Marketing’s Main Purpose
Provide a bridge between producers & consumers so exchange of goods &
services can occur
Marketing Process
There are 7 main Marketing Functions that make up the marketing
process• Distribution: Physical
movement & storage• Financing: How & where
funds are used in business• Marketing-info-management:
Collecting, disseminating, & using info. To make sound business decisions
• Pricing: Decisions dictating how much to charge for products
• Product/Service management: What products & services will be offered
• Promotion: Activities that inform & persuade
• Selling: Personalized communication that influences purchasing decisions
Marketing Mix(Four P’s): Four Main Marketing
Decisions• Product (P/S Planning)• Place (Distribution) • Price • Promotion
* Most important decisions because each deals directly with consumers.
involve the goods, services, or ideas used to satisfy consumer needs.
ProductDecisions
involve the exchange process between the customer and the seller.
PriceDecisions
involve making the product available to the customer.
PlaceDecisions
involve how the goods or services are communicated to the consumer.
PromotionDecisions
The Marketing Mix—The Four Ps
Marketing Decisions Must be Directed Towards the
Target Market
Target Market: The group(majority) of consumers that a business will direct
it’s marketing activities towards
Analyzing Markets
Market segmentation is a way of analyzing a market by specific characteristics in order to create a target market
Market segmentationSeparating larger groups into smaller
groups based on certain characteristics• Demographics – Segmenting
the market based on consumers personal characteristics.
– Age
– Gender
– Income
– Ethnic Background
– Life Stage
– Occupation
– Educational Level
• Income– Disposable income –
money left after taking out taxes
– Discretionary income – money left after paying for basic living necessities such as food, shelter, and clothing
U.S. Trend – The percentage of the Caucasian population is declining, while
other ethnic populations increase.
• Psychographic– segmenting consumers based
on social and psychological characteristics
– Lifestyles (outdoor enthusiasts, computer “geeks”)
– Hobbies– Personalities– Interests– Trends – healthy eating,
politics, Name brands
• Geographic– Segmenting consumers based
on their location.• Regional, National, Global
Music teachers, dancers, and other
music lovers would be one category of people who share
psychographic characteristics.
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Product Benefits Segmentation
• Segmenting consumers based on their response or benefits from a product.– Rate of Use – Coffee Drinkers or Smokers– Loyalty – Kroger shoppers or Coke
Drinkers– Occasion – Christmas shoppers, Brides &
Grooms.