1. Chapter 1 marketing is all around us Section 1.1
Marketing and the Marketing Concept
Section 1.2
The Importance of Marketing
Section 1.3
Fundamentals of Marketing

2. Fundamentals of Marketing
Section 1.3
Do Now
What stores do you shop at the most?
consumer goods, restaurants, etc.
What type of products are you most interested in purchasing?

3. Fundamentals of Marketing
Section 1.3
Describe how marketers use knowledge of the market to sell products.
Compare and contrast consumer and organizational markets.
Explain the importance of target markets.
Explain how each component of the marketing mix contributes to successful marketing.

4. Fundamentals of Marketing
Section 1.3
The term market refers to all the people who might purchase a product.
Determining who might buy your product (target market) is an important element of marketing.
The marketing mix (4 P’s) is a combination of elements used to sell a product to a specific target market.

5. Fundamentals of Marketing
Section 1.3
market
consumer market
organizational market
market share
target market
customer profile
marketing mix

6. Fundamentals of Marketing
Section 1.3
What is a market?
You could be part of the market for video games, but not be part of the market for an expensive car.
market
All people who share similar needs and wants and who have the ability to purchase a given product.

7. Fundamentals of Marketing
Section 1.3
Market and Market Identification
Consumer Market
Organizational Market
versus
consumer market
Consumers who purchase goods and services for personal use.
organizational market
Also known as business-to-business (B2B), this includes all businesses that buy products for use in their operations.

8. For the most part, consumers are interested in products that
Consumer Market
Consumers’ needs and wants generally fall into a few categories that reflect their lifestyles.
For the most part, consumers are interested in products that
Save them money
Make their lives easier
Improve their appearance
Create status in the community
Or provide satisfaction

9. Fundamentals of Marketing
Section 1.3
Market and Market Identification
market share
A company’s percentage of the total sales volume generated by all companies that compete in a given market
U.S. Smartphone Market Share

10. Fundamentals of Marketing
Section 1.3
Market and Market Identification
The goal of market segmentation is to identify target markets.
market segmentation
The process of classifying people who form a given market into even smaller groups.
target market
The group of people most likely to become customers, identified for a specific marketing program.

11. Fundamentals of Marketing
Section 1.3
Personal Customer Profile
Information in Customer Profile
customer profile
Information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes,
lifestyle, and behavior.

12. What’s Average? “Average” Shampoo?
Hello Hydration
Tousle Me Softly
Totally Twisted
Touchably Smooth
Hydralicious
Color Me Happy
Long Term Relationship
Non Of Your Frizzness
Body Envy
Drama Clean
Businesses recognize that consumer needs and wants vary, so they develop different goods, services, and promotional appeals to specific target markets

13. Fundamentals of Marketing
Section 1.3
Personal Customer Profile
Information in Customer Profile
customer profile
Information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes,
lifestyle, and behavior.

14. Fundamentals of Marketing
Section 1.3
Marketing Mix
Product
Four Ps of the Marketing Mix
Price
Place
marketing mix
The four basic marketing strategies
called the four P’s: product, place, price, and promotion.
Promotion

15. Target Market
The marketing mix is used to communicate with and reach a business’ intended target market
Strategies surrounding each “P” are made with regard to the best way to reach, satisfy, and keep customers

16. Begins with choosing what products to make and sell
The product is more than just a physical good
It also includes:
Brand name
Packaging
Accessories
Services which increase
customer satisfaction

17. Also need to decide what to do with products already in existence
Improving upon, updating, etc.
EX. V8 has been around for over 75 years. Currently they have expanded to offer V8-Fusion, which is an alternative for adults who do not like the taste of the original V8.

18. Price Amount customers are willing to pay for products
Amount business are willing to sell their products for in order to make a profit
Consumers compare prices to the satisfaction they believe they will receive
When satisfaction is greater than price, consumers make purchases

19. Determines how and where a product will be distributed
Place
Determines how and where a product will be distributed
Several decisions need to be made when planning product distribution.
Where will products be sold?
How will we get them there?
How will they be packaged and protected?

20. Promotion
How marketers tell potential consumers about a company’s products and convince them to purchase
Advertising – information paid for by business to reach large number of prospective customers
Sales promotions – incentives for customers to buy products (coupons, contests, free samples)
Publicity – information not paid for by the business
Personal selling – direct, personal communication between a salesperson and customer to encourage the purchase of a product

21. Fundamentals of Marketing
Section 1.3
Marketing Mix
Forms of Promotion

22. Fundamentals of Marketing
Section 1.4
Section 1.3 1.
Identify a market in which a business would consider you a potential customer.
Possible answers would be: fast food chains (i.e. McDonalds, Burger King), cell phones, jeans manufacturers, specific retail stores such as The GAP and Abercrombie & Fitch. These businesses carry items that appeal to teenagers, so teens are one of their target markets.

23. Fundamentals of Marketing
Section 1.4
Section 1.3 2.
Contrast What is the main difference between consumer and organizational markets?
The consumer market consists of people who buy goods and services for personal use. In the organizational market, goods and services are purchased for use in a business operation.

24. Fundamentals of Marketing
Section 1.4
Section 1.3 3.
Explain Why is it important for businesses to find their target market?
Target markets allow for businesses to develop a successful marketing mix towards a specific group of people with similar wants and needs.

25. Chapter 1 marketing is all around us Section 1.1
End of
Chapter 1
marketing is all around us
Section 1.1
Marketing and the Marketing Concept
Section 1.2
The Importance of Marketing
Section 1.3
Fundamentals of Marketing