Fundamentals of Marketing LESSON 2: Marketing Concept

Lesson Objectives Upon 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 Reading Olympia College (ebrary) Hundekar, S.G. Appannaiah, H.R. Reddy., Principles of Marketing. Mumbai, India: Global Media Read UNIT I: Marketing and Core Concepts.

Copyright 2008 PresentationFx.com | Redistribution Prohibited | This text section may be deleted for presentation.PresentationFx.com References Kotler, P., Armstrong, G., Cunningham, P., Principles of Marketing. Canada. Pearson Education