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Fundamentals of Marketing. Chapter 1.3. Market. Market – all people who share similar needs and wants and who have the ability to purchase your products Have an interest in or need for product Have money to buy product. Markets.
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Fundamentals of Marketing Chapter 1.3
Market • Market – all people who share similar needs and wants and who have the ability to purchase your products • Have an interest in or need for product • Have money to buy product
Markets • Consumer Market – consumers who purchase products for personal use • Save them money • Make life easier • Improve appearance • Create status in community • Provide satisfaction to some personal motivation
Markets • Industrial Market – (Business-to-Business) • All businesses that buy products for use in their business operations • Improve profits • Improve productivity • Increase sales • Decrease expenses • Make work more efficient
Market Share • A company’s percentage of the total sales volume generated by all companies that compete in a given market
Market Identification • Market Segmentation – breaking the market into smaller groups that have similar needs • Process of classifying customers by needs
Market Identification • Target Market – the group that is identified for a specific marketing program • All Marketing strategies are directed to them • The customers who are most likely to buy your product
Market Identification • Customer Profile – used to develop a clear picture of the target market • Lists information about the target market • Age • Income Level • Ethnic Background • Occupation • Attitudes • Lifestyle • Geographic Residence
The Marketing Mix • 4 Basic Marketing Strategies • Called the 4 P’s of Marketing • Used by marketers in order to influence potential customers
The Marketing Mix • Target Market must be clearly defined • Interconnected – Actions in one area affect another • Each strategy involves decisions about the best way to reach, satisfy, and keep customers and achieve company goals
The Marketing Mix • Product – which products to make and sale • Product-Service Management Function • Marketing Information Management Function • Place – how and where a product will be distributed; getting the product into the customer’s hand • Distribution Function
The Marketing Mix • Price – what is exchanged for the product; what customers are willing and able to pay; what does competition charge • Pricing Function • Financing Function • Promotion – decisions about advertising, personal selling, sales promotions and publicity • Promotion Function • Selling Function
Identify the 4 P’s • You want a portable audio player. You see an ad in the Bluefield Daily Telegraph for a sale on audio players. The ad notes that the sale price is $75.99. You have saved $85.00 for the player. The ad is for an electronics store in the Mercer Mall. You go to the store, and a salesperson helps you find the right player. You buy the audio player.
Did You Identify the 4 P’s? • You want a portable audio player. You see an ad in the Bluefield Daily Telegraph for a sale on audio players. The ad notes that the sale price is $75.99. You have saved $85.00 for the player. The ad is for an electronics store in the Mercer Mall. You go to the store, and a salesperson helps you find the right player. You buy the audio player.