Market and Market Identification Lesson 5

Standard 5: Explain the concept of market segmentation.  Cite textbook and case studies in a discussion of how market segmentation is used as a company strategy to increase its market share.


Assignment:
Market and Market Identification

• As you read pages 17-20, create a vocab sheet on a google document to share with me at the end of the lesson. Some are from previous lessons.
• Pay attention to the "As You Read" inserts and graphics
• You should be familiar with the correct usage of these marketing terms when discussing marketing principles in class... and competitions.

1. market
2. consumer market
3. organizational market
4. utility (list and define)
5. marketing concept
6. seven marketing core functions
7. market share
8. target market
9. market segmentation
10. customer profile
11. marketing mix (list and define)

Let's Talk About It

Be prepared to discuss the ideas of "Market" and "Market Identification" (hint: see questions below.)

Lesson Objectives:
Describe how marketers use knowledge of the market to sell products.
Compare and contrast consumer and organizational markets.
Explain the importance of target markets.

Let's Discuss and Learn from each other:

1.  Look at the quote on page 17.  What is meant by saying the terminology in this section is the foundation for future work and study in marketing?
2. What markets are you a part of?
3.  What marketing trends have you observed through the media or by watching others?
4. In your own words, what is the definition of market?
5. What is the difference between the consumer market and the organizational market?
6. Why is it important for companies to know their market?
7. What information does a customer profile contain?  How do businesses get this information?
8. What is market share?
9. Look at Figure 1.1 on page 18.  Explain what the graph is illustrating.  What could cause a business's market share to change?
10. Why might consumers be interested in a company's market share?
11. On page19 you see two different adds for Campbell soups.  How are these ads different?  What elements in the ads tells you they are targeting two different markets to buy their soups?
12. How do you think businesses use the concept of market share in their marketing?

Mini Project

Imagine that a company that sells class rings has targeted our class.
List factors the company can use in its marketing effort based on your group.  We will share factors to create a class list.

• What are the similarities and differences in the factors?

Divide into groups of 4. How might the company market the same product to:

• Males and females
• High school students and college students
• Stay-at-home moms and business executives

Did you Get It?
Look the State Farm ad on page 20.  What market is this ad targeting?  What clues do you see about this market?  How different would this ad look if the company were advertising insurance policies to businesses?

Wrapping it Up

Hopefully through your reading, class discussions, and working through the project you have a good understanding that...

• Marketers identify consumers who have the ability to pay and use that knowledge of the market to sell products.
• A consumer market purchases for personal use while an organizational market purchases for businesses.
• All marketing strategies are directed to target markets.