Marketing and the Marketing ConceptMarketing and the Marketing Concept

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Marketing and the Marketing ConceptMarketing and
the Marketing Concept
Chapter 1 Marketing Is All Around Us

• Section 1.1 Marketing and the Marketing Concept
• Section 1.2 The Importance of Marketing
• Section 1.3 Fundamentals of Marketing

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You already know marketing sort of

• You have already participated in the marketing
  process as a consumer. By studying marketing, you
  will start to think like a marketer. As a
  marketer, you need to keep up with
• Trends
• Consumer attitudes
• Customer relationships

Marketing Essentials Chapter 1, Section 1.1
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Ideas, Goods, and Services

• Marketing promotes ideas, goods, and services.
  Examples of ideas that might be marketed are
• A candidates political platform
• A public service initiative, such as dont smoke
  or stay in school

This ad promotes the idea of a healthy diet that
includes dairy products
Marketing Essentials Chapter 1, Section 1.1
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• Examples of marketed goods include
• Cars
• Electronics
• Home furnishings
• Foods

goods Tangible items of monetary value that
satisfy needs and wants.

• Examples of services that may be marketed are
• Automotive repair
• Hair styling
• Legal aid
• Financial consulting

services Intangible items of monetary value that
satisfy needs and wants.
Marketing Essentials Chapter 1, Section 1.1
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So how does this work.

• Marketing can be understood through
• Four foundations
• and
• Seven functions

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Four Foundations..

• Business, Management, Entrepreneurship
• Communication and Interpersonal Skills
• Economics
• Professional Development

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Business, Management, Entrepreneurship

• Business and Mgt., is having a basic
  understanding of business concepts, and
  understanding the needs of consumers and the
  marketplace
• Entrepreneurship is the capacity to develop,
  organize, and manage a business while taking
  risks in order to make the business successful

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Communication and Interpersonal Skills

• It is understanding of concepts, strategies, and
  systems needed to interact effectively with
  others.
• Effective communication involves using the media
  to advertise businesses.
• These skills not only include verbal
  communication, but also listening to the concerns
  of the customers and improving products
  accordingly.

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Economics

• Economics is the science concerning the
  production and consumption of goods and services
  and analysis of commercial activity
• Econ is the study of allocating resources to
  maximize their uses.
• A basic knowledge of economic principles is
  needed to understand economics
• Economics includes knowing how individuals will
  react to material constraints. i.e. scarcity of a
  product

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Professional Development

• Understanding concepts and strategies needed for
  career exploration, development, and growth
• Keep up with competitors and run a business

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Seven Functions of Marketing

• Distribution getting goods to customers
• Financing acquiring money to set up and run a
  business
• Marketing information management researching
  customers, trends, and competitors
• Pricing charging for goods and services to make
  a profit
• continued

Marketing Essentials Chapter 1, Section 1.1
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Seven Functions of Marketing

1. Product/service management obtaining,
   developing, maintaining, and improving a product
   or service
2. Promotion informing, persuading, and reminding
   customers about a product or service
3. Selling providing customers with goods and
   services

Marketing Essentials Chapter 1, Section 1.1
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The Marketing Concept
marketing concept Businesses should satisfy
customers needs and wants while making a profit.

• The marketing concept focuses on satisfying the
  needs and wants of customers.
• Businesses cant sell goods and services that
  customers do not want/need!

Marketing Essentials Chapter 1, Section 1.1
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Economic Benefits of Marketing

• Marketings benefits to the economy and consumers
  are
• New and improved products
• Lower prices
• Added value

Marketing Essentials Chapter 1, Section 1.2
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New and Improved Products

• Marketing generates competition. In a competitive
  marketplace, businesses try to create new and
  improved products to satisfy customers wants and
  needs.

Marketing Essentials Chapter 1, Section 1.2
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New and Improved Products

• Dutch Boy Paints won an award for its new
  container design that makes the container easy to
  hold and open as paint is poured.

This ad promotes Dutch Boy Paints innovative
paint container.
Marketing Essentials Chapter 1, Section 1.2
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Lower Prices

• Marketing increases demand. When demand is high
• Products can be produced in larger quantities
• The fixed cost per unit is lower
• As a result, a company can
• Charge a lower price per unit
• Sell more units
• Make more money

Marketing Essentials Chapter 1, Section 1.2
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Lower Prices

• In addition, when demand for products increases
• More companies enter the marketplace
• Companies must lower prices to remain competitive

Marketing Essentials Chapter 1, Section 1.2
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Added Value and Utility
utility An attribute of a product or service
that makes it capable of satisfying consumers
wants and needs.

• The value that marketing adds to a product or
  service is called utility. Five utilities
  contribute to making a product or service capable
  of satisfying customers wants and needs
• Form putting parts together to make a product
  consumers want
• Place offering a product where consumers can buy
  it (e.g. retail store, catalog, Web site)

Marketing Essentials Chapter 1, Section 1.2
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Added Value and Utility

• Time offering a product at a convenient time of
  day or year for consumers
• Possession allowing consumers to take legal
  ownership of a product
• Information communicating information about a
  product (e.g. through labeling, advertising, or
  an owners manual)

Marketing Essentials Chapter 1, Section 1.2
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Market and Market Identification
market People who share similar needs and wants
and are capable of buying products.

• What is a MARKET?
• People who
• Share similar needs and wants
• Have the ability to purchase a product
• If you like DVDs and can afford to buy or rent
  them, you are part of the DVD market.

Marketing Essentials Chapter 1, Section 1.3
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Consumer Versus Industrial Markets
consumer market All consumers who purchase goods
and services for personal use.

• The consumer market consists of consumers who
  purchase goods and services for personal use
• The consumer market wants products and services
  that
• Save money
• Make life easier
• Improve appearance
• Create status
• Provide personal satisfaction

Marketing Essentials Chapter 1, Section 1.3
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Consumer Versus Industrial Markets
industrial market Businesses that buy products
to use in their operations also called the
business-to-business market (this can be
abbreviated as B-to-B or B2B).

• The industrial market includes all businesses
  that buy products for use in their operations.
• The industrial market, or business-to-business
  (B-to-B) market, wants products and services
  that
• Improve productivity
• Improve efficiency
• Increase sales
• Decrease expenses

Marketing Essentials Chapter 1, Section 1.3
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• A single product may be promoted to both the
  consumer and industrial markets. For example,
  Perdue advertises its chicken and turkey
  products
• On television and in newspapers, to reach
  consumers
• In the publication Supermarket News, to reach
  professionals in the supermarket industry

Marketing Essentials Chapter 1, Section 1.3
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Market Share
market share A companys percentage of total
sales volume generated by all competition in a
given market.

• A companys market share is its percentage of
  total sales in a given market, such as the video
  game market. Market share changes as
• New competitors enter the market
• The markets volume increases or decreases

Marketing Essentials Chapter 1, Section 1.3
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Target Market and Market Segmentation
target market A group of people identified as
those most likely to become customers.

• Identifying a products target market, or the
  segment of the market most likely to buy the
  product, is a key to success. A single product
  may have these two target markets
• Consumers
• Customers
• For example, a nutritious breakfast food would be
  targeted at
• Children who will request it and eat it, the
  consumers
• Parents who will approve and buy it, the customers

Marketing Essentials Chapter 1, Section 1.3
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• To develop a clear picture of its target market,
  a business may create a customer profile, which
  lists such information about the target market
  as
• Age
• Income level
• Ethnic background
• Occupation
• Attitudes
• Lifestyle
• Geographic residence

customer profile A list of information about a
target market, such as age, income level,
ethnicity, occupation, attitudes, lifestyle, and
geographic residence.
Marketing Essentials Chapter 1, Section 1.3
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Marketing Mix
marketing mix The four basic marketing
strategies, called the four Ps product, place,
price, and promotion.

• The marketing mix includes four basic marketing
  strategies, or tools, called the four Ps
• product
• place
• price
• promotion

Marketing Essentials Chapter 1, Section 1.3
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Product

• A company must choose what products to develop,
  update, and improve.

Marketing Essentials Chapter 1, Section 1.3
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Place

• A company must decide where to sell and
  distribute a product.

Marketing Essentials Chapter 1, Section 1.3
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Price

• A company must determine what price it will
  charge for a product.

Marketing Essentials Chapter 1, Section 1.3
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Promotion

• A company must decide how to advertise, promote,
  and publicize a product.

Marketing Essentials Chapter 1, Section 1.3
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• Section 1.1
• Marketing is defined as the process of planning
  and executing the conception, pricing, promotion,
  and distribution of ideas, goods, and services to
  create exchanges that satisfy individual and
  organizational objectives.
• There are four foundations and seven functions of
  marketing. The marketing concept is a focus on
  customers needs and wants while generating a
  profit.
• continued

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• Section 1.2
• Three benefits of marketing are new and improved
  products, lower prices, and added value
  (utility). Five economic utilities are form,
  place, time, possession, and information.
• continued

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• Section 1.3
• A market is defined as all people who share
  similar needs and wants and who have the ability
  to purchase given products.
• Market share is a firms percentage of total
  sales of all competitors in a given market.
• The four Ps of the marketing mix are product,
  place, price, and promotion. Marketing decisions
  and strategies for the four Ps are based on the
  target market.