Download Chapter 3: What Is Marketing? Analyzing Customers and Your Market

Entrepreneurship
Chapter 3
What Is Marketing?
Analyzing Customers and Your Market
Mariotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
What Is Marketing?
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Satisfying the customer at a profit
The business function that identifies
your customers and their wants and
needs
The engine that drives ALL business
decisions
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Features Create Benefits
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Feature—fact about a product or service
Benefit—what the feature can do to
meet a customer’s need
Smart marketers emphasize benefits,
not features.
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Visualize Your Customer
Use market research to find out:
 Who your customers are
-income
-age
-location
 Where you can find them
 What they want and need
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
4 Types of Market Research
1. Surveys and focus groups—interview people
about your business
2. General research—libraries, internet,
chamber of commerce
3. Statistical research—facts presented as
numbers. Consumer statistics are called
demographics.
4. Industry research—trends, growth, etc.
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Research Market Before Opening
Your Business
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Be open to criticism
Focus your brand—find the one benefit
you want to market to customers
Ford’s Edsel—lacked focus, too many
features, failure
Ford Mustang—tightly focused on target
market (20–30-year-olds), success
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Build Your Brand
1.
2.
3.
4.
5.
Business name
Logo
Reputation
Brand personality
Communicate brand to target market
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
7 Ways to Build a Great Brand
1.
2.
3.
4.
5.
6.
7.
Provide high-quality product/service
Maintain high ethical standards
Define product/service clearly
Treat employees well
Make ads positive and informative
Associate company with a charity
Be involved in community
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Market Segmentation
Market segment = consumers who have
similar response to a certain type of
marketing
Segmentation methods
 Geographic
 Demographic
 Psychographic
 Behavioral
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Product Life Cycle (PLC)
4 stages
1. Introduction
2. Growth
3. Maturity
4. Decline
5. Where is your product/service in the
PLC? Is your market saturated?
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.
Market Positioning
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Distinguish your product/service from others
offered to your market segment.
Goal: clearly communicated how your
product/service differs from competitors.
Positioning statement:
Ex: (General Motors) is the (leading US
automobile maker) that (provides
affordable cars) to (American families)
Marriotti: Entrepreneurship
© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.