1. CHAPTER 2: BASIC MARKETING CONCEPTS
Intro to Marketing

2. 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

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

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

5. 100% Gurantee WHO OFFERS WARRANTIES Manufacturer Retailer/Wholesales
Extended Warranties
Third Parties

6. B. CUSTOMER VS. CONSUMER
CUSTOMERS BUY CONSUMERS USE

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

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

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

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

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

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

13. B. PRICE DECISION- WHAT PEOPLE ARE WILLING AND ABLE TO PAY. AFFORDABLE
COMPETITIVE
PREMIUM

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

15. D. PLACE DECISION-
HOW A PRODUCT WILL BE DISTRIBUTED; DIRECT OR INDIRECT.

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

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

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

19. DESCRIBES A POPULATION IN TERMS OF PERSONAL CHARACTERISTICS
1. DEMOGRAPHICS-
DESCRIBES A POPULATION IN TERMS OF PERSONAL CHARACTERISTICS
EX:
AGE,
GENDER,
INCOME,
EDUCATION,
OCCUPATION, ETHNIC
BACKGROUND

20. 2. PSYCHOGRAPHICS-
STUDIES OF CONSUMERS BASED ON SOCIAL AND PSYCHOLOGICAL BEHAVIOR.
TRENDS:
BEING HEALTHY
EXCERISE
TIME
CONVENIENCE

21. 3. GEOGRAPHICS- SEGMENTATION BASED ON WHERE PEOPLE LIVE
3. GEOGRAPHICS- SEGMENTATION BASED ON WHERE PEOPLE LIVE. LOCAL/NATIONAL/INTERNATIONAL CITY/SUBURB/RURAL CITY/COUNTY/STATE/REGION/TERRITORY

22. 4. PRODUCT BENEFITS- STUDYING A CONSUMERS NEEDS AND WANTS EX
4. PRODUCT BENEFITS- STUDYING A CONSUMERS NEEDS AND WANTS EX. WATER VS RED BULL