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What is Market Segmentation?
Dividing a market into smaller groups based on shared characteristics to target more effectively.
What is Generational Marketing?
Tailoring marketing efforts to different generations based on shared experiences and values.
What is Target Market
A group of consumers a business aims its products and services at.
Real-Life Example: Starbucks targets young professionals and students with on-the-go coffee products and a workspace-friendly environment.
What is Risk?
the potential for financial loss in pursuit of profits.
Example: Startups investing in unproven technology.
What is Monopoly?
A company with exclusive control over a product or service.
Example: Google’s dominance in the search engine market.
What is a Demographic Segmentation?
Focuses on attributes like age, gender, income, and education.
Example: Marketing high-end beauty products women aged 25-40 with higher incomes.
Baby Boomers (1946-1964) marketing
Focus on retirement planning, health care, and family.
Example: Ads for cruise vacations targeting Baby Boomers looking to enjoy their retirement.
What is Free Enterprise System?
A system where individuals and businesses operate with minimal government intervention.
What is Profit?
The financial reward from business activities after expenses.
Example: Tesla’s profit after selling electric cars.
What is risk and profit?
Risk: The potential for loss or failure in a business venture.
Example: Investing in new product lines like Samsung’s foldable phones could succeed or fail.
Profit: The financial gain after all costs and expenses have been subtracted.
Example: A local bakery’s profit after paying for ingredients, rent, and labor.
What is Psychographic Segmentation?
Focuses on lifestyles, values, and personalities.
Example: Ads for outdoor gear targeting adventure-loving consumers.
Generation X (1965-1980) marketing
Tech-savvy and values work-life balance.
Example: Marketing home-office equipment for remote work.
what are the Key Principles?
Freedom of Ownership
Competition
Risk
Profit
What is Intellectual Property?
Types:
Patents: Protect inventions and allow exclusive rights to the inventor.
Example: Apple’s patent on the design of the iPhone.
Trademarks: Protect brand names and logos.
Example: Nike’s “Swoosh” logo.
Copyrights: Protect creative works like books, music, and films.
Example: Copyright on the Harry Potter book series.
What is Market Economy (Free Market)?
Decisions about production and pricing are driven by consumer demand with minimal government intervention.
Example: Hong Kong, where businesses are largely free to make decisions without government interference.
What is Geographic Segmentation?
Focuses on location, such as country, city, or climate.
Example: Air conditioning companies targeting warm regions.
Millennials (1981-1996) marketing
Known as digital natives, they often value experiences over material goods.
Example: Travel companies focusing on unique, adventurous experiences.
What is Freedom of Ownership?
ndividuals can own property and intellectual property.
Example: Microsoft’s ownership of software patents.
What is Price Competition?
Businesses compete by offering lower prices.
Example: Walmart’s strategy of everyday low prices to attract budget-conscious shoppers.
What is Mixed Economy?
This system combines elements of private and public control. Most nations, including the U.S., operate under this system.
Example: In the U.S., companies operate privately but are regulated by the government to protect consumers (e.g., FDA regulations on food safety).
What is Behavioral Segmentation?
Based on consumer behaviors like purchasing habits and brand loyalty.
Example: Offering loyalty discounts to frequent shoppers on Amazon.
Generation Z (1997-2012) marketing
Born into a tech-dominated world, socially conscious, and values diversity.
Example: Brands that support social causes, like TOMS shoes, appeal to their sense of purpose.
What is Competition?
Companies compete to attract consumers.
Example: Amazon vs. eBay for online retail dominance.
What is Non-Price Competition?
Non-Price Competition: Companies focus on product quality, innovation, and brand reputation instead of price.
Example: Apple differentiates through product design and technology, not price.
What is Command Economy and Traditional Economy?
Command Economy: The government makes all decisions regarding production and distribution of goods and services.
Example: North Korea, where the state controls all industries and economic activity.
Traditional Economy: Decisions are based on the community's customs, traditions, and beliefs.
Example: In some rural areas in Africa and South America, farming methods are passed down through generations.