CHAPTER TWOBasic Marketing Concepts

Section 2.1 The Marketing Concept

Objectives:

1. The Marketing Concept2. The difference between customers and

consumers3. What a market is and how it can be

described4. What target marketing is5. The four P’s of marketing

2.1 The Marketing Concept

States that businesses must satisfy customer needs and wants in order to make a profit Businesses must have the right goods or

services at the right: Time Price Right place to purchase

They also need to communicate this to their customers (Who are they & how can they be reached)

Customers VS Consumers

Customers buy the product

Consumers are the actual users of the product/service

Cereal, toys, toiletries, insurance, haircuts, etc!

A Market is……..

All potential customers who share common needs and wants

AND

Have the ability and willingness to buy the products

What’s a Market?

A Market is also:

The total sales in a product category by competing companiesExamples Sports Drinks Computers Cell Phones

Satisfying the needs and wants of all customers & product categories would be difficult without defining & analyzing the current potential customers of a given product

Target Marketing

Focusing all marketing decisions on a very specific group of people who you

want to reach

The more information you have on your target market, the easier it is to make marketing decisions

To create a clear picture of who their TM is, businesses create a customer profile.

Customer Profile

May include information about the TM with regard to:

Age Income level Ethnic background Occupation Attitudes Geographic Residence of the target customerMarketers spend a lot of money researching the most important characteristics of their TM’s customer profile

The Marketing Mix

The four (4) basic marketing strategies known as the 4 P’s:

1. Product2. Price3. Place 4. Promotion

The elements of the marketing mix are interconnected; actions in one area affect the decisions in the other areas