WHO IS OUR TARGET MARKET?

Write a brief description of our

SBE’s target market.
THE MARKETING MIX

•TARGET
•MARKET
•PRODUCT
•PLACE
•PROMOTION
•PRICE
 MARKET
People who have similar needs and wants and
are capable of buying products
o A key part of this definition is the fact that the
potential customer has the purchasing power to buy
the product offered.
 TARGET MARKET
The group of customers most likely to purchase your
product. It is the group of people toward whom a
business directs it’s promotional efforts.
o Successful businesses look for ways to connect with their
customers; understanding the customer or potential
customer is the key to gaining their trust and their
patronage
 MARKET SEGMENTATION
The process of defining and subdividing a large
market into identifiable segments having similar
needs, wants, or demands.
o All businesses need to define their target market as
specifically as possible and avoid generalizations or
broad definitions.
 IDENTIFYING THE TARGET MARKET
When identifying the target market, consider the
following questions :
• Is your market male or female?
• What age?
• Where do they live?
• What do they do for a living?
• How much money do they make?
• What lifestyles and attitudes do they have?
 TARGET MARKET RESEARCH CLUSTERS
• Demographics: personal characteristics that make up a target market.
o This includes: age, gender, income, marital status, and ethnic background.

• Psychographics: social lifestyles (such as student, parent, athlete,

etc.), attitudes, values, and opinions

• Geographics: segmenting the market based on where people live.

o This can be local, regional, national, and even global descriptions.

• Behavioral: segmenting the market based on product- related

behavior that involves the benefits sought by customers or shopping
paterns.
 ACTIVITY
Using the concepts described in segmenting a
market, write a detailed description of the target
market for the automated retail kiosk.
Target Markets

Targeting:
Selecting which segments in a
market
are appropriate to focus on and
designing the means of reaching
them.
 Product Differentiation
• Product
Differentiation:
– Exists when a firm’s
offerings differ or are
perceived to differ from
those of competing
firms on any attribute,
including price.
 From Mass Marketing to Mass
Customization
• Mass Customization:
– Complex manufactured
products made to order.
 Criteria for Effective
Segmentation
Five Criteria:
1. Measurability
2. Accessibility
3. Substantialness
4. Durability
5. Differential Responsiveness
Combining Bases of Market
Segmentation
Segmentation Strategies

Undifferentiated Strategy

Differentiated Strategy

Concentrated Strategy
 Countersegmentation
Strategy
• Countersegmentation:
– An alternative strategy to traditional segmentation
approaches.
• Combines market segments
• Consumers accept lower price over
variety
 QUIZ
TARGET MARKET