Transcript marketing mix - Loudoun County Public Schools

MARKETING
ACTIVITIES
Business Management
OBJECTIVES
Explain the role of marketing in
the economy.
 Determine various applications of
marketing research.
 Explain marketing concepts and
the elements of the marketing mix.
 Explain the four stages of the
product life cycle.

WHAT IS
MARKETING?
Marketing activities include:

Buying

Selling

Transporting

Storing

Financing

Research & Information
Gathering

Risk Taking

Grading & Valuing
PURPOSE OF
MARKETING
To help
connect
businesses to
their
customers!
MARKETING
CONCEPT
The marketing concept is
the idea that a business
should strive to satisfy
customers’ needs and
wants while generating a
profit for the business.
MARKET
SEGMENTATION
Who is most likely to purchase your product?
MARKET
SEGMENTATION
 Classification
of
customers by
wants and needs
 Creates
smaller,
more precise
groups of people
WHAT IS A
TARGET MARKET?
 Group
of people
identified as the
most likely to
become customers
 These
are the
people a business
wants to reach
with their goods
or services!
STAND UP!
Push
in your chair.
Line
up in the middle of the
classroom, from the front to the
back. Order does not matter.
Listen
for instructions 
Move to the FRONT of
the room if…
Move to the BACK
of the room if…
You consider
yourself to have
more traditional
tastes.
You consider
yourself to have
trendier tastes.
You know what
you like, and you
stick with it.
You like change,
and you look for a
fun or modern
appeal.
Move to the LEFT side
of the room if…
You are a
healthconscious eater.
Move to the RIGHT
side of the room if…
You prefer to
eat what tastes
good.
Healthy
Tasty
Traditional
Cheerios
Special K
Raisin Bran
Total
Frosted Flakes
Rice Krispies
Froot Loops
Mini-Wheats
Trendy
MARKETING
CEREAL BRANDS
Kashi
Honey Bunches
Life
Organic Cereals
Lucky Charms
Cookie Crisp
Cap’n Crunch
Cinnamon
Toast Crunch
BACK TO
CENTER!
Line
up in the middle of the
classroom, from the front to the
back. Order does not matter.
Listen
for instructions 
Move to the FRONT of
the room if…
You prefer the
busy, fast pace
life of the city.
Move to the BACK
of the room if…
You prefer the
calm, laid back
pace of the
country.
Move to the LEFT side
of the room if…
You prefer
warm weather.
Move to the RIGHT side
of the room if…
You prefer cold
weather.
Warm
Cold
City
Florida
Nevada
Washington
New York
California
Illinois
Country
MARKETING
VACATION TRIPS
Texas
California
Colorado
Maine
SEGMENTATION
FACTORS
Demographic
Geographic
Ways to
Segment a
Market
Psychographic
Behavioral
DEMOGRAPHIC
Definition
Refers to statistics
that describe a
population in
terms of personal
characteristics
Examples
 Age
 Gender
 Income
 Marital
Status
 Ethnic Background
 Education
 Occupation
GEOGRAPHIC
Definition
Based on where
people live
Examples
 Local
 Regional
 National
 Global
PSYCHOGRAPHIC
Definition
 Grouping
people
with similar
lifestyles
 Grouping people
with shared
attitudes, values,
opinions
Examples
 Hobbies
 Interests
 Trends
 Political
Opinions
BEHAVIORAL
Definition
 Involves
looking at
the benefits desired
by consumers,
shopping patterns,
and usage rates
Examples
Teenagers spend about
$50 a month on
entertainment.
 Teenage girls spend
15% more on music
than teenage boys.
 Today’s young adults
desire affordable
luxuries.

CUSTOMER
PROFILES

By segmenting markets, businesses can
develop a customer profile.

A customer profile is a list of
information or common characteristics
about a target market.

This gives the business a starting point
to conduct research & determine what
products the market wants, where they
shop, how to advertise, etc.
MARKET
DIFFERENTIATION
Why should consumers choose your product over another?
MARKET
DIFFERENTIATION
 Your
product must stand out as something
different from competitors’ offerings.
 Market
differentiation strategies include:

Customer Service

Product

Price

Quality
THE
MARKETING
MIX
Reaching Out to your Target Market
THINK ABOUT IT



Have you ever
made a batch
of brownies?
What
ingredients do
you need?
What happens
if one of the
ingredients is
missing?
THE
MARKETING MIX
Your
target market and customer
profile will help shape your
marketing mix, which is also
known as the four P’s.
Without
a solid mix of marketing
strategies that work together, a
product is not likely to succeed in
the marketplace.
THE MARKETING MIX
Product
2. Place
3. Price
4. Promotion
1.

Because customers &
employees are so
important to a business’
success, some marketers
add a 5th “P” to the
mix.
PRODUCT
 Refers
to tangible,
physical characteristics
or features of a
product / service
 Examples include:




Quality
Packaging
Accessories / services
What it looks like &
does!
PLACE
 a.k.a
distribution
 Getting the products
to the places where
your target market
shops
 Examples include:



Specific stores
Distribution channels
Order Processing
PRICE
 Should
reflect
what customers
are willing & able
to pay (demand)
 Examples
include:

Low price strategy

Seasonal pricing

Bundling
PROMOTION
 Communication
of information
 Includes:



Advertising
Sales Promotions
Publicity
Product
Cookies & Cream Poptarts
Place
Grocery stores everywhere!
 easy to take on the go
other flavors available
eat cold or toast it
appeals to all ages
PEOPLE
Price
$2.99 per box
Compare with:
Toaster Strudels $3.99
Granola Bars $1.99
school-age
children
Promotion
TV Commercials on Nick &
Cartoon Network
Interactive website with games
for kids
PRODUCT
LIFE CYCLE
Every product & every business goes through their ups &
downs.
Introduction
• Business is being planned
• Sales are low
• Production costs tend to be high
Growth
•Initial time of negative profit until break-even point
•The way the business is managed will make it or break it!
Maturity
• Business can start to expand, hire more staff, introduce
more products, etc.
• Sales start increasing, costs decline
• Competition may grow
Decline
• Sales decline & costs rise
• Larger competitors drive out smaller businesses
Introduction
• Create customer awareness & interest
• Attract “innovators” to try product
Growth
•Need to focus on differentiation!
Maturity
• Pricing strategy for the “late majority”
• Improve, add-on, or change product
Decline
• Focus on sales promotions & price concessions
• Need to develop a new market segment or new product
TEEN
ENTREPRENEUR
PROJECT
 Market
Analysis
 Competitive
 Marketing
 Growth
Analysis (revise & add)
Plan
Plan