Basic Marketing Concepts

What we are learning… Functions of Marketing The Marketing Concept History of Marketing the 4P’s Economic Utilities- how to add value to products Need vs. want Customer vs. consumer Good vs. service Unit 1, Chapter 2

Marketing Concept The idea that you must satisfy a customers’ needs and wants in order to make a profit. Businesses must have the right goods and services at the right time, at the right price and at the right place. Plus they must communicate this to their customers.

Who’s in the Market? The people who share similar needs and wants and have the ability to purchase your product. Types of Markets Industrial vs. Consumer Qualifications Willing and Able

Deciding how to reach the Market Target Marketing Mass Marketing Niche Marketing Unit 1, Chapter 2

Target Market Target Marketing -- Involves focusing marketing decisions on a specific group of people you want to reach with your product. Identify who you are going to focus your marketing efforts on

Other types of Marketing Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and appeal to whole market with one offer or one strategy (single marketing strategy to reach all customers) Niche Marketing Opposite of Mass Marketing Niche marketing targets a very specific segment of market. Markets are clearly defined. They offer very specialized services or goods with few or no competitors. Got Milk Ads that use one slogan in their advertising will use different models or themes to reach different segments of the market. Unit 1, Chapter 2

Why Target Marketing? Marketers understand that not all products appeal to everyone They must look for and identify those people who might have an interest or need for their product Those people have to be able to pay Unit 1, Chapter 2

Determine Your TM Determine your Market Divide consumers who are willing and able into groups of people with similar characteristics. MARKET SEGMENTATION= SEGMENTING THE MARKET Unit 1, Chapter 2

Market Segmentation Analyzing a market by specific characteristics in order to create a target market. Create a customer profile To do this, businesses identify different characteristics of who is most likely to purchase their products. Segment market by demographics, psychographics, geographics, and product benefits.

Demographic Segmentation Market segmentation based on your target market’s personal characteristics. Includes gender age income level occupation ethnic background education level

Psychographic Segmentation Market segmentation based on your target market’s lifestyles and personality characteristics. Includes attitudes values activities interests Unit 1, Chapter 2

Geographic Segmentation Market segmentation based on where your target market lives. Includes local markets regional markets national markets global markets Unit 1, Chapter 2

Benefit Segmentation Market segmentation based on benefits your target market expects to receive or gain from products. Includes added protection health issues special needs Unit 1, Chapter 2

Now we Know our Customers, What do we do now? We cater to them!!! Unit 1, Chapter 2

The 4 P’s of the Marketing Mix Product Place Price Promotion Unit 1, Chapter 2

The Marketing Mix is comprised of four basic marketing strategies, collectively known as the “Four P’s.” The Marketing Mix is dependent on how well the target market is defined and how well all strategies are directed toward that target audience!

Product Knowing what product to make, how to package it, what brand name to use, and what image to project. Unit 1, Chapter 2

Place Determines how and where a product will be distributed. Unit 1, Chapter 2

Price Should reflect what customers are willing and able to pay. Nike Men's Shox TL 2 $149.99 Unit 1, Chapter 2

Promotion Deals with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy. Unit 1, Chapter 2

Marketing Mix Triangle Activity Unit 1, Chapter 2

External Environment Affects the target market Affects the marketing mix decisions

External Factors of Concern Economy Political Competition SWOT Analysis Strengths Weaknesses Opportunities Threats Business Cycle Ethical Issues New Technology Government Regulations International Markets

Any Questions? Unit 1, Chapter 2