Download Which Customers are we going to serve?

Four P’s of Marketing
Customer Driven Markets
A marketing strategy that focuses solely
on the customer from the beginning
through the end of everything a
business does.
The Four P’s of Marketing
Product
Price
Promotion
Place
Distribution
Product
A good or service with tangible and intangible characteristics that provide
satisfaction and benefits (Ferrell,2013).
Price
Defined by a value placed on an object exchanged between a buyer and a
seller (Ferrell,2013).
•
•
•
•
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Price is determined by the seller, but the customer ultimately has the decision if the price is
appropriate.
Sellers need to take into account the price of their competitors products which are similar to
theirs.
When the product is the same exact product and one is priced cheaper than the other,
generally, the customer is going to pick the cheaper product.
If a company choses the wrong price according to the general population, that company can
lose out on thousands/millions of dollars.
Pricing Activity
Place/Distribution
• Defined as making products available to customers in the quantities
desired (Ferrell,2013).
•
•
Distribution is not only physically sending or providing a product to the customer, but also to
provide the product in a more convenient way than other companies.
With technology advancements, companies are looking for anything that might be more
convenient to the customer.
Promotion
• A persuasive form of communication that attempts to expedite a
marketing exchange by influencing individuals, groups, and organizations
to accept goods, services, and ideas (Ferrell, 2013).
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***Advertising!!***
8 Steps to Advertising
Page 355
25 Cheap/Free ways to advertise
Run Competitions
Socialize
Tell your friends
Make more of
business cards
Try google adwords
UseSponsor
the Radio
a local sports
Contact a news channel
Make a youtube video
team
Word of mouth
Offer discounts
referals
Buy
Be a good person
Build an email list
someone a drink
Make a twitter
Marketing Concept
• The idea that an organization should try to satisfy customers’ needs
through coordinated activities that also allow it to achieve its own goals
(Ferrell, 2013)
•
Business Must….
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–
–
–
Figure out what the customer is looking for, then figure out how to persuade them to buy their
product
Keep up with constant changing of consumers wants/needs
Be better than their competition.
Find an appropriate price for their product where they can successfully sell the product at a price the
consumer agrees with, but make enough money to cover costs.
Can companies lose money on some products, but still make money?
Liquor/Beer Sales on Monday Nights
$900
Average with Steak Fry - $673
$800
$700
Average Without Steak Fry - $511
$600
$500
Steak Fry
$400
No Steak Fry
$300
$200
$100
$0
Monday (1)
Monday (2)
Monday (3)
Monday (4)
Matching Terms with Definitions
•
Social Class
•
Specific group of consumers whose needs and wants are
directly focused on by a company
•
Value
•
Providing products to consumers in the quantities they desire
•
Distribution
•
Set of expectations for individuals based on some position they
occupy
•
Market Segmentation
•
Collection of individuals, groups, or organizations who share
one or more characteristics and thus have relatively similar
product needs.
•
Target Market
•
Customer’s subjective assessment of benefits relative to costs
in determining the worth of a product
Sources
• InBusinessTV. (2008). How to advertise your business effectively- 8 steps
[Web]. Retrieved from http://www.youtube.com/watch?v=nEDOMxfqdf8
• Ferrell, L. Business a changing world. (9th ed., p. 354). New York, NY:
McGraw-Hill Irwin.
• Schiff, J. (2013, September 09). 10 inexpensive ways to advertise your
small business . Retrieved from
http://www.smallbusinesscomputing.com/emarketing/article.php/393956
1/10-Inexpensive-Ways-to-Advertise-Your-Small-Business.htm
• Williams, R. (2006, March 12). 10 unusual ways to advertise . Retrieved
from http://www.entrepreneur.com/article/83812