Segmenting the Consumer Market.

The consumer market may be divided into further segments using the following characteristics:

• Geographic
  
• Demographic
  
• Psychographic
  
• Buying Behavior
  

Geographic Segmentation.

Subdividing markets into segment based on geographic distribution (region, countries, cities, etc) is widely used. The regional distribution of population is important to marketers because people of within a given region generally tend to share the same values, attitudes and style preferences. However, significant differences do exist among regions because of differences in climate, social customs, and other factors.

Many organizations segment their markets on the basis of city size or population concentration. They utilize an urban-suburban-rural distribution.

Demographic Segmentation.

The most common basis for segmenting consumer markets is by demographic, the vital statistics that describe a population, include age, gender, family life-cycle stage, income distribution, education, occupation, and ethnic origin.

Age segment.

Many people wants change as they grow through life. Therefore marketers should be aware of how the population is changing with respect to ages.

• Youth Market (Age 12 and Under)
  
• Teenagers
  
• Middle Age
  
• Fifties
  
• Early Sixties
  

Gender.

For many years, market segmentation by gender has been an obvious choice for product such as clothing, shoes, and personal care items.

Globally, the number of women working outside the home has increased dramatically. The life-styles and buying behavior or women in the outside labor force are quite different from those of home workers.

Family Life-Cycle Stage.

Is a major determinant of buyer behavior, and thus can be useful basis for segmenting consumer markets. A young couple with two children has different needs from a couple in their mid-fifties whose children no longer live at home.

Income Distribution.

People alone do not make a market; they must have money to spend. Income distribution is one of the most commonly used bases for segmenting consumer markets. Marketers should analyze the spending patterns of people at difference income level.

Social Class.

Is measure up of a combination of demographic characteristics like education, type of occupation, and the type of neighborhood a person live in.

A person social class-whether it is upper class, white-collar middle class-has a considerable influence on that person’s choices in many product categories.

Psychological Segmentation.

In psychological segmentation, involves examining attributes such as personality and life- styles. When demographic and psychological attributes are combined then we will have a richer description of segments.

Personality Characteristic.

An individual’s personality characteristics are usually described in terms of traits that influence behavior. Like aggressive, cautious, compulsive, etc.

Many companies tailor their advertising to appeal to certain personality traits.

Life-Styles.

Life styles relates to activities, interest, and opinions. Life-styles reflects how we spend our time and what we beliefs on various social, economic and political issues.

People life-styles affect what product they buy and what brands they prefer.

Psychographic.

Psychographic describes a wide variety of psychological and behavioral description of a market.

Behavioral Segmentation.

In behavior segmentation, potential buyers of a product are divided into groups based on their knowledge, attitude, uses, or responses to a product.

Some marketers commonly attempts segmenting their market on the basis of product-related behavior, i.e. The benefit desired from a product and the rate at which the consumer use the product.

Benefits Desired from a product.

In this segment, consumers are divided into categories based on benefit they sought from a product. For instance; If you sell a tooth-paste, you may consider the following segments:
Whom like Flavour and appearance of your tooth paste.
Whom want Brightness of teeth benefit.
Whom looking for Decay prevention benefit
Whom looking for Low Price of tooth paste products.

Usage rate.

A frequently used categorization of usage rate is nonusers, light users, medium users, and heavy users. Therefore, normally a company is most interested in the heavy users segment of it products.

Over 875 million consumers have shopped online

(Full text of a statement. Contact details below.)

New York, (ANTARA News/PRNewswire-AsiaNet) - More than 85 per cent of the world's online population has used the Internet to make a purchase -- increasing the market for online shopping by 40 per cent in the past two years -- according to the latest Nielsen Global Online Survey on Internet shopping habits. Globally, more than half of Internet users have made at least one purchase online in the past month, according to Nielsen.

"The Internet is no longer a niche technology -- it is mass media and an utterly integral part of modern life. Almost no aspect of life remains untouched by online media. As our lives become more fractured and cluttered, it isn't surprising that consumers turn to the unrivalled convenience of the Internet when it comes to researching and buying products," said Jonathan Carson, President, International, Nielsen Online.

"When The Nielsen Company conducted its first global survey into Internet shopping trends two years ago, approximately 10 per cent of the world's population (627 million) had shopped online," said Bruce Paul, VP, Customized Research, Nielsen U.S. "Within two years, this number has increased by approximately 40 per cent (to 875 million)."

Among Internet users, the highest percentage shopping online is found in South Korea, where 99 per cent of those with Internet access have used it to shop, followed by the UK (97 per cent), Germany (97 per cent), Japan (97 per cent) with the U.S. eighth, at 94 per cent. Additionally, in South Korea, 79 per cent of these Internet users have shopped in the past month, followed by the UK (76 per cent) and Switzerland (67 per cent) with the U.S. at 57 per cent.

Globally, the most popular and purchased items over the Internet are Books (41 per cent purchased in the past three months), Clothing/Accessories/Shoes (36 per cent), Videos / DVDs / Games (24 per cent), Airline Tickets (24 per cent) and Electronic Equipment (23 per cent).

Among Germany's Internet users, 55 per cent said they bought books, 42 per cent had bought Clothes/Accessories/Shoes and one in four had purchased Music/Videos/DVD's in the past three months.

During the same period, among Internet users in the UK, 45 per cent bought books online, followed by Videos/DVDs/Games (44 per cent), Clothing/Accessories/Shoes (38 per cent), Music (37 per cent) and one in four Internet shoppers also purchased and Airline tickets/Reservations online.

Among U.S. Internet users in the past month, 41 per cent bought Clothing/Shoes/Accessories, 38 per cent bought books and one in three Internet shoppers bought Videos/DVDs/Games.

The number of Internet consumers buying books over the Internet has increased seven per cent in the past two years but the biggest increase has been in Clothing / Accessories / Shoes which increased from 20 per cent to 36 per cent. "Some of the biggest buyers of books on the Internet are from developing countries -- China, Brazil, Vietnam and Egypt -- indicating massive growth potential for online retailers that can specifically target these fast- growing markets," said Carson.

Internet shopper interest in buying Videos/DVDs and airline tickets/reservations rose two and three percentage points respectively over the Internet in the past two years -- today one in four online shoppers globally said they had purchased these on the 'Net in the past three months.

More than 70 per cent of Indians and more than 60 per cent of Irish and UAE Internet users said they bought airline tickets/reservations on the Internet in the last three months, making travel the fourth most popular shopping category on the web.

"Travel is a category extremely suited to the Internet due to the latter's ability to provide efficient access to an extremely wide range of comparable information. Whilst certain areas of the travel industry were initially slow to utilize the benefits of the Internet, it is now one of the undoubted success stories of online, playing an integral part in the arrangements and experience of today's traveler," said Carson.

One in four global Internet users bought DVDs/Videos online in the last three months, with UK users topping the list (44 per cent), followed by South Africans (38 per cent). The U.S. was fifth at 31 per cent.

Payment Methods for Internet Shopping.

Credit cards are by far the most common method of payment for online purchases -- 60 per cent of global online consumers used their credit card for a recent online purchase, while one in four online consumers chose PayPal. Of those paying with a credit card, more than half (53 per cent) used Visa.

Turkish online shoppers (who represent the economic elite in that country) topped global rankings for credit card usage (91 per cent) for online purchases followed by 86 per cent of Irish online shoppers and 84 per cent of Indian and UAE online shoppers. "Shopping on the Internet with the ease of a credit card is especially appealing to consumers in emerging markets who simply cannot find or buy items they want in their retail trade. The Internet has opened up a whole new world of shopping for these consumers," said Paul.

While Latam and Asian online shoppers are also more likely to use credit cards than any other form of payment, debit cards are most popular among UK (59 per cent) and U.S. (40 per cent) online shoppers.

Selecting Online Shopping Sites.

According to Nielsen, online shoppers tend to stick to the shopping sites they are familiar with, with 60 per cent saying they buy mostly from the same site. "This shows the importance of capturing the tens of millions of new online shoppers as they make their first purchases on the Internet. If shopping sites can capture them early, and create a positive shopping experience, they will likely capture their loyalty and their money," said Paul.

In selecting sites on which to shop, one-third used a search engine or just surfed around to find the best online store. One in four relied on personal recommendations.

"Recommendations from fellow consumers - whether they are people they know or fellow online shoppers -- play an enormous role in the decision-making process. The explosion in Consumer Generated Media over the last year means that this reliance on word of mouth, over other forms of referral, looks set to increase," said Carson.

About The Nielsen Global Online Survey

The Nielsen Global Online Survey is the largest half-yearly survey of its kind, aimed at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe. The latest survey, conducted from October to November 2007, polled 26,312 Internet users in 48 markets from Europe, Asia Pacific, North America and the Middle East. The survey is representative of all Internet users aged 15+.

About Nielsen Customized Research

Nielsen Customized Research, operating in more than 100 countries, provides clients with survey research, analytical and consulting services, including measures of consumers' attitudes and purchasing behavior, segmentation, brand equity, pricing, packaging, advertising effectiveness, customer satisfaction & loyalty and other marketing issues.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA.

For more information, please visit, www.nielsen.com
CONTACT: Laura Czaja, United States,+1-646-654-8681,
or Lisa Lee, Asia Pacific,+61(0)404-856-072,
or Melinda Butts, Europe,+44(0)796-964-0050,
allof The Nielsen Company Web site: http://www.nielsen.com
SOURCE: The Nielsen Company
COPYRIGHT © 2008 ANTARA

Marketing Basics: A Thesis In Marketing Strategies, Three Strategies Can Produce 101 Marketing Strategies.

By Tim Cohn in http://www.marketingprinciples.com

There are only three marketing strategies needed to grow a business: (1) Increase the number of customers (2) Increase the average transaction amount, and (3) Increase the frequency of repurchase. Every marketing strategy should be measured by it's ability to directly impact and improve upon each of these three factors. Increasing only one factor will produce linear business growth. Increasing all three factors will produce geometric business growth.

Marketing Strategy #1. Increase the number of customers.

Increasing the total number of customers is the first step most business owners and managers take to grow their business. Losses can occur when inexperienced sales personnel are put in charge of designing and implementing a marketing program - investing corporate resources to find more customers. Executed correctly, basic marketing strategies cost efficiently produce new prospects who are ready, willing and able to buy products or services. The main purpose of a marketing strategy is to give sales personnel prospects to convert into paying customers. Rewarding existing customers for referring new ones is one easy step business owners can take to increase their total number of customers.

Marketing Strategy #2. Increase the average transaction amount.

Owners and managers spend most of their time operating their business and searching for new customers. They often overlook the customers they see regularly. These repeat customers are usually taken for granted and left to conduct entire transactions without ever being asked if they would like to buy more product or service. Complacency, expecting customers to buy a minimum amount of product or service without ever being asked to buy more, can be the undoing of a business. This attitude can eventually cause customers to spend less money. Customers who aren't continuously offered compelling reasons to keep buying more of the same products and services from one business will look for new reasons to buy from another. Cross selling and upselling, systematically offering customers more value via additional products or services at the point of sale, are two simple steps business owners can take to increase their average transaction amount.

Marketing Strategy #3. Increase the frequency of repurchase.

In an established business, an average customer purchasing pattern develops and (like the average transaction amount) is usually taken for granted and rarely improved upon. A customer's repeat business is earned by the business who gives the customer what they want. Without having basic marketing strategies or processes for consistently offering customers more of what they want, repeat business is earned less frequently. Frequently communicating news and offers to past and present customers via telephone or mail generally increases their frequency of repurchase and is one more step owners can take to grow their business.

7 Ways to Sell and Retain Your Integrity by Ari Galper

Based on e-mails I continue to receive daily, the answer is a resounding "yes."
Eliminating traditional sales thinking and tactics does take effort, because the messages of the sales "gurus" you've read over the years can continue to bubble up in your mind, especially when you're in the sales process.

Despite your good-hearted intentions of helping others with your service or product, do these traditional "sales tips" still pop up in your mind?

? Focus on "closing" the sale and it will happen

? When you feel rejected, brush it off and get ready for more

? If a potential client says "no," it's your job to turn it into a "yes"

? When a potential client challenges your product or service, just sell harder

These ideas reinforce the traditional sales message that your only focus should be on pursuing the end goal of making the "sale," regardless of the personal toll it might take on you and your potential client.

It is possible to sell without compromising your integrity.

Here are seven suggestions:

1. Focus on the getting to the "truth" of your potential client's situation. You may or may not be a fit for each other, so focusing on the end goal of making the sale only derails the trust-building process. Without trust, you compromise integrity.
2. Eliminate rejection once and for all by setting realistic expectations and avoiding traditional sales behaviors such as defensiveness, persuasion, and over-confidence. If you're not trying to sell, you can't be rejected.
3. Stop "chasing" potential clients who have no intention of buying. How can you do this? Shift your mindset and boost your truth-seeking skills so that you can quickly, yet graciously, discern whether the two of you are a potential "fit" or not.
4. Avoid calling people "prospects" or even thinking about them that way. People are people, and when you label them in your language or your thoughts, you dehumanize them and the sales process. "Prospect" reinforces the notion that sales is only a "numbers game." Train yourself to think about "potential clients" instead.
5. Take the "cold" out of your cold calling. Don't start with "Hi, my name is... I'm with... We do...". When you begin a conversation by making it about you, instead of about the other person, you immediately cut off the possibility of opening a dialogue. Try the more humble approach of asking "Maybe you can help me out for a second," and keep in mind that you're really calling to help them solve their problems.
6. Don't try to "overcome" objections. Instead, determine whether the objection is the client's truth or not. Then you can decide whether to continue to open the conversation.
7. Avoid using "I" or "We" in your e-mail communications to potential clients. These words indicate that the focus of your communication is on satisfying your needs rather than solving their problems. This sets the wrong tone for a potential relationship.

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About The Author: Ari Galper, founder of Unlock The Cold Calling Game makes cold calling painless and simple. Learn his cold calling secrets that even the sales gurus don't know. Listen to a free cold calling audio seminar, visit http://www.unlockthegame.com/

Markets and Target Markets

We defined market here as people or organizations with needs to satisfy, money to spend, and the willingnes to spend it. Within the same general market, there are groups of customers with different needs, different buying preferences, or product-use behavior. Not all customer who wear pants want to wear jeans. Not all firms the use computers want the same amount of memory or speed. The group of customers (people or organizations) for whom the seller designs a particular marketing mix is a target market.

Target Market Strategies.

There are two altenatif of target market strategies. One alternative is to threat the total market as a single unit-as one mass agregat market.Everyone in the market can be adequately satisfied with one marketing mix. This is sometimes called as a ‘shotgun’ approach (one program, broad market).

With the other alternative, the total market is viewed as consisting of several segment with differences significant enough that one marketing mix will not satisfy everyone or even a majority of the market. Therefore one or more submarket are selected as target market.

Market Segmentation.

Market segmentation is a process of identifying, describing and dividing market before select it as target market. In segmenting we first identify the needs of customers within a submarket and than decide if it is practical to develop a marketing mix to satisfy those needs.

The goal of segmentations is to divide a market so that each segment respond to a different or unique marketing mix. Three conditions help marketers move toward this goal:

• The basis for segmenting must be measurable, and data describing the characteristic must be obtainable. The age of customers is both measurable and obtainable.
• The market segment should be accessible through existing marketing institutions (middlemen, advertising media, company sales force) with a minimum of cost and wasted effort.
• The market segment should be large enough to be profitable. In concept, management could treat each single customer as a separate segment.

A company can segment its market in many different way. And the bases for segmentation vary from one product to another. However, the firs step is to divide a potential market into two broad categories: ultimate consumers and business users. The sole criterion for this segmentation is the customer’s reason for buying.

Ultimate Customers buy goods or services for their own personal or household use and are satisfying strictly nonbusiness wants. They commonly called the consumer market.

Business users are business, industrial, or institutional organizations that buy goods or services to use in their own organizations, to resell, or to make other products. They constitute the business market.

Segmenting markets into two above groups is significant from marketing point of view because the two segment buy differently. Consequently the marketing mix-product, distribution, pricing, and promotion-will depend on whether it is directed toward the consumer market or the business market.