEGMENTATION
 Markets divided by  It is valuable
where the customer information because
lives. businesses can tailor
their product mix
based on location.
Characteristics are
nations, states, region
s, counties, cities, or
neighborhoods.

20. GEOGRAPHIC Example:
 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

21. BEHAVORIAL SEGMENTATION
 Segmenting a market  Types of behavioral
base on the way segmentation:
customers use a  Product Benefits
product or behave
 Usage
toward a product.
(How a consumer  Loyalty
responsdsto a  Occasions
product.)

22. BEHAVORIAL Example:
 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?

23. ACTIVITY
 Choose a partner!
 Cut out ads from magazines for 3 products of
your choice.
 Create a small poster with the products listing the
target market the product and ad are designed to
attract.
 For EACH product – you need to identify the following
market segmentation for that product:
 Demographics
 Geographics
 Psychographics
 Behavioral
 You may use the internet to research product