1. Indicator 1.04 Employ marketinginformation to develop a marketing plan MarketingPart II

2. THE MARKETING MIX REVIEW Includes four basic P? strategies called the 4 Ps or elements of P? marketing. For each strategy, decisions P? have to be made for each product the P? business offers to best reach their target market. 3. WHY ARE MARKETINGSTRATEGIES IMPORTANT IN THEMARKETING MIX? Marketing plan is created with marketing strategies for the marketing mix. Marketing strategies are important because they are the framework of conducting business. They guide the allocation of a businesss resources. It unites the marketing activities throughout the business and everyone is on the same page. Eliminates chaos and confusion. 4. What is a Market? A market are those who have: A need or desire, and The ability to pay, and The willingness to buy (soon) 5. MASS MARKETING Mass Market is when the group is considered as a whole with all the marketing activities; using a single marketing plan. Ex. Chewing gum & light bulbs 6. MASS MARKETING Advantages Disadvantages: Dont have to pay for Diversity of thethe production of similar audienceproducts Unable to track return, Can price and distributelow response ratesone type of product Nonpersonalmore easily than many Beliefs that everyone isCan send one the samepromotional message to Low profit marginseveryone High competition Easier to manage, costeffective Predictable responserates Easy to set up. 7. WHAT IS A TARGET MARKET? Identified segments ofthe market that abusiness wants to haveas their customers. For example,teenagers, mothers-to-be, single mothers,American Family, men.vs. women, or collegefreshman. Eachexample has wants andneeds that can betargeted and utilized todevelop effectivestrategies to reach 8. TARGET MARKET A target market are those who: Are grouped within a market by what they have incommon Are the customers the business seeks to attract 9. IMPORTANCE OF TARGETMARKETS A target market represents the people most likely to buy what you sell. These people have something in common that solidifies their desire for your product or service. And that something distinguishes them from the market at large. 10. Importance of Target Markets Every customer belongs to a number of markets Customers are targeted in the consumermarket, and businesses are targeted in theindustrial market The same customer or business can be includedin more than one target market Markets usually change over time 11. SEGMENTATION Market Segmentation Market segment is a is the process of subgroup of a larger dividing a larger market that share one market into smaller or more parts.characteristics. 12. MARKET SEGMENTATION Advantages: Disadvantages: Providing the More expensive, products customersmore difficult to wantproduce Effective Expensive to set up communication Requires more Higher response rate, marketing research Repeat and loyal customers Personal 13. WHY IS MARKET SEGMENTATION BEING USED MORE? Better matching of customers needs Better profits & opportunities for growth Repeat customers Target market communication More businesses operating globally creates morecompetition & greater market share via marketsegments It is more efficient in the long run. 14. 4 TYPES OF MARKET SEGMENTATION Demographic PsychographicGeographic Behavioral 15. DEMOGRAPHIC SEGMENTATION Statistics thatdescribe a populationby personalcharacteristics suchas age, gender,income, maritalstatus, ethnicity,education, &occupation. 16. DEMOGRAPHIC Example: Gender: indicates purchase preferences (female) Origin or heritage: race, ethnicity, nationality (Caucasian) Religion (Christian) Social or economic status: education level, occupation, income (Middle-Class) Life stage: age, generation, marital status, family life cycle, family size. (Teens) 17. PSYCHOGRAPHICSEGMENTATION Defined: Markets Characteristics reflect divided by social and consumer buying psychological behaviors. The characteristics.characteristics are (Lifestyles, morals, valu Interests, Habits, Activiti es, & interests)es, Lifestyles, Opinions,& Hobbies. These reflect who your customers are. Businesses that use Marketing principles to guide their decision making must evaluate and reevaluate their customers wants and needs continuously to 18. PSYCHOGRAPHIC Example: It gives a clearer picture of customers needs and wants based on personality and lifestyle. Snowboarder: LOVES cold and outdoors, free- spirited, not into authority, fun-loving, has lots of friends 19. GEOGRAPHIC SEGMENTATION Markets divided by It is valuable where the customerinformation because lives.businesses can tailor their product mix based on location. Characteristics are nations, states, region s, counties, cities, or neighborhoods. 20. GEOGRAPHIC Example: Determine customers purchase preferences according to climate, political boundaries, or population density Marketers discover: Where their markets are located Who their competitors are Which media will reach their customers Businesses can market to customers based onlocation 21. BEHAVORIAL SEGMENTATION Segmenting a market Types of behavioral base on the way segmentation: customers use a Product Benefits product or behave Usage toward a product. (How a consumer Loyalty responsdsto a Occasions product.) 22. BEHAVORIAL Example: Customer questions in behavioral marketing: How will the product benefit me? Am I ready to buy it? When will I use the product/ On what occasions? How often? Am I in a comfortable buying pattern? Do I feel loyal to a particular brand? 23. ACTIVITY Choose a partner! Cut out ads from magazines for 3 products ofyour choice. Create a small poster with the products listing thetarget market the product and ad are designed toattract. For EACH product you need to identify the followingmarket segmentation for that product: Demographics Geographics Psychographics Behavioral You may use the internet to research product