ADMN 2100H Lecture Notes - Lecture 4: Product Design, Micromarketing, Social Class
20 Jun 2018
School
Department
Course
Professor
ADMN2100H: Introduction to Marketing
February 1st, 2018
Lecture 4
Definition of a Market *
The set of all actual and potential buyers of a product or service
1. Group of people or organizations that have…
2. Common needs or wants, have the…
3. Ability and…
4. Willingness to buy
As a business person, you have to be able to define these criteria to your consumers
oCommon needs, and have to be willing to pay for it
Segmenting a Market
Why is it important?
Criteria for successful segmentation
Segmenting consumer markets
Segmenting business markets
Types of segmentation
One to one marketing / direct marketing
Trying to Make Everyone Happy Usually Results in Making Everyone Unhappy
Divide potential customers into groups
Focus on their unique needs so we are more likely to satisfy those needs
Allocate resources more accurately
Market Segmentation
Market People or organizations with needs or wants and the
ability and willingness to buy
Market Segment A subgroup of people or organizations sharing one or
more characteristics that cause them to have similar
product needs
-People who hav e special need s
-People who have families
-People who love fast cars
Market Seg m en t a tion The proce ss of dividing a mark et into me aningful,
relatively similar, identifiable seg m e n t s or group s
-*Proc e s s of de fi ni n g / i d e n t if y i n g mark e t
s e g m e n t s *
Market
People who play socc er
oRecre a tion al
oCompe titive
oOrganiz ed
oNon- org anize d
oGirls
oBoys
oYouth
oadult
find more resources at oneclass.com
find more resources at oneclass.com
Market seg m e n t a ti on more precis e definition of custo m e r s' nee ds and wants mor e acc
objectives improv ed resourc e allocation bette r marke tin g results
Why is Seg me n t a tio n Importa n t?
Helps to bett er define custo m e r/ con s u m e r need s
Helps decision mak ers and mark ets to bett er allocat e resourc e s
No Market Segm e n t a tio n
Everyo ne has the sam e nee d s and wants
Full Seg m e n t a tion
Everyo ne is a seg m e n t , not the sam e nee d s or income
Gend er Segm e n t a tio n
Wome n, men, share certain chara ct eris tics (natur al)
Age Seg me n t a tio n
natur al, tea m s, old people vs. youn g people
Age and Gend er Segm e n t a tio n
may want boys who are youn g and play soccer, if you don't have the right product s you m
the right produc ts
** alloca te resourc e s bett er **
Criteria for Effective Seg m e n t a ti on
viable marke t seg m e n t has 5
Measur e a bl e Size, purch a sing pow er
-have to have an accura t e me as u r e
of the size
-make differe nt decisions bas ed on
the size, wheth er it be 100 or 1,000
-may not be econo mically practical
Accessible Memb er s of targ e tin g seg m e n t s must be
reach a bl e with mark etin g mix
-com mo n sens e , everyo n e may not
be acce ssible
-people within a seg m e n t will
respo nd to mark e tin g stimuli in a
similar way
Subst an tial Big enoug h or profitable eno ugh
Differen ti abl e Must be able to disting uish betwe e n
seg m e n t s and they respo nd differen tly
Action able You can actu ally design an effective
mark etin g progra m for the seg m e n t
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The set of all actual and potential buyers of a product or service: group of people or organizations that have , common needs or wants, have the , ability and , willingness to buy. As a business person, you have to be able to define these criteria to your consumers: common needs, and have to be willing to pay for it. One to one marketing / direct marketing. Trying to make everyone happy usually results in making everyone unhappy. Focus on their unique needs so we are more likely to satisfy those needs. Market seg m e n t a t i o n. People who play socc er: recre a tio n al, comp e titiv e, orga niz e d, non- org a niz e d, girls, boys, youth, adult. People or organizations with needs or wants and the ability and willingness to buy.
