1. M ARKETING A CTIVITIES Business Management

2. O BJECTIVES  Explain the role of marketing in the economy.  Determine various applications of marketing research.  Explain marketing concepts and the elements of the marketing mix.  Explain the four stages of the product life cycle.

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

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

5. 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.

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

7. M ARKET S EGMENTATION  Classification of customers by wants and needs  Creates smaller, more precise groups of people

8. 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!

9. DemographicGeographic PsychographicBehavioral Ways to Segment a Market S EGMENTATION F ACTORS

10. 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

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

12. Definition Grouping people with similar lifestyles Grouping people with shared attitudes, values, opinions Hobbies Interests Trends Political Opinions P SYCHOGRAPHIC Examples

13. Definition Involves looking at the benefits desired by consumers, shopping patterns, and usage rates 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

14. By segmenting markets, businesses can develop a customer profile. A customer profile is a list of information or common characteristics about a target market. This gives the business a starting point to conduct research & determine what products the market wants, where they shop, how to advertise, etc. C USTOMER P ROFILES

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

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

17. T HE M ARKETING M IX Reaching Out to your Target Market

18. 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?

19. T HE M ARKETING M IX Your target market and customer profile will help shape your marketing mix, which is also known as the four P’s. Without a solid mix of marketing strategies that work together, a product is not likely to succeed in the marketplace.

20. T HE M ARKETING M IX 1. Product 2. Place 3. Price 4. Promotion Because customers & employees are so important to a business’ success, some marketers add a 5 th “P” to the mix. PEOPLE

21. P RODUCT Refers to tangible, physical characteristics or features of a product / service Examples include: Quality Packaging Accessories / services What it looks like & does!

22. P LACE a.k.a distribution Getting the products to the places where your target market shops Examples include: Specific stores Distribution channels Order Processing

23. P RICE Should reflect what customers are willing & able to pay (demand) Examples include: Low price strategy Seasonal pricing Bundling

24. P ROMOTION Communication of information Includes: Advertising Sales Promotions Publicity

25. PEOPLE school-age children PEOPLE school-age children

26. P RODUCT L IFE C YCLE Every product & every business goes through their ups & downs.

27. Business is being planned Sales are low Production costs tend to be high Introduction Initial time of negative profit until break-even point The way the business is managed will make it or break it! Growth Business can start to expand, hire more staff, introduce more products, etc. Sales start increasing, costs decline Competition may grow Maturity Sales decline & costs rise Larger competitors drive out smaller businesses Decline

28. Create customer awareness & interest Attract “innovators” to try product Introduction Need to focus on differentiation! Growth Pricing strategy for the “late majority” Improve, add-on, or change product Maturity Focus on sales promotions & price concessions Need to develop a new market segment or new product Decline

29. T HE P ITCH !  As you watch “The Pitch”, create a chart and note some ideas about your marketing mix.  Include product, price, place, and promotion strategies.