Download Basic Marketing Terms

Warm-up
 Define Target Market
 Is it possible to target everyone?
Paper Summary
 Needed to be turned in by 2:45 pm
 Late if sent after
 Electronic versions were emailed back.
 Comments at end of sections or paper
 Comments embedded within paper
 A few things I noticed….
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Watch multiple writer syndrome
Use transitions when combing facts (if needed)
All information provided should be geared towards company
Understand target markets
 Final Drafts due by 2:45 Friday (Formal Assessment)
Paper Summary
Each section
worth 25 pts
(20% of Paper)
Objective 1.01
Strategic Marketing
Basic Marketing Terms

There are nine basic marketing terms that should be
introduced before moving on to further understanding of
marketing concepts. These terms are:
-Marketing
-Needs
-Wants
-Market
-Target market
-Consumer
-Customer
-Goods
-Services
Basic Marketing Terms, cont..
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Marketing:
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The process of developing, promoting, pricing, selling, and
distributing products to satisfy customer’s wants and needs.
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Marketing involves all the activities necessary to get a
product from the manufacturer to the consumer.
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The goal of marketing is to attract new customers and create
a lasting relationship through customer satisfaction.
Basic Marketing Terms, cont..
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Marketing Concept: Satisfy customers wants and needs while
generating a profit
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Needs: A necessity for living.
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Wants: Products that are not necessities, but are simply desired by
the consumer.
Basic Marketing Terms
Goods: Tangible items that satisfy customer’s needs and wants.
 Durable – e.g., DVD player (last a long time)
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 Nondurable – e.g., gasoline (typically consumed within a short
period)
Services: Intangible items that satisfy customer’s needs and wants.
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Example(s): Delivery Service, Haircut, Salon, Oil Change, etc…
Consumer v. Customer
 A product may have more than one target market.
Example:
Low Sugar Fruity Pebbles
Identify the consumer: Children
Identify the customer: Parents
*Most five year olds do not purchase their Fruity Pebbles
Same Product--- Different Approach
To target parents you would use commercials that advertise how healthy they are and air
them on a Saturday night.
To target children you would use commercials that focus on how fun the cereal is, the
bright colors, the cool characters and air this commercial on Saturday mornings.
Basics of Marketing
 Marketers realize that not every product can appeal to everyone.
 Marketers examine two key factors to define their market:
 Who is interested in a product?
 Who can afford their product?
 A market is made up of all people who share similar needs and
wants and who have the ability to purchase your product.
 MUST MEET BOTH CRITERIA TO BE INCLUDED
Examples of a Market
 Luxury Suites at Yankees Stadium
 Prices range from $600,000 and $850,000
 Rich, Men, Sports Fans
 Malt-O-Meal Frosted Flakes
 $1.41/box at DollarDays International
 Lower Income, Kids/Single Parents
 Hollister Co. Santa Monica Jacket
 $140 jacket
 Teenage Girls, Colder climate areas, Medium-High Income Families
Target Market & Market Segmentation
 Market Segmentation is the process of classifying
customers by needs and wants.
 Goal is to identify the group of people who are most likely to
become customers.
 This specific group is known as a Target Market
 #1 Buying Group
 All marketing strategies are directed towards the target market.
 Provides the focus of your marketing campaign.
 Marketer’s must develop a clear target market before developing a marketing
strategy.
Market Segmentation Facts
 Why do marketer’s use market segmentation?
 Very costly to target all groups
 Must find the group of consumers who you have a clear
competitive advantage
 Use research to determine if the costs of development are effective
 Specific information allows you to know your customers:
 Buying Behavior, Values, Fashion Interests, etc…
Target Market
 To develop a clear picture of their target market,
businesses create customer profile lists of information
about the target market.
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Age
Income Level
Ethnic Background
Occupation
Attitudes
Lifestyle
Geographic Residence
Understanding
these
characteristics
allows you to make
better choices
Market Segmentation = Jeans
 Most people in America wear Jeans
 Not everyone wears the same type of jeans
Market Segmentation: Price
Market Segmentation

There are four key factors that marketers use to
determine how to segment a market:
1.
Demographics
2.
Geographic Variables
3.
Psychographic Variables
4.
Buying Behavior
Demographics
 Demographics: Refers to statistics that describe a population in
terms of personal characteristics.
 Age (Baby Boom, Generation X, Generation Y, Generation Z)
 Gender (Male v. Female)
 Occupation
 Education
 Income
 Disposable: Money left after taxes
 Discretionary: Money left after taxes & basic needs have been paid
 Marital Status
 Ethnic Background
Psychographics
 Psychographics
involves grouping people
with similar lifestyles, as
well as shared attitudes,
values, & opinions.
 Examples:
 Latest Diet Trends
 Environmental Concerns
Geographics
 Geographics: Refers to segmenting customers based on
where they live.
 Segment a market geographically can be done:
 Locally, Regionally, Nationally, or Globally
 Hispanic cultures are prevalent in L.A., Miami, New York, Texas,
Arizona, etc..
 African American cultures are prominent in the south
 States with high teen percentages:
 Alaska, Utah, Arizona, Texas, California, & Idaho
Market Segmentation
 Behavioral Buyers:
Accounting for the type of
shopping they prefer.
 Online, In-Store, Catalog
 Safety Issues concerning
identity
 Usually three factors
 Price Conscious
 Brand Driven
 Quality & Reliability
The Marketing Mix
 The marketing mix is a combination of decisions a business makes in
order to best reach its target market. The marketing mix is also
referred to as the “four Ps”:
 Product - Include both goods and services.
 Price – The amount a business charges for a product.
 Place – Having the product available at the right time at the
location. Also known as distribution or logistics.
 Promotion – Informing and reminding customers of products
available to them and persuading them to purchase. Promotion
consists of advertising, public relations, sales promotion, and
personal selling.
Selling
Feature v. Benefit
Feature-Benefit Selling
 Match the characteristics of a product with
the customer’s needs and wants
 Customers don’t buy products – they buy
what products can do for them.
Product Features
 May be basic, physical, or extended attributes
 The most basic feature is the product’s intended use
 Additional features add more value to the product
Examples of Features
 2-Door Model
 Better gas mileage
 Leather seats
 Automatic transmission
 Power steering
 Satellite radio
 Antilock brakes
Obvious Feature
This car is a bright shade of red
Customer Benefits
 The advantages or personal satisfaction a customer will get from a
good or service
 Benefits become selling points
 How does the feature help the product’s performance?
 How does the performance information give the customer a
personal reason to buy?
Obvious Benefit
This bright red car will
attract the guys/girls
Feature Benefit Chart