What is a target market?
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group
What are the important factors marketers must understand about consumers?
- how they buy
- where they buy
- what they buy
- when they buy
What does it mean to understand the external environment?
- understand current customers
- understand what drives consumer decisions
- identify that most valuable customers and understand their needs
- understand the competition
Marketing managers are basically ___ rather than ___.
adapters rather than agents of change
What are the factors within the external environment that are important to marketing managers?
social, demographic, economic, technological, political and legal, competitive
What do social factors include?
attitudes, values, and lifestyles
What are the values of American people?
- self sufficiency
- upward mobility
- work ethic
- conformity
What are the characteristics of product quality that US consumers care about?
- reliability
- durability
- easy maintenance
- ease of use
- a trusted brand name
- low price
What is a component lifestyle?
when people choose products and services that meet diverse needs and interests rather than conforming to traditional stereotypes
How is social media helpful for marketers?
- monitor what is being said about the brand
- respond to both positive and negative buzz about a company or brand
- introduce new products
- amplify a promotional campaign by inviting consumers to join the conversation about a brand
What is demography?
The study of people’s vital statistics, such as age, race, and ethnicity and location
What type of consumers are minorities?
They embrace other cultures while continuing to patronize companies that understand their native cultural preferences
What types of products do Hispanics prefer?
They prefer products from their native country.
Read Section 4.4 for info on ethnic markets
READ
What are the three most important economic areas of interest for marketers?
consumers’ incomes, inflation, recession
What is the primary determinant of a person’s earning potential?
education
What is purchasing power?
comparing income to the relative cost of a standard set of G&S in different geographic areas, AKA cost of living
How do marketers deal with inflation?
They must realize that, regardless of what happens to the seller’s cost, the buyer is not going to pay more for a product than the subjective value he/she places on it
What does technological success depend upon?
Innovation, and innovation requires imagination and risk taking
What is the difference between basic and applied research?
Basic research (AKA pure research) attempts to expand the frontiers of knowledge, but does not solve a specific problem; applied research attempts to develop new or improved products
What are ways that companies are trying to keep their innovation strong?
- building scenarios
- enlisting the web
- talking to early adopters
- using market research
- creating an innovation environment
- catering to entrepreneurs
Why do businesses need government regulation?
to protect innovators of new technology, the interests of society in general, one business from another, and consumers
What are the three federal agencies most directly involved in marketing affairs?
Consumer Product Safety Commission, FTC, FDA
What is the purpose of the Consumer Product Safety Commission (CPSC)?
to protect the health and safety of consumers in and around their homes
