Definition of Marketing Purpose of Marketing Marketing Concept 7 Functions of Marketing 1. Channel Management 2. Financing 3. Marketing Information Management 4. Pricing 5. Product / Service Management 6. Promotion 7. Selling 1. Channel Management 2. Financing 3. Marketing Information Management 4. Pricing 5. Product / Service Management 6. Promotion 7. Selling
Includes marketing research You can’t sell your product if you don’t know who your customers are! Marketing research is used for market segmentation, the process of classifying customers in a market into smaller groups.
Push in your chair. Line up in the middle of the classroom, from the front to the back. Order does not matter. Listen for instructions
Move to the FRONT of the room if… You consider yourself to have more traditional tastes. You know what you like, and you stick with it. Move to the BACK of the room if… You consider yourself to have trendier tastes. You like change, and you look for a fun or modern appeal.
Move to the LEFT side of the room if… You are a health- conscious eater. Move to the RIGHT side of the room if… You prefer to eat what tastes good.
Cheerios Special K Raisin Bran Total Frosted Flakes Rice Krispies Froot Loops Mini-Wheats Kashi Honey Bunches Life Organic Cereals Lucky Charms Cookie Crisp Cap’n Crunch Cinnamon Toast Crunch HealthyTasty Traditional Trendy
Line up in the middle of the classroom, from the front to the back. Order does not matter. Listen for instructions
Move to the FRONT of the room if… You prefer the busy, fast pace life of the city. Move to the BACK of the room if… You prefer the calm, laid back pace of the country.
Move to the LEFT side of the room if… You prefer warm weather. Move to the RIGHT side of the room if… You prefer cold weather.
Florida Nevada California Washington New York Illinois Texas California Colorado Maine WarmCold City Country
Classification of customers by wants and needs Creates smaller, more precise target markets
Group of people identified as the most likely to become customers These are the people a business wants to reach with their goods or services!
DemographicGeographic PsychographicBehavioral Ways to Segment a Market
Definition Refers to statistics that describe a population in terms of personal characteristics Age Gender Income Marital Status Ethnic Background Education Occupation Examples
Definition Based on where people live Local Regional National Global Examples
Definition Grouping people with similar lifestyles Grouping people with shared attitudes, values, opinions Activities Attitudes Personality Values Examples
Definition Involves looking at the benefits desired by consumers, at shopping patterns, and at usage rates Sometimes referred to as Product Benefit segmentation Teenagers spend about $50 a month on entertainment. Teenage girls spend 15% more on music than teenage boys. Today’s young adults desire affordable luxuries. Examples
On your handout, decide if each item is: o Demographic o Geographic o Psychographic o Behavioral Label each with a D, G, P, or B.
Where have you seen or completed a survey like this before? How can marketers use this information? How else can businesses collect this kind of information from customers?
Market segmentation characteristics help to create customer profiles. A customer profile is a list of information or common characteristics about a target market.
You will use a profile to identify products potentially targeted to your customer.