Marketing
An Introduction
Marketing Defined
Markets

Set of actual and potential buyers

Potential markets for…?????





Textbooks
Sporting event tickets
Hiking boots
Sports enhancement facilities
BMW
Mass Marketing

Seller mass produces, mass distributes &
mass promotes one product to all buyers


Examples???
Weaknesses of mass marketing for nonmass products
Market Segmentation



Divides a heterogeneous group into smaller
homogenous segments
Groups have similar wants & responses
Basic to all marketing efforts
 Better than mass marketing. Why?
Target Marketing

Seller identifies market segments, selects
1 & develops products and marketing
mixes for them

Marketing Mix – product, price, place,
promotion (4 P’s)
4 Bases of Segmentation
1.
Demographics
2.
Psychographics
3.
Product usage
4.
Product benefits
Demographics

Geography

Proximity –
closeness to location

Geoclusters
Demographics


Income
 Determines lifestyle
 Influences advertising market for certain
products
Age
 One of the most effective variables

Age & stage of lifecycle similar

Income, education, family lifecycle
Demographics

Age

Mature Market – 55+



Stereotyped as inactive & thrifty – untrue!
Living longer & more active
23% are over 55….





& have 75% of the wealth
& 50% of the discretionary income
Per capita income is 25% higher than national average
Spends 1+ trillion per year on goods & services
Senior discounts
Demographics

Gender

Race


Shared genetic make-up, biological differences
Ethnicity

Commonalities passed down through history &
tradition, culture, morals, beliefs
Demographics

Sexual Orientation

Higher income & education
Heterosexual LGBT
Median household income $43,318
$70,000
College degrees
30%
37%
Graduate degrees
9.4%
28%
Demographic Descriptors for Consumer
Markets
Age
Family size
Family lifecycle
Income
Occupation
Education
Race
Nationality
Social class
Under 6; 6-11; 12-19; 20-34; 35-49; 50-64; 65+
1-2; 3-4; 5+
Young & single; young, married, no children; young, married,
youngest child under 6; young, married, youngest child 6 or
over; older married, with children; older married, no children
under 18; older single; other
Under $10,000; $10,000-$15,000; $15,000-$20,000; $20,000$30,000; $30,000-$50,000; $50,000-$100,000; $100,000+
Professional & technical; managers, officials, & proprietors;
clerical, sales; craftspeople, foremen; operatives; farmers;
retired; students; housewives/husbands; unemployed
Grade school or less; some high school; high school graduate;
some college; college graduate; post graduate work; post
graduate degree
African American; American Indian; Asian; Caucasian;
Hispanic; other
American; British; French Canadian; German; Italian;
Japanese; Australian; Latino
Lower lowers; upper lowers; working class; middle class;
upper middles; lower uppers; upper uppers
Psychographics

Lifestyle characteristics
Activities
Interests
Opinions
Work
Family
Social issues
Hobbies
Home
Politics
Social events
Job
Business
Vacation
Community
Economics
Entertainment
Recreation
Education
Club membership
Fashion
Products
Shopping preferences
Food
Future
Sports
Media
Culture
Psychographics

How do we use these?







Meijer’s coupons
Shows at Braden
Club membership – campus, fitness
Political affiliation
Donations
Activities – biking, running
Professional associations
Product Use

Use rates



Frequency
Ability
Specialization
Product Benefits Segmentation


Divide by desired benefits
What do the following want from a tennis
shoe?



Runner
Avid walker
Cycler
Promotions Defined

Communication designed to facilitate
exchanges with members of potential
client groups by communicating the
benefits offered by the program/service.
Promotions Mix
Advertising
Sales
Promotions &
Incentives
Personal
Selling
Publicity
Personal Selling

Using direct, face to face oral presentation for
the purpose of facilitating exchange
Sales…

Sponsors

Service clubs

Every day participants

Media
Personal Selling


Expensive but allows for relationship marketing
 Build relationship with the customer
Allows for benefit selling
 Can create new benefits to offset negativity
toward product
Promotions Mix
Advertising
Sales
Promotions &
Incentives
Personal
Selling
Publicity
Sales Promos & Incentives

Something of financial or non-financial
value offered to encourage participation




Free offers
Promotional pricing
Celebrities
Prizes