A process in which participants create and share information with one another to reach a mutual understanding
Communication Channel
The means by which messages get from one individual to another
Diffusion
The process by which an innovation is communicated through certain channels over time among the members of a social system
Innovation
An idea, practice, or object that is percieved as NEW by an individual or other unit of adoption
Market
Consists of all the potential customers sharing a particular need/want who might be willing and able to engage in exchange to satisfy that need/want
Marketing
A social and managerial process by which individuals and groups obtain what they need/want through creating, offering and exchanging products of value with others
Marketing Management
The process of planning and executing the conception, pricing, promotion, and distribution of products to create exchanges with target groups that satisfy the customer aand organizational objectives
Market Segmentation
A process of reducing larger groups or markets into smaller subdivisions who share a particular want/demand
IDENTIFIABLE
MEASURABLE
Ways to segment markets
Demographics (age)
Geographics (location)
Behavioral (preference)
Psychographic (personality)
Benefits
Time
Target Marketing
focuses on a specific segment, may use multiple segments
Marketing Mix
The combination/relationship between the selected target markets and the appropriate marketing mix
4 P's
Promotion
Place
Price
Product
Diffusion
Customers grouped together according to how quickly they adopt a new product
4 key elements of diffusion
Innovation
Social System
Communication
Time
Innovators
Well informed risk takers who are willing to try an unproven product. 2.5%
Early Adopters
Based on the positive response form innovators, they begin to purchase a product. Educated opinion leaders. 13.5%
Majority
Careful consumers that tend to avoid risk. Purchase product once it has been proven by the early adopters. Rely on recomendations. 34%
Late Majority
Somewhat skeptical consumers. Only purchase product after it has become common place. 34%
Laggards
consumers who resist change. May not purchase product until traditional alternatives are no longer available. 16%