2 Marketing StrategyA marketing strategy provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits .Two Steps:Target MarketMarketing Mix
3 Target MarketA specific group of consumers that have similar wants and needs.4 types of segmentation:Demographic (age, gender, income, ethnicity)Geographic (location)Psychographic (values, attitudes, & lifestyles)Behavioral (why customers buy the product)
4 Marketing Mix (4Ps)The blending of the four marketing elements—product, place (distribution), price, and promotion.Satisfies the wants and needs of the target market.Provides a profit for the company.
5 Consumer Decision Making Process Recognize a need.Gather information.Select and evaluate alternatives.Make a purchase decision.Determine the effectiveness of the decision.
6 Decision-Making Extensive Limited Routine Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer.LimitedOccurs when a customer buys products that he or she has purchased before but not regularly.RoutineOccurs when little information is needed about the product being purchased.
7 Consumer Buying Motives Buying motives are the reasons consumers decide what products and services to purchase.Emotional feelings, beliefs, and attitudesRational based on facts and logicPatronage based on loyalty, customer service, merchandise, and convenience
8 Consumer Information Sources Product Testing OrganizationsMediaGovernmentBusinessPersonal
9 Product Testing Organizations Test products and services to detect benefits.ExamplesUnderwriter LaboratoriesAssociation of Home Appliance ManufacturersConsumers Union (Independent testing organizations)
10 Media SourcesProvide specific information about products and services.Types of media sources:PrintMagazinesNewspapersBroadcast OrganizationsRadioTelevisionInternet
11 Government AgenciesInform consumers and may handle consumer questions.TypesFederalStateLocal
12 Business SourcesBusiness sources are available as a public service and to sell products and services.TypesThe main function of advertising is to sell.Product labels provide helpful information about nature of product, how to care for product, where product was made, and the size of the product.Customer Service Departments focus on assisting customers.Better Business Bureau (BBB) provide facts about products or services.
13 “Word of mouth” advertising. Personal Contacts“Word of mouth” advertising.
14 Traditional Retailers Department StoresProvide broad product lines and highlight their serviceDiscount StoresHighlight their offering of lower prices for productsSpecialty StoresProvide a special line of products
15 Traditional Retailers SupermarketLarge, full service store that offer many brands of productsConvenience StoreProvide popular items, offer long operating hours, and are usually located in highly accessible areas
16 Contemporary Retailers Specialty SuperstoresProvide wide variety of limited products at low pricesSuperstoresProvide a wide variety of products in the retail services such as food, bakery, auto, and electronics.
17 Contemporary Retailers Warehouse ClubProvide products in large quantities at practical prices.Factory OutletsProvide high-quality products at low prices
18 Non-Store RetailersAllows purchasing of goods and services by telephone, computer, television, fax, or door- to-door.Vending machines provide products through automation.