Essential Standard 3.00

1. Essential Standard 3.00 Understand the role of marketing in business.

2. Objective 3.02 Understand buying behaviors.

3. Topics • Marketing Strategy • Consumer Decision-Making Process • Major Sources of Consumer Information • Shopping Locations

4. Marketing Strategy • What does a marketing strategy provide for a business? • provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits • Two steps of a marketing strategy: • Identify a target market • A target market consists of a group of people that have similar needs and wants. • Create a marketing mix • A marketing mix consist of a blending of the marketing elements (product, price, distribution, and promotion)

5. Marketing Strategy continued Steps in the consumer decision-making process: • Recognize a need or want • Gather information • Select and evaluate alternatives • Make a purchase decision • Determine the effectiveness of the decision

6. Major Sources of Consumer Information

7. Product Testing Organizations • Test products and services to detect benefits. • Examples • Underwriter Laboratories • Association of Home Appliance Manufacturers • Consumers Union (Independent testing organizations)

8. Media Sources • Provide specific information about products and services. • Types of media sources: • Print Examples • Magazines • Newspapers • Broadcast Organizations Examples • Radio • Television • Internet

9. Government Agencies • Inform consumers and may handle consumer questions. • Types • Federal • State • Local • What are some ways that government agencies protect people?

10. Business Sources • Business sources are available as a public service and to sell products and services. • Types • The main function of advertising is to sell. • Product labels provide helpful information about nature of product, how to care for product, where product was made, and the size of the product. • Customer Service Departments focus on assisting customers. • Better Business Bureau (BBB) provide facts about products or services.

11. Major Sources of Consumer Information • What kinds of information has anyone obtained from an advertisement? • How was the information obtained from the advertisement used? • What product label has someone used recently? • How was the information obtained from the product label used?

12. Personal Contacts “Word of mouth” advertising.

13. Shopping Locations

14. Traditional Retailers • Department Stores • Provide broad product lines and highlight their service • What are some examples? • Discount Stores • Highlight their offering of lower prices for products • What are some examples? • Specialty Stores • Provide a special line of products • What are some examples?

15. Traditional Retailers continued • Supermarket • Large, full service store that offer many brands of products • What are some examples? • Convenience Store • Provide popular items, offer long operating hours, and are usually located in highly accessible areas • What are some examples?

16. Contemporary Retailers • Specialty Superstores • Provide wide variety of limited products at low prices • What are some examples? • Superstores • Provide a wide variety products in the retail services such as food, bakery, auto, and electronics. • What are some examples?

17. Contemporary Retailers continued • Warehouse Club • Provide products in large quantities at practical prices. • What are some examples? • Factory Outlets • Provide high-quality products at low prices. • What are some examples?

18. Non-Store Shopping • Allows purchasing of goods and services by telephone, computer, television, fax, or door-to-door. • What are some examples of non-store shopping opportunities? • Vending machines provide products through automation. • What are some examples of vending machine shopping opportunities?