Download Targeting your Consumer

Basic Marketing
Concepts
Basic Marketing
Concepts
• Marketing Concept-to make a profit a business must
focus all of its efforts on satisfying the needs and wants
of its customers
• Consumers(use product) and customers(buy
product)
– recognize consumers impact on buying decision
• Customer satisfaction
– Value-personal satisfaction gained from use of a good or service
– goal is to develop a relationship w/ the customer
Identifying Customer
• Market-group of all potential customers who
share common needs and wants and who have the
ability and willingness to buy the product
• Market Share -percentage of the total sales
volume by all companies that compete in a given
market
Market Share
10%
12%
Sony
Toshiba
Other
78%
Market Identification
• Mass-marketing
– universal appeal and few features to
differentiate them from competitors
– single advertising theme, focusing on product
name
• Market Segmentation
• Dividing the total market into smaller groups of
people who share specific needs and characteristics
• Customize product offerings and marketing
strategies
Targeting your Consumer
• Target marketing-focusing all
marketing decisions on the specific
group of people you want to reach
• More information you have the
easier it is to make marketing
decisions.
• Success determined on how well
your target market is defined & how
well your marketing decisions are
directed toward it
Market Segmentation
• Demographics-statistics that describe
a population in terms of personal
characteristics
– Age-Baby Boom, Gen X, Echo Boomers
– Gender
– Income
• Disposable(money left over after taxes) and
Disceretionary(left after paying basic living
expenses)
– Marital Status
– Ethnic Background
Market Segmentation
• Geographics-segmenting based on where people
live
– Local, regional, or global
• Psychographics
– Study of consumers based on activities, attitudes, values
• Behavioral
- Benefits desired by consumers, shopping patterns and
usage rate
• Combining these segment characteristics, you
create a picture of a prospective customer,
also know as a customer profile.
Marketing Mix-combination of
marketing decision involving the 4 P’s.
• 4 P’s
–
–
–
–
Price
Product
Place
promotion + your
target market
(people)
Product & Place Decisions
• Product Decisions
–
–
–
–
what to make
how to package
what brand name
what image to
project
• Place Decisions
– how product will be
distributed
– where product will
be distributed
Price & Promotion Decisions
• Pricing Decisions
– customer’s
willingness to pay
– customer’s ability
to pay
• Promotion
Decisions
– Decisions about
advertising,
personal selling,
sales promotion and
publicity
– what will message
be(slogan)
– when and where will
it be delivered
SWOT
1. Internal: Strength and weakness
• Strength- the strong points of the
business
• Weakness-the problems the company
has at present
2. External: Opportunities and Threats
• Opportunities-that may arise in the
future
• Threats-that may arise and should
be avoided/prevented if possible
SWOT Diagram
SWOT Example
1. Effective promotion
2. Excellent distribution
3. Brand loyalty
1. Development of global
brand
2. Growing demand
1. Restricted product range
2. Age of life cycle
1. Growing competition
2. Legislation on ingredients
could force changes
This is the
introduction to
the marketing
plan . Its clarity
and brevity to
sell the plan to
readers
Marketing Plan
This part
provides a
snapshot of the
company’s
present position.
It often reports
the results of
SWOT.
1. Executive Summary
2. Situational Analysis
SWOT Analysis
Environmental Scan
3. Objectives
Company’s Mission
Marketing Objectives
This section defines
Financial Objectives
specific goals to be
met. Must be specific 4. Marketing Strategies
realistic, measurable
Positioning and points of
and have a time
difference
frame
Marketing Mix(Four P’s)
Product
Promotion
Price
Place
This is where
the company
defines how
it is going to
meet its
objectives
with a
marketing
mix.
This part outlines
how the company
will put its plans
into effect.
This part tells how the
marketing plan will be
evaluated and what
measures might be
necessary if objectives
are not met.
5. Implementation
Organization
Activities and responsibilities
Timetables
6. Evaluation and Control
Performance standards and measurements
Marketing objectives
Financial objectives
Marketing mix strategies
Corrective action
7. Appendix
Supplemental materials
are included in the
appendix