Unit 5 - FarrarMarketing
Download
Report
Transcript Unit 5 - FarrarMarketing
Unit 5
Markets
Objectives
List the four characteristics of a market.
Explain the difference between the
consumer market and the business
market.
List the four categories of customers in
the business market.
Objectives
Distinguish between a consumer and a
customer.
Describe the difference between a
mass market and a market segment.
Explain why marketers segment a mass
market.
Marketing Terms
market
consumer market
business market
consumer
B2C
B2B
producer
reseller
institution
government
mass market
market segment
marketing
strategy
A Group of Buyers
A market is a
group of people
who want a
product and
are able to buy it
What qualities should a market have?
A Group of Buyers
Characteristics of a market
need or want the product
able to buy the product
willing to buy the product
have the authority to buy the product
Give an example of a group who might
want a product, but not be able or
have the authority to buy it.
Consumer Market vs.
Business Market
Two types of markets
consumer market
– people who buy products for their own
use
business market
– people who buy products for use in a
business
The Consumer Market
Consumer
member of the
consumer market
buys products for his
or her own use
buys groceries,
clothes, cars, gifts,
and other consumer
goods and services
The Consumer Market
The consumer market is also called B2C
Business selling
to
Consumers
The Business Market
The business market consists of
businesses who buy products
– from other businesses
A customer in the business market
is another business
The business market consists of
businesses
The consumer market consists of
individual consumers
The Business Market
The business market is also called B2B
Business selling
to
Businesses
The Business Market
The three uses for
business products
making new
products
resale
running the
business
Give examples of each business use.
Types of Business
Customers
Four types of customers in the
business market
producer
reseller
institution
government
Types of Business
Customers
Producer
makes goods
and services
farmers,
manufacturers,
mining, and
construction
Name some businesses that are producers.
Types of Business
Customers
Reseller
buys finished
products
– to sell at a
profit
also called
retailer
Name some businesses that are resellers.
Types of Business
Customers
Institution
nonprofit
corporation
school, hospital,
or charitable
organization
Name some institutions.
Types of Business
Customers
Government
organizations and
institutions that run a
geographic area
– such as a country,
state, or city
includes federal,
state, city, and
county governments
WORKOUT
Complete Consumer Market or Business
Market assignment.
Customer vs. Consumer
The term consumer has more than one
meaning
1. member of the consumer market
2. person who actually uses (consumes) the
product
The customer (the person who buys the
product) is distinguished
from the consumer (the person who uses
the product)
Customer vs. Consumer
In the consumer
market
a parent buys food
for his or her child
Who is the customer? Who is the consumer?
Customer vs. Consumer
In the business
market
a purchaser
buys computers
for the
accounting
department
Who is the customer? Who is the consumer?
Market Segments
Think of everyone who drinks cola
beverages
All the cola customers are a mass
market
All the customers for a type of product
are called a mass market
Mass Market for Colas
Cola
A mass market consists of all the
customers for a type of product
Market Segments
Does everyone in the
cola market want the
same kind of cola?
List subgroups by
types of cola that
people want.
Market Segments
A market segment is a subgroup of a
larger market
everyone in a market segment has similar
needs and wants for a particular product
the needs of one market segment are
different from the needs of another market
segment
Market segmentation is the process of
dividing a large mass market into smaller
market segments.
Segmented Market for Colas
Caffeine-free
Regular
Caffeine-free
Diet
Diet
Regular
Low
Carb
Choosing Your Target
Market
It is very difficult to meet the needs of
all the customers in a mass market
Market segmentation can help a
business find a target market
it is usually easier to select a target
market and
– meet the needs of that smaller market
Choose a market and give at least two
market segments for that market.
Segmentation and the
Marketing Concept
The marketing concept says that the best
way to make a profit is
by satisfying customers’ needs and wants
Targeting a market segment helps
businesses follow the marketing concept
It is easier to satisfy customers
if marketers target a market segment
– in which all customers have the same
wants and needs
Marketing Strategy
A marketing strategy is the
selection of a target market and the
– development of a marketing mix to
meet the needs and wants of the
target market
Target
Market
+
Marketing Marketing
=
Mix
Strategy
WORKOUT
Complete B2B handout.
Review
What is the difference between the
consumer market and the business
market?
Describe the three types of uses for
business products.
List the four types of customers in the
business market.
What is a market segment?
Glossary
Back
B2B. Business selling to business.
B2C. Business selling to consumers.
business market. Customers who buy
products for use in a business; also
called industrial market, organizational
market, or commercial market.
Glossary
Back
consumer. Member of the consumer
market; customer who buys products for
his or her own use.
consumer market. Customers who buy
products for their own use.
government. Consists of the organizations
and institutions that run a geographic area,
such as a country, and includes federal,
state, county, and local governments.
Glossary
Back
institution. Nonprofit corporation, such
as a school, hospital, or charitable
organization.
market. Group of people who want a
product and are able to buy it.
marketing strategy. The selection of a
target market and the development of a
marketing mix to meet the needs and
wants of the target market.
Glossary
Back
market segment. Subgroup of a larger
market; this subgroup has similar wants
and needs for a particular product.
mass market. All the customers for a
type of product considered together.
Glossary
producer. Business that makes goods
and services.
reseller. Business that buys finished
products to resell at a profit.
Back
WORKOUT
Complete Unit 4 test.