Fundamentals of Marketing

LESSON 2:

Marketing Concept

Lesson ObjectivesUpon completing the lesson, students will be able

to:

1.Describe the cost and functions of marketing

2.Explain the marketing concept

Functions of Marketing

• Purchasing– Obtaining goods

and services for use in the operation of a business or for resale.

Functions of Marketing

• Pricing– The determination

of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of Marketing

• Product Planning– The process of

creating a product in response to market opportunities.

Functions of Marketing

• Marketing Information Management– Gathering, recording,

analyzing and disseminating information to aid in making marketing decisions.

Functions of Marketing

• Promotion– Communicates information about

products, services, images or ideas to customers or clients to influence their purchase behavior.

Functions of Marketing

• Financing– Determining the need for

and availability of financial resources to aid in marketing activities.

Functions of Marketing

• Distribution– The physical

movement or the transfer of ownership of a good or service form the producer to the consumer.

Marketing Concept

• To succeed in business, managers must base their decisions on the needs and desires of consumers.

• Businesses must give consumers what they want.

Elements of the Marketing Concept

Customer Orientation

• Businesses must determine how they can produce items people want and how can they do that more effectively.

• Base decision-making about products on customer’s needs and wants.

Elements of the Marketing Concept

Company Commitment

• An organization that applies the marketing concept must focus all of its efforts on satisfying customer needs.

• The marketing concept must become a part of the entire organization.

Elements of the Marketing Concept

Company Goals

• A company should achieve its goals by giving customers what they want.

• Companies exist by achieving their long term goals- not by making quick sales and not achieving customer needs and wants.

Why is Marketing Important?

• Increased production capacity.

• Increased buying power of consumers.

• Need for coordinating production and consumption.

Why is Marketing Important?

• One-third of all workers are in marketing jobs.

• Majority of businesses in the US are marketing-type businesses.

• Fifty cents of every sales dollar goes to cover the costs of marketing.

Without Marketing. . .

• Increased personal contact with businesses.

• Less variety in products.

• Fewer product improvements.

• Fewer products developed.

• Increased stock shortages or overages.

Further ReadingOlympia College (ebrary)

Hundekar, S.G. Appannaiah, H.R. Reddy., 2010. Principles of Marketing. Mumbai, India: Global Media

Read UNIT I: Marketing and Core Concepts.

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ReferencesKotler, P., Armstrong, G., Cunningham, P., 2008.

Principles of Marketing. Canada. Pearson Education