The Marketing Concept Chapter 4.1

Section 4.1 Goals Explain the central focus of the marketing concept. Explain the reasons for increased sports and entertainment options.

Warm-up Think of a product that you like. What can be done to make that product better!

The Marketing Concept Marketing is an important business function. You are a major part of the process The most important part of marketing is addressing customer needs. A business that focuses on addressing customer needs is following the marketing concept

Maintain Relationships Successful customer relationships are critical to the marketing concept. Customers are unique. Know who you are dealing with. Customer satisfaction is the bottom line for maintaining successful marketing relationships.

Customer Satisfaction The bottom line……. How to beat the competition….. Is there a place that you attend regularly? Do you buy the product no matter what the cost?

What about Starbucks? Staffing “The Third Place” What are other examples of how companies satisfy customer needs?

In Summary…… What is the most important aspect of marketing?

Assignment Complete the guided notes on pages 93-95 of the text book.

Increased Sports and Entertainment Options Why does a person have an increased amount of discretionary income to spend on sports and entertainment? Increase in living standards

Increased Sports and Entertainment Options Marketing strategies must include what things to meet the latest customer demands? Monitor consumer trends and making improvements to meet the latest demands.

Increased Sports and Entertainment Options ____________ is the rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized. Productivity

Increased Sports and Entertainment Options The primary focus of the marketing concept is satisfying customer needs.

Increased Sports and Entertainment Options What is the result when companies do not pay attention to customer wants and needs? Disappointing attendance figures and stores can have a surplus in merchandise resulting in price cuts.

Increased Sports and Entertainment Options Customers are the driving force behind the marketing concept. The minimum attendance and sales required to cover all the expenses of organizing, promoting, and running an event is also know as the breakeven point.

Increased Sports and Entertainment Options What industries would have a vested interest when a city hosts a sports event? Hotel, Restaurant, Retail Stores, etc.

Increased Sports and Entertainment Options Opportunity Cost is the value of the next best alternative that you forgo when making a choice. The value of opportunity cost is measured in the benefits that you are giving up.

Increased Sports and Entertainment Options What forms of entertainment will continue to grow due to an increase in fuel costs and other current trends? Online and other forms of home entertainment

Go online www.neshaminy.org Neshaminy High School Teachers Mr. Hanlon Online Quiz You will need to enter your computer username and password

Discover What People Want Chapter 4.2

Goals Explain the importance of understanding buyer behavior when making marketing decisions.

Opening Act Assume that you run an event . What event are you running? Who are you going to attract as a sponsor? What should you know about the sponsor before hand?

Understand Buyer Behavior economic market All of the consumers who will purchase a product or service Two major goals of marketing are to determine what customers want and how much they are willing to pay.

Consumer Spending Habits Constant research of spending habits is extremely important. What factors into the price of an event ticket

Consumer Spending Habits Benefits derived the value people believe they receive from a product or service Comparative advantage the capability to produce products or services more efficiently and economically than the competition

Consumer Wants and Needs Take the time to make a list of the last 5 purchases that you have made. Next to each purchase write down want or need.

Consumer Wants and Needs hierarchy of needs identifies five human areas of needs

Buying Motives Emotional Purchases Rational Purchases spending with little thought during emotional times Rational Purchases define wants and needs assess priorities and budget conduct research compare alternatives make a well thought out purchase

Buying Motives Patronage Purchase based on loyalty to a particular brand or product

Brand Loyalty Importance High Sales Volume- repeat purchase Premium Pricing- customers are less sensitive to price changes Retain Rather then Seek- Advertising costs 4-6 times as much to attract a new customer as it does to retain a customer

Creating and Maintaining Reminded of Value- before and after advertisement. Unbeatable product Know you trophy customers Make it easy to buy Customer service Stand behind product

The marketing concept and satisfying customer needs. What do you know about the Hershey company?

Web-Quest Complete the worksheet Use www.thehersheycompany.com to answer the questions.

Information Management Chapter 4.2 continued Information Management

Gathering Information Marketers are often involved in every step of the decision-making process.

The Decision Making Process recognize a need or a want conduct product research evaluate choices decide what to purchase evaluate the product after the purchase

Information Information about consumers that is important to consider include demographics shopping behaviors how consumers spend money product and brand preferences frequency of purchases

Business Environment The business environment impacts consumer spending as follows: economic uncertainty marketplace competition technological advances have impacted how consumers research and buy products Government

Sources for Information internal sources a business’s own customer records, sales records, production records, and operation records external sources government reports, trade and professional organizations, business publications, commercial data, and information services

Classifications of Data Primary data obtained for the first time and specifically for the particular problem or issue being studied secondary data information previously collected for another purpose but is now found useful in the current study

Importance of data collection Data can be collected through surveys and observance. It is important for surveys to be divided into certain categories Demographics Shopping Behavior Personality Loyalty to Brand

Encore 4.2 pg. 102 Questions #1-4 1&2 Question and Answers 3&4 Answers Only (be sure to include vocab in answer.)

Assignment: Choose a company or a specific product. Come up with two questions that you would ask for each main category. Demographics, Shopping Behavior, Personality, and Loyalty to Brand List the Category and the questions Example: Demographics Question #1

Surveys What styles of questions do you see? Sample

Chapter 4.3 Target Markets

Goals Define target market and market segment. Describe how businesses use market segmentation.

Warm-Up List all the products that are targeted towards you. Which of these products are you responsive to?

Determine the Target Market specific group of consumers you want to reach Goal is to narrow down the focus of marketing efforts Special Edition Covers…

Focus on Marketing Efforts market segment a group of consumers within a larger market who share one or more characteristics Consumers belong to multiple market segments. Marketers must identify the market segment to which they want to sell.

Meet Target Market Needs Market segmentation data can improve business decision making. number of potential customers customer income level level of interest in product or service

Types of market segmentation Markets may be segmented in many ways. geographic location demographics psychographics behavior

Geographic Segmentation divides markets into physical locations

Demographic Segmentation information that can be measured age income profession gender education marital status household size

Psychographics Segmentation characteristics that cannot be physically measured values interests lifestyle choices

Behavioral-Based Segmentation focuses on a customer’s attitude toward products and services product usage what products you use and how often product benefits the positive experiences or associations people derive from using a product or service

Market Share market share percentage of total sales of a product or service that a company expects to capture in relation to its competitors