Marketing Concepts Chapter 2

Consumers
People who actually use a product
Market
Group of ALL potential costumers who share common needs and wants, and who have the ABILITY AND WILLINGNESS TO BUY THE PRODUCT
Market Segmentation
DIVIDING the total market into smaller groups of people who share specific needs and characteristics
Disposable Income
Money left after taking out taxes
Marketing Concept
States that business must satisfy customers’ needs and wants in order to make a profit
Demographics
Statistics that describe a population in terms of personal characteristics
Target Market
Focusing all marketing decisions on the specific group of people you want to reach
Marketing Mix
The combination of the four basic marketing strategies – product, place, price, and promotion
Customers
Those people who buy a product
Customer Profile
Involves information about the target market with regard to age,m income level, ethnic background, attitudes, lifestyle, and geographic residence
Geographics
Refers to segmentation of a market based on where people live
Psychographics
Involves the study of consumers based on lifestyle, and the attitudes and values that shape it
Discretionary Income
Money left after paying for basic living necessities, such as food, shelter, and clothing