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

Understand buying behaviors. Objective 3.02 Understand buying behaviors.

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

Marketing Strategy What does a marketing strategy provide for a business? Two steps of a marketing strategy: Identify a target market Create a marketing mix 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)

Common characteristics used to classify customers include: age gender income level buying habits occupation or industry marital status family status (children or no children) geographic location ethnic group political affiliations or leanings, and hobbies and interests. Target Markets

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

Major Sources of Consumer Information

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

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

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

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 Customer Service Departments Better Business Bureau (BBB) 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.

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?

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

Shopping Locations

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

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

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

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

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