Term 1: Week 11

Kia Ora Everyone

Marketing & Market Segmentation
Learning Intentions

• Explore the process of marketing in a business
• Investigate the process of market segmentation in identifying the target market for specific products or services

Success Criteria

• We can define marketing and market segmentation
• We can identify the basic market segments: demographics; psychographic; geographic; behavioural
  
• We are able to identify the characteristics of each market segment
• We are able to describe the target market for specific products or services

Marketing 
Marketing follows a market oriented approach where businesses seek to identify customer wants, and future wants and then goes about trying to satisfy them profitably. 

To do this they must first determine who the most likely users or consumers of their products or services are. This will allow them to identify the needs and wants of these consumers to ensure that their product is developed to meet these needs. The group identified is called the target market.

Market Segmentation

To help identify the target market, prospective customers are divided into groups (segments) that have common needs and wants. There are many ways to do this. Four common segments used by marketers are:

Possible Target Market for Ferrari F8 Tributo

Demographic	Age: Middle aged. This because the are most likely finished university etc and have been working for some time to accumulate enough wealth to purchase this car Gender: Most likely male. Socio Economic Status: High income. Family life cycle: Single or retired, Children have grown up. Car is a two-door, so is not suitable for passengers apart from the owners partner or date.
Psychographic	Sporty. Likes car racing, speed etc. Possibly F1 fan as Ferrari races in F1. Social status: Wealthy to be able to afford this car. Personality: Wants people to know his social status, know that he is successful (rich). Values & Attitudes: Wants something exclusive that not many other people have.
Geographic	Resides in a wealthy  suburb Large cities in well developed countries
Behavioural	Likes luxury. Happy to spend for high quality. Brand must be well known.

TASK: Using all four of the basic market segments above, identify the possible target market for the products below. Explain your answer by stating reasons for your suggestions.

Dove beauty soap

Barbie Doll

Revlon Lipstick

Toothpaste is toothpaste, right? Wrong - at least, not in the Marketing Department. In small groups, discuss the different types of toothpaste available in the shops. This Countdown online shopping site might help. Find other products where the market has been segmented.