1. Marketing Essentials Section 1&2 Marketing Concept Market Segmentation
n Chapter 2 Basic Marketing Concepts
Section 1&2
Marketing Concept
Market Segmentation
Marketing Concept & Market Segmentation

2. The Marketing Concept Market Segmentation Chapter 2s1.&2
What You'll Learn
The marketing concept
The difference between customers and consumers
What a market is and how it can be described
What target marketing is
The four Ps of the marketing mix
What market segmentation is and the four methods used to segment a market
The current demeographic, psychographic, and geographic trends
Marketing Concept & Market Segmentation

3. The Marketing Concept Market Segmentation Chapter 2s1&2
Why It's Important
To participate in the world of marketing, you’ll have to understand how businesses focus on the needs and wants of their customers so they can improve their products, be competitive, and increase profits.
Businesses must know who their customers are (or know their markets). In order to do this, businesses classify and characterize their marketplace in segments.
Marketing Concept & Market Segmentation

4. Marketing Concepts Market Segmentation Chapter 2s1&2
Key Terms
Market segmentation
Demographic
Baby Boom Generation
Generation Y
Generation X
Disposable income
Discretionary income
Psychographics
Geographics
Marketing concept
Customers
Consumers
Market
Target marketing
Customer profile
Marketing Mix
Marketing Concept & Market Segmentation

5. Chapter 2s1&2 age occupation Marketing Concept Market Segmentation
MARKETING CONCEPT – Businesses must satisfy customers’ needs & wants in order to make a PROFIT
CUSTOMERS – buy the product
CONSUMERS – use the product
MARKET – all potential customers who share common needs & wants and who have the ability & willingness to buy the product
TARGET MARKETING – is focusing all marketing decisions on a very specific group of people who you want to reach
CUSTOMER PROFILE – information about the target market of the largest customer with regard to:
age occupation
income level attitudes
ethnic background life style
geographic residence
Marketing Concept & Market Segmentation

6. PRODUCT – what item to make how to package it what brand name to use
Chapter 2s1&2
Marketing Concept
Market Segmentation
MARKETING MIX – four basic marketing strategies, collectively known as the 4P’s
PRODUCT – what item to make
how to package it
what brand name to use
what image to project
PLACE – how to distribute a product
where to distribute a product
PRICE – the value of money (or its equivalent) placed on a good or service –what the customer is willing to pay
PROMOTION – any form of communication a business or organization uses to inform, persuade, or remind – how customers are told about the product
Marketing Concept & Market Segmentation

7. Chapter 2s1&2 Marketing Concept Market Segmentation
MARKET SEGMENTATION – a way of analyzing a market by specific characteristics in order to create a target market.
This is segmented by:
Demographics – which are statistics that describe a population in terms of:
age- Baby Boom Generation
Generation X
Generation Y
Echo Boomers Pres
gender- male, female, neutral
income- disposable, discretionary
ethnic background
Disposable income – money left after taking out taxes from your paycheck
Discretionary income – money left after paying for basic living necessities
Marketing Concept & Market Segmentation

8. Chapter 2s1&2 Marketing Concept Market Segmentation
Psychographics- study of consumers based on social and psychological characteristics (people’s attitudes and what they value and their life styles)
Trends – changes in leisure time interest due to the economy, politics, personal attitudes towards health, time, fun and living in general
Geographics – is the segmentation of the market based on where people live:
local or regional
TARGET MARKETING – is focusing all marketing decisions on a very specific group of people who you want to reach
national or global
Product benefits – studying consumers’ needs and wants
Marketing Concept & Market Segmentation

9. Reviewing Key Terms and Concepts
ASSESSMENT
2s1&2
Reviewing Key Terms and Concepts
What does the marketing concept state?
Businesses must satisfy customers’ needs & wants to make a profit
What is a market?
All of the potential customers who share common needs & wants who have the ability and willingness to buy a product
What is target marketing?
It focuses all marketing decisions on a very specific group of people you want to reach
What are the 4 P’s of the marketing mix?
product, price, place, promotion
Marketing Concept & Market Segmentation

10. Reviewing Key Terms and Concepts
ASSESSMENT
2s1&2
Reviewing Key Terms and Concepts
5. What do demographics, psychographics, geographics, and product benefits have in common?
They are all methods of segmenting a market
6. How can a market be segmented using demographics?
Segment by age, gender, income, ethnic background, education, and occupation
7. What does the study of psychographics involve?
The study of consumers’ social and psychological characteristics
8. What is an example of how a producer can segment a market based on product benefits?
Athletic shoes can be marketed by how they are used
Marketing Concept & Market Segmentation

11. ASSESSMENT Thinking Critically 2s1&2
How would you sell BenGay to young adults?
How would you sell the same product to senior citizens?
Would you use the same appeal? Why or why not?
Marketing Concept & Market Segmentation

12. Marketing Essentials End of chapter 2s1&2
Marketing Concept & Market Segmentation