Chapter 2 Basic Marketing Concepts

Marketing Mix Four P’s or Marketing Product Place Promotion Price

Marketing Concept The Marketing Concept is the idea that in order to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers.

Sales vs. Marketing Oriented Sales Oriented – In the past companies were interested only in making a sale, they held little or no regard for what their customers wanted. Marketing Oriented or customer oriented is when companies focus on customer satisfaction.

What is the difference between a Customer and a Consumer? Who should the company target with its commercials?

Activity #1 Product Customer Ads. Consumer Captain Crunch Cereal Crest Toothpaste Ben & Jerry’s Ice Cream

Marketing adds value to a product. Value – is the satisfaction gained from use of a good or a service. Comparing the price that you pay for a product with all of the benefits that come with it. How does Lexus add value to its products?

Who are my customers? Activity #2 Seventeen Magazine Cadillac Pottery Barn Ann Taylor Golf Digest Rampage Snackwells Cookies

Identifying Customers Market – is the group of all potential customers who share common needs and wants and who have the ability and willingness to buy the product.

Strategies to Promote Products Mass Marketing - using one single marketing plan to reach all consumers. Market Segmentation – dividing the total market into smaller groups of people who share specific needs and characteristics.

What kind of products can be promoted using mass marketing? What kind of products are promoted using market segmentation?

Methods of Segmenting the Market Geographics Demographics Psychographics Product Benefits

Geographics Segmenting the market based on where people live. Local National Global

What businesses should use local segmentation? Why is it important to know where our customers live?

Demographics Statistics that describe a population in terms or personal characteristics. Age Gender Income Ethnic Background Education Occupation

Psychographics The study of consumers based on lifestyle, and the attitudes that shape it. “Cocooning” attitude

Product Benefits Different people use the same product for different uses. Shoes Shampoo Soda

Developing a Customer Profile If you combine all the information that you gathered from the geographic, demographic, and psychographic data you can develop a customer profile.

Golfer Profile Geographic Demographic Psychographic Product Benefits

Reaching Your Customers Once you have a profile and you know who your customers are, then you can target them and position your product in their minds. Target Marketing – focusing all efforts on the specific group of people that you want to reach. Positioning – what you do to get the product into the mind of the prospect!

Ways to Position your Product Play to the Competition’s Weakness BK vs. McDonalds Ads. Look for Underserved Markets Find your niche Lead with your Strengths Real Thing, 1st etc… Target Different Market Segments Godiva vs. Hersheys Markets