first you must determine who they are study the market
TRANSCRIPT
MARKETING CONCEPTSCHAPTER 2
RESPONDING TO CUSTOMERS NEEDS AND WANTS
First you must determine who they are
Study the market
MASS-MARKETING Popular in 1950/1960’s due to
shortages after WWII Not often used today Products usually have universal appeal
(everyone likes them) To mass market a product, businesses
select a single, general advertising theme
Designed to keep name before publicEx: Wrigley’s Gum = twins
MARKET SEGMENTATION – Divide the total market into groups of people who share specific needs and characteristics is the goal of market segmentation
METHODS OF SEGMENTATION Geographic's• Based on where people live• Refer to local, regional, national or global
METHODS OF SEGMENTATION Demographics
Describe population in terms of physical characteristics
Age, gender, income, ethnic, education, occupation
METHODS OF SEGMENTATION
PsychographicsInvolves study of consumers based on lifestyle and attitudes/values it shape
People who have same lifestyle share attitudes on most products
Examples: sports & magazines
METHODS OF SEGMENTATION Product Benefits
Build beneficial features into products
Examples: sport shoesWalkingJoggingBasketballTennis
DEVELOPING A CUSTOMER PROFILE
Combination of geographic's, demographics, psychographics
Equals….complete picture of prospective
customer
You have the perfect product+
A customer profile
Bring the two together by using:TARGET MARKETING
Focusing all marketing decisions on the specific group of people you want to reach
4 BASIC MARKETING DECISIONS Product Place Price PromotionTogether they create the
MARKETING MIX
MARKET
CarsWHAT IS YOUR
FAVORITE CAR?
ShoesWHAT IS YOUR
FAVORITE BRAND OF SHOE?
DEFINITION OF A MARKET IS…….
Group of people who share common wants/need
ANDHave the ability to buy