The Marketing Concept Businesses must satisfy customers’ needs and wants in order to make a profit
Customers vs. Consumers Customers – buy the product Consumers – are those who actually use the product
What is a Market? All potential customers who share common needs and wants, and who have the ability and willingness to buy the product.
Important Terms Target marketing – is focusing all marketing decisions on a very specific group of people who you want to reach. The more information you have on your target market, the easier it is to make the marketing decisions. .
What profile are you? Customer Profile- can include information about the target market in regard to age, income level, ethnic background, occupation, attitudes, lifestyle, or geographic residence of the targeted customer.
Marketing Mix The 4 P’s Product Place Price Promotion
Market Segmentation A way of analyzing a market by specific characteristics in order to create a target market. To accomplish that goal, businesses may segment a market by: Demographics Psychographics Geographic's Product benefits.
Demographics Refers to statistics that describe a population in terms of personal characteristics. Age Generation differences-tracking a group over their lifetime pays off for businesses. Matures, born between 1920-1946 Baby Boomers, born between 1946-1964 Generation X, born between 1965-1976 Generation Y or Millennials, born between 1977-1997 Get a text book go to page 24. Your group will share information with the class.
Gender Of course gender specific marketing is important too. Would you buy Right guard on accident if you didn’t know it was made for a man?
Disposable income- money left after taking out taxes Disposable income- money left after taking out taxes. Marketers who produce and distribute products that are necessities are interested in changes in disposable income. Discretionary income- is the money left after paying for basic living necessities such as food, shelter, and clothing. Marketers who sell luxury products are interested in changes in discretionary income. In 2000 approx. 8 million households reported income of $100,00 or more. This group accounts for ½ of all discretionary spending in the US. Income Marketers want to know how much money is available for spending on different products.
Ethnic Backgound The US population is very diverse as a result of increased immigration. The caucasian population is decreasing Combined the African-American, Hispanic, and Asian-American population makes up 38% of the US population. What products/services have been developed to target the diverse markets?
Pychographics Involves studies of consumers based on social and psychological characteristics. People’s attitudes and what they value are important to marketers. Trends- Healty eating, green living, Best-life etc.
Geographics Segmenting the market based on where people live. You may want to advertise to the local, nation, or even to the global market.
Product Benefits Studying consumers’ needs and wants. Sports markets study separate market segments like jogging, basketball, baseball, walking etc. Diet and caffeine-free soft drinks.