1. Unit 9 Market and Market Identification

2.  Products and services cannot appeal to everyone  Businesses look for people who might have an interest or a need for their product  Businesses look for people who can pay for their product  People who share similar needs and wants and who have the ability to pay for certain items are called a MARKET

3.  Consumer Market ◦ Consumers who purchase goods and services for personal use ◦ Consumers are generally interested in products that will:  Save money  Make life easier  Improve appearance  Create status in the community  Provide satisfaction related to some other personal motivation

4.  Industrial Market (Business to business market) ◦ Includes all businesses that buy products for use in their operations ◦ Goals and objectives of business relate to improving profits ◦ Companies want to:  Improve productivity  Increase sales  Decrease expenses  In some other way make work more efficient

5.  Percentage of the total sales volume generated by all companies that compete in a given market  Knowing one’s market share helps marketers analyze competition and status in a given market  Market shares change all the time as new competitors enter the market and as the size increases or decreases in volume

6.  Market Segmentation ◦ Segmenting, or breaking down markets into smaller groups that have similar needs ◦ Classifying customers by needs and wants  Target Market ◦ Group identified for a specific marketing program ◦ Focuses marketing plan ◦ Identifying this group correctly is the key to success ◦ There may be more than one target market for a product

7.  Customer Profile ◦ Lists information about the target market such as:  Age  Income level  Ethnic background  Occupation  Lifestyle  Attitudes  Geographic residence ◦ Helps companies make intelligent marketing decisions

8.  The tools available to a business to gain the reaction it is seeking from its target market(s) in relation to its marketing objectives  7 P’s: ◦ Price--People ◦ Product--Process ◦ Promotion--Physical Environment ◦ Place

9.  Pricing Strategy  Importance of: ◦ Knowing the market ◦ Elasticity ◦ Keeping an eye on rivals  Strategies ◦ Skimming ◦ Penetrating ◦ Psychological ◦ Cost-plus ◦ Loss leader

10.  Methods used to improve/differential the product and increase sales or target sales more effectively to gain a competitive advantage ◦ Extension strategies ◦ Specialized versions ◦ New editions ◦ Improvements—real or otherwise! ◦ Changed packaging ◦ Technology

11.  Strategies to make the consumer aware of the existence of a product or service  Not just advertising!  Includes: ◦ The message ◦ The media selected ◦ Special offers ◦ Timing

12.  The means by which products and services get from producer to consumer and where they can be accessed by the consumer ◦ The more places to buy the product and the easier it is made to buy it, the better for the business Retail Wholesale Mail order Internet Direct Sales Peer to peer Multi-channel

13.  People represent the business ◦ The image they present is important ◦ First contact is usually human—what is the lasting image they provide to the customer? ◦ Extent of training and knowledge of the product/service concerned ◦ How relevant is the mission statement ◦ Do staff represent the desired culture of the business?

14.  How do people consume services?  What processes do they have to go through to acquire services?  Where do they find the availability of the service? Contact Reminders Registration Subscription Form Filing Degree of Technology

15.  The ambience, mood, or physical presentation of the environment ◦ Smart/shabby? ◦ Trendy/retro/modern/old fashioned? ◦ Light/dark/bright/subdued? ◦ Romantic/chic/loud? ◦ Clean/dirty/unkempt/neat? ◦ Music? ◦ Smell?

16.  Blend of the mix depends on: ◦ Marketing objectives ◦ Type of product ◦ Target market ◦ Market structure ◦ Rival’s behavior ◦ Global issues—culture/religion ◦ Marketing position ◦ Product portfolio  Product lifecycle