Download Basic Marketing Concepts

Basic Marketing
Concepts
Unit 1, Chapter 2
Marketing Concept
• The idea that you must satisfy a
customers’ needs and wants in
order to make a profit.
• Businesses must have the right goods and
services at the right time, at the right price
and at the right place. Plus they must
communicate this to their customers.
Unit 1, Chapter 2
Target Market
• Target Marketing -- Involves
focusing marketing decisions on a
specific group of people you want to
reach with your product.
Unit 1, Chapter 2
Market Segmentation
• Analyzing a market by specific
characteristics in order to create
a target market.
• Once a target market is identified, a business can
customize its products and marketing strategies
to that specific group of customers.
• To do this, businesses may segment a market by
demographics, psychographics, geographics, and
product benefits.
Unit 1, Chapter 2
Demographic
Segmentation
• Market segmentation based on your target
market’s personal characteristics.
• Includes
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gender
age
income level
occupation
ethnic background
education level
Unit 1, Chapter 2
Psychographic
Segmentation
• Market segmentation based on your
target market’s lifestyles and
personality characteristics.
• Includes
– attitudes
– values
– activities
– interests
Unit 1, Chapter 2
Geographic
Segmentation
• Market segmentation based on
where your target market lives.
• Includes
– local markets
– regional markets
– national markets
– global markets
Unit 1, Chapter 2
Benefit Segmentation
• Market segmentation based on
benefits your target market expects
to receive or gain from products.
• Includes
– added protection
– health issues
– special needs
– stage in family life cycle
Unit 1, Chapter 2
The 4 P’s of the
Marketing Mix
• Product
• Place
• Price
• Promotion
Unit 1, Chapter 2
• The Marketing Mix is comprised
of four basic marketing
strategies, collectively known as
the “Four P’s.”
• The Marketing Mix is dependent
on how well the target market is
defined and how well all
strategies are directed toward
that target audience!
Unit 1, Chapter 2
Product
• Knowing what product to make, how to
package it, what brand name to use,
and what image to project.
Unit 1, Chapter 2
Place
• Determines how and where a
product will be distributed.
Unit 1, Chapter 2
Price
• Should reflect what customers
are willing and able to pay.
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Unit 1, Chapter 2
Promotion
• Deals with how potential
customers will be told about the
new product, what the message
will be, when and where it will be
delivered, and with what
inducements to buy.
Unit 1, Chapter 2
Any Questions?
Unit 1, Chapter 2