1. THE MARKETING CONCEPT AND PRODUCT SELECTION
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2. Objectives
53 – Select a product for a specific market
54 – Predict the market for a specific product using the market share factor
55 – Relate the marketing concept to customers needs and wants
56 – Develop a marketing strategy fpr a hypothetical business

3. The Marketing Concept
The plan for successful businesses. The Marketing Concept states that businesses
must satisfy customer wants and needs in order to make a profit.
Competition forces businesses to use the marketing concept.
A business must have the right goods and services at the right time, the right price, and at the right place for purchase.
Businesses must also communicate this
information to the customer.

4. Customers Vs Consumers
Customers buy the product
Consumers are the people who actually use the product
In the majority of purchases the customer and the consumer are the same individual
There are exceptions to this
Gift purchased by an individual for another person
Manufacturer sells to a retailer who ultimately sells to the customer

5. What is a Market?
A market is all potential customers who share common needs and wants, and who
have the ability and willingness to buy the product.
Markets are also defined by the total sales in
a product categories by competing companies. Everyone who buys a Coke is a part of the soft drink market.

6. Target Marketing
Focusing all marketing decisions on a very specific group of people you want to reach.
The more information you have on your target market, the easier it is to make the marketing decisions necessary for profit.
Marketers spend money on market research to more accurately identify the
important characteristics of the
target market’s customer profile.

7. The Marketing Mix
The marketing mix contains four basic marketing strategies known as “The 4
P’s of Marketing”
Product Place
Price Promotion
These strategies involve the decisions businesses must make.
The success of the Marketing Mix depends on how well the target market is defined and how
well the strategies are directed
toward the target audience

8. PRODUCT STRATEGIES What product to make How to package the product
What brand name to use
What image to project
Example
Polaroid chose to introduce the I-Zone camera that is a pocket size indoor camera with an indoor flash that produces instant mini photos or
photo stickers. The camera comes in
fashion colors and is named the I-Zone

9. Place Strategies How a product will be distributed
Where a product will be distributed
Example
Polaroid chose to reach customers through
Mass Market Stores - Wal-Mart
Specialty Stores – Hilo Hattie’s
Targets were in the United States

10. Price Strategies
Must reflect what customers are willing and able to pay
Must reflect what cost the market will bear
Example
Polaroid – Suggested Retail for the I-
Zone was $24.99
-Included trial pack of 6
exposure sticker film, two
AA batteries
-Film is priced at $5.99 and $6.99 for sticker film

11. Promotion Strategies
How potential customers will be told about a new product
What message will be used
When the message about the new product will be delivered
What inducements to buy will be used
Example
Polaroid wanted to create an image of self expression and creativity
Polaroid used TV commercials, a public
relations campaign, and a web site with interactive activities

12. Customer Needs and Wants
Needs – items necessary for survival
Medicine
Food
Basic Clothing
Wants – Items consumers would like
to have but that are not
necessary for survival
Gourmet Food
Designer Clothing

13. Market Share
A firm’s percentage of the total sales volume generated by all competitors in a given market.
Businesses constantly study their market share to see how well they are dong with a given product in relation to their competitors.

14. Market Position
A company’s relative standing in relation to their competitors.
To monitor market position a firm must keep track of the changing size of the market and the growth of its competitors.
Pricing may also play a role in establishing and maintaining a firm’s market share and market position.