262 Unit 4 Bank Management Terms need want market segment target market advertising marketing promotion cross-selling event-based selling Section 11.1 Marketing and Promotions Objectives After completing this section, you will be able to: • Explain how customer needs and wants are used to identify a target market. • Describe the components of a marketing strategy and how it is developed. Meeting Customer Needs Every consumer has needs and wants. A need is something a person must have to survive, such as food, clothing, and shelter. A want is something a person would like to have, but does not need to survive. The difference between a need and a want is easy to see when comparing the purchase of a house to the purchase of a ring. The house provides shelter, so it fi lls a need. The ring is a want, because you can survive without it. fi How do a bank’s products and services fit into a consumer’s needs and fi wants? Every consumer needs money to purchase or acquire the items that are essential to life. A bank can help consumers save, earn, or borrow money. This helps them get what they need as well as some of what they want. To create a customer from a r consumer, a bank needs to be able to give the consumer what he or she needs. Banks do this by identifying their target market. Identifying a Target Market Banks, like every other kind of business, set up locations in areas where they can get customers. Banks design products and services to help meet the needs of the customers in the community they serve. No matter what product is being sold, not everybody will want to buy it. To reach the right consumers, banks first need to identify them. fi What characteristics do these consumers have in common? Do they have similar incomes? Are they saving money to buy a house? Did they recently buy a car? Knowing the characteristics that possible customers have in common will help identify a market segment. A market segment is a group of consumers that share common wants and needs. The wants and needs of these consumers are different from consumers in other segments. Figure 11-1 shows examples of the four types of market segmentation: demographic, geographic, psychographic, and w he m re ha re ha is w i n Source: Shutterstock (Hannamariah) A n eed is so m eth i n g req u i red to s u rv ive.