Marketing Ch. 2
market
All potential customers who share common needs and wants, and who have the ability and willingness to buy the product, are considered a
marketing mix
Comprise the four basic marketing strategies collectively known as the 4 P's.
psychographics
involves the studies of consumers based on social and psychological characteristics.
market segmentation
is a way of analyzing a market by specific characteristics in order to create a target market.
place
might be a "bricks and mortar" building, vendor fair, or on-line
price
must include cost plus profit
product
what you are selling; includes generating ideas, market surveys, and testing
target marketing
Focusing all marketing decisions on a very specific group of people you want to reach is called
Baby Boom Generation
The 76 million babies born in the United States between 1946 and 1964 are called the
Generation Y
The 77 million Americans born between 1977 and 1997are referred to as
Generation X
The more than 40 million Americans born between 1965 and 1976 are called
Why is it important to know who your target market is
You can focus your resources, time and money on the group most likely to purchase your product.
consumers
actually use the product.
customers
buy the product
customer profile
can include information about the target market with regard to the age, income level, ethnic background, occupation, attitudes, a lifestyle, or geographic residence of the targeted customer
geographics
refers to segmentation of the market based on where people live
demographics
refers to statistics that describe a population in terms of personal characteristics, including age, gender, income, ethnic background, education and occupation.
promotion
signing, advertising, sampling, contests
marketing concept
states that businesses must satisfy customers' needs and wants in order to make a profit
discretionary income
the money left after paying for basic living necessities such as food, shelter, and clothing.
disposable income
the money left after taking out taxes.