Transcript Marketing
MARKETING ACTIVITIES Business Management OBJECTIVES Explain the role of marketing in the economy. Determine various applications of marketing research. Explain marketing concepts and the elements of the marketing mix. Explain the four stages of the product life cycle. WHAT IS MARKETING? Marketing activities include: Buying Selling Transporting Storing Financing Research & Information Gathering Risk Taking Grading & Valuing PURPOSE OF MARKETING To help connect businesses to their customers! MARKETING CONCEPT The marketing concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business. MARKET SEGMENTATION Who is most likely to purchase your product? MARKET SEGMENTATION Classification of customers by wants and needs Creates smaller, more precise groups of people WHAT IS A TARGET MARKET? Group of people identified as the most likely to become customers These are the people a business wants to reach with their goods or services! SEGMENTATION FACTORS Demographic Geographic Ways to Segment a Market Psychographic Behavioral DEMOGRAPHIC Definition Refers to statistics that describe a population in terms of personal characteristics Examples Age Gender Income Marital Status Ethnic Background Education Occupation GEOGRAPHIC Definition Based on where people live Examples Local Regional National Global PSYCHOGRAPHIC Definition Grouping people with similar lifestyles Grouping people with shared attitudes, values, opinions Examples Hobbies Interests Trends Political Opinions BEHAVIORAL Definition Involves looking at the benefits desired by consumers, shopping patterns, and usage rates Examples Teenagers spend about $50 a month on entertainment. Teenage girls spend 15% more on music than teenage boys. Today’s young adults desire affordable luxuries. CUSTOMER PROFILES By segmenting markets, businesses can develop a customer profile. A customer profile is a list of information or common characteristics about a target market. This gives the business a starting point to conduct research & determine what products the market wants, where they shop, how to advertise, etc. MARKET DIFFERENTIATION Why should consumers choose your product over another? MARKET DIFFERENTIATION Your product must stand out as something different from competitors’ offerings. Market differentiation strategies include: Customer Service Product Price Quality THE MARKETING MIX Reaching Out to your Target Market THINK ABOUT IT Have you ever made a batch of brownies? What ingredients do you need? What happens if one of the ingredients is missing? THE MARKETING MIX Your target market and customer profile will help shape your marketing mix, which is also known as the four P’s. Without a solid mix of marketing strategies that work together, a product is not likely to succeed in the marketplace. THE MARKETING MIX Product 2. Place 3. Price 4. Promotion 1. Because customers & employees are so important to a business’ success, some marketers add a 5th “P” to the mix. PRODUCT Refers to tangible, physical characteristics or features of a product / service Examples include: Quality Packaging Accessories / services What it looks like & does! PLACE a.k.a distribution Getting the products to the places where your target market shops Examples include: Specific stores Distribution channels Order Processing PRICE Should reflect what customers are willing & able to pay (demand) Examples include: Low price strategy Seasonal pricing Bundling PROMOTION Communication of information Includes: Advertising Sales Promotions Publicity Product Cookies & Cream Poptarts Place Grocery stores everywhere! easy to take on the go other flavors available eat cold or toast it appeals to all ages PEOPLE Price $2.99 per box Compare with: Toaster Strudels $3.99 Granola Bars $1.99 school-age children Promotion TV Commercials on Nick & Cartoon Network Interactive website with games for kids PRODUCT LIFE CYCLE Every product & every business goes through their ups & downs. Introduction • Business is being planned • Sales are low • Production costs tend to be high Growth •Initial time of negative profit until break-even point •The way the business is managed will make it or break it! Maturity • Business can start to expand, hire more staff, introduce more products, etc. • Sales start increasing, costs decline • Competition may grow Decline • Sales decline & costs rise • Larger competitors drive out smaller businesses Introduction • Create customer awareness & interest • Attract “innovators” to try product Growth •Need to focus on differentiation! Maturity • Pricing strategy for the “late majority” • Improve, add-on, or change product Decline • Focus on sales promotions & price concessions • Need to develop a new market segment or new product THE PITCH! As you watch “The Pitch”, create a chart and note some ideas about your marketing mix. Include product, price, place, and promotion strategies.