Basic Marketing Concepts

Objectives: 1. The Marketing Concept 2. The difference between customers and consumers 3. What a market is and how it can be described 4. What target marketing is 5. The four P’s of marketing

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 buy the product Consumers are the actual users of the product/service Cereal, toys, toiletries, insurance, haircuts, etc!

All potential customers who share common needs and wants AND Have the ability and willingness to buy the products What’s a Market?

The total sales in a product category by competing companies Examples  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

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.

 May include information about the TM with regard to:  Age  Income level  Ethnic background  Occupation  Attitudes  Geographic Residence of the target customer Marketers spend a lot of money researching the most important characteristics of their TM’s customer profile

The four (4) basic marketing strategies known as the 4 P’s: 1. Product 2. Price 3. Place 4. Promotion The elements of the marketing mix are interconnected; actions in one area affect the decisions in the other areas