CHAPTER-2.pptx business for report.pptx.com

Business for report

1. Chapter 2 The basics of marketing The Marketing Concept The Target Market Market Segmentation

2. The Marketing Concept ➽ Marketing Concept: T he marketing concept focuses on identifying and satisfying the needs of customers during the development and marketing of a product or service. Successful implementation of the marketing concept involves the following: Focusing on customer needs and wants to develop and market products. Applying the marketing concept to the planning, production, pricing, distribution, and promotion of products and services. Satisfying customer needs and wants while operating profitably.

3. The Marketing Mix An important step in implementing the marketing concept is to develop a marketing, mix that meets the needs of the market. The marketing mix referred to as the four P's of Marketing with Place , alternate term of Distribution. The marketing , mix is the combination of 4 marketing elements, product , price , distribution , promotion. Product - The product is a good or service produced to meet consumer demand. It is the central focus of the marketing mix. Price - The amount customers pay for a good or service is the price. Distribution - Also referred to as place, also involves the packaging, storage, handling, and transportation of products . Promotion - involves all communications used by a business to create a favorable impression of its products or services. Businesses use promotion strategies to build relationships with customers.

4. Marketing Functions Marketing functions are related activities that must be completed to accomplish an important marketing goal. Each of the marketing functions plays a role in the development and sales of products and services. Market planning , Product and service , Distribution, Pricing , Promotion , Selling, Marketing-information management , Financing , Risk Management. Market planning - Involves identifying target markets and developing an effective marketing strategy. Product and service - creating products and services that meet the needs of customers. Distribution - determining the best methods and procedures to use so that customers can locate, obtain, and use a product or service. Supply chain management is used to coordinate the activities of all the companies involved in the flow of products and services from the manufacturer to the consumer. Pricing - establishing and communicating the value of products and services to customers.

5. Promotion - is the communication of information about products and services to potential customers. Selling - is direct, personal communication with prospective customers that involves assessing needs, explaining how the business's products and services can satisfy those needs, and following up to ensure satisfaction. Marketing-information management - collecting and managing the information needed to make marketing decisions. Financing - Financing has two components. First businesses must budget to ensure they have the financial resources needed to carry out their marketing strategies. Second, businesses may need to provide financial assistance to customers to enable them to buy products and services. Risk Management - Involves the identifying potential risks associated with marketing decisions and activities and developing a strategy for dealing with and reducing the risks.

6. T he Marketing Plan The Marketing Plan is a written description of the marketing objective and the planned marketing strategies and activities required to meet those objective. A marketing plan contains detailed information about how the marketing functions will be carried out. For example, the marketing plan should describe the product or service; target markets; pricing, promotional, distribution, and selling strategies; marketing budgets; and risk analysis and management plans.

7. The Marketing Market ➽➽ Every business has target market, which is a specific group of consumers to whom the business wants to sell its products or services. The target market may be defined in terms of age, gender, income level, religion, location or lifestyle. T arget Market Strategies While some businesses focus on reaching and maintaining one target market, other businesses work on establishing relationships with consumers in several different target markets. There are various target market strategies businesses can follow. Businesses may use an undifferentiated strategy by viewing the market as one big market rather than as segmented markets. A concentrated strategy is used for a niche market , which is a smaller market that has a unique set of needs. Businesses that use a multiple-segment strategy choose to serve two or more target markets .

8. Selecting a Target Market Because a business's target market includes customers who are most likely to buy its products and services, careful consideration must be given to selecting the target market. Some questions that should be addressed about the target market include the following: Are the target customers male or female? How old are the target market customers? Where do they live? What do they do for a living? How much money do they earn? (Can they afford the product or service?) What other aspects of their lives matter?(What lifestyle characteristics could be targeted?) What needs or wants will the product or service satisfy? What price are they willing to pay for the product or service? By answering these questions, a business can define the target market, develop a product or service that will meet the needs of the market, and create a marketing mix that appeals to customers .

9. Effective Target Markets P eople in the target market have common, important needs and will benefit from the use of the business's product or service. People in the target market can afford the product or service. The Youth Market PepsiCo used target market analysis to broaden the audience for its Mountain Dew brand in 1990, during this time that the slogan "Do the Dew" was introduced. Advertising campaigns began targeting urban youth by featuring hip-hop music, in a variety of extreme-sports antics. Campaign was a hit, and sales increased in inner-city markets.

10. The Luxury-Auto Market BMW is an automobile manufacturer that sells a wide range of vehicles, ranging in price from $38,000 to well over $100,000. To increase its target market, BMW decided to target the "creative class," which includes scientists, engineers, architects, educators, writ- ers, and entertainers. To do this, BMW changed the focus of its advertising campaigns from car performance to car design. For example, the BMW Formula M was described as having a "soul." These human traits helped create an image and personality for the vehicle with which the consumer could identify. BMW marketers decided to use an integrated marketing communication strategy to promote the brand. I ntegrated marketing communication (IMC) is a strategy used to plan, execute, and monitor all promotional messages about a product to ensure consistency among all those messages. BMW also has a website, at the website prospective customers could watch short films to view the cars before purchasing them,

11. Market Segmentation ➽➽➽ Market Segmentation vs Mass Marketing Market Segmentation I s the process of dividing a large group of consumers into meaningful subgroups based on identifiable and similar characteristics and needs. Individuals in a market segment share similar characteristics , they tend to purchase similar products or services. Business rely on market research and marketing information to identify market segments. Market segmentation enables a business to develop marketing strategies that meet the needs of one or more target markets. Advantages of market segmentation, by customizing a marketing mix based on the needs of a specific market, customer satisfaction rises, leading to increased profits.

12. Mass Marketing Mass marketing is an attempt to appeal to a large, general group of consumers. A company that uses mass marketing directs its efforts to the whole market in order to reach the largest number of consumers. Businesses that are unable or unwilling to spend the time and money required to conduct research and analyze data to identify market segments may choose to use mass marketing Mass marketing is more commonly used for products and services that everyone tends to buy, such as soap, snacks, and household cleaners. There are some benefits of mass marketing. The business can reach a larger audience, gain wider exposure, increase sales volume, and lower marketing costs. Mass marketing can be effective for large companies that have high volumes of production and that sell to domestic and international markets.

13. Customer Profile: Types of Segmentation C ustomer profile is a description of the characteristics exhibited by an individual who is likely to buy a business's products or services. Characteristics marketers use to segment markets include one or more of the following: geography , demographics , psychographics , product usage , and benefit expectations . Geographic Segmentation - is based on where consumers live. This form of segmentation believes that individuals who live in the same geographic area might have the same wants and needs.

14. Demographics Segmentation - include consumer characteristics such as age, gender, race, marital status, income, education level, and occupation. Generational marketing defines consumers by age but also considers their social and economic backgrounds and lifestyles to create a more accurate picture of the target market. Cohort marketing takes generational marketing a step further by targeting people who underwent the same experiences and events while growing up. Psychographic Segmentation - describe consumers based on their interests, attitudes, opinions, and lifestyles. Product Usage Segmentation - refers to the amount of a product purchased and used. Benefit Segmentation - group consumers based on specific benefits they expect to receive from a product or service.

15. Identifying Market Segments A business must identify market segments and target markets before it can create an effective marketing mix that will reach customers. Steps for identifying market segments are as follows: Select a market - The market is a large group of consumers who have an interest in a particular product or service. Choose a basis for segmenting the market - factors that would influence a buying decision. Consider why consumers would buy your product or service. Collect and analyze data - This stage will require extensive marketing research about consumer buying behavior and buying motives. Identify market segments - Based on your research, begin narrowing the market into market segments. Select the market segments with the most potential.

16. Analyzing Market Potential Market potential is based on profitability. Factors that determine whether a market segment has strong potential include the following: The market segment is measurable. Geographic, demographic, and psychographic data are readily available for analysis. The business is capable of producing a product or service at a price that meets customers' wants and needs. The market segment must have many potential customers and the potential for growth. The market segment is accessible. There are specific advertising media, such as magazines or websites, that the target audience likes to use, making potential customers easy to reach. The business can serve the market segment more effectively than competitors can. Market share - is a business's portion of the total sales generated by all of the businesses operating in the same market.

17. Thank you! Mawas Rimmond Galo July Jabiguero Emjie Ray