Marketing Concept
Businesses must satisfy customers' needs and wants while striving to make a profit
Market
All potential customers who share common needs and wants, and who have the ability and willingness to buy the product
Target Market
A group of people identified as those most likely to become customers
Customer Profile
Used to create a clear picture of the target market; includes age, income level, ethnicity, occupation, attitudes, lifestyle, and geographic residence
Marketing Mix
Comprises four basic marketing strategies called the four Ps (place, price, promotion, product)
Market Segmentation
A way of analyzing a market by specific characteristics in order to create a target market. Classifying people in a given market into smaller more precise groups.
Demographics
Statistics that describe a population in terms of personal characteristics; age, gender, income, marital status, ethnic background, education and occupation.
Baby Boom Generation
76 million babies born between 1946-1964; solid income and spending power, huge target for many products especially luxury items
Generation X
People born between 1965-1976; fpurchasers, skeptical consumers, reached with sharp images, music, sense of humor, frugal with their money, cautious spenders
Generation Y (millenials)
People born between 1977-1997; racially and ethnically diverse; internet communication, self centered--everything is about them.
Generation Z
Z�born between 1996 and 2012 have grown up with aps, low attention span, can multitask, more competitive, rather work alone
Disposable Income
Money left over after taxes
Gen Alpha
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Discretionary Income
Money left over after paying for basic living needs
Psychographics
Involves studies of consumers based on social and psychological characteristics. Grouping people with similar attitudes, interests, and opinions as well as lifestyles (how people spend their money)
Geographics
Segmentation of the market based on where people live. Often combined with demographic information.
Behavioral Characteristics
Looks at segmenting the market based on sales, shopping patterns, and purchase decisions.
80/20 rules applies to most purchases 80% of the purchases are made by 20% of the loyal customers
SWOT Analysis
A method of analyzing Strengths, Weaknesses, Opportunities, and Threats (strengths/weaknesses = INTERNAL; opportunities/threats = EXTERNAL)
competitive advantage
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
PEST Analysis
A look at the political, economic, socio-cultural, technological, environment, and legal factors and how it impacts your business
Marketing Plan
Formal, written document that directs a company's activities for a period of time
Executive Summary
Part 1 of marketing plan; provides a brief overview of entire marketing plan including costs
Situation Analysis
Part 2 of marketing plan; provides an examination of factors and trends that affect marketing strategies
Objectives
Step 3 of marketing plan; describes what the plan will accomplish
Marketing Strategies
Step 4 of marketing plan; identifies target markets and marketing mix choices focused on those markets
Implementation
Step 5 of marketing plan; outlines how implementation will be accomplished and provides sales forecasts
Evaluation and Control
Step 6 of marketing plan; explains how objectives will be measured and who will evaluate
Sales Forecasts
Projections of probable, future sales in units or dollars
Performance Standard
An expectation of performance that reflects your marketing plans objectives
3 C's of Internal Analysis
Company, customers, competition
Mass Marketing
Use of a single marketing strategy to reach all customers.
Economies of Scale
Cheaper to make a lot of one product than a little of many
Niche Marketing
Markets are narrowed down and defined with extreme precision
80/20
80% of a company's sales are generated by 20% of it's loyal customers
Product
Choosing what products to make and sell (design, features, development)
Price
What is exchanged for the product? (What are they willing to pay? What does the competition charge?)
Place
The means of getting the product into the customers' hands (Which geographic areas? Which channels of distribution?)
Promotion
How the customers will be told about a company's product (advertising, publicity, media, message selected)
Four factors used in identifying a target market through market segmentation
Demographic, psychographic, geographic, and behavioral
Market Segmentation Data
Government-US Census
Private Research Firms
Trade Associations
A businesses own research
Marketing Audit
a thorough periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization