Marketing

The Marketing Concept 

What is Marketing? process of developing, promoting, and distributing products to satisfy the needs and wants of consumers



Marketing helps connect businesses with their customers

Marketers want to convert ___consumers________________ into ____customers_______________

The Marketing Concept is the idea that a business should:

  1. Strive to satisfy customers needs and wants while

  2. Generating a profit for the business



Target Market

The group of people identified as :

Who the business wants to reach with their products/services



Once a business has identified its target market, a marketing plan is developed based on the _____Marketing Mix______________________

Also known as: The 5 Ps



Elements of the marketing mix:

  1. Product: The tangible, physical characteristics or features of a product

Example: brand name, packaging, accessories, services, etc.

  1. Price: The exchange for a product- reflects what the customer is willing and able to pay

Example: Low-price strategy, seasoning pricing, bundling, etc.

  1. Place: The exchange for a product- reflects what the customer is willing and able to pay

Example: Low-price strategy, seasoning pricing, bundling, etc.

  1. Promotion: The communication of information

Example: Advertising, personal selling, sales promotion, etc.

What is the 5th “P”?

PEOPLE



A well-defined target market includes specific characteristics of the potential customer

Examples: Teenager/Young Adult, College Graduate, Health-Conscious Adult, Parents of Young Children, etc.




What is a target market?

Definition:a specific group of consumers who have similar needs and wants





The goal is to convert ___consumers________ into ___customers____________



The purpose of marketing is to connect businesses with their customers

You can’t sell a product if you don’t know who your customers are!



Market Segmentation

What is it?




The process of classifying consumers in a target market into smaller groups





Why do it?



Allows us to focus on an even smaller group of potential customers


Definition: Classification of consumers by needs and wants.




How was this show in our class example?  This or That - Healthy vs Sugary Cereal




Creates smaller_________, more precise target markets

Why would this be important for a business?




Market Segmentation Factors

Demographic

Statistics that objectively describe a population

Examples: 

Age

Gender

Income

Marital Status

Education

Occupation

Ethnicity




Geographic

Based on where consumer lives, travels, or shops

Examples: 

Location

Climate 

City/community size

Local or Regional

National or Global


Psychographic

Grouping consumers with similar lifestyle choices, shared attitudes, values, interests, or opinions

Examples: 

Hobbies/Activities

Political Affiliation

Religious Affiliation

Personality Traits

Priorities or Values




Behavioral

Examines shopping patterns, product benefits to consumers, usage rates

Examples:

Spending on coffee broken by age group



Spending on groceries per month by location



Consistent brand purchases


Creating a Customer Profile

___Market segmentation__________________ is used to divide a population into subgroups according to common characteristics in order to focus on a target market



A customer profile is:  a list of information or characteristics about a target market