Fundamentals of Marketing

1. Fundamentals of Marketing Chapter 1.3

2. Market • Market – all people who share similar needs and wants and who have the ability to purchase your products • Have an interest in or need for product • Have money to buy product

3. Markets • Consumer Market – consumers who purchase products for personal use • Save them money • Make life easier • Improve appearance • Create status in community • Provide satisfaction to some personal motivation

4. Markets • Industrial Market – (Business-to-Business) • All businesses that buy products for use in their business operations • Improve profits • Improve productivity • Increase sales • Decrease expenses • Make work more efficient

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

6. Market Identification • Market Segmentation – breaking the market into smaller groups that have similar needs • Process of classifying customers by needs

7. Market Identification • Target Market – the group that is identified for a specific marketing program • All Marketing strategies are directed to them • The customers who are most likely to buy your product

8. Market Identification • Customer Profile – used to develop a clear picture of the target market • Lists information about the target market • Age • Income Level • Ethnic Background • Occupation • Attitudes • Lifestyle • Geographic Residence

9. The Marketing Mix • 4 Basic Marketing Strategies • Called the 4 P’s of Marketing • Used by marketers in order to influence potential customers

10. The Marketing Mix • Target Market must be clearly defined • Interconnected – Actions in one area affect another • Each strategy involves decisions about the best way to reach, satisfy, and keep customers and achieve company goals

11. The Marketing Mix • Product – which products to make and sale • Product-Service Management Function • Marketing Information Management Function • Place – how and where a product will be distributed; getting the product into the customer’s hand • Distribution Function

12. The Marketing Mix • Price – what is exchanged for the product; what customers are willing and able to pay; what does competition charge • Pricing Function • Financing Function • Promotion – decisions about advertising, personal selling, sales promotions and publicity • Promotion Function • Selling Function

13. Identify the 4 P’s • You want a portable audio player. You see an ad in the Bluefield Daily Telegraph for a sale on audio players. The ad notes that the sale price is $75.99. You have saved $85.00 for the player. The ad is for an electronics store in the Mercer Mall. You go to the store, and a salesperson helps you find the right player. You buy the audio player.

14. Did You Identify the 4 P’s? • You want a portable audio player. You see an ad in the Bluefield Daily Telegraph for a sale on audio players. The ad notes that the sale price is $75.99. You have saved $85.00 for the player. The ad is for an electronics store in the Mercer Mall. You go to the store, and a salesperson helps you find the right player. You buy the audio player.