1. Marketing Foundations
Unit One

2. The Marketing Concept
Marketing Concept: Focusing on satisfying customers’ needs and wants in order to make a profit
Businesses must accomplish 3 activities:
Identify needs of customers
Develop and market products or services
Operate a business profitably
Example: fast-food restaurants provide breakfast menus and late-night hours in order to make their products available when customers want them
Banks provide secure online services so that customers can pay bills, transfer money, check account balances and even deposit checks using their home computer or mobile apps.
Hospitals offer wellness programs, weight loss clinics, and fitness centers to attract clients and broaden their image.
Colleges offer courses for area high school students to earn college credits prior to graduation and to interest students in enrolling full-time at the college

3. When Customer Needs are Not Satisfied
When businesses do not consider customer needs, it results in extra expenses of marketing products
They have to convince the customers to buy the product
Increase in advertising
Price reductions
Rebates
Special displays
This can lead to reductions in profit or even losses for the business

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5. Implementing the Marketing Concept
Identify the Market
Market: the potential customers who share common needs and wants (who have a demand for a product/service) and are willing and able to buy it
Example: A market for a bicycle manufacturer may be people who ride bicycles in the mountains for health and fitness
A potential market for a sports arena may be teens within 80 miles of the arena who attend concerts more than twice a year

6. Types of Markets
Consumer Market: all potential customers who will buy the product for personal use
Industrial Market: all potential customers who will buy the product for business use

7. Implementing the Marketing Concept Cont.
Develop a Marketing Mix
Marketing Mix: the blending of 4 marketing elements by the business
Product
Place (Distribution)
Price
Promotion
Example: the bicycle manufacturer may decide to offer 3 types of mountain bikes. It can sell through a selected group of bicycle shops. The price can range from $480 to $1,050. It can be promoted by advertising in two fitness magazines, on a cable sports channel, on selected travel and cycling Internet sites, and by salespeople in the bicycle shops.

8. The Marketing Mix
Each element provides many alternatives to better satisfy the market
Product
Anything offered to a market by the business to satisfy needs
Physical products, services, and ideas
Place
The locations and methods used to make the product available to customers
Price
The amount that customers pay and the methods of increasing the value of the product
Promotion
Any form of communication used to inform, persuade, or remind customers