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Basic Marketing Concepts

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Title: Basic Marketing Concepts


1
Basic Marketing Concepts
2
Customers vs. Consumers
  • Customers BUY the product.
  • Consumers USE the product.

3
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.

4
The Marketing Concept
U.S. Game Console Market
A market can be described as the people who are
potential customers of a product, as well as by
the classification of a product in a category.
Would you be considered part of the market for
game consoles? Why or why not? What other markets
are you part of?
5
Target Marketing
  • Focusing all marketing decisions on a very
    specific group of people who you want to reach.

6
Customer Profile
  • Includes information about the target market
    with regard to the age, income level, ethnic
    background, occupation, attitudes, lifestyle, or
    geographic residence of the targeted customers.

7
Marketing Mix
  • The 4 Ps
  • Product
  • Place
  • Price
  • Promotion

8
Product Strategy
  • What product to make
  • How to package it
  • What brand name to use
  • What image to project

9
Place Strategies
  • How and where a product will be distributed

10
Price Strategies
  • Reflects what the customers are willing and able
    to pay.

11
Promotion Strategies
  • How will the customer be told about the product
  • What will the message be
  • When and where will it be delivered
  • With what inducements

12
Marketing Mix for a New Juice Tropicanas Light
n Healthy Juice
13
Graphic Organizer
The Marketing Mix
14
Market Segmentation
What You'll Learn
  • Market segmentation and the four methods commonly
    used to segment a market
  • Current demographic, psychographic, and
    geographic trends

15
Market Segmentation
Why It's Important
Businesses must know who their customers are to
achieve success. In other words, they must know
their markets. This section will introduce you to
the U.S. marketplace and the different ways
businesses classify and characterize its segments.
16
Market Segmentation
  • A way of analyzing a market by specific
    characteristics in order to create a target
    market
  • May segment a market by
  • Demographics
  • Psychographics
  • Geographics
  • Product benefits

17
Demographics
  • Statistics that describe a population in terms
    of personal characteristics
  • Age
  • Gender
  • Income
  • Ethnic background
  • Education
  • Occupation

18
Age
  • When marketers study age, they classify everyone
    according to certain generations
  • The last 3 generations were
  • Baby Boom Generation
  • Generation X
  • Generation Y

19
Baby Boom Generation
  • Born between 1946-1964 (76 million)
  • Large size
  • Great spending power 51 of the wealth

20
Generation X
  • Born between 1965-1976 (40 million)
  • Savvy and skeptical consumers
  • Better educated
  • Financially cautious and conservative

21
Generation Y
  • Born between 1977 1997 (77 million)
  • Computer Revolution
  • 130 million in spending power
  • Influences 250 million in purchases

22
Gender
  • Gender neutral products may use different
    advertising media and messages when trying to
    reach men and women.

23
Market Segmentation
Demographics Gender
  • Companies can expand their markets by marketing
    to the other gender, or by marketing their
    products differently to men and women.
  • Example Jockey entered the womens market
    with Jockey underwear for women and doubled
    its sales.

24
Income
  • Disposable
  • Money left after taking out taxes
  • Necessity items
  • Discretionary
  • Money left after paying for basic living
    necessities such as food, shelter and clothing
  • Luxury items

25
Market Segmentation
Demographics Ethnicity
Marketers often segment the market by ethnicity.
The three largest ethnic groups within the
United States are African-Americans, Hispanics,
and Asian-Americans. These three groups will
account for 33 percent of the U.S. population in
2005.
26
Market Segmentation
Census 2000
The United States conducts a census every ten
years to determine the characteristics of the
population. Which ethnic group is declining?
Which ethnic groups are increasing? What effects
will these ethnic changes have on marketing in
the United States?
27
Psychographics
  • Studies of consumers based on social and
    psychological characteristic
  • Attitudes
  • Values
  • Lifestyles

28
Market Segmentation
Geographics
Geographics refers to segmentation of the market
based on where people live. Marketers study
geographics in relation to
  • ethnic concentrations
  • age
  • ethnic background
  • income

29
Geographics
  • Based on where people live
  • Local markets
  • Regional markets
  • National markets
  • Global markets

30
Product Benefits
  • Companies market benefits, not simply the
    physical characteristics of a product.

31
Thinking Critically
Many women's magazines like Glamour and Elle
publish advertisement for men's cologne. Explain
the rationale for this practice.
32
Basic Marketing Concepts
THE END
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