T UE. M AY 1 ST You need your class binder and something to write with. We are starting with a new set of notes today on “Marketing Activities”. Marketing Activities PowerPoint & Notes Customer Profile Assignment More notes (sorry) Marketing Mix Assignment BRO Time Today’s Agenda

M ARKETING A CTIVITIES May 1, 2012

O BJECTIVES  Define marketing and describe its purpose.  Explain the marketing concept and market differentiation.  Examine market segmentation characteristics.  Identify the elements of the marketing mix.  Describe the stages of the product life cycle.

W HAT IS M ARKETING ? Marketing activities include: Buying Selling Transporting Storing Financing Research & Information Gathering Risk Taking Grading & Valuing

P URPOSE OF M ARKETING To help connect businesses to their customers!

T HE M ARKETING CONCEPT

M ARKETING C ONCEPT The Marketing Concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business.

M ARKET D IFFERENTIATION Why should consumers choose your product over another?

M ARKET D IFFERENTIATION Your product or brand must stand out as something different from your competitors’ offerings. Market differentiation strategies include: Experience Customer Service Product Price Quality

M ARKET S EGMENTATION Who is most likely to purchase your product?

S TAND U P ! Push in your chair. Line up in the middle of the classroom, from the front to the back. Order does not matter. Listen for instructions

Move to the FRONT of the room if… You consider yourself to have more traditional tastes. You know what you like, and you stick with it. Move to the BACK of the room if… You consider yourself to have trendier tastes. You like change, and you look for a fun or modern appeal.

Move to the LEFT side of the room if… You are a health- conscious eater. Move to the RIGHT side of the room if… You prefer to eat what tastes good.

M ARKETING C EREAL B RANDS Cheerios Special K Raisin Bran Total Frosted Flakes Rice Krispies Froot Loops Mini-Wheats Kashi Honey Bunches Life Organic Cereals Lucky Charms Cookie Crisp Cap’n Crunch Cinnamon Toast Crunch HealthyTasty Traditional Trendy

B ACK TO C ENTER ! Line up in the middle of the classroom, from the front to the back. Order does not matter. Listen for instructions

Move to the FRONT of the room if… You prefer the busy, fast pace life of the city. Move to the BACK of the room if… You prefer the calm, laid back pace of the country.

Move to the LEFT side of the room if… You prefer warm weather. Move to the RIGHT side of the room if… You prefer cold weather.

M ARKETING V ACATION T RIPS Florida Nevada California Washington New York Illinois Texas California Colorado Maine WarmCold City Country

M ARKET S EGMENTATION  Classification of customers by wants and needs  Creates smaller, more precise target markets

W HAT IS A T ARGET M ARKET ? Group of people identified as the most likely to become customers These are the people a business wants to reach with their goods or services!

DemographicGeographic PsychographicBehavioral Ways to Segment a Market S EGMENTATION F ACTORS

Definition Refers to statistics that describe a population in terms of personal characteristics Age Gender Income Marital Status Ethnic Background Education Occupation D EMOGRAPHIC Examples

Definition Based on where people live Local Regional National Global G EOGRAPHIC Examples

Definition Grouping people with similar lifestyles Grouping people with shared attitudes, values, opinions Activities Attitudes Personality Values P SYCHOGRAPHIC Examples

Definition Involves looking at the benefits desired by consumers, at shopping patterns, and at usage rates Sometimes referred to as Product Benefit segmentation Teenagers spend about $50 a month on entertainment. Teenage girls spend 15% more on music than teenage boys. Today’s young adults desire affordable luxuries. B EHAVIORAL Examples

On handout, decide if each item is: o Demographic o Geographic o Psychographic o Behavioral Label each with a D, G, P, or B. S EE W HAT Y OU K NOW !

Where have you seen or completed a survey like this before? How can marketers use this information? How else can businesses collect this kind of information from customers? L ET ’ S T ALK A BOUT I T !

Market segmentation characteristics help to create customer profiles. A customer profile is a list of information or common characteristics about a target market. C USTOMER P ROFILES

P ROFILE P ROJECT ! You will use a customer profile to identify products targeted to your customer. On the Front: Customer Profile & Picture 5 pictures of products Label each product On the Back: Your Name 5 explanations why is this customer likely to buy the product?

T HU. M AY 3 RD You need your class binder and your notes from last class. We will finish notes, do 2 short assignments, then finish your business plan! Marketing Activities PowerPoint & Notes Marketing Mix Assignment Finish notes Product Life Cycle Assignment Spartan Plaza Marketing sections! BRO Time Today’s Agenda

R EVIEW W HAT IS THE MARKETING CONCEPT ? Businesses should strive to satisfy customers while making a profit. W HAT IS A TARGET MARKET ? A group of people identified as the most likely to become customers – specifically classified by wants/needs and other segmentation factors.

T HE M ARKETING M IX

T HINK A BOUT I T Have you ever made a batch of brownies? What ingredients do you need? What happens if one of the ingredients is missing?

T HE M ARKETING M IX The marketing mix includes the tools that markets use / control in order to influence potential customers in a target market. It is also known as the 4 P’s. Decisions made about the 4 P’s are based on the people marketers want to win over and make into customers. Marketers must first clearly define each target market before they can develop their marketing strategies (the 4 P’s). Without a solid mix of marketing strategies, a product is not likely to succeed in the marketplace.

T HE M ARKETING M IX 1. Product 2. Place 3. Price 4. Promotion Because of the importance of customers, some marketers add a 5 th “P” to the mix. PEOPL E

W HAT ’ S THE D IFFERENCE ? MARKETING FUNCTIONS MARKETING MIX Financing, Product Planning, Marketing Research, Pricing, Channel Management, Promotion, Selling Functions pertain to the business as a whole. Product, Place, Price, Promotion, People Mix applies to a specific target market. Marketing Functions  Market Segmentation  Target Market  Marketing Mix

P RODUCT Refers to tangible, physical characteristic or features of a product / service Examples include: Brand name Quality Packaging Accessories / services

P LACE Is about getting the products to the customer Also referred to as distribution Examples include: Specific stores Distribution channels Transportation Order Processing

P RICE What is exchanged for the product Should reflect what customers are willing & able to pay (demand) Examples include: Pricing strategy Suggested retail price Seasonal pricing Bundling

P ROMOTION Communication of information Refers to activities related to advertising, personal selling, sales promotion, and publicity

P EOPLE Usually refers to a defined target market Examples include: Health-conscious women Active teenagers Young professionals

M ARKETING M IX A SSIGNMENT

PEOPLE school-age children PEOPLE school-age children

PEOPLE Teenagers Ages PEOPLE Teenagers Ages

P RODUCT L IFE C YCLE

Create a chart to illustrate the four stages of the Product Life Cycle. Your diagram should include: Characteristics Sales patterns Costs involved / Profits Competition Marketing strategies to use (see notes from last class) Example of a product currently in this stage