Business, Management, and Entrepreneurship

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Business, Management, and Entrepreneurship
2.03 Explain the marketing concept and analyze
strategies used to identify and reach customers
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Marketing Concept
The concept that states that to make a profit, a
business must focus all of its efforts on
satisfying the needs and wants of its customers.
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Customer
Person who buys a product
Consumer
Person who uses a product
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Market
The group of potential customers who share common
needs and wants and who have the ability and
willingness to buy
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Mass marketing
Using a single marketing plan to reach all
consumers
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Market segmentation
Dividing the total market into smaller groups of
people who share specific needs and
characteristics

• Geographics
• Demographics
• Psychographics
• Product benefits

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Geographic segmentation
Segmentation of a market based on where people
live
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Demographic segmentation
Segmentation of a market based on personal
characteristics of a population such as age,
gender, income, ethnic background, education and
occupation
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Psychographic segmentation
Segmentation of a market based on consumer
lifestyles, attitudes, and values
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Product benefits
Segmentation of a market based on the beneficial
features of a product in response to consumer
wants and needs
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Target marketing
Focusing all marketing decisions on the specific
group of people you want to reach
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Marketing mix
Combination of marketing decisions involving
product, price, place, and promotion also called
the four ps
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Product decisions

• What product to make
• how to package
• what brand name to use
• what image to project

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Place decisions
How and where a product will be distributed
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Price decisions
Determining what customers are willing and able
to pay
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Promotion decisions
Determining how potential customers will be told
about products--what the message will be, when
and where it will be delivered, and with what
inducements to buy
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Positioning
Getting consumers to think of a product in a
certain way

• Play to the competitions weaknesses
• look for underserved markets
• lead with your strengths
• target different market segments