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Marketing 101: Basic Theories of Marketing
1. What's a Target?
Segmenting the marketplace helps marketers identify which customers a business should focus their concentrate on. When a company can focus their energy on discovering the real needs of your target, they get a better sense of where to allocate their resources. Marketers often break-down every single demographic variable into concise categories (age, sex, marital status, income, etc.). Also, marketers conduct surveys and run statistical analysis to make correlations in the marketplace.
2. Developing a Plan.
Once marketers identify the target consumers, they will then develop a marketing plan. This includes a mixture of place, product, promotion and price. These four elements are used to target a certain consumer segment (concentrated plan), or several different mixes are developed to target several different target segments (differentiated plan). Ideally, a good plan should focus on a very specific target segment - ensuring that the company meets the needs of this market.
3. Consumer Behavior.
Marketers also identify factors that influence and shape the buying decision of the consumer. Every step from what triggers the buyer's needs to the post-purchase process marketers strive to reveal the true consumer behavior pattern. Identifying problems in the consumer behavior model helps marketers develop a marketing mix that's just right for your business!
4. Meeting Customer Needs.
Once marketers understand the behavior that's involved in the purchasing process, then the focus shifts to meeting the need of the consumer. Needs may not necessarily be the actual product itself but rather, it may be the feeling or sense of love, belonging, self-esteem or recognition that the consumer is really after.