IDENTIFYING MARKETS
CHAPTER TWO
Warm Up
Is there a market for an expo marker that will never run out of ink?
What is a market?
MARKET
People in an area that are willing to pay for a specific good or service.
“Markets establish the going rates for goods and other services, which sellers determine by creating supply and which buyers determine by creating demand.” (Investopedia)
Each Color Represents a Market
Do marketers use the same marketing strategies to hit all of the different segments?
Nope! The marketing mix changes.
Purple: Children
Orange: Teens
Green: 20 - 30
Red: 30 - 40
Blue: 40 +
Marketing Mix
Factors controlled by a company to influence consumers to purchase their products.
Made up of the 4 P’s:
Product
Price
Place
Promotion
The Marketing Mix Hit Song
The Marketing Mix Activity
Complete the marketing mix activity
Consumer Market
Actual people who purchase goods or services for their own use.
Consumer Market
Organizational Market
Businesses who purchase goods or services for business use.
” Joe’s Pizza buys ingredients from a supplier (Restaurant Depot) to make its’ food. Joe’s Pizza is part of an organizational market.”
Market Share
The portion of the market that is controlled by a particular company or product.
Assume 1,000,000 cars are sold per year in the US.
Honda accounts for 100,000 of the cars sold.
Honda has 10% of the US. car market.
Smart Phone Market
In the first quarter of 2018, Roughly 16% of all smartphones sold worldwide were an Apple iPhone.
Smart Phone Market
“Apple and Samsung grew their presence in the market. Samsung took the lead, and has held a share of 20 to 30 percent since 2012. Samsung shipped more than 317.3 million smartphones worldwide in 2017. Apple has consistently been Samsung’s closest competitor, maintaining the position of second most popular smartphone vendor in the world since 2012. Apple's iPhone sales were 216 million iPhones sold in 2017.” (statista.com)
Target Market
A group of consumers who a company aims its’ marketing efforts to. These consumers are identified as potential customers.
Target Market Groups Based on:
Market Segmentation
Placing people into smaller categories or groups in order to market their similar needs and wants.
Examples:
The Purpose of Market Segmentation
It is useful to segment a market in order to narrow down a large target market into smaller groups. It helps:
Customer Profile
Marketers create customer profiles about target markets to help with the process of segmentation. The profiles consist of the following information:
Target Market Practice
Complete the target market activity