Marketing Concepts

Marketing Defined  Marketing is the total process of finding or creating a profitable market for specific goods or services.  It is the planning and executing of the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

 Marketing is the connecting link or bridge between the producer and the consumer.

Marketing Functions  Channel Management  Marketing Information Management  Market Planning  Pricing  Product/Service Management  Promotion  Selling

 Customers: are those who buy or rent goods and services.  Consumers: are those who use the goods and services.  Products: Include goods and services.  Goods are tangible  Services are intangible

 Market: Those who have the ability to purchase your products or services.  Consumer Market: People who buy for personal use.  Industrial market: (B2B) People buy for use in the business.

Marketplace  An environment where we make exchanges  Money for goods and services  Work for wages  Goods for goods

Target Market  Group of people with similar characteristics.  Example: Elderly people

Target Marketing  When a business aims to attract a specific type of customer.  Each company’s target market should be well defined.

Market Segmentation  Dividing the total market into smaller groups that contain similar characteristics.  These markets are called market segments.

Two ways to segment..  Psychographics: Statistics that try to explain consumer behavior through variables such as lifestyle, values and attitudes.  Demographics: Vital statistics of human populations, broken down by factors such as age, gender, race, education, religion, income, occupation and geographic location.

Marketing Concept  Determining customers’ needs and what the company can best provide at a profit.  Involves both the seller and the buyer, both should obtain satisfaction from the transaction.

 To succeed in business, managers must base their decisions on the needs and desires of consumers.  Give Customers what they want!

Product  What good or service can you provide to your customer at a profit.

Price  What price will enable you to achieve the most profit without exceeding the customers value of the product?

Place  Where should the product be made available? You want to accessible to the customer.

Promotion  How will you let your customer know about your product?

 For Profit Business:  Seeks to make a profit from its operations.  Non-Profit Business:  Functions like a business but uses the money it makes to fund the cause identified in its charter.  They do not pay taxes on their income.  Ethics:  Guidelines for good behavior.

UTILITY

 The impact of marketing affects the economy and standard of living in countries around the world.  Marketing provides competition.  There are many economic benefits of marketing to an economy and to consumers.

 Utilities are the attributes of goods or services that make them capable of satisfying consumers’ wants and needs.

Form Utility  Form utility involves changing raw materials into usable goods or putting parts together to make them more useful.

Place Utility  Place utility involves having a product where customers can buy it.

Possession Utility  The exchange of a product for money is possession utility.  Possession utility is involved every time legal ownership of a product changes hands.

Time Utility  Time utility is having a product or service available at a certain time of year or a convenient time of day.

Information Utility  Information utility involves communication with the consumer.  Consumers get information from salespeople, labels, displays, packaging, and owners manuals.