MARKETING

1. MARKETING 3.02 Understand buying behaviors.

2. Marketing Strategy • A marketing strategy provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits . • Two Steps: • Target Market • Marketing Mix

3. Target Market • A specific group of consumers that have similar wants and needs. • 4 types of segmentation: • Demographic (age, gender, income, ethnicity) • Geographic (location) • Psychographic (values, attitudes, & lifestyles) • Behavioral (why customers buy the product)

4. Marketing Mix (4Ps) • The blending of the four marketing elements—product, place (distribution), price, and promotion. • Satisfies the wants and needs of the target market. • Provides a profit for the company.

5. Consumer Decision Making Process • Recognize a need. • Gather information. • Select and evaluate alternatives. • Make a purchase decision. • Determine the effectiveness of the decision.

6. Decision-Making • Extensive • Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer. • Limited • Occurs when a customer buys products that he or she has purchased before but not regularly. • Routine • Occurs when little information is needed about the product being purchased.

7. Consumer Buying Motives • Buying motives are the reasons consumers decide what products and services to purchase. • Emotional feelings, beliefs, and attitudes • Rational based on facts and logic • Patronage based on loyalty, customer service, merchandise, and convenience

8. Consumer Information Sources • Product Testing Organizations • Media • Government • Business • Personal

9. Product Testing Organizations • Test products and services to detect benefits. • Examples • Underwriter Laboratories • Association of Home Appliance Manufacturers • Consumers Union (Independent testing organizations)

10. Media Sources • Provide specific information about products and services. • Types of media sources: • Print • Magazines • Newspapers • Broadcast Organizations • Radio • Television • Internet

11. Government Agencies • Inform consumers and may handle consumer questions. • Types • Federal • State • Local

12. Business Sources • Business sources are available as a public service and to sell products and services. • Types • The main function of advertising is to sell. • Product labels provide helpful information about nature of product, how to care for product, where product was made, and the size of the product. • Customer Service Departments focus on assisting customers. • Better Business Bureau (BBB) provide facts about products or services.

13. Personal Contacts “Word of mouth” advertising.

14. Traditional Retailers • Department Stores • Provide broad product lines and highlight their service • Discount Stores • Highlight their offering of lower prices for products • Specialty Stores • Provide a special line of products

15. Traditional Retailers • Supermarket • Large, full service store that offer many brands of products • Convenience Store • Provide popular items, offer long operating hours, and are usually located in highly accessible areas

16. Contemporary Retailers • Specialty Superstores • Provide wide variety of limited products at low prices • Superstores • Provide a wide variety of products in the retail services such as food, bakery, auto, and electronics.

17. Contemporary Retailers • Warehouse Club • Provide products in large quantities at practical prices. • Factory Outlets • Provide high-quality products at low prices

18. Non-Store Retailers • Allows purchasing of goods and services by telephone, computer, television, fax, or door-to-door. • Vending machines provide products through automation.