Download The Importance of Marketing

Unit 9
Market and Market Identification
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Products and services cannot appeal to
everyone
Businesses look for people who might have
an interest or a need for their product
Businesses look for people who can pay for
their product
People who share similar needs and wants
and who have the ability to pay for certain
items are called a MARKET
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Consumer Market
◦ Consumers who purchase goods and services for
personal use
◦ Consumers are generally interested in products that
will:
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Save money
Make life easier
Improve appearance
Create status in the community
Provide satisfaction related to some other personal
motivation
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Industrial Market (Business to business
market)
◦ Includes all businesses that buy products for use in
their operations
◦ Goals and objectives of business relate to
improving profits
◦ Companies want to:
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Improve productivity
Increase sales
Decrease expenses
In some other way make work more efficient
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Percentage of the total sales volume
generated by all companies that compete in a
given market
Knowing one’s market share helps marketers
analyze competition and status in a given
market
Market shares change all the time as new
competitors enter the market and as the size
increases or decreases in volume
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Market Segmentation
◦ Segmenting, or breaking down markets into smaller
groups that have similar needs
◦ Classifying customers by needs and wants
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Target Market
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Group identified for a specific marketing program
Focuses marketing plan
Identifying this group correctly is the key to success
There may be more than one target market for a
product
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Customer Profile
◦ Lists information about the target market such as:
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Age
Income level
Ethnic background
Occupation
Lifestyle
Attitudes
Geographic residence
◦ Helps companies make intelligent marketing
decisions
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The tools available to a business to gain the
reaction it is seeking from its target market(s)
in relation to its marketing objectives
7 P’s:
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Price
Product
Promotion
Place
--People
--Process
--Physical Environment
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Pricing Strategy
Importance of:
◦ Knowing the market
◦ Elasticity
◦ Keeping an eye on rivals
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Strategies
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Skimming
Penetrating
Psychological
Cost-plus
Loss leader
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Methods used to improve/differential the
product and increase sales or target sales
more effectively to gain a competitive
advantage
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Extension strategies
Specialized versions
New editions
Improvements—real or otherwise!
Changed packaging
Technology
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Strategies to make the consumer aware of the
existence of a product or service
Not just advertising!
Includes:
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The message
The media selected
Special offers
Timing
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The means by which products and services
get from producer to consumer and where
they can be accessed by the consumer
◦ The more places to buy the product and the easier
it is made to buy it, the better for the business
Retail
Wholesale
Mail order
Internet
Direct Sales
Peer to peer
Multi-channel
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People represent the business
◦ The image they present is important
◦ First contact is usually human—what is the lasting
image they provide to the customer?
◦ Extent of training and knowledge of the
product/service concerned
◦ How relevant is the mission statement
◦ Do staff represent the desired culture of the
business?
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How do people consume services?
What processes do they have to go through
to acquire services?
Where do they find the availability of the
service?
Contact
Reminders
Registration
Subscription
Form Filing
Degree of
Technology
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The ambience, mood, or physical
presentation of the environment
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Smart/shabby?
Trendy/retro/modern/old fashioned?
Light/dark/bright/subdued?
Romantic/chic/loud?
Clean/dirty/unkempt/neat?
Music?
Smell?
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Blend of the mix depends on:
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Marketing objectives
Type of product
Target market
Market structure
Rival’s behavior
Global issues—culture/religion
Marketing position
Product portfolio
 Product lifecycle