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Basic Marketing Basic Marketing ConceptsConcepts

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Marketing ConceptMarketing Concept

• The idea that you must satisfy a customers’ needs and wants in order to make a profit.

• Businesses must have the right goods and services at the right time, at the right price and at the right place. Plus they must communicate this to their customers.

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Target MarketTarget Market

• Target Marketing -- Involves focusing marketing decisions on a specific group of people you want to reach with your product.

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Market SegmentationMarket Segmentation

• Analyzing a market by specific characteristics in order to create a target market.

• Once a target market is identified, business can customize its products and marketing strategies to that specific group of customers.

• To do this, businesses may segment a market by demographics, psychographics, geographics, and product benefits.

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Demographic Demographic SegmentationSegmentation

• Market segmentation based on your target market’s personal characteristics.

• Includes– gender– age– income level– occupation– ethnic background– education level

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Psychographic Psychographic SegmentationSegmentation

• Market segmentation based on your target market’s lifestyles and personality characteristics.

• Includes– attitudes– values– activities– interests

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Geographic Geographic SegmentationSegmentation

• Market segmentation based on where your target market lives.

• Includes – local markets– regional markets – national markets– global markets

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Benefit SegmentationBenefit Segmentation

• Market segmentation based on benefits your target market expects to receive or gain from products.

• Includes– added protection– health issues– special needs– stage in family life cycle

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The 4 P’s of the The 4 P’s of the Marketing MixMarketing Mix

•Product•Place•Price •Promotion

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• The Marketing Mix is comprised of four basic marketing strategies, collectively known as the “Four P’s.”

• The Marketing Mix is dependent on how well the target market is defined and how well all strategies are directed toward that target audience!

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ProductProduct• Knowing what product to make, how to

package it, what brand name to use, and what image to project.

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PlacePlace• Determines how and where a

product will be distributed.

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PricePrice• Should reflect what customers

are willing and able to pay.

Nike Men's Shox TL 2$149.99

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PromotionPromotion• How potential customers are

informed about new product – what the message will be – when and where it will be delivered– with what inducements to buy.

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Any Questions?