Chapter 3: The Marketing Concept Unit 1: Marketing Basics

Learning Goals  Explain the three elements of the marketing concept  Describe the benefits of the marketing concept to business and customers  Identify the seven functions of marketing  Give an example of each marketing function and describe how it supports the marketing concept

Day 1 Response Journal Describe a time when you were a very satisfied customer. Be sure to outline the business name and explain what they did to make you feel “satisfied”. ***Save as Sept 21 in your Response Journal folder***

The Marketing Concept  There are millions of businesses out there and many of them sell similar products  These businesses compete with each other for customers  The businesses that get the most customers are typically the most successful  So what helps a business get more customers?

Utility  Businesses usually get more customers when they;  Learn about their customers  Make their products useful  In business, usefulness is called _________  E.g. a bank staying open on weekends is a form of utility  E.g. offering products in a convenient location, such as a corner store, is a another example of utility  The process of adding utility is often called adding value Utility

The Marketing Concept  The marketing concept is an approach to business  When a business focuses on the customer, the business is said to be following the marketing concept There are 3 elements to the marketing concept;  Customer Satisfaction  Total Company Approach  Profit

The Marketing Concept  _______________________ is the positive feeling that customers get when their expectations are met or exceeded Customer Satisfaction

The Marketing Concept Businesses that follow the marketing concept;  Provide goods and services that meet or exceed customers’ expectations  Creating Customer Satisfaction  Encourage all four functions of business to work together to provide customer satisfaction  Following the Total Company Approach  Balance satisfying customers with making sales  Generating a Profit

The Functions of Marketing  The role of marketing is to help the whole company focus on its customers  The marketing function specializes in learning about customer needs and wants  Marketing itself consists of hundreds of activities  There are a variety of ways to organize these activities

The Functions of Marketing The activities of marketing can be organized into seven different marketing functions;  Channel Management  Marketing-Information Management (MIM)  Market Planning  Pricing  Product/Service Management  Promotion  Selling

The Functions of Marketing Channel Management  Handles activities involved in getting products from producers to customers Activities include;  Transporting goods, storing goods, finding sources for products, making sure products get where they are needed on time, transferring ownership of products, etc.

The Functions of Marketing Marketing-Information Management (MIM)  Also called _________________________  Means to gather, analyze, and distribute information about markets, competition, and customers  One of the main ways businesses learn what the customer wants Example activities include;  Developing surveys, analyzing research results, meeting with customers, etc. Marketing Research

The Functions of Marketing Market Planning  Used to determine the target market and the strategies used to attract the selected audience Activities include;  Identifying the target market, segmenting the market, determining marketing strategies based on the target market, conducting market analyses, developing a marketing plan, etc.

The Functions of Marketing Pricing  Handles activities involved in setting the price for a product  Pricing also involves researching and analyzing the prices that competitors charge

The Functions of Marketing Product/Service Management Activities include;  Developing new products  Modifying existing products  Deciding which products to carry in a store

The Functions of Marketing Promotion  Non-personal communication with customers, that is designed to influence them to purchase the product Activities include;  Advertising  Public Relations  Sales Promotions  Publicity

The Functions of Marketing Selling  Personal communication with customers Activities may include;  Helping customers in the store  Making sales presentations  Answer customer questions on the phone  Demonstrating how the product works, etc.

Day 1 Assigned Work Students please complete the following;  Read the TD Canada Trust Profile on page 34 and answer the 2 questions  Thinking Question #1 on page 35  Application Question #1 on page 35 *** Save As Ch 3 Day 1 in your Unit 1 folder***