1. The Marketing Concept
Chapter 4.1

2. Section 4.1 Goals Explain the central focus of the marketing concept.
Explain the reasons for increased sports and entertainment options.

3. Warm-up
Think of a product that you like. What can be done to make that product better!

4. The Marketing Concept Marketing is an important business function.
You are a major part of the process
The most important part of marketing is addressing customer needs.
A business that focuses on addressing customer needs is following the marketing concept

5. Maintain Relationships
Successful customer relationships are critical to the marketing concept.
Customers are unique. Know who you are dealing with.
Customer satisfaction is the bottom line for maintaining successful marketing relationships.

6. Customer Satisfaction
The bottom line…….
How to beat the competition…..
Is there a place that you attend regularly?
Do you buy the product no matter what the cost?

7. What about Starbucks? Staffing “The Third Place”
What are other examples of how companies satisfy customer needs?

8. In Summary……
What is the most important aspect of marketing?

9. Assignment
Complete the guided notes on pages of the text book.

10. Increased Sports and Entertainment Options
Why does a person have an increased amount of discretionary income to spend on sports and entertainment?
Increase in living standards

11. Increased Sports and Entertainment Options
Marketing strategies must include what things to meet the latest customer demands?
Monitor consumer trends and making improvements to meet the latest demands.

12. Increased Sports and Entertainment Options
____________ is the rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized.
Productivity

13. Increased Sports and Entertainment Options
The primary focus of the marketing concept is satisfying customer needs.

14. Increased Sports and Entertainment Options
What is the result when companies do not pay attention to customer wants and needs?
Disappointing attendance figures and stores can have a surplus in merchandise resulting in price cuts.

15. Increased Sports and Entertainment Options
Customers are the driving force behind the marketing concept.
The minimum attendance and sales required to cover all the expenses of organizing, promoting, and running an event is also know as the breakeven point.

16. Increased Sports and Entertainment Options
What industries would have a vested interest when a city hosts a sports event?
Hotel, Restaurant, Retail Stores, etc.

17. Increased Sports and Entertainment Options
Opportunity Cost is the value of the next best alternative that you forgo when making a choice.
The value of opportunity cost is measured in the benefits that you are giving up.

18. Increased Sports and Entertainment Options
What forms of entertainment will continue to grow due to an increase in fuel costs and other current trends?
Online and other forms of home entertainment

19. Go online www.neshaminy.org Neshaminy High School Teachers Mr. Hanlon
Online Quiz
You will need to enter your computer username and password

20. Discover What People Want
Chapter 4.2

21. Goals
Explain the importance of understanding buyer behavior when making marketing decisions.

22. Opening Act Assume that you run an event . What event are you running?
Who are you going to attract as a sponsor?
What should you know about the sponsor before hand?

23. Understand Buyer Behavior
economic market
All of the consumers who will purchase a product or service
Two major goals of marketing are to determine what customers want and how much they are willing to pay.

24. Consumer Spending Habits
Constant research of spending habits is extremely important.
What factors into the price of an event ticket

25. Consumer Spending Habits
Benefits derived
the value people believe they receive from a product or service
Comparative advantage
the capability to produce products or services more efficiently and economically than the competition

26. Consumer Wants and Needs
Take the time to make a list of the last 5 purchases that you have made.
Next to each purchase write down want or need.

27. Consumer Wants and Needs
hierarchy of needs
identifies five human areas of needs

29. Buying Motives Emotional Purchases Rational Purchases
spending with little thought during emotional times
Rational Purchases
define wants and needs
assess priorities and budget
conduct research
compare alternatives
make a well thought out purchase

30. Buying Motives Patronage Purchase
based on loyalty to a particular brand or product

31. Brand Loyalty Importance
High Sales Volume- repeat purchase
Premium Pricing- customers are less sensitive to price changes
Retain Rather then Seek- Advertising costs 4-6 times as much to attract a new customer as it does to retain a customer

32. Creating and Maintaining
Reminded of Value- before and after advertisement.
Unbeatable product
Know you trophy customers
Make it easy to buy
Customer service
Stand behind product

33. The marketing concept and satisfying customer needs.
What do you know about the Hershey company?

34. Web-Quest Complete the worksheet
Use to answer the questions.

35. Information Management
Chapter 4.2 continued
Information Management

36. Gathering Information
Marketers are often involved in every step of the decision-making process.

37. The Decision Making Process
recognize a need or a want
conduct product research
evaluate choices
decide what to purchase
evaluate the product after the purchase

38. Information
Information about consumers that is important to consider include
demographics
shopping behaviors
how consumers spend money
product and brand preferences
frequency of purchases

39. Business Environment
The business environment impacts consumer spending as follows:
economic uncertainty
marketplace competition
technological advances have impacted how consumers research and buy products
Government

40. Sources for Information
internal sources
a business’s own customer records, sales records, production records, and operation records
external sources
government reports, trade and professional organizations, business publications, commercial data, and information services

41. Classifications of Data
Primary data
obtained for the first time and specifically for the particular problem or issue being studied
secondary data
information previously collected for another purpose but is now found useful in the current study

42. Importance of data collection
Data can be collected through surveys and observance.
It is important for surveys to be divided into certain categories
Demographics
Shopping Behavior
Personality
Loyalty to Brand

43. Encore 4.2 pg. 102 Questions #1-4 1&2 Question and Answers
3&4 Answers Only (be sure to include vocab in answer.)

44. Assignment: Choose a company or a specific product.
Come up with two questions that you would ask for each main category.
Demographics, Shopping Behavior, Personality, and Loyalty to Brand
List the Category and the questions
Example:
Demographics
Question #1

45. Surveys
What styles of questions do you see?
Sample

46. Chapter 4.3
Target Markets

47. Goals Define target market and market segment.
Describe how businesses use market segmentation.

48. Warm-Up
List all the products that are targeted towards you. Which of these products are you responsive to?

49. Determine the Target Market
specific group of consumers you want to reach
Goal is to narrow down the focus of marketing efforts
Special Edition Covers…

50. Focus on Marketing Efforts
market segment
a group of consumers within a larger market who share one or more characteristics
Consumers belong to multiple market segments.
Marketers must identify the market segment to which they want to sell.

51. Meet Target Market Needs
Market segmentation data can improve business decision making.
number of potential customers
customer income level
level of interest in product or service

52. Types of market segmentation
Markets may be segmented in many ways.
geographic location
demographics
psychographics
behavior

53. Geographic Segmentation
divides markets into physical locations

54. Demographic Segmentation
information that can be measured
age
income
profession
gender
education
marital status
household size

55. Psychographics Segmentation
characteristics that cannot be physically measured
values
interests
lifestyle choices

56. Behavioral-Based Segmentation
focuses on a customer’s attitude toward products and services
product usage
what products you use and how often
product benefits
the positive experiences or associations people derive from using a product or service

57. Market Share market share
percentage of total sales of a product or service that a company expects to capture in relation to its competitors