Marketing’s Main Purpose Provide a bridge between producers & consumers so exchange of goods & services can occur Marketing Process

There are 7 main Marketing Functions that make up the marketing process Distribution: Physical movement & storage Financing: How & where funds are used in business Marketing-info-management: Collecting, disseminating, & using info. To make sound business decisions Pricing: Decisions dictating how much to charge for products Product/Service management: What products & services will be offered Promotion: Activities that inform & persuade Selling: Personalized communication that influences purchasing decisions

Marketing Mix(Four P’s): Four Main Marketing Decisions Product (P/S Planning) Place (Distribution) Price Promotion * Most important decisions because each deals directly with consumers.

involve the goods, services, or ideas used to satisfy consumer needs. Product Decisions involve the exchange process between the customer and the seller. Price Decisions involve making the product available to the customer. Place Decisions involve how the goods or services are communicated to the consumer. Promotion Decisions The Marketing Mix—The Four Ps

Marketing Decisions Must be Directed Towards the Target Market Target Market: The group(majority) of consumers that a business will direct it’s marketing activities towards

PRODUCT PLACE PRICE PROMOTION

How do Businesses Define their Target Market? Through the process of Market Segmentation

Analyzing Markets Market segmentation is a way of analyzing a market by specific characteristics in order to create a target market

Types of Segmentation: Demographics Psychographics Geographics Product Benefits

Market segmentation Separating larger groups into smaller groups based on certain characteristics Demographics – Segmenting the market based on consumers personal characteristics. –Age –Gender –Income –Ethnic Background –Life Stage –Occupation –Educational Level

Income –Disposable income – money left after taking out taxes –Discretionary income – money left after paying for basic living necessities such as food, shelter, and clothing

Ethnic Background

U.S. Trend – The percentage of the Caucasian population is declining, while other ethnic populations increase.

Education Occupation

Psychographic –segmenting consumers based on social and psychological characteristics –Lifestyles (outdoor enthusiasts, computer “geeks”) –Hobbies –Personalities –Interests –Trends – healthy eating, politics, Name brands Geographic –Segmenting consumers based on their location. Regional, National, Global

Music teachers, dancers, and other music lovers would be one category of people who share psychographic characteristics.

VALS™ is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising. Click on VALS to learn more and to take a survey to determine your VALS type

Product Benefits Segmentation Segmenting consumers based on their response or benefits from a product. –Rate of Use – Coffee Drinkers or Smokers –Loyalty – Kroger shoppers or Coke Drinkers –Occasion – Christmas shoppers, Brides & Grooms.

Goal of Market Segmentation Identify the specific characteristics of a business’s target market in order to make the most effective marketing decisions.