Basic Marketing Concepts-BME

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Basic Marketing Concepts



Customers vs. Consumers

Customers BUY the product.

Consumers USE the product.



What is a Market?

All potential customers who share

common needs and wants, and whohave the ability and willingness tobuy the product, are considered amarket.



The Marketing Concept

A market can be described as

the people who are potentialcustomers of a product, as

well as by the classification

of a product in a category.

Would you be considered

part of the market for game

consoles? Why or why not?

What other markets are you

part of?

U.S. Game Console Market



Target Marketing

Focusing all marketing decisions ona very specific group of people

who you want to reach.



Customer Profile

Includes information about the targetmarket with regard to the

age, income

level, ethnic background, occupation,

attitudes, lifestyle, or geographic

residence of the targeted customers.



Marketing Mix

The 4 P’s

1. Product

2. Place

3. Price

4. Promotion



Product Strategy

What product to make

How to package itWhat brand name to use

What image to project



Place Strategies

How and where a productwill be distributed



Price Strategies

Reflects what the customersare willing and able to pay.



Promotion Strategies

How will the customer be told aboutthe product

What will the message be When and where will it be delivered

With what inducements



Marketing Mixfor aNew Juice:

Tropicana’sLight ‘nHealthy

Juice



Graphic Organizer

The Marketing Mix

The Marketing Concept

Consumers

Marketing Research Marketing Segmentation

Product Price Place Promotion



What You'll Learn

Market segmentation and the four

methods commonly used to segment

a market

Current demographic,psychographic,

and geographic trends

Market Segmentation



Demographics

Statistics that describe apopulation in terms ofpersonal characteristics

Age

Gender

Income

Ethnic background Education

Occupation



Age

When marketers study age, they classifyeveryone according to certaingenerations

The last 3 generations were:

Baby Boom Generation

Generation X

Generation Y



Baby Boom Generation

Born between 1946-1964 (76

million)

Large sizeGreat spending power – 51% of

the wealth



Generation Y

Born between 1977 & 1997 (77 million)

Computer Revolution

$130 million in spending power

Influences $250 million in purchases



Gender

Gender neutral products mayuse different advertising media

and messages when trying toreach men and women.



Market Segmentation

Companies can expand their markets by

marketing to the other gender, or by marketingtheir products differently to men and women.

Example: Jockey entered the women’s

market with Jockey underwear for womenand doubled its sales.

Demographics: Gender



Income

Disposable:

Money left after

taking out taxes Necessity items

Discretionary: Money left after

paying for basicliving necessitiessuch as food,shelter andclothing

Luxury items



Market Segmentation

Marketers often segment the market by

ethnicity. The three largest ethnic groups within

the

United States are African-Americans, Hispanics,

and Asian-Americans. These three groups willaccount for 33 percent of the U.S. population

in 2005.

Demographics: Ethnicity



Psychographics

Studies of consumers basedon social and psychological

characteristicAttitudes

Values

Lifestyles

http://www.imdb.com/gallery/mptv/1368/Mptv/1368/5417_0190.jpg?path=gallery&path_key=0070992



Market Segmentation

Geographics refers to segmentation of themarket based on where people live. Marketers

study geographics in relation to:

Geographics

ethnic concentrations

age

ethnic background

income



Geographics

Based on where people live

Local markets

Regional markets

National markets

Global markets



Product Benefits

Companies market benefits, notsimply the physical

characteristics of a product.

Basic Marketing Concepts-BME

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