Chapter 21 Channels of Distribution Section 1&2 Marketing Concept Market Segmentation Chapter 2...

Chapter 21 Channels of Distribution

Section 1&2Marketing Concept

Market Segmentation

Chapter 2 Basic Marketing Concepts

Marketing EssentialsMarketing Essentials

Chapter 21 Channels of Distribution

Chapter 2s1.&2Chapter 2s1.&2

What You'll LearnWhat You'll Learn

The Marketing ConceptMarket SegmentationThe Marketing ConceptMarket Segmentation

The marketing concept

The difference between customers and consumers

What a market is and how it can be described

What target marketing is

The four Ps of the marketing mix

What market segmentation is and the four methods used to segment a market

The current demeographic, psychographic, and geographic trends

2

Chapter 21 Channels of Distribution 3

Chapter 2s1&2Chapter 2s1&2 The Marketing ConceptMarket SegmentationThe Marketing ConceptMarket Segmentation

Why It's ImportantWhy It's Important

To participate in the world of marketing, you’ll have to understand how businesses focus on the needs and wants of their customers so they can improve their products, be competitive, and increase profits.

Businesses must know who their customers are (or know their markets). In order to do this, businesses classify and characterize their marketplace in segments.


Chapter 2s1&2Chapter 2s1&2 Marketing ConceptsMarket SegmentationMarketing ConceptsMarket Segmentation

Key TermsKey Terms

1. Marketing concept

2. Customers

3. Consumers

4. Market

5. Target marketing

6. Customer profile

7. Marketing Mix

8. Market segmentation

9. Demographic

10. Baby Boom Generation

11. Generation Y

12. Generation X

13. Disposable income

14. Discretionary income

15. Psychographics

16. Geographics


Chapter 2s1&2Chapter 2s1&2 Marketing ConceptMarket SegmentationMarketing ConceptMarket Segmentation

MARKETING CONCEPT – Businesses must satisfy customers’ needs & wants in order to make a PROFIT

CUSTOMERS – buy the productCONSUMERS – use the productMARKET – all potential customers who share common needs & wants

and who have the ability & willingness to buy the productTARGET MARKETING – is focusing all marketing decisions on a very

specific group of people who you want to reach

CUSTOMER PROFILE – information about the target market of the largest customer with regard to:

age occupation

income level attitudesethnic background life style

geographic residence


MARKETING MIX – four basic marketing strategies, collectively known as the 4P’s

PRODUCT – what item to makehow to package itwhat brand name to usewhat image to project

PLACE – how to distribute a product where to distribute a product

PRICE – the value of money (or its equivalent) placed on a good or service –what the customer is willing to pay

PROMOTION – any form of communication a business or organization uses to inform, persuade, or remind – how customers are told about

the product

Chapter 2s1&2Chapter 2s1&2 Marketing ConceptMarket Segmentation



MARKET SEGMENTATION – a way of analyzing a market by specific characteristics in order to create a target market.

This is segmented by:Demographics – which are statistics that describe a

population in terms of:age- Baby Boom Generation 1946-1964

Generation X 1965-1976Generation Y 1977-1997Echo Boomers 1998-Pres

gender- male, female, neutralincome- disposable, discretionaryethnic background

Disposable income – money left after taking out taxes from your paycheckDiscretionary income – money left after paying for basic living necessities



Psychographics- study of consumers based on social and psychological characteristics (people’s attitudes and what they value and their life styles)Trends – changes in leisure time interest due to the

economy, politics, personal attitudes towards health, time, fun and living in general

Geographics – is the segmentation of the market based on where people live:

local or regional TARGET MARKETING – is focusing all marketing decisions on a very

specific group of people who you want to reach

national or globalProduct benefits – studying consumers’ needs and wants


2s1&2 ASSESSMENTASSESSMENT

Reviewing Key Terms and Concepts1. What does the marketing concept state?

Businesses must satisfy customers’ needs & wants to make a profit

2. What is a market?All of the potential customers who share common needs & wants who have the ability and willingness to buy a product

3. What is target marketing? It focuses all marketing decisions on a very specific group of people you want to reach

4. What are the 4 P’s of the marketing mix?product, price, place, promotion



Reviewing Key Terms and Concepts5. What do demographics, psychographics, geographics, and

product benefits have in common?They are all methods of segmenting a market

6. How can a market be segmented using demographics?Segment by age, gender, income, ethnic background, education, and occupation

7. What does the study of psychographics involve?The study of consumers’ social and psychological characteristics

8. What is an example of how a producer can segment a market based on product benefits?Athletic shoes can be marketed by how they are used



Thinking Critically

How would you sell BenGay to young adults?

How would you sell the same product to senior citizens?

Would you use the same appeal? Why or why not?


End of chapter 2s1&2

Marketing EssentialsMarketing Essentials

Chapter 21 Channels of Distribution Section 1&2 Marketing Concept Market Segmentation Chapter 2...

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