Presentation Transcript

1. Target Market People willing and able to buy the product Why is target market important? Blinking shoes – kids Shoes with cleats - athletes
2. Marketing Mix A mixture of product, price, place, promotion, & personalization that tailors each part to a particular target market
3. Product Any item a company has for sale Examples: Skateboard DVD rental Need to think about the quality, warranty, etc.
4. Price Amount of money received in exchange for a product or service How much are customers WILLING to pay & what to they WANT to pay? Price is dynamic –can change at any time Websites like Priceline.com allow you to have some say in price of airline tickets
5. Place Putting the product where the customers shop Includes location of the store, location within the store, AND location on the shelf Online: Is it easy to find the product on the webpage without lots of unnecessary clicks? Retail: Netflix has many warehouses around the country so customers do not have to wait too long for DVDs
6. Promotion Educates customers about products & services Able to target customers by sending personalized email, newsletters, chat room Word-of-mouth – telling friends about good websites
7. Personalization One-on-one relationship with the customer Amazon greets customers by name and offers recommendations
8. 4 Ps of Marketing Place Product Price Promotion
9. Market Segments How businesses group customers based on different characteristics Demographics-age, income, gender, ethnicity Psychographics-lifestyle Geographics-where they live Product Benefits-satisfaction from a product
10. Advantages of Market Segmentation Business can customize its product to that specific group Product can be targeted more effectively
11. Disadvantages of Market Segmentation Marketer must be more creative and spend more money getting the message out to each segment Might get the target market wrong
12. Product Line Group of related products that complement one another Product Line can include several brands, styles, and sizes
13. Mass Marketing Using a single marketing plan to reach all customers Used when products have universal appeal and few features to make them unique Not as popular as it once was Milk advertising
14. Advantages of Mass Marketing Costs are less since marketer has to make only one ad campaign
15. Disadvantages of Mass Marketing Theme of advertising must be very general or it might not appeal to all potential customers
16. Virtual Marketing Use customers to help promote a product Examples Hallmark cards sent online Sending a link to your friends showing your new photo album on Snapfish http://www.snapfish.com/snapfish/welcome
17. Cookies Small text files that tell websites when you return (user preferences, what you purchased)
18. E-mail Marketing Retailers send customers emails of upcoming sales and new products Least expensive way to reach a customer Has the highest response rate
19. Permission Marketing Customer has agreed to receive marketing messages (emails, advertisements)
20. Why Do Customers Buy? Rational motives Conscious, logical Think about the decision Quality, safety, dependability Example is buying tires based on safety ratings Emotional motives Feeling Social acceptance, recognition, prestige, love Example is caring about your family so you want the best tires