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 answer the questions on the file call Milestone questions , I have attached useful resources file  to answer the questions 

Applied Marketing Strategies

2 Target Markets / Page 2.1 Introduction
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Target Markets

Learning Objectives

1. Identify the target market’s demographic and psychographic characteristics as well as its needs and wants.
2. Develop a persona for use in marketing a product.

Introduction

Figuring out who your customers are involves a lot of detective work. While everyone is a unique individual, many companies find that their customers
share some common characteristics. These common characteristics, often referred to as market segments, allow marketers to develop strategies to appeal
to each segment.

As you explore this chapter, think of examples of how you have seen marketing clearly target different segments of the population, such as active older
males or first-time parents.

Some key questions to consider in this chapter:

• How do you figure out who the customers for your offering are?
• What are your customers’ wants and needs?
• How can you use knowledge about your target market to effectively focus your marketing efforts?

MULTIPLE-CHOICE QUESTION

NOTIFICATIONS

Why are market segments important?

Correct. Market segments allow marketers to develop strategies that target different parts of

the population, such as active older males or first-time parents.

They allow marketers to develop strategies to appeal to different parts of the population.

They allow marketers to ignore customers’ wants and needs.

They allow marketers to appeal to stereotypes without studying their customers carefully.

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Applied Marketing Strategies

2 Target Markets / Page 2.4 How Markets Are Segmented
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How Markets Are Segmented

Market segmentation is the process of breaking down all consumers into groups of potential buyers with similar characteristics. For example, a business
can choose to pursue consumer (B2C) markets, business-to-business (B2B) markets, or both. The business would want to segment the market into
consumer markets and B2B markets and evaluate the opportunities in each of the market segments.

Different factors influence consumers to buy certain things. Many of the same factors can also be used to segment customers. A business will often use
multiple segmentation bases, or criteria to classify buyers, to get a fuller picture of its customers and create real value for them. Each variable adds a layer
of information, including demographic and psychographic information and other criteria such as situational factors and personal characteristics.

MULTIPLE-CHOICE QUESTION

Types of Segmentation Bases

Marketers use both demographics and psychographics to develop a comprehensive understanding of a target market.

Segmenting buyers by personal characteristics such as age, gender, ethnicity, location, and employment status is called demographic segmentation.

NOTIFICATIONS

What are segmentation bases?

Correct. Segmentation bases are criteria marketers use to classify customers into different

groups. By segmenting customers, marketers gain a comprehensive understanding of the

market.

Saved moments ago.

criteria used to test the quality of new products

criteria used to survey potential customers

criteria used to classify customers into different groups

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Demographics are commonly used to segment markets because demographic information is publicly available online. Psychographic segmentation is
used to divide consumers into groups based on their shared psychological traits and characteristics, like personality, values, attitudes, interests, and
lifestyles. When marketing professionals think about how to segment markets they might ask themselves:

• How do the ages, races, genders, and ethnic backgrounds of our customers affect what they buy?
• What do our customers think abo

Applied Marketing Strategies

2 Target Markets / Page 2.17 Chapter 2 Review

Chapter 2 Review

As you finish the second chapter of this webtext, take a moment to pause and reflect on what you’ve learned. In this chapter, you explored how markets
are segmented and targeted based on the unique characteristics of core customers.

At this point, you should be able to

• explain how to determine who the customers for your offering are,
• explain why it’s important to understand your customers’ wants and needs,
• describe various demographic and psychographic characteristics,
• discuss how businesses use demographic and psychographic characteristics to segment markets and focus their marketing efforts, and
• describe personas and explain how they’re used to visualize target market research.

Coming Up

In the next chapter, you will learn about branding and how a company’s brand factors into marketing decisions, like how to choose marketing
communication channels that best reach the target market.

You’ve reached the end of Chapter 2. Before moving on, take a break and reflect on what you’ve learned here. When you’re ready, use the Table of
Contents menu in the upper left corner of this screen to select the chapter you want to view next.
close

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Module Two Introduction

MKT‐205‐J7098 Applied Marketing Strategies 22EW2 MA

mySNHU Online Student Services Shapiro Library Academic SupportCourse Menu Tools Help

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Applied Marketing Strategies

Worksheet
Module Two Milestone: Develop a Persona for Your Target Market (Part 2)

On this page, you’ll identify the demographic characteristics of the persona for your target market.

2 Target Markets / Page 2.15 Worksheet: Module Two Milestone: Develop a Persona for Your Target Market (Part 2)
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Objective: Begin developing a persona for your target market by summarizing demographic characteristics.

Now that you’ve selected your product and researched your target market, you’re ready to use your notes to develop a persona.

A persona is one representative member of a target market. For example, if your target market is “athletes in their thirties,” then a plausible persona
could be a 34-year-old woman from the Chicago area who plays club soccer. The age, gender, and location of this persona are all demographic
characteristics, which are the focus of the templates on this page. Note that you will specify the name and age of the persona at the very end of this
milestone on the next page.

MULTIPLE-CHOICE QUESTION

Create a Demographic Profile for the Persona

NOTIFICATIONS

You have selected your product and researched your target market. What are you going to do
now?

Correct. Now that you’ve selected your product and researched your target market, you’re

ready to use your notes to develop a persona for your target market. Remember that a

persona is one representative member of a target market.

Saved moments ago.

develop a persona for your target market

write up your notes on your target market

determine what to call your target market

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You have learned how marketers use both demographics and psychographics to develop a comprehensive understanding of a target market.
Demographics are used to segment buyers by personal characteristics, such as their ages, income levels, ethnicities, and family sizes. Using the following
templates, you will apply your knowledge to create a demographic profile for the persona of the target market of the new Chocolate Bliss product.

Unlike the notes you made while researching your target market, your responses to the templates on this page will be

Applied Marketing Strategies

Project
Project Overview

On this page, you’ll review the steps to create the marketing plan components for your course project.

2 Target Markets / Page 2.13 Project: Project Overview
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Objective: Review the scenario for your course project and the steps you’ll take to create it.

Now that you’ve been introduced to the 4 Ps of marketing and considered how to build a customer persona for a target market, you are ready to put this
information into practice by working on your MKT 205 course project.

Review the Project Scenario

Throughout this course, you will create a marketing plan components document as your course project. This project will give you an opportunity to apply
the marketing concepts you are learning in each module and will be completed over several weeks. The scenario below provides important background
information for the marketing plan components you will develop.

MULTIPLE-CHOICE QUESTION

Review the following scenario to learn important background information for your project.

Project Scenario

NOTIFICATIONS

What will you create for your course project?

Correct. You will create a marketing plan components document as your course project.

Last change saved 1 minute ago.

a marketing plan components document

a television commercial for a new product

a new version of a psychographic survey

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Chocolate Bliss started as a small family-owned store in Seattle, Washington, in 1976. While once a boutique chocolatier selling handmade “secret family
recipe” chocolate bonbons, the company today has a wider variety of product offerings, including boxed chocolate candies, chocolate baking products,
and carob (chocolate alternative) candies and health bars. Chocolate Bliss products are sold online and in their stores to consumers and other businesses,
specifically grocery stores, throughout the Northwest.

The company has maintained its “secret family recipe” brand, even as it has expanded its product offerings, and today enjoys strong brand awareness in
the states where it is sold.

The company’s primary competitors are:

• Ghirardelli Chocolate Company: Chocolate Bliss’s higher-price-range baking products, sold to grocery stores, compe

Applied Marketing Strategies

2 Target Markets / Page 2.10 Target Market Strategies
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Target Market Strategies

Now that you’ve learned how companies segment markets, you might ask yourself: How many market segments should a company target? That depends.
Companies must consider their profit, the competition, and a host of other factors when selecting markets to target.

Selecting Target Markets

After you segment buyers and develop a measure of consumer insight about them, you can begin to see those that have more potential. Now you are
hunting with a rifle instead of a shotgun. The question is, do you want to spend all day hunting squirrels or ten-point bucks? An attractive market has the
following characteristics:

• It is large enough to be profitable given your operating cost. Only a tiny fraction of the consumers in China can afford to buy cars.
However, because the country’s population is so large (more than 1.4 billion people), more cars are sold in China than in Europe or the United
States.23

• It is growing. The middle class of India is growing rapidly, making it a very attractive market for consumer products companies. People under
thirty make up the majority of the Indian population, fueling the demand for “Bollywood” (Indian-made) films.

• It is not already swamped by competitors, or you have found a way to stand out in a crowd. IBM used to make PCs. However, after the
marketplace became crowded with competitors, IBM sold the product line to a Chinese company called Lenovo.

• Either it is accessible or you can find a way to reach it. Accessibility, or the lack of it, could include geographic accessibility, political and
legal barriers, technological barriers, or social barriers. For example, to overcome geographic barriers, the consumer products company Unilever
hires women in developing countries to distribute the company’s products to rural consumers who lack access to stores.

• The company has the resources to compete in it. You might have a great idea to compete in the wind-power market. However, it is a business
that is capital intensive. What this means is that you will either need a lot of money or must be able to raise it. You might also have to compete with
the likes of T. Boone Pickens, an oil tycoon who is attempting to develop and profit from the wind-power market. Does your organization have the
resources to do this?

• It “fits in” with your company’s mission and objectives. TerraCycle has made its mark by selling organic products in recycled packages.
Fertilizer made from worm excrement and sold in discarded plastic beverage bottles is just one of the company’s products. So, it probably wouldn’t
be a good idea for TerraCycle to open up a polluting, coal-fired power plant, no matter how profitable the market for the service might be.

Applied Marketing Strategies

2 Target Markets / Page 2.11 Concentrated Marketing
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Concentrated Marketing

Some businesses—especially smaller ones with limited resources—engage in concentrated marketing. Concentrated marketing involves targeting a very
select group of customers. Concentrated marketing can be a risky strategy because companies really do have all their eggs in one basket. The auto parts
industry is an example. Traditionally, many North American auto parts makers have supplied parts exclusively to auto manufacturers. But when General
Motors, Ford, Chrysler, and other auto companies experienced a slump in sales following the recession that began in 2008, the auto parts makers found
themselves in trouble. Many of them began trying to make and sell parts for wind turbines, solar panels, construction equipment, and aerospace tools.24

MULTIPLE-CHOICE QUESTION

Niche marketing involves targeting an even more select group of consumers. When engaging in niche marketing, a company’s goal is often to be a big fish
in a small pond instead of a small fish in a big pond.25 For example, Tetra, a tropical fish-food manufacturer, has 80 percent of the world’s market.
Likewise, the market for harmonicas isn’t huge, but the Hohner Company nearly owns it with about 85 percent of the world’s harmonica sales.26

NOTIFICATIONS

Why is concentrated marketing a risky strategy for a company?

Correct. Concentrated marketing—which involves targeting a very select group of

customers—can be a risky strategy because companies have no other sources of revenue. If

the targeted customers stop buying, the company has no revenue.

Saved moments ago.

If the targeted group of customers likes the product, they will try to create their own

version.

If the targeted group of customers grows, the company must increase production.

If the targeted group of customers stops buying, the company has no other source of

revenue.

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Applied Marketing Strategies

2 Target Markets / Page 2.6 Segmenting by Demographics: Income and Gender
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Segmenting by Demographics: Income and Gender

Income

Millennials might appear to be a very attractive market when you consider they will be buying products for years to come and there are more millennials
than any other demographic group. But would you change your mind if you knew that baby boomers account for 50 percent of all consumer spending in
the United States? Americans over 65 now control nearly three-quarters of the net worth of U.S. households; this group spends $200 billion a year on
major “discretionary” (optional) purchases such as luxury cars, alcohol, vacations, and financial products.13

Income is used as a segmentation variable because it indicates a group’s buying power and may partially reflect their education levels, occupation, and
social classes. Higher education levels usually result in higher paying jobs and greater social status. The makers of upscale products such as Rolexes and
Lamborghinis aim their products at high income groups. Louis Vuitton, Christian Dior, and Prada are brands that have luxury suites with rooftop views,
fine art, and tanning areas in some of their stores. High-income customers are given access to the suites to keep them shopping longer and buying more
products.14

MULTIPLE-CHOICE QUESTION

NOTIFICATIONS

Americans over 65 control about how much of the net worth of U.S. households?

Correct. Since Americans over 65 control around three-quarters of the net worth of U.S.

households, they are a very powerful consumer spending group.

Saved moments ago.

one-half

three-quarters

one-third

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Applied Marketing Strategies

Feature
Guide to Personas

On this page, you’ll learn about personas and how they’re used to represent target markets.

2 Target Markets / Page 2.12 Feature: Guide to Personas
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Earlier, you may have struggled a bit when you had to decide which product benefits to highlight, based on the target market information in the
Demographics vs. Psychographics illustration. That’s because the way the information collected about a target market is conveyed is just as important as
the information itself. Marketers develop personas to convey information about target markets using images or illustrations and text. A persona is a
“portrait” of a typical example of an actual person who is a part of the target market.

MULTIPLE-CHOICE QUESTION

Read the following article about personas and how to develop them, and answer the question below each section.

Medium
The Beginner’s Guide to Creating Marketing Personas
Do you know who your customer really is?
By Jennifer Clinehens
June 11, 2019

NOTIFICATIONS

What is a persona in marketing?

Correct. A persona in marketing is a depiction of a person who is representative of a target

market.

Last change saved 1 minute ago.

a celebrity who represents a company brand

a portrait of a typical member of a target market

a picture of the person the customer wants to be

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Personas are often met with opposition because they’re a lot of work to assemble, and once assembled they are living, evolving things and
must be maintained.

Like people, buyer personas change over time with the market, t

Applied Marketing Strategies

2 Target Markets / Page 2.2 Targeted Marketing vs. Mass Marketing
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Targeted Marketing vs. Mass Marketing

The segment(s) or group(s) of people and organizations you decide to sell to is called a target market. Targeted marketing, or differentiated marketing,
means that you differentiate some aspect of your marketing (the product, promotion, and/or price) based on different groups of customers. It consists of
tailoring a message and aiming it at one type of customer using select channels. Targeted marketing is a relatively new phenomenon.

Mass marketing, or undifferentiated marketing, came first. It evolved alongside mass production and involves selling the same product to everyone on
every medium available, as often as you can afford to do so.1

You could forget about buying a custom Model T from Ford in the early 1900s. The good news was that the standard model was very affordable.

Unknown author/Wikimedia

Automaker Henry Ford was very successful at both mass production and mass marketing. Ford pioneered the modern-day assembly line early in the 20th
century, which helped him pump out huge numbers of identical Model T automobiles in a cost-effective manner. They came in only one color: black. “Any

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customer can have a car painted any color he wants, so long as it is black,” Ford used to joke. He also advertised in every major newspaper and persuaded
all kinds of publications to carry stories about the new, inexpensive cars. By 1918, half of all cars on America’s roads were Model Ts.2

Applied Marketing Strategies

2 Target Markets / Page 2.5 Segmenting by Demographics: Age
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Segmenting by Demographics: Age

At this point in your life, you are probably more likely to buy a car than a funeral plot. Marketing professionals know this. That’s why they try to segment
consumers by their ages. You’re probably familiar with some of the age groups most commonly segmented in the United States. Into which category do
you fall?

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U.S. Generations and Characteristics

Generation Birth Years Characteristics

Seniors
(aka “The Silent Generation,” “Matures,”
“Veterans,” and “Traditionalists”)

1945 and prior

• Experienced very limited credit growing up
• Tend to live within their means
• Spend more on health care than any other age group
• Internet usage rates increasing faster than any other group

Baby Boomers 1946–1964

• Second-largest generation in the United States
• Grew up in prosperous times before the widespread use of credit
• Account for 50 percent of U.S. consumer spending
• Willing to use new technologies as they see fit

Generation X 1965–1979

• Comfortable but cautious about borrowing
• Buying habits characterized by their life stages
• Embrace technology and multitasking

Millennials
(aka “Generation Y” and “Echo Boomers”)

1980–2000

• Largest U.S. generation
• Grew up with credit cards
• Adept at multitasking; technology use is innate
• Ignore media irrelevant to them

Generation Z
(aka “Generation i,” “Pluralists”; includes
“Tweens”)

2001–

• Most digitally attuned generation
• Use social media to validate themselves and gain acceptance
• Are practical, ambitious, and desire independence

Data from U.S. Census Bureau, http://www.census.gov/population/www/popdata.html; Richard K. Miller and Kelli Washington, The 2009 Entertainment,
Media & Advertising Market Research Handbook, 10th ed. (Loganville, GA: Richard K. Miller & Associates, 2009), 157–66; Sydney Jones and Susannah

Fox, “Generations Online in 2009,” Pew Research Center, http://www.pewinternet.org/Reports/2009/Generations-Online-in-2009.aspx; Maria Paniritas,
“Generation Gap: Boomers, Xers Are Reining in Spending,” Philadelphia Inquirer, August 2, 20

Applied Marketing Strategies

2 Target Markets / Page 2.8 Segmenting by Psychographics
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Segmenting by Psychographics

If your offering fulfills the needs of a specific demographic group, then the demographic can be an important basis for identifying groups of consumers
interested in your product. What if your product crosses several market segments? For example, the group of potential consumers for cereal could be
“almost” everyone, although groups of people may have different needs with regard to their cereal. Some consumers might be interested in the fiber,
some consumers (especially children) may be interested in the prize that comes in the box, other consumers may be interested in the added vitamins, and
still other consumers may be interested in the type of grains. Associating these specific needs with consumers in a particular demographic group could be
difficult. Marketing professionals want to know why consumers behave the way they do, what is of high priority to them, or how they rank the importance
of specific buying criteria. Think about some of your friends who seem a lot like you. Have you ever gone to their homes and been shocked by their
lifestyles and how vastly different they are from yours? Why are their families so much different from yours?

Marketers use psychographic characteristics to group consumers based on what’s important to them. “Experiencers” are a category of consumers who seek
excitement and enjoy exercise, sports, outdoor recreation, and social activities.

Getty Images

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Psychographic segmentation can help fill in some of the blanks. Psychographic information is frequently gathered via extensive surveys that ask people
about their activities, interests, opinions, attitudes, values, and lifestyles. One of the most well-known psychographic surveys is VALS (which originally
stood for “values, attitudes, and lifestyles”) and was developed by a company called SRI International in the late 1980s. SRI asked thousands of
Americans the extent to which they agreed or disagreed with statements similar to the following: “My idea of fun at a national park would be to stay at an
expensive lodge and dress up for dinner” and “I could stand to skin a dead animal.”20 Based on their responses to different statements, consumer

Applied Marketing Strategies

2 Target Markets / Page 2.7 Segmenting by Demographics: Ethnicity
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Segmenting by Demographics: Ethnicity

Marketers appeal to people of different ethnicities with different marketing mix strategies. Today more companies are taking an ethnicity-inclusive approach to
marketing by presenting messages that are welcoming to everyone.

Nicky J. Sims/Getty Images

Marketers believe that people’s ethnic backgrounds have a big impact on what they buy. If you’ve visited a grocery store that caters to a different ethnic
group than your own, you were probably surprised to see the types of products sold there. It’s no secret that the United States is becoming—and will
continue to become—more diverse. Hispanic Americans are the largest and the fastest growing minority in the United States, and they tend to be very
brand loyal. Companies are going to great lengths to court this group. In California, the health care provider Kaiser Permanente runs television ads letting
members of this segment know that they can request Spanish speaking physicians and that Spanish speaking nurses, telephone operators, and translators
are available at all of its clinics.16

African Americans are the second largest minority group in America with the second highest buying power of any ethnic minority group in America.

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Many people of Asian descent are known to be early adopters of new technology and have above average incomes. As a result, companies that sell
electronic products, such as AT&T, spend more money segmenting and target

Applied Marketing Strategies

2 Target Markets / Page 2.3 Targeting Current Customers
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Targeting Current Customers

Finding and attracting new customers is generally far more difficult than retaining your current customers. Think about how much time and energy you
spend when you switch your patronage from one business to another, even when you’re buying something as simple as a haircut. If you aren’t happy with
your hairdresser and want to find a new one, you first have to talk to people with haircuts you like or read reviews of salons. Once you decide on a
particular salon, you have to find it and explain to the new hairdresser how you want your hair cut and hope they get it right. You also have to figure out
what type of payment the new salon will accept and whether tips can be put on your credit card. Likewise, finding new customers, getting to know them,
and figuring out what they really want is a difficult process fraught with trial and error. That’s why it’s so important to form close relationships with
current customers and to focus your selling efforts on them.

Backroads, a California company focused on adventure-based travel, increased its revenues by creating personalized marketing campaigns for people who
had done business with the company in the past. Backroads looked at customers’ past purchases, the seasons in which they took their trips, the levels of
activity associated with them, and whether customers tended to vacation with children. Based on their findings, Backroads created three relevant trip
suggestions for each customer. They then sent postcards and emails with links to customized webpages reminding each customer of the trips they had
previously booked with Backroads and suggesting new ones. “In terms of past customers, it was like off-of-the-charts better [than past campaigns],” says
Massimo Prioreschi, the vice president of Backroads’ sales and marketing group.5

NOTIFICATIONS

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