Chapter 1 marketing is all around us Section 1.1 Marketing and the Marketing Concept Section 1.2 The Importance of Marketing Section 1.3 Fundamentals of Marketing

Fundamentals of Marketing Section 1.3 Do Now What stores do you shop at the most? consumer goods, restaurants, etc. What type of products are you most interested in purchasing?

Fundamentals of Marketing Section 1.3 Describe how marketers use knowledge of the market to sell products. Compare and contrast consumer and organizational markets. Explain the importance of target markets. Explain how each component of the marketing mix contributes to successful marketing.

Fundamentals of Marketing Section 1.3 The term market refers to all the people who might purchase a product. Determining who might buy your product (target market) is an important element of marketing. The marketing mix (4 P’s) is a combination of elements used to sell a product to a specific target market.

Fundamentals of Marketing Section 1.3 market consumer market organizational market market share target market customer profile marketing mix

Fundamentals of Marketing Section 1.3 What is a market? You could be part of the market for video games, but not be part of the market for an expensive car. market All people who share similar needs and wants and who have the ability to purchase a given product.

Fundamentals of Marketing Section 1.3 Market and Market Identification Consumer Market Organizational Market versus consumer market Consumers who purchase goods and services for personal use. organizational market Also known as business-to-business (B2B), this includes all businesses that buy products for use in their operations.

For the most part, consumers are interested in products that Consumer Market Consumers’ needs and wants generally fall into a few categories that reflect their lifestyles. For the most part, consumers are interested in products that Save them money Make their lives easier Improve their appearance Create status in the community Or provide satisfaction

Fundamentals of Marketing Section 1.3 Market and Market Identification market share A company’s percentage of the total sales volume generated by all companies that compete in a given market U.S. Smartphone Market Share

Fundamentals of Marketing Section 1.3 Market and Market Identification The goal of market segmentation is to identify target markets. market segmentation The process of classifying people who form a given market into even smaller groups. target market The group of people most likely to become customers, identified for a specific marketing program.

Fundamentals of Marketing Section 1.3 Personal Customer Profile Information in Customer Profile customer profile Information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes, lifestyle, and behavior.

What’s Average? “Average” Shampoo? Hello Hydration Tousle Me Softly Totally Twisted Touchably Smooth Hydralicious Color Me Happy Long Term Relationship Non Of Your Frizzness Body Envy Drama Clean Businesses recognize that consumer needs and wants vary, so they develop different goods, services, and promotional appeals to specific target markets

Fundamentals of Marketing Section 1.3 Personal Customer Profile Information in Customer Profile customer profile Information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes, lifestyle, and behavior.

Fundamentals of Marketing Section 1.3 Marketing Mix Product Four Ps of the Marketing Mix Price Place marketing mix The four basic marketing strategies called the four P’s: product, place, price, and promotion. Promotion

Target Market The marketing mix is used to communicate with and reach a business’ intended target market Strategies surrounding each “P” are made with regard to the best way to reach, satisfy, and keep customers

Begins with choosing what products to make and sell The product is more than just a physical good It also includes: Brand name Packaging Accessories Services which increase customer satisfaction

Also need to decide what to do with products already in existence Improving upon, updating, etc. EX. V8 has been around for over 75 years. Currently they have expanded to offer V8-Fusion, which is an alternative for adults who do not like the taste of the original V8.

Price Amount customers are willing to pay for products Amount business are willing to sell their products for in order to make a profit Consumers compare prices to the satisfaction they believe they will receive When satisfaction is greater than price, consumers make purchases

Determines how and where a product will be distributed Place Determines how and where a product will be distributed Several decisions need to be made when planning product distribution. Where will products be sold? How will we get them there? How will they be packaged and protected?

Promotion How marketers tell potential consumers about a company’s products and convince them to purchase Advertising – information paid for by business to reach large number of prospective customers Sales promotions – incentives for customers to buy products (coupons, contests, free samples) Publicity – information not paid for by the business Personal selling – direct, personal communication between a salesperson and customer to encourage the purchase of a product

Fundamentals of Marketing Section 1.3 Marketing Mix Forms of Promotion

Fundamentals of Marketing Section 1.4 Section 1.3 1. Identify a market in which a business would consider you a potential customer. Possible answers would be: fast food chains (i.e. McDonalds, Burger King), cell phones, jeans manufacturers, specific retail stores such as The GAP and Abercrombie & Fitch. These businesses carry items that appeal to teenagers, so teens are one of their target markets.

Fundamentals of Marketing Section 1.4 Section 1.3 2. Contrast What is the main difference between consumer and organizational markets? The consumer market consists of people who buy goods and services for personal use. In the organizational market, goods and services are purchased for use in a business operation.

Fundamentals of Marketing Section 1.4 Section 1.3 3. Explain Why is it important for businesses to find their target market? Target markets allow for businesses to develop a successful marketing mix towards a specific group of people with similar wants and needs.

Chapter 1 marketing is all around us Section 1.1 End of Chapter 1 marketing is all around us Section 1.1 Marketing and the Marketing Concept Section 1.2 The Importance of Marketing Section 1.3 Fundamentals of Marketing