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The Marketing Concept
BUSINESSES MUST SATISFY CUSTOMERS’
NEEDS AND WANTS IN ORDER TO MAKE A
PROFIT
Customers vs. Consumers
 Customers – buy the product
 Consumers – are those who actually use the product
What is a Market?
 All potential customers who share common needs
and wants, and who have the ability and willingness
to buy the product.
Important Terms
 Target marketing – is focusing all marketing
decisions on a very specific group of people who you
want to reach.

.
The more information you have on your target market, the
easier it is to make the marketing decisions.
What profile are you?
 Customer Profile- can include information about the
target market in regard to age, income level, ethnic
background, occupation, attitudes, lifestyle, or
geographic residence of the targeted customer.
Marketing Mix
 The 4 P’s



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Product
Place
Price
Promotion
Market Segmentation
 A way of analyzing a market by specific
characteristics in order to create a target market.
 To accomplish that goal, businesses may segment a
market by:




Demographics
Psychographics
Geographic's
Product benefits.
Demographics
 Refers to statistics that describe a population in
terms of personal characteristics.
 Age

Generation differences-tracking a group over their lifetime
pays off for businesses.
Matures, born between 1920-1946
 Baby Boomers, born between 1946-1964
 Generation X, born between 1965-1976
 Generation Y or Millennials, born between 1977-1997
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Get a text book go to page 24. Your group will share information
with the class.
Gender
Of course gender specific marketing is important too. Would you buy Right guard
on accident if you didn’t know it was made for a man?
Income
Marketers want
to know how
much money is
available for
spending on
different
products.
 Disposable income- money left after
taking out taxes. Marketers who
produce and distribute products that
are necessities are interested in
changes in disposable income.
 Discretionary income- is the money
left after paying for basic living
necessities such as food, shelter, and
clothing. Marketers who sell luxury
products are interested in changes in
discretionary income.


In 2000 approx. 8 million households
reported income of $100,00 or more.
This group accounts for ½ of all
discretionary spending in the US.
Ethnic Backgound
 The US population is very diverse as a result of
increased immigration.


The caucasian population is decreasing
Combined the African-American, Hispanic, and AsianAmerican population makes up 38% of the US population.
What products/services have been developed to target the
diverse markets?
Pychographics
 Involves studies of consumers based on social and
psychological characteristics. People’s attitudes and
what they value are important to marketers.

Trends- Healty eating, green living, Best-life etc.
Geographics
 Segmenting the market based on where people live.
 You may want to advertise to the local, nation, or even to the
global market.
Product Benefits
 Studying consumers’ needs and wants.
 Sports markets study separate market segments like jogging,
basketball, baseball, walking etc.
 Diet and caffeine-free soft drinks.