Target Market Selection Process

• Market segmentation is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.
• Marketing Deals with Products, Distribution, Promotion, and Price

  1. Developing and managing a product that will satisfy customer needs

  2. Promoting to help customers learn about the product and determine if the product will satisfy their needs

  3. Making the product available in the right place

  4. Pricing the product at an acceptable level for buyers

  5. Communicating information to help customers determine if the product will satisfy their needs
• Marketers must collect in-depth, up-to-date information about customer needs
• The distribution variable involves making products available at the right time and in appropriate locations
• Marketing


  The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
• Value


  A customer’s subjective assessment of benefits relative to costs in determining the worth of a product
• Customer relationship management uses information about customers to create marketing strategies that develop and sustain desirable customer relationships
• Marketing fuels the global economy by producing profits essential for business survival and contributing to the well-being of society
• Marketing environment consists of competitive, economic, political, legal and regulatory, technological, and sociocultural forces
• The promotion variable relates to activities used to inform and persuade to create a desired response
• Starbucks

  • Transforming into a health-conscious brand
• The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit
• Marketing activities should attempt to create and maintain satisfying exchange relationships
• Marketing mix


  Four marketing activities—product, pricing, distribution, and promotion—that a firm can control to meet the needs of customers within its target market
• Marketing concept is a managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals
• Marketing offers a variety of career opportunities including personal selling, advertising, packaging, transportation, storage, marketing research, product development, social media management, wholesaling, and retailing
• Relationship marketing focuses on establishing long-term, mutually satisfying buyer-seller relationships
• Learning Objectives
• The price variable relates to decisions and actions associated with pricing objectives and policies and actual product prices
• Variables of the marketing mix


  • Product
  • Pricing
  • Distribution
  • Promotion
• Marketers must constantly monitor the competition and adapt their products, distribution decisions, promotion, and pricing to foster long-term success
• The product variable involves creating or modifying brand names and packaging
• Stakeholders


  • Customers
  • Employees
  • Investors and shareholders
  • Suppliers
  • Governments
  • Communities
  • Competitors
• Market orientation is an organization-wide commitment to researching and responding to customer needs
• Customer lifetime value forecasts a customer’s lifetime economic contribution based on continued relationship marketing efforts
• Marketing mix

  Four marketing activities—product, pricing, distribution, and promotion—that a firm can control to meet the needs of customers within its target market
• Target market


  • A specific group of customers on whom an organization focuses its marketing efforts
• Marketing mix

  A firm can control these activities to meet the needs of customers within its target market
• Learning Objectives
• Marketing offers many exciting career prospects and a variety of challenging opportunities worldwide
• Marketing creates value through a customer’s subjective assessment of benefits relative to costs in determining the worth of a product
• Marketers must constantly monitor the competition and adapt their products, distribution decisions, promotion, and pricing to foster long-term success
• The distribution variable ensures products are available at the right time and in appropriate locations
• Customer lifetime value forecasts a customer’s lifetime economic contribution based on continued relationship marketing efforts
• Marketing is important in our global economy as it helps to produce profits essential for business survival and contributes to the well-being of society
• Customers


  The purchasers of organizations’ products
• Service

  The application of human and mechanical efforts to people or objects to provide intangible benefits to customers
• Information about customer needs

  • The age, income, ethnicity, gender, and educational level of people in the target market
  • Their preference for product features
  • Their attitudes toward competitors’ products
  • The frequency with which they use the product
• Marketing builds relationships with customers and other stakeholders through exchanges
• Idea


  A concept, a philosophy, an image, or an issue