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Basic Marketing Concepts. Std. 3. Marketing Concept. The idea that you must satisfy a customers’ needs and wants in order to make a profit.
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Basic Marketing Concepts Std. 3
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 servicesat the right time, at the right price and at the right place. Plus they must communicate this to their customers.
Target Market • Target Marketing -- Involves focusing marketing decisions on a specific group of people you want to reach with your product.
Who’s the target? • Apple iPad 4th Generation - Wi-Fi - 16 GB – Black $349
Who’s the target? • Harry Potter and the Sorcerer's Stone $14.58
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.
Demographic Segmentation • Market segmentation based on your target market’s personal characteristics. • Includes • gender • age • income level • occupation • ethnic background • education level
Psychographic Segmentation • Market segmentation based on your target market’s lifestyles and personality characteristics. • Includes • attitudes • values • activities • interests
Geographic Segmentation • Market segmentation based on where your target market lives. • Includes • local markets • regional markets • national markets • global markets
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
The 4 P’s of the Marketing Mix • Product • Place • Price • Promotion
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!
Product • Knowing what product to make, how to package it, what brand name to use, and what image to project.
Place • Determines how and where a product will be distributed.
Price • Should reflect what customers are willing and able to pay. Nike Shox Deliver - Men's $99.99 Champs Sports
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.