The Marketing Concept

Marketing PrinciplesMarketing Principles

Chapter 2.1Chapter 2.1

Definition of Marketing

Process of developing, promoting, & Process of developing, promoting, & distributing products to satisfy distributing products to satisfy

customers’ needs & wantscustomers’ needs & wants

Marketing’s Main Purpose

Provide a bridge between producers Provide a bridge between producers & consumers so exchange of goods & & consumers so exchange of goods &

services can occurservices can occur

Marketing Process

There are 7 main Marketing Functions

Marketing-info-Marketing-info-managementmanagement: Collecting, : Collecting, disseminating, & using disseminating, & using info. To make sound info. To make sound business decisionsbusiness decisions

DistributionDistribution: Physical : Physical movement & storagemovement & storage

FinancingFinancing: How & where : How & where funds are used in businessfunds are used in business

SellingSelling: Personalized : Personalized communication that communication that influences purchasing influences purchasing decisionsdecisions

Product/Service Product/Service managementmanagement: What : What products & services will products & services will be offeredbe offered

PricingPricing: Decisions : Decisions dictating how much to dictating how much to charge for productscharge for products

PromotionPromotion: Activities that : Activities that inform & persuadeinform & persuade

The Marketing ConceptThe Marketing Concept

The marketing concept states that businesses must satisfy customers' needs and wants in order to make a profit.

The Basic Concept

Customers are Classified into Markets

All potential customers who have the All potential customers who have the ability and willingness to buy ability and willingness to buy

products.products.

Two Types of Markets

Consumer MarketsConsumer Markets – Consist of consumers – Consist of consumers who purchase goods & services for personal who purchase goods & services for personal use.use.

Industrial MarketsIndustrial Markets – Business-to-business – Business-to-business markets includes all businesses that buy markets includes all businesses that buy products for use in their operations.products for use in their operations.

Two Types of People with Needs & WantsTwo Types of People with Needs & Wants

Customers buy a product.

Consumers use the product.

Example: Parents who buy video games from retailers are customers. The kids who play the video games are the consumers.

Many times they are the same.

Customers vs. Consumers

A market can be described as the people who are potential customers of a product, as well as by the classification of a product in a category.

Market Share – The percentage volume of sales a company sells in a specific market.

U.S. Game Console Market

Marketing Decisions Must be Directed Towards the Target

Market

Target MarketTarget Market: The group(majority) : The group(majority) of consumers that a business will of consumers that a business will

direct it’s marketing activities direct it’s marketing activities towardstowards

Marketing Strategies

Businesses’ planning of marketing Businesses’ planning of marketing decisions to reach markets (i.e. target decisions to reach markets (i.e. target

markets) that have wants and needs for markets) that have wants and needs for their products.their products.

Marketing Mix(Four P’s): Four Main Marketing Decisions

Product (P/S Planning)Product (P/S Planning) Place (Distribution) Place (Distribution) Price Price PromotionPromotion

* Most important decisions in determining marketing strategies because each deals directly with consumers.

Involves determining what goods & services will be created or provided to satisfy consumer needs & wants.

ProductDecisions

Involves all activities for determining a value for exchange between the customer and the seller.

PriceDecisions

Involves determining where & how goods & services are made available to the customer.

PlaceDecisions

Involves informing & persuading the consumer about goods & services available.

PromotionDecisions

The Marketing Mix—The Four Ps

PRODUCTPRODUCT

PLACEPLACE

PRICEPRICE

PROMOTIONPROMOTION

All marketing mix decisions should be directed towards the target market

*The 4P’s are all interrelated with each other