Fundamentals of Marketing

Chapter 1 Sec. 3

Market – all potential customers who have the ability and willingness to buy

All of the people who share similar needs and wants and who have the ability to purchase a given product

Are you part of the videogame market?Are you part of the sports car market?

Consist of consumers who

purchase goods and services for personal use.

Consumer Markets

Business-to-business (B-to B) markets

include all businesses that buy products for use in their operations.

Industrial Markets

Total market Can also be

described by the total sales in a product category

Market Share A company’s

percentage of the total sales volume generated by all companies that compete in a given market.

GoogleYahoo

Bing

Ask AOL 2010

GoogleYahooBingAskAOL

Google

YahooOther

AskAOL

MSN2005 Google

YahooOtherAskAOLMSN

Market

anyone who has the desire and the means to buy

Market Segments

Small groups of people within the market

Target Market

The group chosen for a specific marketing program

Target Market:Males, Ages 14-20

Men – too much hassle to make coffee

Women – you will feel like working out for a change

Certain products have more than one target market

1. Your product might have different groups of users

Who is 5-hour Energy Targeting?

Consumers – the people consuming or using

the product

Customers – the people who are buying the product

Certain products have more than one target market

2. Your product might have different group who purchases than who consumes

Moms KidsWhat features on this package target Moms and what features

target kids?

To develop a clear picture of their target

market, businesses create a customer profile. It lists information about the target market,

such as age, income level, occupation, attitudes, lifestyle, and geographic residence

Customer Profile

Product Place Price Promotion

Marketing Mix: The activities that go into the selling of a product

Basic marketing strategies – the four P’s

Product Features Packaging Brand Name Different versions or flavors Image

Product Strategies

How and where a

product will be distributed. Physical location Stores sold in Where within the store

Is it available online or direct?

Place Strategies

Reflect what customers are willing and

able to pay.

Price Strategies

What is exchanged for the product:What do I have to sell a product for to make a profit?What psychological impacts does a low or high price have?

How potential customers will be told about the new

product What the message will be When and where it will be delivered What inducements are there to buy Decisions about advertising, selling, discounts and

publicity

Promotion Strategies

The Marketing Mix

The elements are interconnected

Product

Place

Price

Promotion