The Marketing Concept BMI3C

The Marketing Concept The idea that a business must consider both its potential customers and its competitors in EVERY business decision The idea is to satisfy the customer and overcome the competition Business failure is the result of businesses not using the marketing concept effectively

3 Steps identify an opportunity make sure that this opportunity has not already been met by the competitor use appropriate marketing strategies to organize marketing plans in order to sell the product/service successfully

Supply and Demand The marketing concept is based on supply and demand Low supply of a desired item + high consumer demand is the ideal scenario Marketing is less important in high demand situations (the product sells itself) High supply = need good marketing to be successful

The Development of the Marketing Concept In the past, demand always exceeded supply Prior to the Industrial Revolution it was next to impossible to produce or import items in any significant quantity Marketing was unnecessary

The Development of the Marketing Concept In the l950’s there was a huge change in marketing: growth of department stores development of mass media (magazines, radio, billboards, and TV) creation of supermarkets and shopping malls (the first was in 1950 in Vancouver) This facilitated the real “birth” of mass marketing

Today Supply exceeds demand; therefore, advertising is crucial Further, the internet and globalization mean companies from around the world compete for the same customers, and customers have a greater choice than ever before Consumers now realize their power in the marketplace

Basically… Old concept: “Whatever we make, you’ll buy” New concept: “Whatever you want, we’ll make”