ENTREP | WEEK 7

• Demographic

• Geographic

• Psychographic

• Behavioral

What are the four parts of market segmentation?

Target Market

This is a specific group of potential customers that the company seeks to reach through its products or services. This group may share characteristics such as age, gender, income level, educational interests, or geographic location which increase their likelihood of becoming interested.

Target Audience

This is narrower, it refers to the group of customers who are likely to buy the product. They may or may not be relevant to the target market.

Target Market

This is the group of customers most likely to want or require a company’s products or services.

Research on your market

This is the first step in defining your target market, this is learning as much as possible about the people you will be serving.

Segmenting your market

This is when you determined your potential customers, and divide them into smaller segments on which you can focus.

Demographic Segmentation

This demographic describe your target customers based on age, gender, employment status, life stage, family structure, religion, education, generation, social class, nationality and income.

Age and Life-Cycle Segmentation

The consumer’s needs and wants change with age and life cycle segmentation, where age and the life cycle determine the marketing approach.

Gender Segmentation

This is used to differentiate the needs and wants between men and women because men and women have different attitude towards a product

Income Segmentation

This divides the market into different income groups. It is used in automobiles, clothing, cosmetics, and travel.

Generation Segmentation

This is influenced by the times in which they grow up, for example, music, movies, politics, and other significant events characteristic of that period.

Social Class Segmentation

This divides the customers according to their preferences in cars, clothing, home furnishings, leisure activities, and reading habits.

• Age and Life Cycle

• Gender Segmentation

• Income Segmentation

• Generation Segmentation

• Social Class Segmentation

These are types of Demographic Segmentation

Geographic Segmentation

This refers to the physical location of your target customers.

Psychographic Segmentation

This describes the fundamental personal characteristics of your target market. This includes hobbies and leisure activities, entertainment interests, and preferred information sources.

• Personality profiles

• Lifestyle profiles

What are two principal types of customers in psychograpic segmentation?

Behavioural Segmentation

This defines your customer’s purchasing habits, when considering your target market’s behavioral patterns, think about what qualities your customers are looking for in an item or service and why they want to buy it.

Technographic Segmentation

This type of segmentation differentiates people based on the technology they use.

Concentrated Strategy (Single Segment Strategy)

This often is the strategy of choice for smaller companies with limited resources.

Differentiated Strategy (Selective Specialization / Multiple Segment Strategy)

The product itself may or may not be different in many cases, only promotional messages or distribution channels vary.

Product Specialization

This specializes in a particular and tailors it to different market segments.

Product

This is a good, service, or object designed to meet a consumer or a business need.

Product

Any business that provides a service is selling a _

Consumer Product

These are intended for personal use, which means they will be used directly by the customer for purposes such as home maintenance, hygiene, and entertainment

Industrial Products

These facilitate the operation of a business that is intended to meet the needs of other customers

• Consumer products

• Industrial products

• Tangible products

• Intangible products

What are the four categories of products?

Consumer Products

These are manufactured and marketed for the customer’s personal use, they purchase them for various reasons such as hygiene, entertainment, and home maintenance.

Industrial Products

These are materials and services required to run a business, this can include everyday business equipment, such as computers or printers, as well as items used to manufacture products intended for consumer use.

Industrial Products

These are used to produce goods and services are frequently used to manufacture consumer goods and services

Tangible products

These are items that can be physically held or interacted with, such as cars or jewelry

Intangible products

These are classified as life insurance policies or software, exist through a service or contact but lack a physical presence.

Product Life Cycle

This is the period between when a product is introduced to the market and when it is removed.

Four Stages

How many stages is a product life cycle?

Introduction Stage

This is when the product makes it debut during this stage of the life cycle, whether the product is launched globally or in a few markets, significant new product development costs are spent on marketing campaigns.

Growth Stage

This is when the company attempts to gain a larger market share for the product, this is when companies in the growth stage must experiment with pricing to find the sweet spot that allows them to standout from the competition.

Maturity Stage

At this point, the product’s market share and profitability have peaked. To keep the product appealing to new audiences, a company many introduced new features or suggest new uses for it.

Decline Stage

This is when advanced marketing and new product features cannot provide additional growth, the product enters this stage. This can last months or decades. This happens when preferences change.

Consumer Products

They are created and marketed for use by a retail customer, who is the final user in the supply chain and are frequently intended to meet a practical or emotional need.

Convenience Goods

These are tangible or intangible staple products that consumers buy frequently for everyday use, such as toothpaste, shampoo, or milk, and they often stick with the same brand due to preference, habit, loyalty, or simple convenience.

Convenience Goods

They are typically non-durable, consumed in a short period, and purchased impulsively or with little shopping effort.

Shopping Goods

These are tangible or intangible items that consumers research more thoroughly than convenience goods because they are typically more expensive and purchased less frequently.

Specialty Goods

These are items with distinguishing characteristics or goods with a strong brand identity. Consumers typically purchase specialty products such as jewelry, luxury cars, designer clothing, or sports equipment because they are specifically looking for that product and may go to great lengths to obtain it.

Unsought Goods

These are any tangible or intangible item or product that is not actively sought by a consumer and is frequently purchased to mitigate a potential risk. Unwanted goods, such as fire extinguishers, flashlights, or funeral services, are rarely considered by consumers and are typically purchased out of fear or the threat of potential danger.

Final Goods or End Products

Consumer goods are also known as?

• Durable Goods

• Non Durable

• Consumer Services

What are the three classification of consumer goods?

Durable Goods

These products have a long lifespan of three years or more. The consumption of a durable good occurs over its entire life, necessitating maintenance and upkeep.

Non-Durable Products

These are purchased for immediate consumption or use. These products typically have a lifespan of less than three years. Non-durable goods include food and beverages, as well as clothing.

Industrial Goods

These are are raw materials used in the manufacture of other goods. They are purchase and used for industrial and commercial purposes. They usually consist of machinery used by industries or business.

Capital Items

These help with the production of an industrial good but do not become a general part of the final product. This includes factories and equipment.

Industrial Products

They are support goods designed for use by a business, such as a retailer or service company, rather than goods for personal use.

Materials and parts

These are raw materials such as livestock, wood, textiles, or produce, are industrial products that are processed or assembled into another physical product.

Business Services and Supplies (Operating Supplies)

These are items that keep a business operational, making them the industrial equivalent of a consumer convenience good.

Market Problem

These are the stated or unspoken issues that the target market faces. This could refer to current inefficiencies, awkward workflows, or suboptimal solutions. The key to identifying a market problem is to listen for frustrations or "if only" statements that emerge during interviews.