Essential Standard 3.00 Understand the role of marketing in business. 1

Objective 3.02 Understand buying behaviors. 2

Topics Marketing Strategy Consumer Decision-Making Process Major Sources of Consumer Information Shopping Locations 3

Marketing Strategy What does a marketing strategy provide for a business? A marketing strategy provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits. A target market consists of a group of people that have similar needs and wants. A marketing mix consist of a blending of the marketing elements (product, price, place, and promotion) Two steps of a marketing strategy: 1.Identify a target market 2.Create a marketing mix 4

Marketing Strategy continued Steps in the consumer decision-making process: 1.Recognize a need or want 2.Gather information 3.Select and evaluate alternatives 4.Make a purchase decision 5.Determine the effectiveness of the decision 5

Major Sources of Consumer Information 6

Product Testing Organizations Test products and services to detect benefits. Examples –Underwriter Laboratories –Association of Home Appliance Manufacturers –Consumers Union (Independent testing organizations) 7

Media Sources Provide specific information about products and services. Types of media sources: –Print Examples Magazines Newspapers –Broadcast Organizations Examples Radio Television –Internet 8

Government Agencies Inform consumers and may handle consumer questions. Types –Federal –State –Local What are some ways that government agencies protect people? 9

Business Sources Business sources are available as a public service and to sell products and services. The main function of advertising is to sell. Types –Product labels provide helpful information about nature of product, how to care for product, where product was made, and the size of the product. –Customer Service Departments focus on assisting customers. –Better Business Bureau (BBB) provide facts about products or services. 10

Business Sources continued What kinds of information has anyone obtained from an advertisement? How was the information obtained from the advertisement used? What product label has someone used recently? How was the information obtained from the product label used? 11

Personal Contacts “Word of mouth” advertising. How do you use personal contacts to learn about new products? 12

Shopping Locations 13

Traditional Retailers Department Stores –What is a department store? Department stores provide broad product lines and highlight their customer service. –What are some examples? Discount Stores –What is a discount store? Discount stores highlight their offering of lower prices for products. –What are some examples? Specialty Stores –What is a specialty store? Specialty stores provide a special line of products. –What are some examples? 14

Traditional Retailers continued Supermarket –What is a supermarket? A supermarket is a large, full service store that offers many brands of products. –What are some examples? Convenience Store –What is a convenience store? A convenience stores provide popular items, offer long operating hours, and are usually located in highly accessible areas. –What are some examples? 15

Contemporary Retailers Specialty Superstores –What is a specialty superstore? A specialty superstore provides a wide variety of limited products at low prices. –What are some examples? Superstores –What is a superstore? A superstore provides a wide variety of products in retail services, such as food, bakery, auto, and electronics. –What are some examples? 16

Contemporary Retailers continued Warehouse Club –What is a warehouse club? A warehouse club provides products in large quantities at practical prices. –What are some examples? Factory Outlets –What is a factory outlet? A factory outlet provides high-quality products at low prices. –What are some examples? 17

Non-Store Shopping What is non-store shopping? –Non-store shopping allows goods and services to be purchased by telephone, computer, television, fax, or door-to- door. What are some examples of non-store shopping opportunities? Another example is vending machines. What are vending machines? –Vending machines provide products through automation. What are some examples of vending machine shopping opportunities? 18

Give one example of each of the following types of stores: Specialty Store Super Store Department Store Supermarket Convenience Store Discount Store Warehouse Club Factory Outlet 19