The Marketing Concept Marketing Principles Chapter 2.1

Definition of Marketing Process of developing, promoting, & distributing products to satisfy customers’ needs & wants

Marketing’s Main Purpose Provide a bridge between producers & consumers so exchange of goods & services can occur Marketing Process

There are 7 main Marketing Functions Marketing-info- management: Collecting, disseminating, & using info. To make sound business decisions Marketing-info- management: Collecting, disseminating, & using info. To make sound business decisions Distribution: Physical movement & storage Distribution: Physical movement & storage Financing: How & where funds are used in business Financing: How & where funds are used in business Selling: Personalized communication that influences purchasing decisions Selling: Personalized communication that influences purchasing decisions Product/Service management: What products & services will be offered Pricing: Decisions dictating how much to charge for products Promotion: Activities that inform & persuade

The 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 ability and willingness to buy products.

Two Types of Markets Consumer Markets – Consist of consumers who purchase goods & services for personal use. Consumer Markets – Consist of consumers who purchase goods & services for personal use. Industrial Markets – Business-to-business markets includes all businesses that buy products for use in their operations. Industrial Markets – Business-to-business markets includes all businesses that buy products for use in their operations.

Two 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 Market: The group(majority) of consumers that a business will direct it’s marketing activities towards

Marketing Strategies Businesses’ planning of marketing decisions to reach markets (i.e. target markets) that have wants and needs for 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 Promotion Promotion * 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. Product Decisions Involves all activities for determining a value for exchange between the customer and the seller. Price Decisions Involves determining where & how goods & services are made available to the customer. Place Decisions Involves informing & persuading the consumer about goods & services available. Promotion Decisions The Marketing Mix—The Four Ps

PRODUCT PRODUCT PLACE PLACE PRICE PRICE PROMOTION PROMOTION All marketing mix decisions should be directed towards the target market *The 4P’s are all interrelated with each other