Basic Marketing Concepts

1. Basic Marketing Concepts

2. 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.

3. Target Market • Target Marketing -- Involves focusing marketing decisions on a specific group of people you want to reach with your product.

4. 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.

5. Demographic Segmentation • Market segmentation based on your target market’s personal characteristics. • Includes • gender • age • income level • occupation • ethnic background • education level

6. Psychographic Segmentation • Market segmentation based on your target market’s lifestyles and personality characteristics. • Includes • attitudes • values • activities • interests

7. Geographic Segmentation • Market segmentation based on where your target market lives. • Includes • local markets • regional markets • national markets • global markets

8. 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

9. The 4 P’s of the Marketing Mix • Product • Place • Price • Promotion

10. 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!

11. Product • Knowing what product to make, how to package it, what brand name to use, and what image to project.

12. Place • Determines how and where a product will be distributed.

13. Price • Should reflect what customers are willing and able to pay.

14. 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.

15. Any Questions?