Marketing Strategy A marketing strategy provides vital
information on how a business will meet its goals of satisfying
customers that will result in making sales and profits. Two Steps:
Target Market Marketing Mix
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Target Market A specific group of consumers that have similar
wants and needs. 4 types of segmentation: Demographic (age, gender,
income, ethnicity) Geographic (location) Psychographic (values,
attitudes, & lifestyles) Behavioral (why customers buy the
product)
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Marketing Mix (4Ps) The blending of the four marketing
elementsproduct, place (distribution), price, and promotion.
Satisfies the wants and needs of the target market. Provides a
profit for the company.
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Consumer Decision Making Process 1. Recognize a need. 2. Gather
information. 3. Select and evaluate alternatives. 4. Make a
purchase decision. 5. Determine the effectiveness of the
decision.
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Decision-Making Extensive Occurs when there is a high level or
perceived risk, a product or service is very expensive or has a
high value to the customer. Limited Occurs when a customer buys
products that he or she has purchased before but not regularly.
Routine Occurs when little information is needed about the product
being purchased.
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Consumer Buying Motives Buying motives are the reasons
consumers decide what products and services to purchase. Emotional
feelings, beliefs, and attitudes Rational based on facts and logic
Patronage based on loyalty, customer service, merchandise, and
convenience
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Consumer Information Sources Product Testing Organizations
Media Government Business Personal
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Product Testing Organizations Test products and services to
detect benefits. Examples Underwriter Laboratories Association of
Home Appliance Manufacturers Consumers Union (Independent testing
organizations) 9
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Media Sources Provide specific information about products and
services. Types of media sources: Print Magazines Newspapers
Broadcast Organizations Radio Television Internet 10
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Government Agencies Inform consumers and may handle consumer
questions. Types Federal State Local 11
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Federal Trade Commission (FTC) Works to prevent fraud,
deception, and unfair business practices. Enforces truth in
advertising Protects against predatory or discriminatory lending or
unfair loan servicing Do NOT Call Registry and mail fraud Works to
prevent identity theft -- including Fair Credit Reporting Act
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Food and Drug Administration (FDA) Responsible for protecting
the public health by assuring the safety and security of: human and
veterinary drugs biological products medical devices our nations
food supply cosmetics products that emit radiation
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US Dept of Agriculture (USDA) Keeps our food sources safe
Inspect fruit & plants imported from foreign countries National
School Lunch Program Inspects meat, poultry, and eggs Sets
nutritional guidelines (Food Pyramid)
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Business Sources Business sources are available as a public
service and to sell products and services. Types The main function
of advertising is to sell. Product labels provide helpful
information about nature of product, how to care for product, where
product was made, and the size of the product. Customer Service
Departments focus on assisting customers. Better Business Bureau
(BBB) provide facts about products or services. 15
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Business Sources Better Business Bureau (BBB) provides facts
about products or services. A non-profit organization dedicated to
building fair, honest relationships between businesses and
consumers Monitors a companys record for addressing a customers
complaint. NOT a government organization
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Personal Contacts Word of mouth advertising. 17
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Traditional Retailers Department Stores Provide broad product
lines Many customer services Salon, gift wrapping, eye care Clearly
defined departments Ex. Macys, JC Penny, Belks Discount Stores
Sells a variety of items at reasonable or low prices; often
nationwide stores; practical displays and not always very
organized; some service is available Examples: Target, Wal-Mart,
Dollar General 18
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Traditional Retailers Specialty Stores Sell only one kind of
merchandise clothing stores, athletic goods stores, hardware
stores; services vary, selling methods and prices vary Ex: Foot
Locker, Best Buy Supermarket Type of grocery store Large selection
of products Organized as departments - produce, meat, deli Ex.
Harris Teeter, Bi-Lo 19
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Traditional Retailers Convenience Store Provide popular items,
offer long operating hours, and are usually located in highly
accessible areas Usually higher priced Ex. 7-Eleven 20
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Contemporary Retailers Superstores Extremely large, similar to
supermarkets, but also sell mass merchandise items like clothing,
garden products, and books Examples: Wal-Mart Supercenter, Super
Target Specialty Superstores Provide wide variety of limited
products at low prices Ex. IKEA, Home Depot 21
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Contemporary Retailers Warehouse Club Huge selections of food
and nonfood items at low prices and in bulk quantities Often
require memberships Ex. Costco and BJs Factory Outlets Operated by
the manufacturer and carry only that manufacturers brand or an
affiliated manufacturer Examples: Nike, Ralph Lauren, Nautica
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Non-Store Retailers Allows purchasing of goods and services by
telephone, computer, television, fax, or door- to-door. Vending
machines provide products through automation. 23
