7-1 Focusing On Market Segments
English |
Spanish |
French |
Worksheet |
Worksheet |
LESSON SUMMARY
In this lesson on market segmentation, students explore how businesses categorize consumers into smaller, more specific groups to improve the effectiveness of their marketing strategies. The key segmentation methods discussed include geographic, demographic, psychographic, product usage, and benefit segmentation. By understanding the unique needs and behaviors within each segment, companies can tailor their products, messaging, and promotional efforts to better align with customer expectations. The lesson also introduces the concept of mass marketing and explains why many modern companies prefer targeted segmentation over broad, generalized strategies.
Students also learn how to analyze market potential and calculate market share, two essential tools for evaluating the viability and profitability of specific market segments. Through examples and practical calculations, students discover how businesses determine the number of potential customers and estimate their expected revenue and sales volume. This process helps companies allocate resources wisely and identify the most promising market opportunities. By the end of the lesson, students understand how effective segmentation drives marketing success and enhances a company’s ability to meet customer needs competitively.
In this lesson on market segmentation, students explore how businesses categorize consumers into smaller, more specific groups to improve the effectiveness of their marketing strategies. The key segmentation methods discussed include geographic, demographic, psychographic, product usage, and benefit segmentation. By understanding the unique needs and behaviors within each segment, companies can tailor their products, messaging, and promotional efforts to better align with customer expectations. The lesson also introduces the concept of mass marketing and explains why many modern companies prefer targeted segmentation over broad, generalized strategies.
Students also learn how to analyze market potential and calculate market share, two essential tools for evaluating the viability and profitability of specific market segments. Through examples and practical calculations, students discover how businesses determine the number of potential customers and estimate their expected revenue and sales volume. This process helps companies allocate resources wisely and identify the most promising market opportunities. By the end of the lesson, students understand how effective segmentation drives marketing success and enhances a company’s ability to meet customer needs competitively.
|
|
|
|
Do Now: Think of your favorite product or service. Who do you think it’s not for? List three characteristics of people who likely wouldn’t use or buy it. Be ready to discuss what this says about who the actual market segment might be.
Video 1
Describe how marketers can be segmented by geographic location, demographic characteristics, psychographics, product usage, and benefits derived.
SUMMARY OF VIDEO
This video lesson focuses on market segmentation, explaining how businesses can divide broad markets into smaller, more specific groups using criteria like geographic location, demographic characteristics, psychographics, product usage, and benefits derived. The speaker emphasizes that this chapter marks a transition into more practical marketing concepts, moving away from theoretical content. He contrasts market segmentation with mass marketing, explaining that in the modern era of targeted advertising, casting a wide net is wasteful and ineffective. Instead, marketers should tailor their efforts based on location (e.g., a local plumber should only target nearby towns), and consider customer traits like age, income, gender, and interests depending on the product.
The video also shows how segmentation is used in practice through platforms like Google Ads and YouTube Analytics, which allow advertisers to narrow their focus by choosing audience demographics, geographic regions, and user interests or search behavior. For instance, when advertising metal detecting products, psychographic data such as hobbies and values becomes important. The speaker walks through examples of how these tools can help refine advertising strategies for better market targeting. The key takeaway is that segmentation allows for more efficient, effective, and relevant marketing in today's digital world, replacing outdated one-size-fits-all approaches.
This video lesson focuses on market segmentation, explaining how businesses can divide broad markets into smaller, more specific groups using criteria like geographic location, demographic characteristics, psychographics, product usage, and benefits derived. The speaker emphasizes that this chapter marks a transition into more practical marketing concepts, moving away from theoretical content. He contrasts market segmentation with mass marketing, explaining that in the modern era of targeted advertising, casting a wide net is wasteful and ineffective. Instead, marketers should tailor their efforts based on location (e.g., a local plumber should only target nearby towns), and consider customer traits like age, income, gender, and interests depending on the product.
The video also shows how segmentation is used in practice through platforms like Google Ads and YouTube Analytics, which allow advertisers to narrow their focus by choosing audience demographics, geographic regions, and user interests or search behavior. For instance, when advertising metal detecting products, psychographic data such as hobbies and values becomes important. The speaker walks through examples of how these tools can help refine advertising strategies for better market targeting. The key takeaway is that segmentation allows for more efficient, effective, and relevant marketing in today's digital world, replacing outdated one-size-fits-all approaches.
Video 2
Explain how to evaluate market potential and calculate market share.
SUMMARY OF VIDEO
This video provides a step-by-step explanation of how to evaluate market potential and calculate market share, using a hypothetical business--a pupuseria (papuseria) in Hempstead, New York—as a case study. The instructor begins by defining market potential as the total revenue a business could earn from a specific market segment. To estimate this, students are guided to calculate the number of potential customers, their interest in the product, the average amount they’d spend, the number of purchases per year, and the level of competition in the area. Using real census and geographic data, the video walks through calculating the Salvadoran population in Hempstead, assumes their interest in pupusas, and divides that group among existing restaurants to estimate expected market share.
The second part of the video discusses revenue projections based on expected customer visits and average purchase amounts. It introduces external factors like income levels, unemployment rates, and local cost of living to assess whether consumers can afford the product. Finally, it touches on business distribution and marketing capabilities, reinforcing the importance of logistics and visibility in achieving profitability. The video concludes by encouraging students to compare regional market saturation and identify underserved locations, showing how data analysis and competitive research can help determine if a business idea is viable and profitable.
This video provides a step-by-step explanation of how to evaluate market potential and calculate market share, using a hypothetical business--a pupuseria (papuseria) in Hempstead, New York—as a case study. The instructor begins by defining market potential as the total revenue a business could earn from a specific market segment. To estimate this, students are guided to calculate the number of potential customers, their interest in the product, the average amount they’d spend, the number of purchases per year, and the level of competition in the area. Using real census and geographic data, the video walks through calculating the Salvadoran population in Hempstead, assumes their interest in pupusas, and divides that group among existing restaurants to estimate expected market share.
The second part of the video discusses revenue projections based on expected customer visits and average purchase amounts. It introduces external factors like income levels, unemployment rates, and local cost of living to assess whether consumers can afford the product. Finally, it touches on business distribution and marketing capabilities, reinforcing the importance of logistics and visibility in achieving profitability. The video concludes by encouraging students to compare regional market saturation and identify underserved locations, showing how data analysis and competitive research can help determine if a business idea is viable and profitable.
