3.04 Entrepreneurship 1

Advertising spending: –Third largest expenditure –Growing favoritism toward online Most important online marketing tactics 69% Web sites 36% Search engine key words 24% marketing Most important offline marketing tactics 35% Fostering good community relations 27% Public relations/ media coverage Sources: &

 Product  Example: Mature product  Example: New/introductory product  Place  Tip: Sales strategy  Price  Internal/Cost perspective  External/market perspective  Promotion (continued….)

 Promotion  Advertising  Tip: Advertising value  Publicity  Tip: Made you look!  Personal Selling  Tip: Relationships

 The group of potential consumers who share common needs and wants.  The target market has the ability and willingness to buy the product.  Businesses strive to meet the needs and wants of their customers.

 A single marketing plan used to reach all consumers.

 The group of consumers that a company desires to have as customers.

 Dividing the entire market into smaller groups (of people) who share similar characteristics.  Allows businesses to customize products and marketing strategies.

 Segmenting the market based on personal characteristics such as age, gender, income, ethnic background, education and occupation.  Example: middle class, males, ages 20-40, who are construction workers.

 Segmenting the market based on values, attitudes and lifestyles.  Example: People interested in professional football.

 Segmenting a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets.  Example: A small local store will segment to the surrounding area like a town, while big companies like Nike market Internationally.

 Dividing consumers into groups according to their response to a product. Behavioral segmentation divides markets into groups based on what they are looking for in a product and why they buy the product.  Example: Purchasing Nike shoes because Michael Jordan wears them.