AIM: What is the marketing mix? Do Now: Devise a list of 3-4 of your favorite products (ie/clothing, electronic, etc.) Why are these items so special to you?

The Market Customers v. Consumers All potential customers who share common needs and wants, and who have the ability and willingness to buy the product Customers = buy the product Consumers = use the product Businesses focus on their target market Customers v. Consumers

Marketing Concept At the Right Time At the Right Price At the Right Businesses must satisfy customers’ needs and wants in order to make a profit Focus on target market At the Right Place At the Right Price Right Goods/ Services At the Right Time PROFIT Communicate to Customers

TARGET MARKET Focusing all marketing mix decisions on the specific group of people you want to reach

Marketing Mix/4 P’s of Marketing Product what product to make how to package it what brand name to use what image to project Price what customers are willing and able to pay Place how and where a product will be distributed Promotion how potential customers will be told about the new product what will the message be (ie/when and where will product be delivered, incentives to buy product)

Aim: Why is understanding your target market important? Do Now: Pass up your homework and answer the following question: What is a Target Market? Activity – “Who is the Target”? And for later… What is the importance of a target market?

Think about it - After doing this activity, what conclusion can you come to as to what is the importance of a target market?

AIM: Why is understanding your target market important? Do Now: Describe the TARGET MAKRET of the following iPhone 7 commercials Morning Ride Midnight

Today’s Activity You will be getting an article at random on one of the following: Samsung “Family Hub” Keurig “Keurig Kold” Amazon “Dot” Read the article and answer questions # 1 & 2 ONLY Meet up with others who have the same article Discuss who you think they are targeting and if you think this product will be a success in this target market After your discussion, answer question #3 by yourself Share with class

Market Segmentation Keurig Kold Samsung Family Hub Amazon Dot

How do you feel about the cartoon? Do you think you are targeted by advertisers? Explain.

Market Segmentation A way of analyzing a market by special characteristics in order to create a target market. Demographic Psychographic Geographic Product Benefits

1. Demographics Describe a population in terms of personal characteristics Age Gender Income Ethnic Background Occupation

Control $2.6 trillion and have about 51% of the wealth in the US Prime targets for luxury and recreational items Skeptical Consumers Better educated than previous generations Financially conservative Use Electronics Less spending power Excellent at Multitasking Huge influence on spending / buying

Generation Z Generation Z / Generation I / Internet Generation ­­­Most are children of Generation X Never lived without the internet, cell phones Digital Natives Smaller Families Longer life expectancy Will be the most educated.

Who do you think marketers target / why? Millennial’s Huge influence on buying power Build brand loyalty Optimistic / Confident / Social http://www.goldmansachs.com/our-thinking/pages/millennials/

The Generation Gap How does the cartoon below reflect the different generations? The Intern Trailer: https://www.youtube.com/watch?t=12&v=ZU3Xban0Y6A

Gender Marketing specific products to specific genders…OR…. Gender neutral products use different types of advertisements/spokespeople Companies can enter other gender’s market

Income Disposable Income = the money left after taking out taxes; marketers who distribute products that are necessities Discretionary Income = money left over after paying for basic living necessities; marketers who sell luxury products

Ethnic Background US population becoming more multicultural and ethnically diverse You need to make sure your place of business adapts

2. Geographics segmentation of the market based on where people live; local, regional, national, or even geographic markets Test markets https://www.youtube.com/watch?v=xiImi5k9Ges

3. Product Benefits Companies market benefits, not just the physical characteristics of a product

4. Psychographics studies of consumers based on social and psychological characteristics; people’s attitudes and values, lifestyles—how people spend their money and time TRENDS Airhead bites

Do Now: 10/7 What are some product benefits and trends people ages 23-36 are looking for when it comes to food?

Activity: Read the McDonald’s article Activity: Read the McDonald’s article. Be prepared to discuss your answers.

WHO IS BEING TARGETED BY EACH OF THE FOLLOWING ADVERTISEMENTS WHO IS BEING TARGETED BY EACH OF THE FOLLOWING ADVERTISEMENTS? MAKE SURE TO USE MARKET SEGMEENTATION!

HOW DO BUSINESSES UTILIZE THE MARKETING MIX? Do Now: Review the 4P’s Homework Assignment Today’s Agenda – Surge Article

Market Segmentation Keurig Kold Samsung Family Hub Amazon Dot

Activity: Read the article and answer the questions that follow. HOW DO BUSINESSES UTILIZE THE MARKETING MIX? Do Now: Review the 4P’s Homework Assignment Cnn money - http://www.youtube.com/watch?v=-uuF9Ny_DW0 Surge is back - http://www.youtube.com/watch?v=_9dFi-wVwqw http://www.cbsnews.com/news/popular-1990s-surge-soda-makes-a-comeback/ Activity: Read the article and answer the questions that follow.

Hot Topic Target new price match policy