Market Your Business
Chapter 4
Chapter 4
4.1 The Value of Marketing
4.2 Create the Marketing Plan
4.3 Identify Your Competition
4.4 The Marketing Mix – Product and Price
4.5 The Marketing Mix – Distribution and
Promotion
Lesson 4.1
What is Marketing?
The process used to determine and satisfy
the needs of customers and the company.
“An organizational function and a set of processes
for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the
organization and stakeholders.”
Research
Marketing Concept
• Uses the needs of customers as the primary
focus during the planning, production,
distribution, and promotion of a product or
service.
1. Identify what will satisfy the customer needs
and wants
2. Develop and market products that customers
consider better than other choices
3. Operate profitably
Marketing Mix
• Product
▫ What you will sell to meet customer needs
• Price
▫ Determining how much you’ll sell it for
• Place (distribution)
▫ Make it available to the customers in the right
places
• Promotion
▫ Tell the market about it
Target Market
• Individuals or companies that are interested in a
particular product and are willing and able to
pay for it.
▫ Allows you to reach the people you most want to
attract and sell to.
Ex:
A car dealer selling moderately priced minivans
A car dealer selling expensive sports cars
Eight questions to identify your target
market:
1. Customers individuals or companies?
2. Individuals: how old, how much $ do they earn, where do
they live, how do they spend their time and $?
3. Companies: what industries, where are those industries
located?
4. What needs or wants is my product satisfying?
1.
What appeal is this ad grabbing your attention with? (15
basic appeals)
5. How many potential customers live in the area I want to
operate?
6. Where do they currently buy?
7. What price are they willing to pay?
8. What can I do for my customers other companies can’t?
Advertising’s 15 Basic Appeals
1. Need for sex
2. Need for affiliation to
a certain group of
people
3. Need to nurture
4. Need for guidance
5. Need to aggress (get
even)
6. Need to achieve
7. Need to dominate
8. Need for prominence
(high social status)
11. Need for attention
12. Need for autonomy
(singled out)
13. Need to escape
14. Need to feel safe
15. Need for aesthetic
sensations (beauty
and activity)
16. Need to satisfy
curiosity
17. Psychological needs
(basic necessities)
Where is your focus?
Marketing Segments
• It’s impossible to please everyone
▫ Segmenting helps meet specific customer needs
• Market segments are groups of customers
who share common characteristics.
▫ Dividing your target market into several small
groups
▫ Customer Profiles make it easier to create a
market segment.
Customer Profile
• A description of the characteristics of the person
or company that is likely to purchase a product
or service.
▫ Based on many types of data: demographics,
psychographics, use-based data, and geographic
data.
Customer Profile Data
• Demographics
▫ Age, Marital Status, Family Size, Ethnicity,
Gender, Profession, Education, and Income
• Psychographics
▫ Tastes, Opinions, Attitudes, Personality Traits,
and Lifestyle Habits
• Use-Based Data
▫ How often potential customers use the particular
service
• Geographic
▫ Where potential customers live and how far they
are willing to travel to do business
Customer Profile of …
Sporting Goods Store:
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Individual 23 to 52 years of age
Participates in sports
Wants good-quality sport equipment
Looks for good prices
Lives in city of Blanchester
Average household income of $42,000 per
year
Customer Profile of …
Sporting Goods Store:
▫ Individual 23 to 52 years of
age
▫ Participates in sports
▫ Wants good-quality sport
equipment
▫ Looks for good prices
▫ Lives in city of Blanchester
▫ Average household income
of $42,000 per year
▫ Demographic
▫ Psychographic
▫ Psychographic
▫ Demographic
▫ Geographic
▫ Demographic
Customer profile of …
Create a customer profile on you
• Include:
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Demographics
Psychographics
Use-Based Data
Geographics