260 likes | 425 Views
Marketing . An Introduction. Marketing Defined. Markets. Set of actual and potential buyers Potential markets for…????? Textbooks Sporting event tickets Hiking boots Sports enhancement facilities BMW. Mass Marketing.
E N D
Marketing An Introduction
Markets • Set of actual and potential buyers • Potential markets for…????? • Textbooks • Sporting event tickets • Hiking boots • Sports enhancement facilities • BMW
Mass Marketing • Seller mass produces, mass distributes & mass promotes one product to all buyers • Examples??? • Weaknesses of mass marketing for non-mass products
Market Segmentation • Divides a heterogeneous group into smaller homogenous segments • Groups have similar wants & responses • Basic to all marketing efforts • Better than mass marketing. Why?
Target Marketing • Seller identifies market segments, selects 1 & develops products and marketing mixes for them • Marketing Mix – product, price, place, promotion (4 P’s)
4 Bases of Segmentation • Demographics • Psychographics • Product usage • Product benefits
Demographics • Geography • Proximity – closeness to location • Geoclusters
Demographics • Income • Determines lifestyle • Influences advertising market for certain products • Age • One of the most effective variables • Age & stage of lifecycle similar • Income, education, family lifecycle
Demographics • Age • Mature Market – 55+ • Stereotyped as inactive & thrifty – untrue! • Living longer & more active • 23% are over 55…. • & have 75% of the wealth • & 50% of the discretionary income • Per capita income is 25% higher than national average • Spends 1+ trillion per year on goods & services • Senior discounts
Demographics • Gender • Race • Shared genetic make-up, biological differences • Ethnicity • Commonalities passed down through history & tradition, culture, morals, beliefs
Demographics • Sexual Orientation • Higher income & education
Psychographics • Lifestyle characteristics
Psychographics • How do we use these? • Meijer’s coupons • Shows at Braden • Club membership – campus, fitness • Political affiliation • Donations • Activities – biking, running • Professional associations
Product Use • Use rates • Frequency • Ability • Specialization
Product Benefits Segmentation • Divide by desired benefits • What do the following want from a tennis shoe? • Runner • Avid walker • Cycler
Promotions Defined • Communication designed to facilitate exchanges with members of potential client groups by communicating the benefits offered by the program/service.
Promotions Mix Sales Promotions & Incentives Advertising Personal Selling Publicity
Personal Selling • Using direct, face to face oral presentation for the purpose of facilitating exchange
Sales… • Sponsors • Service clubs • Every day participants • Media
Personal Selling • Expensive but allows for relationship marketing • Build relationship with the customer • Allows for benefit selling • Can create new benefits to offset negativity toward product
Promotions Mix Sales Promotions & Incentives Advertising Personal Selling Publicity
Sales Promos & Incentives • Something of financial or non-financial value offered to encourage participation • Free offers • Promotional pricing • Celebrities • Prizes