Term 2: Week 2

Learning Intentions

• Study case studies of markets and marketing
  
• Investigate the nature of marketing: Plan, Strategy and Segmentation. 
  

• We can define and explain Markets
• We can describe how & why markets are segmented
• We have added to the glossary of business terms

• A Market is a way in which buyers and sellers exchange goods or services. It can be a physical marketplace like a bazaar or shopping centre, or a virtual, online market (eg share or money market, Trade Me, eBay). Resource on markets
• Maeklong Market in Thailand has hundreds of small vendors using identical stands with identical shade awnings, selling identical products. Many sell the same types of fresh fish, others the same types of vegetables, and others the same cooked food. 
  

Do Now - Markets

• As a class we'll watch the video clip of the market. Discuss the following questions and then answer them individually in the Google Doc called Markets, Segmentation and Research:
• TASK ONE
• 1. As a customer, why might you choose to buy from one stall, rather than others, when so much is identical?
  2. If you were a vendor in the market, would you be able to lower your prices? What might happen if you did?
  3. Would you be able to make your products appear to be, different? If so, how?
  4. How could, or how do, vendors promote their products?
  5. Are there ways vendors at the market might try to vary the place where they exchange their products with customers?
  
  

Market Segments

A Market Segment is a group of individuals with similar characteristics, eg Generation Z, retired couples, teenage girls, DINKYS. 

For example, markets can be segmented by gender, age & life-cycle stage, socio-economics, ethnicity, lifestyle / family type, location, product use.

By segmenting the market, businesses can more accurately meet the needs of their target market. They can offer variations of their product that make the consumer think one variation is specifically designed for them and so they are willing to pay a higher price. 

Do Now

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. Individually answer the questions in the Google Doc called Markets, Segmentation and Research.

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