Basic Marketing Concepts

Marketing Concept -to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers Consumers(use product) and customers(buy product) –recognize consumers impact on buying decision Customer satisfaction –Value-personal satisfaction gained from use of a good or service –goal is to develop a relationship w/ the customer

Identifying Customer Market -group of all potential customers who share common needs and wants and who have the ability and willingness to buy the product Market Share -percentage of the total sales volume by all companies that compete in a given market

Market Identification Mass-marketing –universal appeal and few features to differentiate them from competitors –single advertising theme, focusing on product name Market Segmentation Dividing the total market into smaller groups of people who share specific needs and characteristics Customize product offerings and marketing strategies

Targeting your Consumer Target marketing-focusing all marketing decisions on the specific group of people you want to reach More information you have the easier it is to make marketing decisions. Success determined on how well your target market is defined & how well your marketing decisions are directed toward it

Market Segmentation Demographics-statistics that describe a population in terms of personal characteristics –Age-Baby Boom, Gen X, Echo Boomers –Gender –Income Disposable(money left over after taxes) and Disceretionary(left after paying basic living expenses) –Marital Status –Ethnic Background

Market Segmentation Geographics-segmenting based on where people live –Local, regional, or global Psychographics –Study of consumers based on activities, attitudes, values Behavioral - Benefits desired by consumers, shopping patterns and usage rate Combining these segment characteristics, you create a picture of a prospective customer, also know as a customer profile.

Marketing Mix-combination of marketing decision involving the 4 P’s. 4 P’s –Price –Product –Place –promotion + your target market (people)

Product & Place Decisions Product Decisions –what to make –how to package –what brand name –what image to project Place Decisions –how product will be distributed –where product will be distributed

Price & Promotion Decisions Pricing Decisions –customer’s willingness to pay –customer’s ability to pay Promotion Decisions –Decisions about advertising, personal selling, sales promotion and publicity –what will message be(slogan) –when and where will it be delivered

SWOT 1.Internal: Strength and weakness Strength- the strong points of the business Weakness-the problems the company has at present 2.External: Opportunities and Threats Opportunities-that may arise in the future Threats-that may arise and should be avoided/prevented if possible

SWOT Diagram

SWOT Example 1.Effective promotion 2.Excellent distribution 3.Brand loyalty 1.Restricted product range 2.Age of life cycle 1.Development of global brand 2.Growing demand 1.Growing competition 2.Legislation on ingredients could force changes

Marketing Plan 1.Executive Summary 2.Situational Analysis SWOT Analysis Environmental Scan 3. Objectives Company’s Mission Marketing Objectives Financial Objectives 4. Marketing Strategies Positioning and points of difference Marketing Mix(Four P’s) Product Promotion Price Place This is the introduction to the marketing plan. Its clarity and brevity to sell the plan to readers This section defines specific goals to be met. Must be specific realistic, measurable and have a time frame This part provides a snapshot of the company’s present position. It often reports the results of SWOT. This is where the company defines how it is going to meet its objectives with a marketing mix.

5. Implementation Organization Activities and responsibilities Timetables 6. Evaluation and Control Performance standards and measurements Marketing objectives Financial objectives Marketing mix strategies Corrective action 7. Appendix This part outlines how the company will put its plans into effect. This part tells how the marketing plan will be evaluated and what measures might be necessary if objectives are not met. Supplemental materials are included in the appendix