Fundamentals of Marketing
Post on 26-Jan-2016
57 Views
Preview:
DESCRIPTION
Transcript
Fundamentals of Marketing
Section 1.04
RELATIONSHIP OF GOALS, TACTICS, & STRATEGIES TO THE MARKETING MIX
Mission Statement – the guiding principle for all business decisions and provides direction for planning. Goals/Objectives – established on a yearly basis and
support the mission statement. Goals must be measurable and have a deadline. Strategies – are then developed to accomplish
goals and it reflects the method to achieve the goal (what to do). Tactics – are then developed to accomplish
the strategies; it is the how things will be done, daily actions.
Marketing The Marketing Concept is the idea that a
business should strive to satisfy customers’ needs and wants while generating a profit for the firm. Customer Satisfaction is very important.
Repeat customers are what make businesses successful
Customer Relationship Management
If businesses don’t make money, they don’t do it!
Fundamentals of Marketing Marketers realize that not every product can appeal to
everyone.
Marketers examine two key factors to define their market: Who is interested in a product? Who can afford their product?
A market is made up of all people who share similar needs and wants and who have the ability to purchase your product. MUST MEET BOTH CRITERIA TO BE INCLUDED
Examples of a Market Luxury Suites at Yankees Stadium
Prices range from $600,000 and $850,000 Rich, Men, Sports Fans
Malt-O-Meal Frosted Flakes $1.41/box at DollarDays International
Lower Income, Kids/Single Parents
Hollister Co. Santa Monica Jacket $140 jacket
Teenage Girls, Colder climate areas, Medium-High Income Families
Target Market & Market Segmentation Market Segmentation is the process of classifying
customers by needs and wants. Goal is to identify the group of people who are most
likely to become customers. This specific group is known as a Target Market
All marketing strategies are directed towards the target market. Provides the focus of your marketing campaign. Marketer’s must develop a clear target market before developing a
marketing strategy.
Consumer v. Customer A product may have more than one target market.Example: Low Sugar Fruity Pebbles
Identify the consumer: ChildrenIdentify the customer: Parents*Most five year olds do not purchase their Fruity Pebbles
Same Product--- Different Approach
To target parents you would use commercials that advertise how healthy they are and air them on a Saturday night.
To target children you would use commercials that focus on how fun the cereal is, the bright colors, the cool characters and air this commercial on Saturday mornings.
Target Market To develop a clear picture of their target market,
businesses create customer profile lists of information about the target market. Age Income Level Ethnic Background Occupation Attitudes Lifestyle Geographic Residence
Understanding these characteristics allows you to make better choices
The Marketing Mix The Marketing Mix includes four basic
marketing strategies called the four P’s:1. Product2. Place3. Price4. Promotion5. *People
These are the tools that marketers use to influence potential customers
The 4 P’s…. Product: What you decide to make and sell. Includes the
features, benefits, packaging, name, and brand.
Place: Deals with how and where a product will be distributed.
Price: Price is what is exchanged for the product. Reflects what a customer is willing and able to pay.
Promotion: Refers to decisions about advertising, personal selling, sales promotion, and publicity.
Pick a product
MARKET SEGMENTATION
Market Segmentation
The key to marketing & selling is to know your customer You have to know what is cool, in order to
continually reach your audience
Not all customers are the same Use certain methods to reach certain
customers
Market Segmentation
Market Segmentation is the process of identifying a target market by dividing the market into segments according to customer needs and characteristics. Basically you take a target market and
break down into even smaller markets. This process is done so that marketers can
sell their products or services more effectively.
Market Segmentation Facts
Why do marketer’s use market segmentation? Very costly to target all groups
Must find the group of consumers who you have a clear competitive advantage
Use research to determine if the costs of development are effective
Specific information allows you to know your customers: Buying Behavior, Values, Fashion Interests, etc…
Market Segmentation = Jeans Most people in America wear Jeans
Not everyone wears the same type of jeans
Market Segmentation: Price
Market Segmentation
There are four key factors that marketers use to determine how to segment a market:
1. Demographics
2. Geographic Variables
3. Psychographic Variables
4. Buying Behavior
Demographics
Demographics: Refers to statistics that describe a population in terms of personal characteristics. Age (Baby Boom, Generation X, Generation Y,
Generation Z) Gender (Male v. Female) Occupation Education Income
Disposable: Money left after taxes Discretionary: Money left after taxes & basic needs have been
paid Marital Status Ethnic Background
Psychographics
Psychographics involves grouping people with similar lifestyles, as well as shared attitudes, values, & opinions. Examples:
Latest Diet Trends Environmental
Concerns
Geographics
Geographics: Refers to segmenting customers based on where they live. Segment a market geographically can be done:
Locally, Regionally, Nationally, or Globally
Hispanic cultures are prevalent in L.A., Miami, New York, Texas, Arizona, etc..
African American cultures are prominent in the south
States with high teen percentages: Alaska, Utah, Arizona, Texas, California, & Idaho
Market Segmentation
Behavioral Buyers: Accounting for the type of shopping they prefer.
Online, In-Store, Catalog
Safety Issues concerning identity
Mass Marketing v. Segmentation Mass Marketing: Occurs when a
company uses a single marketing strategy to reach all customers Products has universal appeal and few features
to differentiate them from competitors. Not as popular as it used to be because
companies prefer to cluster consumers.
Niche Marketing: Narrowing down your market and using precision to create your products
Top Ten List Exchange list of wants and needs
Based on your partners needs and wants you need to come up with a new product or service to meet one of their needs.
You need to make decisions about the 4 P’s What is the product or service you want to create? What is the price you are going to sell it for? Where will you sell it? How will you promote it?
Assignment List 10 needs and wants in your life at the bottom of
your sheet Hello Kitty Track/Cross Country Ipod Stuffed Animal Car Smart Water Monster Energy Drinks Snuggie Blanket
•Walgreen's
•Wal-Mart
•CVS
•Thermal Water Bottle
•Keeps water at 10 degree
•Drops chewing gum out the bottom
•Brail Censored buttons to guide all users
$9.99
•Commercial of athletes using my product
•Buy One, Get One Free
•Breast Cancer Awareness Month promotion
•Hello Kitty, Bye Bye Worries!
W
G
AssignmentGo around and take a
picture(s) of the following: Target market of Ardrey Kell
Demographics Age Gender Ethnic Background Income
Psychographics Activities
Play sports Clubs
Attitudes Workout Video games
Personality & Values Class Clowns Religious Drama
Geographics Does anyone have similar
characteristics based on a geographical location Dallas Cowboys Fans Students who have just
moved here Certain Middle Schools
Buying Behavior Brands Colors Fads
Target Market Assignment Part IIUpload pictures on Tuesday
Label each picture based on what component of a target market you chose
Determine the following for each groupCharacteristics that appeal to this groupAn item that they would purchasePromotional methods you would use to attract
them
Demographics: Age & GenderHigh School Students
Female
Some characteristics of a product that would appeal to this audience are…..
An item that this demographic would purchase
Promotional methods that we would use for this demographic are….
PsychographicsBuying StylesBackpackersCustomer looking for
comfort Casual
Products that might appealCinch Sack BagAccessories like a rubber
bracelet
To promote we would go to lunches and give 5 free bracelets away to increase awareness
DemographicsGender: Female
What appeals to them
Product that interests them
How would you promote the
Buying BehaviorCharacteristics that appeal to this groupConverse Shoes
An item that they would purchaseGRHS SocksFlat billed hat
Promotional methods you would use to attract themBuy One, Get One ½ Off
GeographicsCharacteristics
that appeal to this group
An item that they would purchase
Promotional methods you would use to attract them
Psychographics: SportsProduct: T-shirts geared towards each major sport. (football, softball, baseball, basketball)
Competitive slogans against other schools.
----------------------------------------------
Promotion: We will give people who are on the teams half price off their shirts so they can promote them, so it can get the word out.
top related