target market - term 2 Flashcards
what is masslo
A mass marketing approach seeks a large range of customers.
The business develops a single marketing mix and directs it at the entire market for the product.
Seller mass-produces, mass-distributes, and mass-promotes one product to all buyers
Few products today are marketed to the mass market.
what is market segmentation (segment)
occurs when the total market is divided into groups of people who share one or more characteristics based on four elements or dimensions
- demographic (characteristics)
- geographic (where people live)
- psychographic (personality characteristics)
- behavioral (loyalty to a product)
what is a demographic
Demographic segmentation is the process of dividing the total market according to particular features of a population
It is easy to measure demographics, therefore it is commonly used among marketers
Examples: age, occupation, education, income, religion, ethnicity, gender
geographic segmentation (geographic)
Geographic segmentation is the process of dividing the total market according to geographic locations.
Businesses may divide the consumer market into regions because consumers in different geographical locations have different needs, tastes and preferences
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Examples: urban, suburban, rural, climate, city size
psychographic
Psychographic segmentation is the process of dividing the total market according to personality characteristics, motives, opinions, socioeconomic groups and lifestyles.
This segmentation focuses on why people behave the way they do
This method of segmentation is difficult to measure
Examples: lifestyle, personality, interests, motives, socioeconomic
behavioral
Behavioural Segmentation is the process of dividing the total market according to the customers’ relationship to the product
By understanding what customers want from the product, marketers can design their product to satisfy the needs of their target market
Examples: purchase occasion, use rate, price sensitivity
what are the benefits of segmentation (segment)
This approach allows the business to better satisfy the wants and needs of a targeted group because the business can:
use its marketing resources more efficiently
better understand theconsumer buying behaviorof the target market
collect data more effectively and make comparisons within the target market over time
refine marketing strategies used to influence consumer choice.
what is niche
Theniche market is an extension of the market segmentation approach, that is a narrowly selected target market segment
In a sense, it is a segment within a segment, or a ‘micro market’
what is a primary target market
The primary target market is the market segment at which most of the marketing resources are directed
what is a secondary target market
A secondary target market is usually a smaller and less important market segment
