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 A target market consists of a group of people that have similar needs and wants. Create a marketing mix A marketing mix consist of a blending of the marketing elements (product, price, distribution, and promotion) 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

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. Types The main function of advertising is to sell. 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.

Major Sources of Consumer Information 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?

“Word of mouth” advertising. Personal Contacts “Word of mouth” advertising.

Shopping Locations

Traditional Retailers Department Stores Provide broad product lines and highlight their service What are some examples? Discount Stores Highlight their offering of lower prices for products Specialty Stores Provide a special line of products

Traditional Retailers continued Supermarket Large, full service store that offer many brands of products What are some examples? Convenience Store Provide popular items, offer long operating hours, and are usually located in highly accessible areas

Contemporary Retailers Specialty Superstores Provide wide variety of limited products at low prices What are some examples? Superstores Provide a wide variety products in the retail services such as food, bakery, auto, and electronics.

Contemporary Retailers continued Warehouse Club Provide products in large quantities at practical prices. What are some examples? Factory Outlets Provide high-quality products at low prices.

Non-Store Shopping Allows purchasing of goods and services by telephone, computer, television, fax, or door-to-door. What are some examples of non-store shopping opportunities? Vending machines provide products through automation. What are some examples of vending machine shopping opportunities?