Marketing

Finance is the management, creation and study of money, banking, credit, investments, assets and liabilities that make up financial systems, as well as the study of those financial instruments.

Here are the Simple Rules for FH Gizmos’ Finance Team:

  • Consumer Behavior
  • Market Research
  • Customer Segmentation
  • Marketing Mix

Consumer Behavior

Consumer research is the investigation into a consumers needs and purchasing habits. We need to try to understand the buying behavior and motivation of our target customers so we can best reach them and sell a product that meets their needs.

Consumer research is used with customer segementation, market research, and the Marketing Mix to make up FH Gizmos’ marketing strategy.

Big Picture Consumer Research

It is good to start with an understanding of how and why people make the consumption choices they do. The Journal of Consumer Research is a great place to start to do consumer research. The JoC publishes scholarly research that describes and explains consumer behavior. Take, for example, this article on how toys become popular among children.

Working With Our Customers

When it comes time to work with potential FH Gizmos’ customers, interviews, focus groups, observations, surveys, etc. will be useful in understanding our their needs. Luckily, the simple rules for working with our customers has been outline in the Empathy section of our design process. Read it!

Market Research

Market research is the act of identifying and gathering information on the markets where we sell our product in an attempt to better understand those markets. Just like customer segmentation focuses on more than one type of potential customer, our product might be sold in multiple markets. Knowing what those markets are, how big they are, and other characteristics are important to our success. Market research, customer segmentation, consumer behavior, and the Marketing Mix make up FH Gizmos’ marketing strategy.

Simple rules for Market Research:

  • Research market size and potential number of customers within a market
  • Use Keyword Searches to determine the potential size of a market
  • Do competiton research to help determine market size, price points, new markets, etc.

Customer Segmentation

Customer segmentation is the act of identifying the different types of customers that might buy our product and creating value for each segement based on their unique needs. Knowing the types of customers who will buy our product will help us tailor our product and marketing for each segment. Customer segmentation, consumer behavior, market research, and the Marketing Mix make up FH Gizmos’ marketing strategy.

Let’s pretend FH Gizmos is a coffee shop. What type of customers might we serve? Can you break down our coffee customers into segments? Some segments could be:

  • The busy business man who wants to get his coffee and get to work quickly
  • The college student who is looking for a good cup of coffee and a quiet place to study
  • The old friends who want to catch up over a cup of coffee

All of the above customers are buying our coffee, but they have different needs. How can we meet those needs? By providing value for each customer segment: we could install a coffee express line for the business man, free Wi-Fi and high-backed booths for the college students, and circular tables for the old friends who want to catch up.

What’s important to the busy business man is not important the college student, etc.. As a Marketeer, it is your job to communicate to the busy business man one message about the value of our product, the college student a different value, and to the old friends a third value.

Simple Rules for Customer Segmentation:

  • Divide buyers into segments
  • Identify each segment’s needs
  • Create value for that customer segment by meeting their needs
  • Communicate the correct value to the correct customer segment

Marketing Mix

Marketing is much more than advertising. Marketing is the larger process of successfully selling goods and services to consumers. Advertising is just one part of marketing. The basics of marketing is made up of 4 key concepts:

  • Product – What we’re selling and why we’re selling it
  • Price – How much we charge users for our product
  • Place – Where we are selling our product and how we get it to market
  • Promotion – How and where we are communicating what we’re selling and why we’re selling it

[Insert Marketing Mix Image]

Combined, these 4 key concepts make up the Marketing Mix – a combination of factors that can be controlled by a company to influence consumers to purchase its products. The Marketing Mix forms the basis of FH Gizmos’ Marketing Strategy. The Marketing Mix can also be used to evaluate and improve our current products. This graphic shows what actions and expectations fall under the Marketing Team’s responsibilities: