1. Basic Marketing Concepts

2. 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

3. 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.

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. 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.

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

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

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

14. 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

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

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

17. 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!

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

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

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

21. 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

22. Marketing Mix Triangle Activity
Unit 1, Chapter 2

23. External Environment Affects the target market
Affects the marketing mix decisions

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

25. Any Questions?
Unit 1, Chapter 2