Principles of Marketing Week 4 Learning Objectives The Market Defining the Market Understanding and Approaching the Market The Market is Types of Markets Learning Objectives The Buyers Defining the Market ID: 232191
Download Presentation The PPT/PDF document "UNDERSTANDING BUYERS + MARKETS" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
UNDERSTANDING BUYERS + MARKETS
Principles of Marketing Week 4Slide2
Learning Objectives
The Market
Defining the Market
Understanding and Approaching the Market
The Market is…
Types of MarketsSlide3
Learning Objectives
The Buyers
Defining the Market
Understanding and Approaching the Market
The Market is…
Types of MarketsSlide4
Defining the Market
Impossible to define precisely, but we’ve discussed it’s definition as:
A group of potential buyers with needs and wants and the purchasing power to satisfy them.
Markets are people whether they are individuals or groups.
Without people there would be no need to marketSlide5
Understanding and Approaching the Market
People and organizations must meet certain basic criteria in order to represent a valid market
Must be a true need or want for the product, service idea that can be recognized or latent
Must have the ability to pay for the product
Much have the authority to buy the product
Those that meet the criteria must be large enough to be profitable for the marketerSlide6
Understanding and Approaching the Market
All five previous criteria must be met to equate a market.
Failure to meet even one may negate the visibility of a market
Look at the pharmaceutical industry
Why do some diseases remain uncured?Slide7
The Market is a Place
Thinking of the market as a place “the marketplace” is a common practice of the general public.
Such locations do exist as geographical areas within which trading occurs.
In this context we can think of world markets, international markets, American markets, regions, states, cities, and parts of cities.
A shopping center, a block, a portion of a block and even the site of a single retail store can be called a market.Slide8
The Market is a Place
Most times marketers try to define the people of a marketplace.
However, the place description of a market is important as well.
Goods must be delivered to customers attracted towards particular places where transactions are made
The identification of markets is useful for market decision making purposes.Slide9
The Market is a Place
Factors such as the following are all affected by the geographic market.
Product features
Price
Location of facilities
Routing salespeople
Promotional design
A market might be somewhere other than a geographic region, such as a catalogues or ad that allows you to place an
orderSlide10
The Market is an Economic Entity
A market is characterized by a dynamic system of economic forces.
The 4 biggest economic forces are: Supply, Demand, Competition, and Government Intervention.
Terms Buyer’s and Seller’s market describe different conditions of bargaining strengthSlide11
The Market is an Economic Entity
Placing labels on markets allows us to design strategies that match a particular economic situation.
Buyer’s market, abundance of product, prices are low, and customers dictate the terms of the sale.
The interactions of these economic factors is what creates a market.Slide12
Type of Markets
Now that we have defined markets in a general sense, it is useful to discuss the characteristics of the primary types of markets:
Consumer markets
Industrial markers
Institutional markets
Reseller marketsSlide13
Type of Markets
Consumer Markets
Include those individuals and households who buy and consume goods and services for their own personal use.
Not interested in reselling the product or setting themselves up as a manufacturer.
There are thousands of new products, services and ideas being introduced each day
The increased capability of consumers to both afford these products, the size and complexity and future growth potential of the consumer market is staggering.Slide14
Type of Markets
Industrial Markets
Include organizations and the people who work for them, those who buy products or services for use in their own businesses or to make other products.
These type of markets function differently than do consumer markets and the buying process in particular different.Slide15
Type of Markets
Institutional Markets
Includes various types of profit and non-profit institutions such as, hospitals, schools,
govt
agencies, and churches
Differ from the typical business in that they are not primarily motivated by profits or market share.
Tend to fulfill more intangible needs.
Whatever profits exist after all expenses are paid are put back into the institution.
The set of controls and restrictions means marketers must use different strategies to be successful.Slide16
Type of Markets
Reseller Markets
All intermediaries that buy finished or semi-finished products and resell them for profit are part of this market.
Operate under unique business characteristics
Producers are cognizant of the fact that successful marketing to resellers is just as important as successful marketing to consumersSlide17
Buyers
What is a Buyer?
A predetermined group or individual who fits the target market, and that is either already an existing customer of a product or service and/or a person who the marketer hopes will become a customer.Slide18
Buyers
Understanding buyers has been, in the past, a more simple process.
With the introduction of the internet, particularly social media, buyer behavior is more difficult to understand
The relationship between business and buyers is undergoing the most significant transformation in decades.
Continually redefines our knowledge of how buyers make decisions.Slide19
Buyers
Understanding buyers has been, in the past, a more simple process.
With the introduction of the internet, particularly social media, buyer behavior is more difficult to understand
The relationship between business and buyers is undergoing the most significant transformation in decades.
Continually redefines our knowledge of how buyers make decisions.Slide20
CONCLUSION
Topics we have covered:
The Marketing Concept
Marketing Research Process
Strategic Marketing and Market Characteristics
Understanding Buyers and MarketsSlide21
CONCLUSION
Each of these elements is building towards the final project which encompasses all the parts of the marketing plan.Slide22
CLASS PRESENTATIONS