1.3 MARKETING AND ADVERTISING AN INTRODUCTION TO MARKETING Can you guess the origin of the word marketing? Think of a manufacturer and give examples of the market segments it may serve. Primary research data can be quantitative if they are based on statistical and objective data; qualitative if they consider the feelings and opinions of customers. ONLINE RESOURCES Marketing myopia Marketing plan balance sheet: bilancio to gather: raccogliere record: registro reliable: affidabile to resort to: ricorrere to set: stabilire survey: sondaggio time-consuming: che richiede molto tempo What is marketing? In the business world, marketing refers to a complex planning process to identify the right product before a company invests capital and brings it to market. It involves a customer-oriented marketing concept, which focuses on satisfying customers needs as well as considering profitability. In order to be successful, the company needs to: Each market segment features these three characteristics: discover the products the customers need or want, Demographic: age, gender, income and standard of living; develop such a product, establish the right price, Geographical: area, climate, and density; promote appropriate advertising campaigns, and Psychographic: values, hobbies, interests, and opinions; set favourable distribution channels. Behavioural: usage rate of products and brand loyalty. Market segmentation When manufacturers have a variety of products to sell, they resort to targeting different groups or segments of consumers, called a target market, with common needs of certain goods or services. This allows them to reduce their risks by choosing which products have a better possibility of being sold, based on the similar characteristics the consumers share as a group: the more suitable the product is, the better the chance the right customer will buy it. homogeneity consumers have common needs; distinctiveness consumers are different from other segments; similarity of reaction to same marketing and advertising proposals. Target markets are usually segmented according to different factors: Market research Companies need to gather information about potential clients, analyse and interpret it to find consumers tastes, habits and trends in order to identify their target markets. They can do this market research in two different ways: Primary or field research refers to information collected by the company first-hand, directly from the customers. Surveys, interviews, focus groups, and observation or product testing are examples of techniques used. This type of research provides updated data but is time-consuming and expensive. Secondary or desk research refers to information that already exists in internal company records or other sources. Balance sheets, institutional resources and the Internet are examples of possible sources. The data is easy to obtain and inexpensive, but not always updated nor reliable. 42 The basics