1. Basic Marketing Concepts The marketing concept states that to make a profit, a business must focus all of its efforts on satisfying the needs and wants of its customers.

2. Some companies are sales oriented, while others are marketing oriented. Can you think of some examples of both? Customers buy a product. Consumers use a product. How might this confuse marketers?

3. A key element that users of the marketing concept must consider is customer satisfaction. In general, value is the personal satisfaction gained from the use of a good or service. Customers compare the price they pay for a product with all the benefits that come with it. What is one product that your have found valuable? How about one in which you were not so satisfied?

4. Identifying Your Customers In order to respond to customers’ need and preferences, businesses must first know who their customers are. To find out, they must study the market for their product. Mass marketing involves using a single marketing plan to reach all consumers. Not many products are mass-marketed anymore. They were in the 1950’s and early 1960’s. Why do you think they were then? What is a product that is still mass-marketed today?

5. Dividing the total market into smaller groups of people who share specific needs and characteristics is the essence of market segmentation. To segment a market, you can use a variety of methods: Geographics refers to segmenting a market based on where people live.

6. Demographics refer to statistics that describe a population in terms of personal characteristics. These include: Age Occupation IncomeGender EducationEthnic background Psychographics involves the study of consumers based on lifestyle, and the attitudes and values that shape it.

7. A final way to segment a market is by product benefits. Companies usually build beneficial features into their products in response to consumer wants and needs. What is an example? Review: What are demographics? Geographics? Psychographics? Product Benefits? What do you think a customer profile is?

8. Target marketing is focusing all marketing decisions on the specific group of people you want to reach. There are four basic marketing decisions, collectively known as the four P’s, Product, Place, Price and Promotion. Together they comprise a product’s marketing mix. When you position your product, you try to get consumers to think of it in a certain way. You especially want them to distinguish it from the competition. Some key points to remember are: *Play to the Competitor’s Weaknesses *Look for Underserved Markets *Lead with Your Strengths *Target Different Market Segments What are some examples of companies using the above points to position their products? N.

9. Positioning Exercise