Fundamentals of Marketing Chapter 1, Section 3

Critical Thinking… Take 2-3 minutes to reflect on one recent marketing trend you have noted (either through the media or by your own observation) You will share your observation in a few minutes! 8/29/2018

Key Terms Market Consumer market Industrial market Market share Target market Customer profile Marketing mix 8/29/2018

Market and Market Identification FYI: There are A LOT of terms in this section that are important for your future studies in Marketing…PAY ATTENTION AND TAKE GOOD NOTES! 8/29/2018

The Reality… Marketers know that their ________or services _______appeal to__________ It is essential that marketers look for people who: A) have an _______or ____________for their product and, B) have the __________to pay for their product 8/29/2018

Market All people who _________ similar ____and wants and who have the _______to purchase a given product Note: Just because a group of people are in one market does not mean they will all be a part of another. For example, if I am a part of the tennis market, I may not be a part of the SUV market. 8/29/2018

Consumer versus Industrial Markets Consumer Market Consists of consumers who purchase goods and services for personal use Consumers’ purchase goods and services based on these main areas: Save money Make life easier Improve appearance Create status in the community Provide satisfaction related to some other personal motivation 8/29/2018

Consumer Versus Industrial Market Also called ________-to-__________ (B2B) market, includes all businesses that buy products for use in their operations. Goals are _________in this market: Increase__________ Improve__________ Increase_________ Decrease_________ Make their work more efficient 8/29/2018

Consumer versus Industrial Market Companies producing _________for the consumer market classify ______as a part of the industrial market Therefore, these companies require _______distinct marketing plans to reach each market! 8/29/2018

Market Share A market is further defined by the _______ ________in the product category Market Share A company’s _______of total sales _______ generated by all companies that compete in a given market 8/29/2018

Market Share, cont. Knowing one’s market ______helps marketers ______their __________and their status in a given market Market shares change all the time as new _______________enter the market and the size of the _______increases or decreases in volume 8/29/2018

Target Market and Market Segmentation Businesses know that not _____will buy their products or services They look for ways to offer their products or services to the people who are most likely to be________ This involves_________, or breaking the market into smaller groups that have similar wants and needs 8/29/2018

Target Market and Market Segmentation __________goes beyond ____________into the consumer or industrial market Market segmentation _______to find the group of people most likely to become___________ The group that is ________for a specific marketing program is the____________ market 8/29/2018

Target Marketing – Why? Identifying a target market is very important because all marketing _________are directed at this group. When a business fails to ___a target market, its marketing plan has no __________. Identifying a target market correctly is a key to___________. 8/29/2018

Consumers versus Customers A product may have ________than one target market Case Study Example: Build-a-Bear knows they need to target _______and ______differently. 8/29/2018

Consumers versus Customers, cont. Case Study Example, cont.: Children are the_______, the ones who will ask for the bears and play with them Parents are the_________, the ones who need to approve it, and the ones who will pay 8/29/2018

Customer Profiles Lists information about the target market such as _____ _______Level ________Background _________ ________ _________Residence Businesses develop these to get a clear picture of their target market 8/29/2018

Think Critically & Discuss… Work in a group of four (4) to build a customer profile for Dierberg’s You will share with the class in 10 minutes Be prepared to back up your ideas! 8/29/2018

Marketing_______ These are the tools marketing professionals use and control to influence potential customers Include the four basic___’s of marketing strategies: _________ 8/29/2018

Marketing Mix, cont. Some would add a 5th “P”,__________, as it is necessary to have a clearly _________target market before you can create marketing___________ All of the “___’s” are_______________ Actions in one area, affect ________in another 8/29/2018

Product This “P” revolves around making decisions about what to _________and _________ Some marketing strategy examples of this P include: Features of the new iPhone The brand name of a new Nabisco breakfast food How to package a new organic Hershey candy bar What the warranty of a Sony Bravia LCD will entail How to update and improve the Ford Focus so it can remain competitive 8/29/2018

Place The means of getting the product into the _________________’s hands It is important to know where one’s target market__________! Examples of marketing decisions based on place include: Whether a local bakery should build additional stores on the Illinois side of the river Whether Build-a-Bear should create a website where customers can purchase their products Whether Tropicana should have products shipped via air or rail 8/29/2018

Price What is _________(monetarily) for the product This strategy must consider what customers are __________and ______ to pay Examples of pricing strategy decisions include Toyota’s suggested manufacturer’s retail price on the Camry Wal-Mart offering credit terms (i.e., their own credit card) at their stores Hollister having an “End of Summer Sale” on select items 8/29/2018

Promotion Deal with how potential customers will be ______about a company’s products Examples of promotion strategy include The 2010 Nike Shock campaign: The message used (language, style, approach) The media that is used to spread the word about the shoe The special offers Nike will employ to create buzz and business The timing of the campaigns and the product roll-out 8/29/2018

Quick Review… What is the difference between the consumer and industrial markets? What is the relationship among market segmentation, target markets, and customer profiles? Name the four P’s of the marketing mix and explain the importance of a target market for each of them. 8/29/2018