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Identifying Markets

Identifying Markets. Market Segmentation Pre Quiz A market segment is a group of individuals or organizations that share similar characteristics Customers

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Qualifying Market  Market segments must be qualified  Qualified markets have three characteristics: 1. Need or desire for the product 2. Ability to pay for the product 3. Authority to purchase *In some countries teens don’t have the ability or the authority

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Page 1: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Identifying Markets

Page 2: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Market Segmentation Pre Quiz

A market segment is a group of individuals or organizations that share similar characteristics Customers in the same segment will have the same response to

Product designPriceDistribution methodPromotional campaign

When you expand internationally your target markets tend to shift Jeeps are targeted to off-roaders in America but not in Europe

Page 3: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Qualifying Market

Market segments must be qualified

Qualified markets have three characteristics:1. Need or desire for the product2. Ability to pay for the product3. Authority to purchase*In some countries teens don’t have the ability or the authority

Page 4: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Qualifying Markets

Business markets are qualified the same way Need, Ability, & Authority

Industry includes businesses that produce similar products Same industry, same product needs

Page 5: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Segmentation Strategies

International Marketers follow three strategies:

Businesses look for profitable situations with low risk

Segmentation Strategy

What Occurs Why Implement?

Undifferentiated Segmentation Strategy(Mass Marketing)

All customers are viewed the same Market is too small to target, brand is dominant, or a small group uses the majority of the product

Concentrated Segmentation Strategy

Business focuses on one clearly defined market

Little competition in the marketplace

Differentiated Segmentation Strategy

Company targets two or more segments with unique strategies

Large or growing markets

Page 6: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Market Segmentation Variables

Consumer Market Variables

Factors

Demographics Age, race, income, education, genderCultural (Psychographics) Lifestyles, values, attitudes, etc…Geographics Climate, Economic Development, Product Usage (Behaviorial) How frequently a product is used, benefits of

product

Marketers pay close attention to trends when making decisions

Ads typically reflect the ideal lifestyle, not current ones

Page 7: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Industrial Markets

Segmentation Factor Examples

Type of organization Business size, ownership, geographic location, & the amount of product being used.

Industry being served Product categories and product benefitsIf selling to high schools, the needs are similar regardless of location

Purchasing situation Stage of the buying process & factors that affect the buying process such as culture. Example: First time customer versus Regular customer

Trading Blocs Look at industrial markets by country groups • Target countries in CAFTA, NAFTA, & EU

Page 8: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Domestic International Markets

United States can target international markets within America Asian-American Hispanic-Americans

Geographical Ties Polish population in Chicago Arab population in Dearborn, MI

Page 9: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Assignments

P. 109 Look at the characteristics that make up the Asian-American &

Hispanic-American population in the United States. Draw a picture of each group that illustrates at least 4 traits of that

population group. Label each picture based on the population you are identifying Include at least one image that reflects a geographical area that cater to

each group Example: Hispanics are popular in the southwest, Illinois, & New York.

Page 10: Identifying Markets. Market Segmentation Pre Quiz  A market segment is a group of individuals or organizations that share similar characteristics  Customers

Cuba & The United States

President Barack Obama will ease sanctions imposed against Cuba under the U.S. embargo

Video looks at life in Cuba from a baseball players perspective

https://www.youtube.com/watch?v=dHBws98Iv-I