Marketing Concept Satisfy customer’s needs and wants Do it better than the competition

Utility Utility – added value in economic terms Form Place Time Possession Information

Vocabulary Customers – those people who buy the product Consumers – those people who use the product Market – all potential customers who share common needs and wants and who have the ability and willingness to buy

Marketing Mix (5 P’s) Product Price Place Promotion People

Marketing Mix Model People PricePlacePromotionProduct

Product Strategy What product to make How to package it What brand name to use What image to project

Place Strategy How and where to distribute

Price Promotion How much to charge Cost vs. Price Pricing Methods

Promotion Strategy How to tell customers about product What will that message be When and where is the product available

People Target market – focus marketing decisions on a very specific group of people Must be very specific Market Segmentation –Demographics –Psychographics –Geographics –Product Benefits

Demographics Personal characteristics that describe a population May Include: –Age –Gender –Income Disposable vs. Discretionary –Race

Psychographics Describes the way a population thinks and acts May include: –Sports enthusiasts –Extremists –Conservatives –Movers and shakers

Geographics Where a population lives May Include: –Rural –Urban –Cold climate –Warm climate –Rainy –Dry

Product Benefits Population that uses product based on benefits May Include –Specialty shoes (ie. Football shoes, basketball shoes) –Diet soda