Business 12th Edition by William Pride,Robert Hughes,Jack Kapoor

Exercise 3

DEVELO PING CRITICAL-THINKING SKILLS
Market segmentation is the process of breaking down a larger target market into smaller segments. One common base of market segmentation is demographics. Demographics for the consumer market, which consists of individuals and household members who buy goods for their own use, include criteria such as age, gender, race, religion, income, family size, occupation, education, social class, and marital status. Liz Claiborne, Inc., retailer of women's apparel, uses demographics to target a market it calls Liz Lady. The company knows Liz Lady's age, income range, professional status, and family status, and it uses this profile to make marketing decisions. Assignment
1. Identify a company that markets to the consumer.
2. Identify the company's major product.
3. Determine the demographics of one of the company's markets.
a. From the list that follows, choose the demographics that apply to this market. (Remember that the demographics chosen must relate to the interest, need, and ability of the customer to purchase the product.)
b. Briefly describe each demographic characteristic.

4. Summarize your findings in a statement that describes the target market for the company's product.