Life stage. Though social/economic status, origin/heritage, and personal belief all affect customer purchases, it is life stage (where the customer is in his or her life) that determines how s/he fits into the day-to-day buying routine.
Have need and resources. When customers buy a product, they must first have the need or desire, the resources, and the willingness to buy the product. Locating the product in a store, learning about its features— and even making sure that it is on sale—can produce a pleasant purchase experience, but they are not requirements for buying a product
Activities. Preparation for determining target markets is carried out through target-market activities. Advertising is another facet of marketing. Adjustments are changes that can be made to an item or process. And, accounting is an essential function of internal business operations
Market segmentation. Rather than trying to direct marketing activities toward the whole market, marketers plan their activities for specific, well-defined groups of consumers. They tailor their product, price, place, and promotion activities to the segments with which they wish to work. With mass marketing, sellers design products that will appeal to most buyers and direct marketing activities to the whole market. Industrial marketing is marketing to customers who purchase items for use in the operation of a business, for resale, or for making other goods. Market domination targets the entire market instead of a segment
Segment. When the total market is divided, one of its groups is called a market segment. Other words for segment might be share, slice, or subdivision. (Market share has a different meaning, altogether.)
Demographic. Demographic segmentation is the division of a market on the basis of its social and physical characteristics. These include such characteristics as income, age, gender, education level, life stage, and occupation. Geographic segmentation groups consumers according to where they are located. Lifestyles and personalities of consumers are used as the basis for psychographic segmentation. Dividing consumers into groups according to their response to a product is behavioral segmentation
Group of customers the business seeks to attract. Though a target market may seem to be a sample of the market, it is actually the particular group of customers the business seeks to attract. Knowing the market’s direction is helpful to any marketer. And, a discussion of the way a business draws its customers falls under marketing promotion
Specific. Market segmentation is about dividing the marketing into specific groups. Though the customers in the specific groups will have similarities, they will not be identical. There may even be a measure of diversity within the groups. But the goal of market segmentation is to narrow the general market to its specific sub-groups.
Cause. When customers respond by making a purchase, marketers want to pinpoint the cause. The effect is the customers’ response. The product is, of course, part of the purchase process. And, promotion may be part of the purchase process. But neither indicates the cause which produces the customers’ purchase response.
Market. A market is a customer or potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Liza is a market because she not only wants a horse but also has the money to buy one. A resource is an item that is used to produce goods and services. A target group is a particular segment of the market. A market segment is one of the groups into which the total market is divided
Change. Though markets may appear to fail, advance, or lead other markets—it is change that prompts marketers to check on their markets periodically
Lifestyle habits. When marketers sort customers psychographically, they divide them by lifestyle habits. Likeable traits are the positive aspects of their personalities—thus, a portion of another psychographic segmentation element. Level of education is a characteristic of demographic segmentation.
Target. The identification and selection of markets for a business or for a product is known as target marketing. In order for businesses to satisfy their customers, they need to determine who the market is for their products. Businesses use target marketing in order to plan effective marketing activities that will reduce marketing risk. Mass marketing is designing products and directing marketing activities in order to appeal to the whole market. An industrial market is composed of businesses that purchase items for use in the operation of the business,
for resale, or for making other goods
How will the product benefit me? In behavioral segmentation, marketers note that customers ask the question, “How will the product benefit me?” Part of behavioral segmentation is looking at the process customers go through as they make a purchase—so that responses to stimuli can be evaluated. The other questions (factual, not customer-oriented) may be involved in the customers’ buying process, but they are not
Discerning. Today’s customers may be more determined, decisive, or disciplined—but it is their increased discernment that is related to the fact that they are not influenced by mass marketing alone
Target market. Marketers know that the same person can easily fit into more than one target market. However, the same person would have a difficult time being included in more than one religion, income level, or generation
Segment. Mass marketing is not as precise as segment marketing. Event marketing and promotional marketing may involve segments or mass audiences. Direct marketing typically involves segments. But segment marketing is more precise than marketing to the masses
Mass marketing. The goal of mass marketing is to appeal to many types of consumers through one marketing plan. Mass production is the production of a few items in large quantities. Market segmentation is the division of a total market into smaller, more specific groups. Demographic segmentation is the division of a market on the basis of its physical and social characteristics
Married adults. The married-adult market is an example of a market divided by life stage. The life-stage market reflects classification by where people are in life. The college-educated market reflects classification by education level, and the middle-aged market reflects classification by age. And, the high-income-level market reflects classification by income. Age, education level, and income level are considered to be demographic data
Improved marketing research. Improved marketing research has allowed companies to determine better what the specific needs of their markets are. Mass-marketing techniques do not target a specific need. Increased production capabilities and lower promotion costs are aspects of mass marketing
Entire market. Mass marketing involves the entire market—not local, loyal, or teen customers, in particular.
Demographic. Sorting customers by their physical and social characteristics is called demographic segmentation.Psychographic and behavioral segmentation are about sorting customers by their lifestyles and responses. Statistical segmentation is not a marketing term
Categories. Marketers look at markets in order to divide them into groups or categories according to what customers have in common. Merchants, market leaders, and records have little to do with finding categories