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Transcript of Chapter 21 Channels of Distribution Section 1&2 Marketing Concept Market Segmentation Chapter 2...
Chapter 21 Channels of Distribution
Section 1&2Marketing Concept
Market Segmentation
Chapter 2 Basic Marketing Concepts
Marketing EssentialsMarketing Essentials
Chapter 21 Channels of Distribution
Chapter 2s1.&2Chapter 2s1.&2
What You'll LearnWhat You'll Learn
The Marketing ConceptMarket SegmentationThe Marketing ConceptMarket Segmentation
The marketing concept
The difference between customers and consumers
What a market is and how it can be described
What target marketing is
The four Ps of the marketing mix
What market segmentation is and the four methods used to segment a market
The current demeographic, psychographic, and geographic trends
2
Chapter 21 Channels of Distribution 3
Chapter 2s1&2Chapter 2s1&2 The Marketing ConceptMarket SegmentationThe Marketing ConceptMarket Segmentation
Why It's ImportantWhy It's Important
To participate in the world of marketing, you’ll have to understand how businesses focus on the needs and wants of their customers so they can improve their products, be competitive, and increase profits.
Businesses must know who their customers are (or know their markets). In order to do this, businesses classify and characterize their marketplace in segments.
Chapter 21 Channels of Distribution 4
Chapter 2s1&2Chapter 2s1&2 Marketing ConceptsMarket SegmentationMarketing ConceptsMarket Segmentation
Key TermsKey Terms
1. Marketing concept
2. Customers
3. Consumers
4. Market
5. Target marketing
6. Customer profile
7. Marketing Mix
8. Market segmentation
9. Demographic
10. Baby Boom Generation
11. Generation Y
12. Generation X
13. Disposable income
14. Discretionary income
15. Psychographics
16. Geographics
Chapter 21 Channels of Distribution 5
Chapter 2s1&2Chapter 2s1&2 Marketing ConceptMarket SegmentationMarketing ConceptMarket Segmentation
MARKETING CONCEPT – Businesses must satisfy customers’ needs & wants in order to make a PROFIT
CUSTOMERS – buy the productCONSUMERS – use the productMARKET – all potential customers who share common needs & wants
and who have the ability & willingness to buy the productTARGET MARKETING – is focusing all marketing decisions on a very
specific group of people who you want to reach
CUSTOMER PROFILE – information about the target market of the largest customer with regard to:
age occupation
income level attitudesethnic background life style
geographic residence
Chapter 21 Channels of Distribution 6
MARKETING MIX – four basic marketing strategies, collectively known as the 4P’s
PRODUCT – what item to makehow to package itwhat brand name to usewhat image to project
PLACE – how to distribute a product where to distribute a product
PRICE – the value of money (or its equivalent) placed on a good or service –what the customer is willing to pay
PROMOTION – any form of communication a business or organization uses to inform, persuade, or remind – how customers are told about
the product
Chapter 2s1&2Chapter 2s1&2 Marketing ConceptMarket Segmentation
Chapter 21 Channels of Distribution 7
Chapter 2s1&2Chapter 2s1&2 Marketing ConceptMarket SegmentationMarketing ConceptMarket Segmentation
MARKET SEGMENTATION – a way of analyzing a market by specific characteristics in order to create a target market.
This is segmented by:Demographics – which are statistics that describe a
population in terms of:age- Baby Boom Generation 1946-1964
Generation X 1965-1976Generation Y 1977-1997Echo Boomers 1998-Pres
gender- male, female, neutralincome- disposable, discretionaryethnic background
Disposable income – money left after taking out taxes from your paycheckDiscretionary income – money left after paying for basic living necessities
Chapter 21 Channels of Distribution 8
Chapter 2s1&2Chapter 2s1&2 Marketing ConceptMarket SegmentationMarketing ConceptMarket Segmentation
Psychographics- study of consumers based on social and psychological characteristics (people’s attitudes and what they value and their life styles)Trends – changes in leisure time interest due to the
economy, politics, personal attitudes towards health, time, fun and living in general
Geographics – is the segmentation of the market based on where people live:
local or regional TARGET MARKETING – is focusing all marketing decisions on a very
specific group of people who you want to reach
national or globalProduct benefits – studying consumers’ needs and wants
Chapter 21 Channels of Distribution 9
2s1&2 ASSESSMENTASSESSMENT
Reviewing Key Terms and Concepts1. What does the marketing concept state?
Businesses must satisfy customers’ needs & wants to make a profit
2. What is a market?All of the potential customers who share common needs & wants who have the ability and willingness to buy a product
3. What is target marketing? It focuses all marketing decisions on a very specific group of people you want to reach
4. What are the 4 P’s of the marketing mix?product, price, place, promotion
Chapter 21 Channels of Distribution 10
2s1&2 ASSESSMENTASSESSMENT
Reviewing Key Terms and Concepts5. What do demographics, psychographics, geographics, and
product benefits have in common?They are all methods of segmenting a market
6. How can a market be segmented using demographics?Segment by age, gender, income, ethnic background, education, and occupation
7. What does the study of psychographics involve?The study of consumers’ social and psychological characteristics
8. What is an example of how a producer can segment a market based on product benefits?Athletic shoes can be marketed by how they are used
Chapter 21 Channels of Distribution 11
2s1&2 ASSESSMENTASSESSMENT
Thinking Critically
How would you sell BenGay to young adults?
How would you sell the same product to senior citizens?
Would you use the same appeal? Why or why not?