Download Slide 1

Marketing is the process of
developing, promoting, and
distributing products to
satisfy customers needs and
wants.
Products
• Goods – can touch or hold in your hand,
are tangible
– Pen
- car
- desk
• Services – are intangible, you cannot
physically touch
– Dry cleaners, movie theaters
Utility
• Utility is adding value to a product (Marketers
add utility in the following ways)
• Form utility - changing raw materials or
putting parts together to make them more
useful
– Cotton (spun into clothing, houseware items ect.
– Trees (used to make desks, houses, pencils,ect.
Place Utility
• Having the product where customers can
buy it
– Clothing can be bought at stores, on-line,
through catalogs
– food can be bought at grocery stores,
convenience stores, restaurants, etc.
Possession Utility
• Exchange of a product for monetary value
– Stores accepting cash, credit cards, debit
cards, layaway plans
Information Utility
• Communication with the customer about
the product
– Displays
– Product labels
– Advertisements
– Owner’s manuals
Time Utility
• Having the product available at a certain
time of year or convenient time of day
– Christmas decorations out in November
– Back-to-school supplies in July
– Beachwear out in the spring and summer
– Having business open 24 hours for people
who work odd hours
Benefits of marketing
• Customers get New and improved
products because businesses want to
outdo their competition.
Benefits of marketing
• Adds value to products by lower prices:
– Higher demand = larger quantities produced
which leads to a lower price
– Popular products lead to more competition
which keeps prices lower for customers
Why study marketing?
• To evaluate marketing as a potential
career
• Gain skills and knowledge learn in any job
about how a business operates
• Develop your interpersonal skills
• Many job opportunities
Employment Trends/benefits
• Marketing jobs are growing (in demand)
• 1/3 jobs in U.S. related to marketing
• Benefits
– Lots of job opportunities (diversity)
– High level of pay possibility
– Company car
– Expense account
– Bonuses
– Opportunities for advancement are good
Marketing Jobs
• Marketing Salaries | SimplyHired
• Marketing Salary Information - Updated
Weekly at MyCareer
Business must
satisfy
customers’
needs and
wants in order
to make a
profit.
Four basic marketing strategies, also known as
the FOUR P’s
1. Product (Shirt)
2. Place (Abercrombie store, outlet, and website
3. Price ($29.99)
4. Promotion (newspaper ad 10% off and
coupon)
All potential customers
who share common needs
and wants, and who have
the ability and willingness
to buy the product.
The
person
who
buys the
product
or
products
.
The person who uses the
product.
Focusing all marketing
decisions on a very specific
group of people who you
want to reach.
Is a way of analyzing a
market by specific
characteristics in order to
create a target market.
Statistics that describe a population in
terms of personal characteristics.
Ex: population, ages, gender, income,
ethnic, education, occupation.
Demographics: Gender
• Based on differences in men and
women
• Examples: Marketers put ads in
Bassmaster for fishing targeted to
men
–Marketers put ads in Vogue for
makeup and jewelry for women
The money left
after taking out
taxes,.
(Marketers who
produce and
distribute
products that are
necessities are
interested in
changes in
consumers’
disposable
income.)
The money left
after paying for
basic living
necessities such as
food, shelter, and
clothing.
(Marketers are
looking for changes
in customers
discretionary
income.)
When 76 million babies were
born in the United States
between 1946 and 1964.
Demographics (Baby Boomers)
• Baby Boomers: Born between
1946 to 1964 (currently ages 4866)
• Largest group
• Control approximately 51% of
wealth
• Prime targets for luxury items
• Buy recreational items
• Currently ages 36-47 (Born between 1965
and 1976)
• Dual-income families
• Are savvy and skeptical consumers
• Better educated and financially cautious
• Prime consumers of cosmetics,
fashionable clothing, movies, and
electronic items
When more than 40 million American
were born between 1965 and 1976.
Ages 15-35 (Born between 1977-1997)
*Growing up during computer
revolution
*Use to interactivity and doing more
than one thing at a time
*Influence buying in home such as
automobiles and computers
*Buy many of their personal items
Gen I
Also called Gen Z, the internet generation or
Generation Z - 14 years and under: * They're the
children of the youngest boomers. * * This
generation is the only one to be born entirely in
the internet era, and to parents who are generally
more accepting and knowledgeable of such
technology.
•Generation Z kids spend an average of 1.5 hours per day on the computer
and 1 ¼ hours playing video games. A recent UK study found that children
found social networking (Facebook / Twitter / MSN) more important than other
aspects of their life including their family.
•About 4 in 10 – 7th to 12th grade kids say they use another medium most of
the time while they are listening to music (43%), using a computer (40%) or
watching TV(39%).
•According to market research firm JupiterResearch, 80 percent of teens with
cell phones regularly use text messaging.
Demographics (Ethnic Background)
• African Americans
–Approximately 12%+ of
population
–Target with Essence and Black
Enterprise magazines
–Use community support
activities to reach
Demographics (Ethnic)
• Hispanics – largest growing ethnic group (11%+
of our population)
– Large families (larger package sizes)
– Use Spanish speaking television for ads
• Asian Americans – Approx. 4% of population
– More college graduates
– Higher level of professional jobs
– Consumers of financial services,
telecommunications, new cars
Studies of consumers based on
social and psychological
characteristics.
Ex: How people live and act. How
they spend their money and what
they spend it on.
Psychographics
• Based on social and psychological
characteristics
– Sports and other activities they like
– Trend toward health, eating properly,
and exercise
– Trend toward taking vacations –relaxing
– Trendsetting issues – upscaling which is
buying name brand items (defines
person)
Segmentation of the market
based on where people live.
Ex: rural, city, suburbs
Product Benefits
• Segmenting the market based on different
characteristics of the customer
• Example: Shampoo (everyone has
different hair types/needs so there are
different shampoos for each need)
– Oily hair
– Dry hair
– Curly hair
– Straight hair
– Suave: beauty products that give you salon-
Product Benefits (another
example)
• Cereal:
– Healthy
– Children
– Cereal bars
– Sweetened
– Sugar free
– General Mills: Cereals - Cheerios, Chex, Fiber
One, Kix, Lucky Charms, Total, Trix,
Wheaties...
A profile that a company has
about their target market with
regard to the age, income level,
ethnic background, occupation,
attitudes, lifestyles, or geographic
residence.
What are your demographics and
geographics and psychographics?
1. What is your age?
2. What age category do you fall under?
(baby boomers, generation X or
generation Y?
3. What is your gender?
4. What is your ethnicity (caucasian, african
american, japanese, etc.?
5. What do you like to spend your money
on? Your interests?
6. What part of Pulaski County do you live
in? (city of Somerset, Ferguson, etc.