Marketing An Introduction

Marketing Defined

Markets Set of actual and potential buyers

Potential markets for…????? Textbooks Sporting event tickets Hiking boots Sports enhancement facilities BMW

Mass Marketing Seller mass produces, mass

distributes & mass promotes one product to all buyers

Examples???

Weaknesses of mass marketing for non-mass products

Market Segmentation Divides a heterogeneous group into smaller

homogenous segments

Groups have similar wants & responses

Basic to all marketing efforts Better than mass marketing. Why?

Target Marketing Seller identifies market segments,

selects 1 & develops products and marketing mixes for them

Marketing Mix – product, price, place, promotion (4 P’s)

4 Bases of Segmentation1. Demographics

2. Psychographics

3. Product usage

4. Product benefits

Demographics Geography

Proximity – closeness to location

Geoclusters

Demographics Income

Determines lifestyle Influences advertising market for

certain products

Age One of the most effective variables

Age & stage of lifecycle similar Income, education, family lifecycle

Demographics Age

Mature Market – 55+

Stereotyped as inactive & thrifty – untrue! Living longer & more active 23% are over 55….

& have 75% of the wealth & 50% of the discretionary income Per capita income is 25% higher than national

average Spends 1+ trillion per year on goods & services

Senior discounts

Demographics Gender

Race Shared genetic make-up, biological

differences

Ethnicity Commonalities passed down through history

& tradition, culture, morals, beliefs

Demographics Sexual Orientation

Higher income & education

Heterosexual LGBT

Median household income $43,318 $70,000

College degrees 30% 37%

Graduate degrees 9.4% 28%

Demographic Descriptors for Consumer Markets

Age Under 6; 6-11; 12-19; 20-34; 35-49; 50-64; 65+Family size 1-2; 3-4; 5+Family lifecycle Young & single; young, married, no children; young, married,

youngest child under 6; young, married, youngest child 6 or over; older married, with children; older married, no children under 18; older single; other

Income Under $10,000; $10,000-$15,000; $15,000-$20,000; $20,000-$30,000; $30,000-$50,000; $50,000-$100,000; $100,000+

Occupation Professional & technical; managers, officials, & proprietors; clerical, sales; craftspeople, foremen; operatives; farmers; retired; students; housewives/husbands; unemployed

Education Grade school or less; some high school; high school graduate; some college; college graduate; post graduate work; post graduate degree

Race African American; American Indian; Asian; Caucasian; Hispanic; other

Nationality American; British; French Canadian; German; Italian; Japanese; Australian; Latino

Social class Lower lowers; upper lowers; working class; middle class; upper middles; lower uppers; upper uppers

Psychographics Lifestyle characteristics

Activities Interests Opinions

Work Family Social issues

Hobbies Home Politics

Social events Job Business

Vacation Community Economics

Entertainment Recreation Education

Club membership Fashion Products

Shopping preferences Food Future

Sports Media Culture

Psychographics How do we use these?

Meijer’s coupons Shows at Braden Club membership – campus, fitness Political affiliation Donations Activities – biking, running Professional associations

Product Use Use rates

Frequency Ability Specialization

Product Benefits Segmentation Divide by desired benefits

What do the following want from a tennis shoe? Runner Avid walker Cycler

Promotions Defined

Communication designed to

facilitate exchanges with members

of potential client groups by

communicating the benefits offered

by the program/service.

Promotions Mix

Advertising

Sales Promotions &

Incentives

Personal Selling

Publicity

Personal Selling

Using direct, face to face oral presentation for the purpose of facilitating exchange

Sales… Sponsors

Service clubs

Every day participants

Media

Personal Selling

Expensive but allows for relationship marketing Build relationship with the customer

Allows for benefit selling Can create new benefits to offset

negativity toward product

Promotions Mix

Advertising

Sales Promotions &

Incentives

Personal Selling

Publicity

Sales Promos & Incentives

Something of financial or non-financial value offered to encourage participation Free offers Promotional pricing Celebrities Prizes