CHAPTER 2 BASIC MARKETING CONCEPTS Intro to Marketing

CHAPTER 2: BASIC MARKETING CONCEPTS Intro to Marketing

I. MARKETING CONCEPTS A MARKETING CONCEPT RECOGNIZES 2 MAIN OBJECTIVES FOR A BUSINESS: 1. TO SATISFY CUSTOMER NEEDS AND WANTS 2. TO MAKE A PROFIT

A. SALES VS. MARKETING ORIENTATION BUSINESS USED TO BE SALES ORIENTED IN WHICH LITTLE CONCERN WAS GIVEN TO CUSTOMER WANTS.

COMPANIES NOW FOCUS ON MARKETING ORIENTATION WHICH BRINGS LONG TERM CUSTOMER SATISFACTION. EX: WARRANTIES, GUARANTEES, 100% SATISFACTION

100% Gurantee WHO OFFERS WARRANTIES Manufacturer Retailer/Wholesales Extended Warranties Third Parties

B. CUSTOMER VS. CONSUMER CUSTOMERS BUY CONSUMERS USE

II. WHAT IS A MARKET? TO BE SUCCESSFUL, A BUSINESS MUST IDENTIFY A GROUP OF POTENTIAL CUSTOMERS THAT IT WOULD LIKE TO REACH

i. Phone vs. Samsung (adweek. com) Primary Target Market i. Phone Primary Target Market Samsung 30 -40 Years Old 18 -24 Years Old Income (Middle/High) Income (Middle) College Degree Secondary Target Market Income (Low/Middle) Teenagers Education (Basic) Male Secondary Target Market 24 -35 Years Old Gamers Female

A. CONSUMER MARKETA POTENTIAL CUSTOMER WHO WILL BUY A PRODUCT FOR PERSONAL, HOUSEHOLD USE. EX. TOILET PAPER, TOOTHPASTE, CLEANING SUPPLIES FOOD,

B. INDUSTRIAL MARKET- ALL POTENTIAL CUSTOMERS WHO A PRODUCT FOR BUSINESS USE. EX. GFS, COCA-COLA, XEROX WILL BUY

III. MARKETING MIX INCLUDES FOUR BASIC MARKETING STRATEGIES, ALSO CALLED THE 4 P’S PRICE PRODUCT PROMOTION PLACE (PG. 22 FIGURE 2 -2)

A. PRODUCT DECISION§ WHAT TO MAKE § WHEN TO MAKE IT § HOW MANY TO MAKE § BRAND NAME

B. PRICE DECISIONWHAT PEOPLE ARE WILLING AND AFFORDABLE COMPETITIVE PREMIUM ABLE TO PAY.

C. PROMOTION DECISIONALL DECISIONS ON EDUCATING POTENTIAL CUSTOMERS ABOUT THEIR PRODUCT. ALL FORMS OF MEDIA. PRINT ONLINE OUTDOOR TELEVISION RADIO

D. PLACE DECISIONHOW A PRODUCT WILL BE DISTRIBUTED; DIRECT OR INDIRECT.

IV. MARKETING APPROACHES THERE ARE TWO APPROACHES THAT CAN BE USED TO MARKET A PRODUCT:

A. MASS MARKETING- ONE MARKETING PLAN TO TARGET ALL CUSTOMER EX: CHEWING GUM, MILK

B. MARKET SEGMENTATION- IDENTIFYING TARGET MARKETS AND DEVELOPING PRODUCTS THAT APPEAL TO THEM. CUSTOMERS ARE MARKETED IN 4 WAYS:

1. DEMOGRAPHICSDESCRIBES A POPULATION IN TERMS OF PERSONAL CHARACTERISTICS EX: AGE, GENDER, INCOME, EDUCATION, OCCUPATION, ETHNIC BACKGROUND

2. PSYCHOGRAPHICSSTUDIES OF CONSUMERS BASED ON SOCIAL AND PSYCHOLOGICAL BEHAVIOR. TRENDS: BEING HEALTHY EXCERISE TIME CONVENIENCE

3. GEOGRAPHICSSEGMENTATION BASED ON WHERE PEOPLE LIVE. LOCAL/NATIONAL/INTERNATIONAL CITY/SUBURB/RURAL CITY/COUNTY/STATE/REGION/TERRITORY

4. PRODUCT BENEFITSSTUDYING A CONSUMERS NEEDS AND WANTS EX. WATER VS RED BULL