Marketing & Advertising Chapter 2

Marketing Concept

Marketing Concept

This concepts states that to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers.

Customers

Buys a product.

Consumers

Uses a product.

Value

The personal satisfaction gained from use of a good or service.

Market

The group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product.

Mass-Marketing

Involves using a single marketing plan to reach all consumers.

Market Segmentation

Dividing the total market into smaller groups of people who share specific needs and characteristics.

Geographics

Refers to the segmentation of a market based on where people live.

Demographics

Refers to statistics that describe a population in terms of personal characteristics (age, gender, income, education, etc.).

Psychographics

Involves the study of consumers based on lifestyle, and the attitudes and values that shape it (interests, beliefs, etc.)

Customer Profile

When you combine geographic, demographic, and psychographic data, a remarkably complete picture emerges of a prospective customer.

Target Marketing

Focusing all marketing decisions on the specific group of people you want to reach.

Marketing Mix

The Four P's of Marketing (Produce, Place, Price and Promotion).

Positioning

What you do to get into the mind of the prospect - when you position a product, you try to get customers to think of it in a certain way.