THE 4 P’S & 2 C’S P RODUCT - Is the product or service something customers wills buy? - Will it be of benefit to them? - Will it meet their needs? P ROMOTION - How will customers be made awre that the product or service is available? - Which of the following promotional activities will be best for the venture: - advertising -Personal selling -Publicity -Sales promotion -E-marketing P RICE - How much are customers willing and able to pay? - What is the best price to charge to earn a maximum profit? P LACES -How will the product or service get to the customer? -What channels of distribution are needed? -When should the product be in stock or ready? -Where will the product or service be made available? C ONSUMERS C OMPETITION

THE TARGET MARKET group of customers common marketing A target market is a group of customers that have many things in common that the business has decided to aim its marketing efforts and ultimately its products towards.

WHAT KIND OF THINGS DO MEMBERS OF A TARGET MARKET HAVE IN COMMON? Geographic (where they live) Demographic Psychographic Behavioural (hobbies, interests)

DEMOGRAPHICS are … Characteristics of a population. FOR EXAMPLE: age, gender, income level, education level, family size, where you live, ethnic background etc. This information helps business decide: - what to sell - where to locate - prices - how to advertise

PSYCHOGRAPHICS are … Consumers beliefs, interests, life styles & values. FOR EXAMPLE: religious beliefs, taste in music, attitudes towards health, personality traits, concern for the government Psychographics traits are less obvious than demographics and much more difficult to measure, but they are equally important to business competing for specific groups of consumers i.e. consumers that have an active lifestyle will likely buy healthy, low-fat foods, join fitness clubs and buy sports equipment

There are many ways to classify psychographics groups….these are just a few. What do you think these acronyms represent? YUPPIE YOUNG URBAN PROFESSIONAL

There are many ways to classify psychographics groups….these are just a few. What do you think these acronyms represent? MUPPIE MATURE URBAN PROFESSIONAL

There are many ways to classify psychographics groups….these are just a few. What do you think these acronyms represent? MOBYS MOMMY’S OLDER/BABIES YOUNGER

There are many ways to classify psychographics groups….these are just a few. What do you think these acronyms represent? WOOFS WELL OFF OLDER FOLKS

There are many ways to classify psychographics groups….these are just a few. What do you think these acronyms represent? SKIPPIES SCHOOL KIDS WITH INCOME & PURCHASING POWER

There are many ways to classify psychographics groups….these are just a few. What do you think these acronyms represent? DINKS DUAL INCOME NO KIDS

We will return to this slideshow after a brief commercial break.

Having a well defined target market makes sure that: - Our target market will see our ads - Our product will appeal to our target market - Our ads will appeal to the target market - Our target will understand our ads - We know why our target market buys our product (i.e. to fit in, health benefits, for their families etc..)

BEING AWARE OF THE FOLLOWING THINGS WILL ALSO HELP WITH THE MARKETING OF YOUR PRODUCT:

ECONOMIC ENVIORNMENT ESSENTIAL HOME GOODSduring a time of recession, a company may choose to emphasize ESSENTIAL HOME GOODS BUSINESS CYCLEbusinesses must pay attention to the current stage of the BUSINESS CYCLE LUXURY GOODS (ex. Vacations, cars etc.)during a time of prosperity, a company may choose to emphasize LUXURY GOODS (ex. Vacations, cars etc.)

COMPEITION DIRECT COMPEITION A rivalry between 2 or more business that produce similar goods. EX. Pepsi & Coke, Ford & Chrysler, Hollister & American Eagle

COMPEITION INDIRECT COMPEITION A rivalry between 2 or more businesses that offer alternate or substitute goods. EX. Greyhound bus & Via Rail

TECHNOLOGY Technology affects our lives AND the businesses that supply us with goods & services Examples of technology that is common in most homes in Canada, as opposed to 10 years ago include:  ________________________________________  _____________________________________________  _____________________________________________  _____________________________________________

TECHNOLOGY Technological breakthroughs significantly effect marketing: they CREATE NEW INDUSTRIES and therefore, new marketing opportunities ie. Internet, cell phones they may ALTER OR DESTROY EXISTING BUSINESS ie. RECORDS – CASSETTES - CDs

TECHNOLOGY they can STIMULATE BUSINESS IN UNRELATED FIELDS ie. DVD PLAYERS - BIG SCREEN TVS - SURROUND SOUND - LAZY BOY COUCHES