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Chapter 1 Sec. 3. Fundamentals of Marketing. All of the people who share similar needs and wants and who have the ability to purchase a given product Are you part of the videogame market? Are you part of the sports car market?.
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Chapter 1 Sec. 3 Fundamentals of Marketing
All of the people who share similar needs and wants and who have the ability to purchase a given product • Are you part of the videogame market? • Are you part of the sports car market? • Market – all potential customers who have the ability and willingness to buy
Consumer Markets • Consist of consumers who purchase goods and services for personal use.
Industrial Markets • Business-to-business (B-to B) markets include all businesses that buy products for use in their operations.
Total market • Can also be described by the total sales in a product category • Market Share • A company’s percentage of the total sales volume generated by all companies that compete in a given market.
Market • anyone who has the desire and the means to buy
Market Segments • Small groups of people within the market
Target Market • The group chosen for a specific marketing program Target Market: Males, Ages 14-20
Certain products have more than one target market 1. Your product might have different groups of users Who is 5-hour Energy Targeting? Men – too much hassle to make coffee Women – you will feel like working out for a change
Certain products have more than one target market 2. Your product might have different group who purchases than who consumes • Consumers – the people consuming or using the product • Customers – the people who are buying the product
What features on this package target Moms and what features target kids? Moms Kids
Customer Profile • To develop a clear picture of their target market, businesses create a customer profile. • It lists information about the target market, such as age, income level, occupation, attitudes, lifestyle, and geographic residence
Marketing Mix: The activities that go into the selling of a productBasic marketing strategies – the four P’s • Product • Place • Price • Promotion
Product Strategies • Product Features • Packaging • Brand Name • Different versions or flavors • Image
Place Strategies • How and where a product will be distributed. • Physical location • Stores sold in • Where within the store • Is it available online or direct?
Price Strategies • Reflect what customers are willing and able to pay. • What is exchanged for the product: • What do I have to sell a product for to make a profit? • What psychological impacts does a low or high price have?
Promotion Strategies • How potential customers will be told about the new product • What the message will be • When and where it will be delivered • What inducements are there to buy • Decisions about advertising, selling, discounts and publicity
The Marketing Mix The elements are interconnected Product Place Price Promotion