2 Marketing StrategyA marketing strategy provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits .Two Steps:Target MarketMarketing Mix
3 Target MarketA specific group of consumers that have similar wants and needs.4 types of segmentation:Demographic (age, gender, income, ethnicity)Geographic (location)Psychographic (values, attitudes, & lifestyles)Behavioral (why customers buy the product)
4 Marketing Mix (4Ps)The blending of the four marketing elements—product, place (distribution), price, and promotion.Satisfies the wants and needs of the target market.Provides a profit for the company.
5 Consumer Decision Making Process Recognize a need.Gather information.Select and evaluate alternatives.Make a purchase decision.Determine the effectiveness of the decision.
6 Decision-Making Extensive Limited Routine Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer.LimitedOccurs when a customer buys products that he or she has purchased before but not regularly.RoutineOccurs when little information is needed about the product being purchased.
7 Consumer Buying Motives Buying motives are the reasons consumers decide what products and services to purchase.Emotional feelings, beliefs, and attitudesRational based on facts and logicPatronage based on loyalty, customer service, merchandise, and convenience
8 Consumer Information Sources Product Testing OrganizationsMediaGovernmentBusinessPersonal
9 Product Testing Organizations Test products and services to detect benefits.ExamplesUnderwriter LaboratoriesAssociation of Home Appliance ManufacturersConsumers Union (Independent testing organizations)
10 Media SourcesProvide specific information about products and services.Types of media sources:PrintMagazinesNewspapersBroadcast OrganizationsRadioTelevisionInternet
11 Government AgenciesInform consumers and may handle consumer questions.TypesFederalStateLocal
12 Federal Trade Commission (FTC) Works to prevent fraud, deception, and unfair business practices.Enforces truth in advertisingProtects against predatory or discriminatory lending or unfair loan servicingDo NOT Call Registry and mail fraudWorks to prevent identity theft -- including Fair Credit Reporting Act
13 Food and Drug Administration (FDA) Responsible for protecting the public health by assuring the safety and security of:human and veterinary drugsbiological productsmedical devicesour nation’s food supplycosmeticsproducts that emit radiation
14 US Dept of Agriculture (USDA) Keeps our food sources safeInspect fruit & plants imported from foreign countriesNational School Lunch ProgramInspects meat, poultry, and eggsSets nutritional guidelines (Food Pyramid)
15 Business SourcesBusiness sources are available as a public service and to sell products and services.TypesThe main function of advertising is to sell.Product labels provide helpful information about nature of product, how to care for product, where product was made, and the size of the product.Customer Service Departments focus on assisting customers.Better Business Bureau (BBB) provide facts about products or services.
16 Business SourcesBetter Business Bureau (BBB) provides facts about products or services.A non-profit organization dedicated to building fair, honest relationships between businesses and consumersMonitors a company’s record for addressing a customer’s complaint.NOT a government organization
17 “Word of mouth” advertising. Personal Contacts“Word of mouth” advertising.
18 Traditional Retailers Department StoresProvide broad product linesMany customer services – Salon, gift wrapping, eye careClearly defined departmentsEx. Macy’s, JC Penny, Belk’sDiscount StoresSells a variety of items at reasonable or low prices; often nationwide stores; practical displays and not always very organized; some service is availableExamples: Target, Wal-Mart, Dollar General
19 Traditional Retailers Specialty StoresSell only one kind of merchandise – clothing stores, athletic goods stores, hardware stores; services vary, selling methods and prices varyEx: Foot Locker, Best BuySupermarketType of grocery storeLarge selection of productsOrganized as departments - produce, meat, deliEx. Harris Teeter, Bi-Lo
20 Traditional Retailers Convenience StoreProvide popular items, offer long operating hours, and are usually located in highly accessible areasUsually higher pricedEx. 7-Eleven
21 Contemporary Retailers SuperstoresExtremely large, similar to supermarkets, but also sell mass merchandise items like clothing, garden products, and booksExamples: Wal-Mart Supercenter, Super TargetSpecialty SuperstoresProvide wide variety of limited products at low pricesEx. – IKEA, Home Depot
22 Contemporary Retailers Warehouse ClubHuge selections of food and nonfood items at low prices and in bulk quantitiesOften require membershipsEx. Costco and BJ’sFactory OutletsOperated by the manufacturer and carry only that manufacturer’s brand or an affiliated manufacturerExamples: Nike, Ralph Lauren, Nautica
23 Non-Store RetailersAllows purchasing of goods and services by telephone, computer, television, fax, or door- to-door.Vending machines provide products through automation.