Market Your BusinessChapter 4

Chapter 44.1 The Value of Marketing

4.2 Create the Marketing Plan

4.3 Identify Your Competition

4.4 The Marketing Mix – Product and Price

4.5 The Marketing Mix – Distribution and Promotion

The Value of MarketingLesson 4.1

What is Marketing?

“An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and stakeholders.”

The process used to determine and satisfy the needs of customers and the company.

How will we determine what satisfies the needs

of the customer and company?

Research

Marketing Concept•Uses the needs of customers as the

primary focus during the planning, production, distribution, and promotion of a product or service.

1. Identify what will satisfy the customer needs and wants

2. Develop and market products that customers consider better than other choices

3. Operate profitably

Marketing Mix•Product

▫What you will sell to meet customer needs•Price

▫Determining how much you’ll sell it for•Place (distribution)

▫Make it available to the customers in the right places

•Promotion▫Tell the market about it

Target Market•Individuals or companies that are

interested in a particular product and are willing and able to pay for it.▫Allows you to reach the people you most

want to attract and sell to.

Ex: A car dealer selling moderately priced minivansA car dealer selling expensive sports cars

Eight questions to identify your target market:

1. Customers individuals or companies?2. Individuals: how old, how much $ do they earn, where

do they live, how do they spend their time and $?3. Companies: what industries, where are those industries

located?4. What needs or wants is my product satisfying?

1. What appeal is this ad grabbing your attention with? (15 basic appeals)

5. How many potential customers live in the area I want to operate?

6. Where do they currently buy?7. What price are they willing to pay?8. What can I do for my customers other companies can’t?

Advertising’s 15 Basic Appeals1. Need for sex2. Need for affiliation to

a certain group of people

3. Need to nurture4. Need for guidance5. Need to aggress (get

even)6. Need to achieve7. Need to dominate8. Need for prominence

(high social status)

11.Need for attention12.Need for autonomy

(singled out)13.Need to escape14.Need to feel safe15.Need for aesthetic

sensations (beauty and activity)

16.Need to satisfy curiosity

17.Psychological needs (basic necessities)

Where is your focus?

Marketing Segments•It’s impossible to please everyone

▫Segmenting helps meet specific customer needs

•Market segments are groups of customers who share common characteristics.▫Dividing your target market into several

small groups▫Customer Profiles make it easier to

create a market segment.

Customer Profile•A description of the characteristics of the

person or company that is likely to purchase a product or service.▫Based on many types of data:

demographics, psychographics, use-based data, and geographic data.

Customer Profile Data•Demographics

▫Age, Marital Status, Family Size, Ethnicity, Gender, Profession, Education, and Income

•Psychographics▫Tastes, Opinions, Attitudes, Personality Traits,

and Lifestyle Habits•Use-Based Data

▫How often potential customers use the particular service

•Geographic▫Where potential customers live and how far

they are willing to travel to do business

Customer Profile of …Sporting Goods Store:

▫Individual 23 to 52 years of age▫Participates in sports▫Wants good-quality sport equipment▫Looks for good prices▫Lives in city of Blanchester▫Average household income of $42,000

per year

Customer Profile of …Sporting Goods Store:

▫Individual 23 to 52 years of age

▫Participates in sports▫Wants good-quality sport

equipment▫Looks for good prices▫Lives in city of

Blanchester▫Average household income

of $42,000 per year

▫Demographic

▫Psychographic

▫Psychographic

▫Demographic▫Geographic▫Demographic

Customer profile of …

Create a customer profile on you•Include:

▫Demographics▫Psychographics▫Use-Based Data▫Geographics