Download File - Northside Marketing Education

Basic Marketing Concepts
What we are learning…
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Functions of Marketing
The Marketing Concept
History of Marketing
the 4P’s
Economic Utilities- how to add value to products
Need vs. want
Customer vs. consumer
Good vs. service
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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.
Who’s in the Market?
• The people who share similar needs and
wants and have the ability to purchase your
product.
• Types of Markets
– Industrial vs. Consumer
• Qualifications
– Willing and Able
Deciding how to reach the Market
• Target Marketing
• Mass Marketing
• Niche Marketing
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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.
– Identify who you are going to focus your
marketing efforts on
Other types of Marketing
• Mass Marketing
– is a market coverage strategy in which a firm decides to ignore market
segment differences and appeal to whole market with one offer or one
strategy (single marketing strategy to reach all customers)
• Niche Marketing
– Opposite of Mass Marketing
– Niche marketing targets a very specific segment of market. Markets
are clearly defined. They offer very specialized services or goods with
few or no competitors.
• Got Milk Ads that use one slogan in their advertising will use different models or
themes to reach different segments of the market.
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Why Target Marketing?
• Marketers understand that not all products
appeal to everyone
• They must look for and identify those people
who might have an interest or need for their
product
• Those people have to be able to pay
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Determine Your TM
• Determine your Market
– Divide consumers who are willing and able into
groups of people with similar characteristics.
MARKET SEGMENTATION= SEGMENTING THE MARKET
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Market Segmentation
• Analyzing a market by specific characteristics
in order to create a target market.
– Create a customer profile
• To do this, businesses identify different characteristics of who is
most likely to purchase their products.
– Segment market by demographics, psychographics,
geographics, and product benefits.
Demographic Segmentation
• Market segmentation based on your target market’s
personal characteristics.
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gender
age
income level
occupation
ethnic background
education level
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
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Now we Know our Customers,
What do we do now?
We cater to them!!!
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The 4 P’s of the Marketing Mix
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Product
Place
Price
Promotion
• 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!
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.
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$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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Marketing Mix Triangle Activity
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External Environment
• Affects the target market
• Affects the marketing mix decisions
External Factors of Concern
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Economy
Political
Competition
SWOT Analysis
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Strengths
Weaknesses
Opportunities
Threats
• Business Cycle
• Ethical Issues
• New Technology
• Government
Regulations
• International Markets
Any Questions?
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