Transcript Chapter 1 section 3

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Fundamentals of Marketing
Chapter 1
Section 3
Market
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All potential customers who share the
ability and willingness to buy the product.
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Example: Everyone who buys a video
game is part of the over $7 billion video
game market.
It is very important to identify your market.
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Consumer VS Industrial Markets
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Consumer market
• Consumers who purchase goods & services for
personal use
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Industrial market
• Business to business (B-to-B)
• Businesses who buy products for use in their operations
• Most related to improving profit
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Market Share
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% of total sales volume generated by all
companies that compete in a given market
Knowing their market share helps
• Marketers analyze their competition
• Their status in a given market
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Market Segmentation
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Analyzing a market by specific
characteristics in order to create a target
market.
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Once a target market is identified, a business can
customize its products and marketing strategies to that
specific group of customers.
To do this, businesses may segment a market by
demographics, psychographics, geographics, and product
benefits.
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Target Market
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Target Marketing -- Involves focusing
marketing decisions on a specific group of
people you want to reach with your product.
The more information you have on your
target market, the easier it is to make
marketing decisions.
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Customers vs. Consumers
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Customers buy the product.
 Consumers use the product.
 Example: For Sony, the customers are the retail stores and
the consumers are the actual people who buy the product
from the retailer and use it.
 Example 2: A parent buys a kids cereal and is the
customer but the consumer is the child the parent is buying
the cereal for.
 Sometimes you are both the customer and the consumer.
 If you buy someone a gift you would be the customer and
the person that receives and uses your gift is the consumer.
 Successful marketers satisfy both the customer and the
consumer.
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Customer Profile
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A combination of information that helps
to paint a picture of your target market.
Can include information about age, income
level, ethnic background, occupation,
attitudes, lifestyle, or geographic residence
of the targeted customer.
Knowing a customers profile helps you to
make intelligent marketing decisions.
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The 4 P’s of the Marketing Mix
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The Marketing Mix is comprised of four
basic marketing strategies, collectively
known as the four P’s. The Marketing
Mix is dependent on how well the target
market is defined and how well all
strategies are directed toward that target
audience!
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The 4 P’s of the Marketing Mix
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Product
Place
Price
Promotion
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All 4 areas must interconnect to be effective
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Product
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Knowing what product to make, how to
package it, what brand name to use, and what
image to project.
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Place
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Determines how and where a product will be
distributed.
 Determining transportation methods & what
stock levels are most effective
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Price
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Should reflect what customers are willing
and able to pay.
 Retail price, discounts, allowances, credit
terms, payment period
Nike
Men's Shox TL 2
$149.99
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Promotion
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Decisions about advertising, personal selling, sales
promotion, & publicity
How will potential customers be told about a product,
message, media selection, special offers, & timing of
promotional campaigns
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Who’s Your Market?
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$2000 Yorkie Puppy
McDonalds
Guitar Hero
Tickets to Miley Cyrus
Honda Civic
Dillards
Dolce & Gabbana
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