Ch. 2: Basic Marketing Concepts

Understanding the Market Concepts How do business become successful? They plan for it by following Market Concepts States that to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers Most companies are sales oriented Means that they made and sold their product without regard for what people needed and wanted.

Consumers vs. Customers What is a Consumer? Uses a product What is a Customer? Buys the product We need to understand the importance of the consumer’s influence on the buying decision

Customer Satisfaction What do customers look for? How do they judge the product? Answer Product Value Personal satisfaction gained from use of a good or service

Identifying Your Customers Who is your market? Group of potential customers who share the common wants and needs, and who have the ability and willingness to buy the product

How do business approach and reach customers? Mass-Marketing Single marketing plan to reach all customers This approach is not used often What products do we mass-market? Products have universal appeal

How do business approach and reach customers? Market Segmentation Dividing the total market into smaller groups of people who share specific needs and characteristics. Geographic's Demographics Psychographics Product Benefits

Geographic’s Segment based on where people live Used at time to decide on a new location

Demographics Statistics based on a population in terms of personal characteristics. Age Gender Income Ethnic Background Education Occupation

Psychographics Study of consumers based on lifestyle, and the attitudes and values that shape it. Watch for changes in personal attitudes New trends

Product Benefits Beneficial features in the product

Customer Profile Combining geographic, demographic, and psychographic data Who consumes what and where?

Reaching Your Customers Target marketing Focusing all marketing decisions on the specific group of people you want to reach.

Reaching Your Customers Marketing Mix (four basic marketing decisions) Product Place Price Promotion

Reaching Your Customers Positioning your product What you do to get into the mind of the prospect Try to get the consumer to think of it in a certain way Get the consumer to distinguish it from the competition

Reaching Your Customers Positioning your product Play to the Competition’s Weakness Negative approach One way to do it is to reposition the competition State you are more effective Look for Underserved Markets Look for holes in the market What consumer needs and preference is not being addressed Good to use if your company is small, new, or unknown

Reaching Your Customers Positioning your product Lead with your Strengths Tell people your strengths (We are the largest) May be offensive to consumers Target Different Market Segments Used to differentiate similar products

Review Turn to page 26 in the packets Complete Facts and Idea Critical Thinking Building Math and Communication