Chapter 9: Marketing strategies Introduction Business must understands what the consumer wants and who it’ll appeal to i.e. target market Once established the organisation can establish appropriate promotional and pricing strategies that caters to the needs of that certain group The marketing mix is made up of: product, price, promotion and place Combined with the three p’s of marketing: people, processes and physical evidence the extended marketing mix, which refers to the combination of the 4 p’s and 3 p’s A product can different features or qualities, the packaging can be of different colours or materials, the name can be modified Various promotions methods, different prices/discounts on offer, various distribution channels - to a single outlet to a coverage of the entire market The main goal of marketing manager is to develop and maintain a marketing mix that precisely matches the needs of the customer in the target market Market segmentation Refers to the dividing of the total market into segments Once segmented, the marketer is able to choose segment will be the target market Businesses will implement a specific marketing mix to each target market Ultimate aim of market segmentation is to increase sales, market share and profits This is done by understanding the needs and wants of consumers Segmentation variable refers to the characteristics of individuals or groups that are used by marketing managers to divide a total market into segments The consumer market can be segmented according to four main variables: demographic, geographic, psychographic and behavioural Demographic: Divides the total market according the particular features of a population Includes size, age, sex, income, cultural background and family size The ease of the demographic variables can be measured and its use is widespread amongst marketers Geographic: Divides the total market according to geographic locations Businesses may divide the consumer market into regions because consumers in different geographical locations have different needs, tastes and preferences Psychographic: Divides the market according to personality characteristics, motives, opinions, socioeconomic group and lifestyles When segmenting according to psychographic variables, businesses would research consumer’s brand preferences, favourite music, radio and television programs, reading habits, personal interests and hobbies and values Values on why people behave the way they do Behavioural: Divides market on the consumers relationship to the product Includes customer’s knowledge of, attitude towards, use of, or benefits sought from the product May be divided into users and nonusers
Chapter 9: Marketing strategies Introduction Business must understands what the consumer wants and who it’ll appeal to i.e. target market Once established the organisation can establish appropriate promotional and pricing strategies that caters to the needs of that certain group The marketing mix is made up of: product, price, promotion and place Combined with the three p’s of marketing: people, processes and physical evidence the extended marketing mix, which refers to the combination of the 4 p’s and 3 p’s A product can different features or qualities, the packaging can be of different colours or materials, the name can be modified Various promotions methods, different prices/discounts on offer, various distribution channels - to a single outlet to a coverage of the entire market The main goal of marketing manager is to develop and maintain a marketing mix that precisely matches the needs of the customer in the target market Market segmentation Refers to the dividing of the total market into segments Once segmented, the marketer is able to choose segment will be the target market Businesses will implement a specific marketing mix to each target market Ultimate aim of market segmentation is to increase sales, market share and profits This is done by understanding the needs and wants of consumers Segmentation variable refers to the characteristics of individuals or groups that are used by marketing managers to divide a total market into segments The consumer market can be segmented according to four main variables: demographic, geographic, psychographic and behavioural Demographic: Divides the total market according the particular features of a population Includes size, age, sex, income, cultural background and family size The ease of the demographic variables can be measured and its use is widespread amongst marketers Geographic: Divides the total market according to geographic locations Businesses may divide the consumer market into regions because consumers in different geographical locations have different needs, tastes and preferences Psychographic: Divides the market according to personality characteristics, motives, opinions, socioeconomic group and lifestyles When segmenting according to psychographic variables, businesses would research consumer’s brand preferences, favourite music, radio and television programs, reading habits, personal interests and hobbies and values Values on why people behave the way they do Behavioural: Divides market on the consumers relationship to the product Includes customer’s knowledge of, attitude towards, use of, or benefits sought from the product May be divided into users and nonusers
Business_Studies_Notes_-_Marketing_3.docx