The Marketing Concept - PowerPoint

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					The Marketing Concept
Marketing Concept                        2.1
 Businesses become successful by following
  the “Marketing Concept”.
  Must satisfy consumers’ want/needs
      Have the right good & services
      At the right time
      At the right place
      At the right price

      Not always an easy task!
Customers vs. Consumers
 Customers buy products

 Consumers actually use the products
 Can you think of any examples where the
  customer is not the consumer?

  Gift given

  Bought by a parent for a child
 Who do businesses need to

  Customer or Consumer?

What is a Market?

All potential customers who share
 common needs and wants,
and who have the ability and willingness to
 buy the product, are considered a Market.


 A Market is also described by its total sales in
  product category by competing companies in
  categories . . . examples
   Soft drink market
   Game console market
   Shampoo market
         • etc
  Game Console Market

                  Sony PlayStation 43%

2%                                       Nintendo 64 26%
        Sega Dreamcast
        11%                Nintendo
                           Game Boy
Target Marketing

Focuses all marketing decisions on a very
 specific group of people who you want to
The more information you have on your
 target market, the easier it is to make the
 marketing decisions.

How . . . Develop a Customer Profile
What is a Customer Profile?
                                 Who am I ?

It includes information about
  Income level
  Ethnic background
  Geographic location
  . . .
Marketing Mix

Four Strategies . . . The 4 P’s
  1.   Product
  2.   Place
  3.   Price
  4.   Promotion

  Businesses need to make decisions on these
   important areas.
Market Segmentation                            2.2
 This is a way of analyzing a market by
  specific characteristics in order to create a
  target market.

   Businesses want to identify a very specific group of
    people for a target market.
. . . Market Segmentation Con’t.

 Business segment (divide) a market by
  using four methods.

  1. Demographics
     Statistics that describe a population in terms of
      personal characteristics.

It includes characteristics like . . .



 AGE:
  People are classified by “Generation”
     Baby Boom Generation is?
       • Born between 1946-1964
     Generation X
       • Born between 1965-1976
     Generation Y
       • Born 1977-2001
 Gender
  This seems obvious, but
    when a company expands
    or targets the use of their
    products to the opposite
    gender . . . They can
    increase sales.
 Income
  They measure income in two different ways.
    Disposable Income
       • Money left after taking out taxes.
    Discretionary Income
       • Money left after paying for basic living

Food, Shelter, Clothing . . .
 Ethnicity (Ethnic Background)
  The U.S. population is more diverse. To reach
   different ethnic groups businesses need to
   understand their
             Culture
             Religion
             Family
             Language
             Values
Market Segmentation
1. Demographics
2. Psychographics
   Social and psychological characteristics
      People’s attitudes
      People’s values
      People’s lifestyle
       • (How people spend their time and
Market Segmentation
1. Demographics
2. Psychographics
3. Geographics
   Where people live in a Market
     Local
     Regional
     National
     Global market
Market Segmentation
1.    Demographics
2.    Psychographics
3.    Geographics
4.    Product Benefits
      To satisfy customers needs/wants
        Types of athletic shoe
        Types of shampoo
        Types of soda
Market Segmentation

 The four areas are . . .

1.   Demographics
2.   Psychographics
3.   Geographics
4.   Product Benefits