MARKETING ACTIVITIESBusiness Management

OBJECTIVES Explain the role of marketing in the economy.

Determine various applications of marketing research.

Explain marketing concepts and the elements of the marketing mix.

Explain the four stages of the product life cycle.

WHAT IS MARKETING?Marketing activities

include:BuyingSellingTransportingStoringFinancingResearch & Information

GatheringRisk TakingGrading & Valuing

PURPOSE OF MARKETING

To help connect

businesses to their

customers!

MARKETING CONCEPT

The marketing concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business.

MARKET SEGMENTATIONWho is most likely to purchase your product?

MARKET SEGMENTATION

Classification of customers by wants and needs

Creates smaller, more precise groups of people

WHAT IS ATARGET MARKET?Group of people

identified as the most likely to become customers

These are the people a business wants to reach with their goods or services!

STAND UP!Push in your chair.

Line up in the middle of the classroom, from the front to the back. Order does not matter.

Listen for instructions

Move to the FRONT of the room if…

You consider yourself to have more traditional tastes.

You know what you like, and you stick with it.

Move to the BACK of the room if…

You consider yourself to have trendier tastes.

You like change, and you look for a fun or modern appeal.

Move to the LEFT side of the room if…

You are a health-conscious eater.

Move to the RIGHT side of the room if…

You prefer to eat what tastes good.

MARKETING CEREAL BRANDS

CheeriosSpecial K

Raisin BranTotal

Frosted Flakes

Rice KrispiesFroot LoopsMini-Wheats

KashiHoney

BunchesLife

Organic Cereals

Lucky Charms

Cookie CrispCap’n Crunch

Cinnamon Toast Crunch

Healthy TastyTr

ad

itio

nal

Tren

dy

BACK TO CENTER!Line up in the middle of the classroom, from the front to the back. Order does not matter.

Listen for instructions

Move to the FRONT of the room if…

You prefer the busy, fast pace life of the city.

Move to the BACK of the room if…

You prefer the calm, laid back pace of the country.

Move to the LEFT side of the room if…

You prefer warm weather.

Move to the RIGHT side of the room if…

You prefer cold weather.

MARKETING VACATION TRIPS

FloridaNevada

California

Washington

New YorkIllinois

TexasCalifornia

ColoradoMaine

Warm ColdC

ity

Cou

ntr

y

Demographic Geographic

Psychographic

Behavioral

Ways to Segment a

Market

SEGMENTATION FACTORS

Definition

Refers to statistics that

describe a population in

terms of personal

characteristics

Age Gender Income Marital Status Ethnic

Background Education Occupation

DEMOGRAPHICExamples

Definition

Based on where people live

Local

Regional

National

Global

GEOGRAPHICExamples

Definition

Grouping people with similar lifestyles

Grouping people with shared attitudes, values, opinions

HobbiesInterestsTrendsPolitical

Opinions

PSYCHOGRAPHIC

Examples

Definition Involves looking

at the benefits desired by consumers, shopping patterns, and usage rates

Teenagers spend about $50 a month on entertainment.

Teenage girls spend 15% more on music than teenage boys.

Today’s young adults desire affordable luxuries.

BEHAVIORALExamples

By segmenting markets, businesses can develop a customer profile.

A customer profile is a list of information or common characteristics about a target market.

This gives the business a starting point to conduct research & determine what products the market wants, where they shop, how to advertise, etc.

CUSTOMER PROFILES

DO NOW!

With your business partners, identify your target market.

Write a customer profile to be included in your business plan. Demographic CharacteristicsPsychographic CharacteristicsGeographic CharacteristicsBehavioral Characteristics

MARKET DIFFERENTIATIONWhy should consumers choose your product over another?

MARKET DIFFERENTIATION

Your product must stand out as something different from competitors’ offerings.

Market differentiation strategies include:Customer ServiceProductPriceQuality

TAKE A MOMENT…

With your business partners, decide what your differentiation strategy will be.

Write a brief statement to explain why this makes sense for your business.

THE MARKETING MIXReaching Out to your Target Market

THINK ABOUT IT

Have you ever made a batch of brownies?

What ingredients do you need?

What happens if one of the ingredients is missing?

THEMARKETING MIXYour target market and customer profile will help shape your marketing mix, which is also known as the four P’s.

Without a solid mix of marketing strategies that work together, a product is not likely to succeed in the marketplace.

THE MARKETING MIX

1. Product2. Place3. Price4. Promotio

n

Because customers & employees are so important to a business’ success, some marketers add a 5th “P” to the mix.

PEOPL

E

PRODUCT

Refers to tangible, physical characteristics or features of a product / service

Examples include:QualityPackagingAccessories /

servicesWhat it looks like &

does!

PLACE

a.k.a distribution Getting the

products to the places where your target market shops

Examples include:Specific storesDistribution

channelsOrder Processing

PRICE

Should reflect what customers are willing & able to pay (demand)

Examples include:Low price

strategySeasonal

pricingBundling

PROMOTION

Communication of information

Includes:AdvertisingSales

PromotionsPublicity

ProductCookies & Cream Poptarts

easy to take on the goother flavors available

eat cold or toast itappeals to all ages

PlaceGrocery stores everywhere!

Price

$2.99 per box

Compare with:Toaster Strudels $3.99

Granola Bars $1.99

Promotion

TV Commercials on Nick & Cartoon Network

Interactive website with games for kids

PEOPLEschool-age

children

PRODUCT LIFE CYCLEEvery product & every business goes through their ups & downs.

• Business is being planned• Sales are low• Production costs tend to be high

Introduction

•Initial time of negative profit until break-even point•The way the business is managed will make it or break it!

Growth

• Business can start to expand, hire more staff, introduce more products, etc.

• Sales start increasing, costs decline• Competition may grow

Maturity

• Sales decline & costs rise• Larger competitors drive out smaller businesses

Decline

• Create customer awareness & interest• Attract “innovators” to try product

Introduction

•Need to focus on differentiation!

Growth

• Pricing strategy for the “late majority”• Improve, add-on, or change product

Maturity

• Focus on sales promotions & price concessions• Need to develop a new market segment or new

product

Decline