 Fundamentals of Marketing Chapter 1 Sec. 3

  Market – all potential customers who have the ability and willingness to buy All of the people who share similar needs and wants and who have the ability to purchase a given product Are you part of the videogame market? Are you part of the sports car market?

  Consist of consumers who purchase goods and services for personal use. Consumer Markets

  Business-to-business (B-to B) markets include all businesses that buy products for use in their operations. Industrial Markets

 Total market  Can also be described by the total sales in a product category  Market Share  A company’s percentage of the total sales volume generated by all companies that compete in a given market.

  Market  anyone who has the desire and the means to buy

  Market Segments  Small groups of people within the market

  Target Market  The group chosen for a specific marketing program Target Market: Males, Ages 14-20

 Men – too much hassle to make coffee Women – you will feel like working out for a change Certain products have more than one target market 1. Your product might have different groups of users Who is 5-hour Energy Targeting?

  Consumers – the people consuming or using the product  Customers – the people who are buying the product Certain products have more than one target market 2. Your product might have different group who purchases than who consumes

MomsKids What features on this package target Moms and what features target kids?

  To develop a clear picture of their target market, businesses create a customer profile.  It lists information about the target market, such as age, income level, occupation, attitudes, lifestyle, and geographic residence Customer Profile

 PProduct PPlace PPrice PPromotion Marketing Mix: The activities that go into the selling of a product Basic marketing strategies – the four P’s

  Product Features  Packaging  Brand Name  Different versions or flavors  Image Product Strategies

  How and where a product will be distributed.  Physical location  Stores sold in  Where within the store  Is it available online or direct? Place Strategies

  Reflect what customers are willing and able to pay. Price Strategies What is exchanged for the product: What do I have to sell a product for to make a profit? What psychological impacts does a low or high price have?

  How potential customers will be told about the new product  What the message will be  When and where it will be delivered  What inducements are there to buy  Decisions about advertising, selling, discounts and publicity Promotion Strategies

 The Marketing Mix The elements are interconnected Product Place Price Promotion