Transcript Marketing Concept Market Segmentation

Marketing Essentials
n Chapter 2 Basic Marketing Concepts
Section 1&2
Marketing Concept
Market Segmentation
Chapter 21 n Channels of Distribution
Chapter 2s1.&2
The Marketing Concept
Market Segmentation
What You'll Learn
 The marketing concept
 The difference between customers and consumers
 What a market is and how it can be described
 What target marketing is
 The four Ps of the marketing mix
 What market segmentation is and the four methods
used to segment a market
 The current demeographic, psychographic, and
geographic trends
Chapter 21 n Channels of Distribution
2
Chapter 2s1&2
The Marketing Concept
Market Segmentation
Why It's Important
To participate in the world of marketing, you’ll
have to understand how businesses focus on
the needs and wants of their customers so they
can improve their products, be competitive, and
increase profits.
Businesses must know who their customers
are (or know their markets). In order to do this,
businesses classify and characterize their
marketplace in segments.
Chapter 21 n Channels of Distribution
3
Chapter 2s1&2
Marketing Concepts
Market Segmentation
Key Terms
1. Marketing concept
2. Customers
3. Consumers
4. Market
5. Target marketing
6. Customer profile
7. Marketing Mix
8. Market segmentation
9. Demographic
10. Baby Boom Generation
11. Generation Y
12. Generation X
13. Disposable income
14. Discretionary income
15. Psychographics
16. Geographics
Chapter 21 n Channels of Distribution
4
Chapter 2s1&2 Marketing Concept
Market Segmentation
MARKETING CONCEPT – Businesses must satisfy customers’ needs
& wants in order to make a PROFIT
CUSTOMERS – buy the product
CONSUMERS – use the product
MARKET – all potential customers who share common needs & wants
and who have the ability & willingness to buy the product
TARGET MARKETING – is focusing all marketing decisions on a very
specific group of people who you want to
reach
CUSTOMER PROFILE – information about the target market of the
largest customer with regard to:
age
income level
ethnic background
occupation
attitudes
life style
geographic residence
Chapter 21 n Channels of Distribution
5
Chapter 2s1&2
Marketing Concept
Market Segmentation
MARKETING MIX – four basic marketing strategies, collectively known
as the 4P’s
PRODUCT – what item to make
how to package it
what brand name to use
what image to project
PLACE –
how to distribute a product
where to distribute a product
PRICE –
the value of money (or its equivalent) placed
on a good or service –what the customer is
willing to pay
PROMOTION – any form of communication a business or
organization uses to inform, persuade, or
remind – how customers are told about the
product
Chapter 21 n Channels of Distribution
6
Chapter 2s1&2 Marketing Concept
Market Segmentation
MARKET SEGMENTATION – a way of analyzing a market by specific
characteristics in order to create a target market.
This is segmented by:
Demographics – which are statistics that describe a
population in terms of:
ageBaby Boom Generation
1946-1964
Generation X
1965-1976
Generation Y
1977-1997
Echo Boomers
1998-Pres
gender- male, female, neutral
income- disposable, discretionary
ethnic background
Disposable income – money left after taking out taxes from your paycheck
Discretionary income – money left after paying for basic living necessities
Chapter 21 n Channels of Distribution
7
Chapter 2s1&2 Marketing Concept
Market Segmentation
Psychographics- study of consumers based on social and
psychological characteristics (people’s attitudes and
what they value and their life styles)
Trends – changes in leisure time interest due to the economy,
politics, personal attitudes towards health, time, fun
and living in general
Geographics – is the segmentation of the market based on where
people live:
local or regional
TARGET MARKETING – is focusing all marketing decisions on a very
specific group of people who you want to
reach
national or global
Product benefits – studying consumers’ needs and wants
Chapter 21 n Channels of Distribution
8
2s1&2 ASSESSMENT
Reviewing Key Terms and Concepts
1. What does the marketing concept state?
Businesses must satisfy customers’ needs & wants to make a profit
2. What is a market?
All of the potential customers who share common needs & wants who
have the ability and willingness to buy a product
3. What is target marketing?
It focuses all marketing decisions on a very specific group of people
you want to reach
4. What are the 4 P’s of the marketing mix?
product, price, place, promotion
Chapter 21 n Channels of Distribution
9
2s1&2 ASSESSMENT
Reviewing Key Terms and Concepts
5. What do demographics, psychographics, geographics, and
product benefits have in common?
They are all methods of segmenting a market
6. How can a market be segmented using demographics?
Segment by age, gender, income, ethnic background, education, and
occupation
7. What does the study of psychographics involve?
The study of consumers’ social and psychological characteristics
8. What is an example of how a producer can segment a
market based on product benefits?
Athletic shoes can be marketed by how they are used
Chapter 21 n Channels of Distribution
10
2s1&2
ASSESSMENT
Thinking Critically
How would you sell BenGay to young adults?
How would you sell the same product to senior
citizens?
Would you use the same appeal? Why or why not?
Chapter 21 n Channels of Distribution
11
Marketing Essentials
End of chapter 2s1&2
Chapter 21 n Channels of Distribution
12