150 Marketing Dynamics Copyright Goodheart-Willcox Co., Inc. target market customers supports the 80/20 rule of business. The 80/20 rule is a basic guideline that e states 80 percent of the sales for a business comes from 20 percent of its customers. This can also save money in the budget when marketing dollars are spent focusing on customers who are most likely to buy rather than a larger group of people who may or may not be interested. Research has found that customers in the same market segments have similar buying patterns and behaviors. This creates an advantage because the promotion can be customized for the people receiving it. However, targeting certain market segments can also be a disadvantage because the promotion pieces may require more time to focus the message on what the market segment wants. It may also cost more money to get contact informa- tion for a small segment of the market rather than sending the promotion out to the mass market. A niche market is a portion of a market segment that is very narrow and specific. For example, the market for high-performance, exotic sports cars is a specific portion, or niche, of the sports car target market. Niche markets are often identified by businesses looking for customers whose needs or wants are not being met. Niche markets can be small or large, but they are very specific and can be very profitable. The segments of a market are determined by certain variables. The variables used for market segmentation are geographic, demographic, psychographic, and behavioral. Within those groups, customer types can be refined even further by using additional variables. Geographic Segmentation Customer product needs can vary based on where they live. Segmenting a market based on where customers live is geographic segmentation. This also includes how far customers will travel to make purchases or conduct business. Customers can be segmented by region, climate, or popula- tion density. Region Customers in one region often need different products from those in other areas. For example, people in countries who drive on the right side of the road must have cars with steering wheels on the left side of the vehicle. Vehicles sold in coun- tries where people drive on the left side must have steering wheels on the right. Therefore, a company producing cars for the global market would segment it by countries needing left-side and right- side steering wheels. Climate Climate has a large impact on what customers need. Customers who live in climates where it never gets colder than 60°F (15.5°C) do not need thick, warm coats. Customers who live in areas where the average winter temperature is 20°F (–6.7°C) do need warmer coats. Therefore, a coat manufacturer might segment its market based on average winter temperatures. Population Density Customers may be grouped according to the population density of the area in which they live. These geographic segments are urban, suburban, and rural. If a product appeals to people working on a ranch, the target market may be rural. If a product appeals to people who live in larger cities, the target market is likely urban. Demographic Segmentation Demographics are the qualities, such as age, s gender, and income, of a specific group of people. Demographic segmentation is dividing the market of potential customers by their personal statistics. The United States conducts a population census every ten years. A census is a count of the s people in a country made by the government on a regular basis. Some of the census data collected includes age, gender, income, ethnicity, educa- tion level, occupation, marital status, and family size. The governmental agency that performs the census is the US Census Bureau. Positive Attitude Professionals exhibit a positive attitude in their job performance and workplace interactions. At- titude is how personal thoughts or feelings affect a person’s outward behavior. It is a combination of how you feel, what you think, and what you do. At- titude is how an individual sees himself or herself, as well as how he or she perceives others. Employability Skills