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Warm-upDefine Target Market
Is it possible to target everyone?
Paper SummaryNeeded to be turned in by 2:45 pm
Late if sent after
Electronic versions were emailed back. Comments at end of sections or paperComments embedded within paper
A few things I noticed….Watch multiple writer syndromeUse transitions when combing facts (if needed)All information provided should be geared towards
companyUnderstand target markets
Final Drafts due by 2:45 Friday (Formal Assessment)
Paper Summary
Each section worth 25 pts
(20% of Paper)
Strategic Marketing
Objective 1.01
Basic Marketing Terms
There are nine basic marketing terms that should be introduced before moving on to further understanding of marketing concepts. These terms are:-Marketing -Consumer -Needs -Customer-Wants -Goods-Market -Services-Target market
Basic Marketing Terms, cont..
Marketing: The process of developing, promoting,
pricing, selling, and distributing products to satisfy customer’s wants and needs.
Marketing involves all the activities necessary to get a product from the manufacturer to the consumer.
The goal of marketing is to attract new customers and create a lasting relationship through customer satisfaction.
Basic Marketing Terms, cont..
Marketing Concept: Satisfy customers wants and needs while generating a profit
Needs: A necessity for living.
Wants: Products that are not necessities, but are simply desired by the consumer.
Basic Marketing Terms Goods: Tangible items that satisfy customer’s
needs and wants. Durable – e.g., DVD player (last a long time)
Nondurable – e.g., gasoline (typically consumed within a short period)
Services: Intangible items that satisfy customer’s needs and wants.
Example(s): Delivery Service, Haircut, Salon, Oil Change, etc…
Consumer v. Customer
A product may have more than one target market.Example: Low Sugar Fruity Pebbles
Identify the consumer: ChildrenIdentify the customer: Parents*Most five year olds do not purchase their Fruity Pebbles
Same Product--- Different Approach
To target parents you would use commercials that advertise how healthy they are and air them on a Saturday night.
To target children you would use commercials that focus on how fun the cereal is, the bright colors, the cool characters and air this commercial on Saturday mornings.
Basics of MarketingMarketers realize that not every product can
appeal to everyone.
Marketers examine two key factors to define their market:Who is interested in a product?Who can afford their product?
A market is made up of all people who share similar needs and wants and who have the ability to purchase your product.MUST MEET BOTH CRITERIA TO BE INCLUDED
Examples of a MarketLuxury Suites at Yankees Stadium
Prices range from $600,000 and $850,000Rich, Men, Sports Fans
Malt-O-Meal Frosted Flakes$1.41/box at DollarDays International
Lower Income, Kids/Single Parents
Hollister Co. Santa Monica Jacket$140 jacket
Teenage Girls, Colder climate areas, Medium-High Income Families
Target Market & Market SegmentationMarket Segmentation is the process of
classifying customers by needs and wants.Goal is to identify the group of people who are
most likely to become customers.This specific group is known as a Target
Market#1 Buying Group
All marketing strategies are directed towards the target market.Provides the focus of your marketing campaign. Marketer’s must develop a clear target market before
developing a marketing strategy.
Market Segmentation Facts
Why do marketer’s use market segmentation?Very costly to target all groups
Must find the group of consumers who you have a clear competitive advantage
Use research to determine if the costs of development are effective
Specific information allows you to know your customers:Buying Behavior, Values, Fashion Interests, etc…
Target MarketTo develop a clear picture of their target
market, businesses create customer profile lists of information about the target market.AgeIncome LevelEthnic BackgroundOccupationAttitudesLifestyleGeographic Residence
Understanding these characteristics allows you to make better choices
Market Segmentation = Jeans
Most people in America wear JeansNot everyone wears the same type of jeans
Market Segmentation: Price
Market Segmentation
There are four key factors that marketers use to determine how to segment a market:
1. Demographics
2. Geographic Variables
3. Psychographic Variables
4. Buying Behavior
Demographics
Demographics: Refers to statistics that describe a population in terms of personal characteristics.Age (Baby Boom, Generation X, Generation Y,
Generation Z)Gender (Male v. Female)OccupationEducationIncome
Disposable: Money left after taxesDiscretionary: Money left after taxes & basic needs have been
paidMarital Status Ethnic Background
PsychographicsPsychographics
involves grouping people with similar lifestyles, as well as shared attitudes, values, & opinions. Examples:
Latest Diet TrendsEnvironmental
Concerns
Geographics
Geographics: Refers to segmenting customers based on where they live. Segment a market geographically can be done:
Locally, Regionally, Nationally, or Globally
Hispanic cultures are prevalent in L.A., Miami, New York, Texas, Arizona, etc..
African American cultures are prominent in the south
States with high teen percentages: Alaska, Utah, Arizona, Texas, California, & Idaho
Market SegmentationBehavioral Buyers:
Accounting for the type of shopping they prefer.
Online, In-Store, Catalog
Safety Issues concerning identity
Usually three factorsPrice ConsciousBrand DrivenQuality & Reliability
The Marketing Mix
The marketing mix is a combination of decisions a business makes in order to best reach its target market. The marketing mix is also referred to as the “four Ps”:
Product - Include both goods and services. Price – The amount a business charges for a
product.Place – Having the product available at the right
time at the location. Also known as distribution or logistics.
Promotion – Informing and reminding customers of products available to them and persuading them to purchase. Promotion consists of advertising, public relations, sales promotion, and personal selling.
Selling
Feature v. Benefit
Feature-Benefit SellingMatch the characteristics of a product with the customer’s needs and wants
Customers don’t buy products – they buy what products can do for them.
Product FeaturesMay be basic, physical, or extended
attributes
The most basic feature is the product’s intended use
Additional features add more value to the product
Examples of Features2-Door ModelBetter gas mileageLeather seatsAutomatic
transmissionPower steeringSatellite radioAntilock brakes
Obvious FeatureThis car is a bright shade of red
Customer BenefitsThe advantages or personal satisfaction a
customer will get from a good or service
Benefits become selling points
How does the feature help the product’s performance?
How does the performance information give the customer a personal reason to buy?
Obvious Benefit
This bright red car will attract the
guys/girls
Feature Benefit Chart