Basic Marketing Concepts Unit 1, Chapter 2

Marketing Concept The idea that you must satisfy a customers’ needs and wants in order to make a profit. Businesses must have the right goods and services at the right time, at the right price and at the right place. Plus they must communicate this to their customers. Unit 1, Chapter 2

Target Market Target Marketing -- Involves focusing marketing decisions on a specific group of people you want to reach with your product. Unit 1, Chapter 2

Market Segmentation Analyzing a market by specific characteristics in order to create a target market. Once a target market is identified, a business can customize its products and marketing strategies to that specific group of customers. To do this, businesses may segment a market by demographics, psychographics, geographics, and product benefits. Unit 1, Chapter 2

Demographic Segmentation Market segmentation based on your target market’s personal characteristics. Includes gender age income level occupation ethnic background education level Unit 1, Chapter 2

Psychographic Segmentation Market segmentation based on your target market’s lifestyles and personality characteristics. Includes attitudes values activities interests Unit 1, Chapter 2

Geographic Segmentation Market segmentation based on where your target market lives. Includes local markets regional markets national markets global markets Unit 1, Chapter 2

Benefit Segmentation Market segmentation based on benefits your target market expects to receive or gain from products. Includes added protection health issues special needs stage in family life cycle Unit 1, Chapter 2

The 4 P’s of the Marketing Mix Product Place Price Promotion Unit 1, Chapter 2

The Marketing Mix is comprised of four basic marketing strategies, collectively known as the “Four P’s.” The Marketing Mix is dependent on how well the target market is defined and how well all strategies are directed toward that target audience! Unit 1, Chapter 2

Product Knowing what product to make, how to package it, what brand name to use, and what image to project. Unit 1, Chapter 2

Place Determines how and where a product will be distributed. Unit 1, Chapter 2

Price Nike Men's Shox TL 2 $149.99 Should reflect what customers are willing and able to pay. Nike Men's Shox TL 2 $149.99 Unit 1, Chapter 2

Promotion Deals with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy. Unit 1, Chapter 2

Any Questions? Unit 1, Chapter 2