1. The Marketing Concept
BMI3C

2. 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. 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

4. 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

5. 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

6. 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

7. 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

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