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Markets

Markets. Mr. Thompson. Vocabulary. Market: all people who share similar needs/wants and have the ability to purchase a given product Consumer market: purchase goods and services for personal use Goals: save $$, make life easier, improve appearance, give status in community, etc.

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Markets

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  1. Markets Mr. Thompson

  2. Vocabulary • Market: all people who share similar needs/wants and have the ability to purchase a given product • Consumer market: purchase goods and services for personal use • Goals: save $$, make life easier, improve appearance, give status in community, etc. • Organizational market: business-to-business (B2B)- includes all businesses that buy products for use in their operations • Goals: increase productivity, sales, and/or efficiency, decrease expenses

  3. Markets What goals are the customers in the Consumer market trying to achieve? Who are they? Give an example… What goals are the customers in the Organizationalmarket trying to achieve? Who are they? Give an example…

  4. Market Share A company’s percentage of the total sales volume generated by all companies that compete in a given market.

  5. Market Share cont’d… • How does knowing its market share help a company in its decision making? • Helps to understand/analyze its competitors • Knows its status in the market • What can cause a market share to change? • Introduction of new competitors/products • Sales increase/decrease (company) • Increase/decrease in overall volume (market)

  6. Market Share cont’d… • A company with a larger market share can take more risks than others • Development of new products • Spending to reach out to new segments • Leverage “brand” name to maximize profits • Leverage leading position to pressure competitors

  7. Market Segmentation The process of classifying customers by specific characteristics, breaking down a market into smaller groups.

  8. Market Segmentation cont’d… • Groups of people often purchase the same products • People who bought _____ also bought ______ • A group that is identified for a specific marketing program is called a target market • Properly identifying the target market is an important key to success • Can a product have more than one target market? Cereal – target kids on Saturday morning – this food is FUN! – target parents in parenting magazine – this food is HEALTHY for your growing kid!

  9. Customer Profile Information about the target market: age, gender, income level, marital status, ethnic background, location data, attitudes, lifestyle, behaviours, etc. (Mkt’g Info Mgmt)

  10. Declare a market in which You (the class) would be identified as customersCreate a customer profile for a classmate Target Customer Profiles

  11. Target Customer Profiles cont’d… • Describe how businesses would use this profile to market: • New products/services • Product changes (price, format, rules of use, etc.) • Partner products (Coke/Pepsi restaurant) • Parents, siblings, kids…(sell related goods/services) • Interest groups (Outdoors, games, sports, etc.) • Income level (out of your range, or invite you up?) • Make a coupon that this customer would use (something that would be reasonable for a business, but impossible for this customer to ignore)

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