Advertising and Sales Promotion Unit 2, Lesson 2 Advertising and The Marketing Mix Copyright © Texas Education Agency, All Rights Reserved.

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Ad Comparison 3 Copyright © Texas Education Agency, All Rights Reserved.

Terms  Market – All people who have the ability to purchase a given product.  Consumer Market – Consumers who purchase goods and services for personal use.  Industrial Market – Business-to-business market including all businesses that buy products for use in their operations. 4 Copyright © Texas Education Agency, All Rights Reserved.

 Market Share – A company’s percentage of the total sales volume generated by all companies that compete in a given market. Terms 5 Copyright © Texas Education Agency, All Rights Reserved.

Terms  Target Market – A group that is identified for a specific marketing program or product.  Customer Profile – Lists information about the target market, such as age, income, and occupation.  Market Segmentation – The process of classifying customer by needs and wants.  Mass Marketing – Involves using a single marketing strategy to reach all customers. 6 Copyright © Texas Education Agency, All Rights Reserved.

The Marketing Mix Includes four basic marketing strategies called the “Four P’s” 7 Copyright © Texas Education Agency, All Rights Reserved.

Product  Product decisions begin with what products to sell.  Much research goes into product design.  Product decisions include the name and advertising slogan or “tag line”.  Every detail of the product is considered maximize its appeal to the target market. 8 Copyright © Texas Education Agency, All Rights Reserved.

Price  Price is what is exchanged for a product.  Price strategies should reflect what customer are will and able to pay.  Companies must consider retail pricing, discounted pricing, credit terms, and competitor ‘s prices  Promotional pricing 9 Copyright © Texas Education Agency, All Rights Reserved.

Place  Companies must effectively get the product into the customers’ hands.  Advertisers must research how to position the product for the consumer.  Place strategies determine how and where a product will be distributed.  Companies must consider how to distribute the product and what inventory levels should be. 10 Copyright © Texas Education Agency, All Rights Reserved.

Promotion  Promotional strategies deal with how products will be marketed and advertised to consumers.  There are four key factors:  Advertising  Selling  Sales promotion  Publicity 11 Copyright © Texas Education Agency, All Rights Reserved.

Advertising Trends and Technology  What are the current advertising trends?  How has technology affected advertising?  What does advertising hold for the future? 12 Copyright © Texas Education Agency, All Rights Reserved.