Transcript Basic Marketing Concepts

Basic Marketing
Concepts
Unit 1, Chapter 2
Marketing Concept
• The idea that you must satisfy a
customers’ needs and wants in
order to make a profit.
• Businesses must have the right goods and
services at the right time, at the right price
and at the right place. Plus they must
communicate this to their customers.
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Target Market
• Target Marketing -- Involves
focusing marketing decisions on a
specific group of people you want to
reach with your product.
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Market Segmentation
• Analyzing a market by specific
characteristics in order to create
a target market.
• 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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Demographic
Segmentation
• Market segmentation based on your target
market’s personal characteristics.
• Includes
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gender
age
income level
occupation
ethnic background
education level
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Psychographic
Segmentation
• Market segmentation based on your
target market’s lifestyles and
personality characteristics.
• Includes
– attitudes
– values
– activities
– interests
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Geographic
Segmentation
• Market segmentation based on
where your target market lives.
• Includes
– local markets
– regional markets
– national markets
– global markets
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Benefit Segmentation
• Market segmentation based on
benefits your target market expects
to receive or gain from products.
• Includes
– added protection
– health issues
– special needs
– stage in family life cycle
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The 4 P’s of the
Marketing Mix
• Product
• Place
• Price
• Promotion
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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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Product
• Knowing what product to make, how to
package it, what brand name to use,
and what image to project.
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Place
• Determines how and where a
product will be distributed.
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Price
• Should reflect what customers
are willing and able to pay.
Nike Men's
Shox TL 2
$149.99
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Promotion
• Deals with how potential
customers will be told about the
new product, what the message
will be, when and where it will be
delivered, and with what
inducements to buy.
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Any Questions?
Unit 1, Chapter 2