1. Ch. 2: Basic Marketing Concepts

2. Understanding the Market Concepts
How do business become successful?
They plan for it by following Market Concepts
States that to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers
Most companies are sales oriented
Means that they made and sold their product without regard for what people needed and wanted.

3. Consumers vs. Customers
What is a Consumer?
Uses a product
What is a Customer?
Buys the product
We need to understand the importance of the consumer’s influence on the buying decision

4. Customer Satisfaction
What do customers look for?
How do they judge the product?
Answer
Product Value
Personal satisfaction gained from use of a good or service

5. Identifying Your Customers
Who is your market?
Group of potential customers who share the common wants and needs, and who have the ability and willingness to buy the product

6. How do business approach and reach customers?
Mass-Marketing
Single marketing plan to reach all customers
This approach is not used often
What products do we mass-market?
Products have universal appeal

7. How do business approach and reach customers?
Market Segmentation
Dividing the total market into smaller groups of people who share specific needs and characteristics.
Geographic's
Demographics
Psychographics
Product Benefits

8. Geographic’s Segment based on where people live
Used at time to decide on a new location

9. Demographics
Statistics based on a population in terms of personal characteristics.
Age
Gender
Income
Ethnic Background
Education
Occupation

10. Psychographics
Study of consumers based on lifestyle, and the attitudes and values that shape it.
Watch for changes in personal attitudes
New trends

11. Product Benefits
Beneficial features in the product

12. Customer Profile
Combining geographic, demographic, and psychographic data
Who consumes what and where?

13. Reaching Your Customers
Target marketing
Focusing all marketing decisions on the specific group of people you want to reach.

14. Reaching Your Customers
Marketing Mix (four basic marketing decisions)
Product
Place
Price
Promotion

15. Reaching Your Customers
Positioning your product
What you do to get into the mind of the prospect
Try to get the consumer to think of it in a certain way
Get the consumer to distinguish it from the competition

16. Reaching Your Customers
Positioning your product
Play to the Competition’s Weakness
Negative approach
One way to do it is to reposition the competition
State you are more effective
Look for Underserved Markets
Look for holes in the market
What consumer needs and preference is not being addressed
Good to use if your company is small, new, or unknown

17. Reaching Your Customers
Positioning your product
Lead with your Strengths
Tell people your strengths (We are the largest)
May be offensive to consumers
Target Different Market Segments
Used to differentiate similar products

18. Review Turn to page 26 in the packets Complete Facts and Idea
Critical Thinking
Building Math and Communication