Marketing’s Main Purpose Provide a bridge between producers & consumers so exchange of goods & services can occur Marketing Process.

Marketing’s Main Purpose

Provide a bridge between producers & consumers so exchange of goods &

services can occur

Marketing Process

There are 7 main Marketing Functions that make up the marketing

process• Distribution: Physical

movement & storage• Financing: How & where

funds are used in business• Marketing-info-management:

Collecting, disseminating, & using info. To make sound business decisions

• Pricing: Decisions dictating how much to charge for products

• Product/Service management: What products & services will be offered

• Promotion: Activities that inform & persuade

• Selling: Personalized communication that influences purchasing decisions

Marketing Mix(Four P’s): Four Main Marketing

Decisions• Product (P/S Planning)• Place (Distribution) • Price • Promotion

* Most important decisions because each deals directly with consumers.

involve the goods, services, or ideas used to satisfy consumer needs.

ProductDecisions

involve the exchange process between the customer and the seller.

PriceDecisions

involve making the product available to the customer.

PlaceDecisions

involve how the goods or services are communicated to the consumer.

PromotionDecisions

The Marketing Mix—The Four Ps

Marketing Decisions Must be Directed Towards the

Target Market

Target Market: The group(majority) of consumers that a business will direct

it’s marketing activities towards

• PRODUCT

• PLACE

• PRICE

• PROMOTION

How do Businesses Define their Target

Market?

Through the process of

Market Segmentation

Analyzing Markets

Market segmentation is a way of analyzing a market by specific characteristics in order to create a target market

Types of Segmentation:

• Demographics

• Psychographics

• Geographics

• Product Benefits

Market segmentationSeparating larger groups into smaller

groups based on certain characteristics• Demographics – Segmenting

the market based on consumers personal characteristics.

– Age

– Gender

– Income

– Ethnic Background

– Life Stage

– Occupation

– Educational Level

• Income– Disposable income –

money left after taking out taxes

– Discretionary income – money left after paying for basic living necessities such as food, shelter, and clothing

• Ethnic Background

U.S. Trend – The percentage of the Caucasian population is declining, while

other ethnic populations increase.

• Education

• Occupation

• Psychographic– segmenting consumers based

on social and psychological characteristics

– Lifestyles (outdoor enthusiasts, computer “geeks”)

– Hobbies– Personalities– Interests– Trends – healthy eating,

politics, Name brands

• Geographic– Segmenting consumers based

on their location.• Regional, National, Global

Music teachers, dancers, and other

music lovers would be one category of people who share

psychographic characteristics.

VALS™ is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising.

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Product Benefits Segmentation

• Segmenting consumers based on their response or benefits from a product.– Rate of Use – Coffee Drinkers or Smokers– Loyalty – Kroger shoppers or Coke

Drinkers– Occasion – Christmas shoppers, Brides &

Grooms.

Goal of Market SegmentationIdentify the specific characteristics of a business’s target market in order to make the most effective marketing decisions.