Essential Standard 3.00

Understand the role of marketing in business.

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Objective 3.02

Understand buying behaviors.

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Topics

Marketing StrategyConsumer Decision-Making Process Major Sources of Consumer InformationShopping Locations

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Marketing Strategy

What does a marketing strategy provide for a business?

provides vital information on how a business will meet its goals of satisfying customers that will result in making sales and profits

Two steps of a marketing strategy:Identify a target market

A target market consists of a group of people that have similar needs and wants.

Create a marketing mixA marketing mix consist of a blending of the marketing elements (product, price, distribution, and promotion)

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Marketing Strategy continued

Steps in the consumer decision-making process:

Recognize a need or wantGather informationSelect and evaluate alternativesMake a purchase decisionDetermine the effectiveness of the decision

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Major Sources of Consumer Information

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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)

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Media Sources

Provide specific information about products and services.

Types of media sources:Print

ExamplesMagazinesNewspapers

Broadcast OrganizationsExamples

RadioTelevision

Internet

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Government Agencies

Inform consumers and may handle consumer questions.

TypesFederalStateLocal

What are some ways that government agencies protect people?

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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.

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Major Sources of Consumer Information

What kinds of information has anyone obtained from an advertisement?

How was the information obtained from the advertisement used?

What product label has someone used recently?

How was the information obtained from the product label used?

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Personal Contacts

“Word of mouth” advertising.

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Shopping Locations

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Traditional Retailers

Department StoresProvide broad product lines and highlight their serviceWhat are some examples?

Discount StoresHighlight their offering of lower prices for productsWhat are some examples?

Specialty StoresProvide a special line of productsWhat are some examples? 14

Traditional Retailers continued

SupermarketLarge, full service store that offer many brands of productsWhat are some examples?

Convenience StoreProvide popular items, offer long operating hours, and are usually located in highly accessible areasWhat are some examples?

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Contemporary Retailers

Specialty SuperstoresProvide wide variety of limited products at low pricesWhat are some examples?

SuperstoresProvide a wide variety products in the retail services such as food, bakery, auto, and electronics.What are some examples?

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Contemporary Retailers continued

Warehouse ClubProvide products in large quantities at practical prices.What are some examples?

Factory OutletsProvide high-quality products at low prices.What are some examples?

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Non-Store Shopping

Allows purchasing of goods and services by telephone, computer, television, fax, or door-to-door.What are some examples of non-store shopping opportunities?Vending machines provide products through automation.What are some examples of vending machine shopping opportunities?

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