Transcript Chapter 2

AIM:
What is the marketing mix?
Do Now:
Devise a list of 3-4 of your favorite
products (ie/clothing, electronic, etc.)
Why are these items so special to you?
The Market
 All potential customers who share common
needs and wants, and who have the ability
and willingness to buy the product
 Customers = buy the product
 Consumers = use the product
 Businesses focus on their
target market
Marketing Concept
 Businesses must satisfy customers’ needs and
wants in order to make a profit
 Focus on target market
At the Right Price
Right
Goods/
Services
At the Right Time
PROFIT
Communicate
to Customers
At the Right
Place
TARGET MARKET
 Focusing all marketing mix decisions on the
specific group of people you want to reach
Marketing Mix/4 P’s of Marketing
1. Product




what product to make
how to package it
what brand name to use
what image to project
2. Price

what customers are willing and able to pay
3. Place

how and where a product will be distributed
4. Promotion


how potential customers will be told about the new
product
what will the message be (ie/when and where will
product be delivered, incentives to buy product)
Aim: Why is understanding your
target market important?
 Do Now:
 Pass up your homework and answer the
following question:
– What is a Target Market?
Activity – “Who is the Target”?
And for later…
– What is the importance of a target market?
Think about it  After doing this activity, what
conclusion can you come to as
to what is the importance of a
target market?
AIM:
Why is understanding your target
market important?
Do Now:
Describe the TARGET MAKRET
of the following iPhone 7
commercials
Morning Ride
Midnight
Today’s Activity
 You will be getting an article at random on one of the
following:
– Samsung “Family Hub”
– Keurig “Keurig Kold”
– Amazon “Dot”
 Read the article and answer questions # 1 & 2 ONLY
 Meet up with others who have the same article
– Discuss who you think they are targeting and if you think
this product will be a success in this target market
 After your discussion, answer question #3 by yourself
 Share with class
Market Segmentation
 Keurig Kold
 Samsung Family Hub
 Amazon Dot
How do you feel about the cartoon?
Do you think you are targeted by advertisers? Explain.
Market Segmentation
 A way of analyzing a market by special
characteristics in order to create a target
market.
– Demographic
– Psychographic
– Geographic
– Product Benefits
1. Demographics
 Describe a population in terms of personal
characteristics
– Age
– Gender
– Income
– Ethnic Background
– Occupation
•
•
Control $2.6 trillion and have
about 51% of the wealth in
the US
Prime targets for luxury and
recreational items
•
•
•
•
Skeptical Consumers
Better educated than previous
generations
Financially conservative
Use Electronics
•
•
•
Less spending power
Excellent at Multitasking
Huge influence on spending /
buying
Generation Z
 Generation Z / Generation I / Internet
Generation
– Most are children of Generation X
– Never lived without the internet, cell phones
– Digital Natives
– Smaller Families
– Longer life expectancy
– Will be the most educated.
Who do you think marketers
target / why?
 Millennial’s
– Huge influence on buying power
– Build brand loyalty
– Optimistic / Confident / Social
– http://www.goldmansachs.com/ourthinking/pages/millennials/
The Generation Gap
The Intern Trailer:
https://www.youtube.com/watch?t=12&v=ZU3Xban0Y6A
How does the cartoon below reflect the
different generations?
Gender
 Marketing specific products to specific
genders…OR….
 Gender neutral products use different types
of advertisements/spokespeople
 Companies can enter other gender’s
market
Income
 Disposable Income = the money left after
taking out taxes; marketers who distribute
products that are necessities
 Discretionary Income = money left over after
paying for basic living necessities;
marketers who sell luxury products
Ethnic Background
 US population becoming more multicultural
and ethnically diverse
 You need to make sure your place of
business adapts
2. Geographics
 segmentation of the market based on where
people live; local, regional, national, or even
geographic markets
 Test markets

https://www.youtube.com/watch?v=xiImi5k9
Ges
3. Product Benefits
 Companies market benefits, not just the
physical characteristics of a product
4. Psychographics
 studies of consumers based on social and
psychological characteristics; people’s
attitudes and values, lifestyles—how people
spend their money and time
 TRENDS
 Airhead bites
Do Now: 10/7
 What are some product benefits and trends
people ages 23-36 are looking for when it
comes to food?
Activity: Read the McDonald’s
article. Be prepared to discuss
your answers.
WHO IS BEING TARGETED BY
EACH OF THE FOLLOWING
ADVERTISEMENTS?
MAKE SURE TO USE MARKET
SEGMEENTATION!
 HOW DO BUSINESSES UTILIZE THE
MARKETING MIX?
 Do Now: Review the 4P’s Homework
Assignment
 Today’s Agenda – Surge Article
Market Segmentation
 Keurig Kold
 Samsung Family Hub
 Amazon Dot
HOW DO BUSINESSES UTILIZE THE
MARKETING MIX?
Do Now: Review the 4P’s Homework Assignment
Cnn money http://www.youtube.com/watch?v=uuF9Ny_DW0
Surge is back http://www.youtube.com/watch?v=_9dFiwVwqw
http://www.cbsnews.com/news/popular1990s-surge-soda-makes-a-comeback/
Activity:
Read the article and answer the questions that follow.
Hot Topic
 Target new price match policy