1. Marketing Essentials Ms. Roberts EWHS Unit 2 The Marketing Concept and Benefits of Marketing

2. The Marketing Concept  A philosophy about the way in which business should be conducted.  The philosophy is that the CUSTOMER is the central focus of everything that is done in marketing.

3. The Primary Goal?  CUSTOMER SATISFACTION!  In other words, satisfy the needs and wants of the customer-give consumers what they want.  The marketing concept states that businesses must satisfy customers needs and wants in order to make a PROFIT.

4. The THREE C’s- Elements of the Marketing Concept Company Commitment Company Goals Customer Orientation

5. Remember the two main objectives of Businesses…  1) To satisfy the customer’s needs and wants.  2) To make a profit.  Why does a person “market” his product?  To increase profits and  To remain competitive

6. Focusing on Customer Satisfaction  Think of Toyota 2009-2010  What examples can you think of?

7. Benefits of Marketing- Part 2  1) Raises the Standard of Living –what does SoL mean?  2) Adds Utility to Goods and Services  3) Makes buying convenient (how?)

8. More Benefits…  4) Maintains Reasonable Prices  5) Improves the quality of life (how?)  Examples? Childproof caps, seatbelts, airbags, flame-resistant infantwear and pajamas.  6) Provides a variety of goods and services.  7) Increases production.

9. Without Marketing-Part 3  Less Competition  Increased Personal Contact with Businesses (Producers & Sellers)  Less Variety in Products  Fewer Product Improvements  Fewer Products Developed  Increased Stock Shortages or Overages  Inconvenience- Customers wouldn’t know anything about the products

10. Why is Marketing Important?  Increased production capacity (Economies of Scale)  Increased buying power of consumers  Need for coordinating production and consumption  Majority of businesses in the USA are marketing type businesses  1/3 -1/2 of all workers are in marketing jobs*.  $.01.-.30 of every sales dollar goes to cover the cost of Marketing

11. * Occupational Handbook 2010-2011 Outlook  Numbers vary and depends on the definition of “Marketing type jobs”.  THE END