Basic Marketing Concepts

SECTION 2.1
What You'll Learn
The marketing concept
The difference between customers and consumers
What a market is and how it can be described
The four Ps of the marketing mix
The Marketing Concept

SECTION 2.1
The Marketing Concept
Why It's Important
In order to participate in the world of marketing, you'll want to understand how businesses focus on the needs and wants
of their customers in order to improve their products, remain competitive, and increase sales.

SECTION 2.1
The Marketing Concept
Key Terms
marketing concept
customer
consumer
market
target marketing
customer profile
marketing mix

SECTION 2.1
The Marketing Concept
The marketing concept states that businesses must satisfy customers' needs and wants in order to make a profit.
The Basic Concept

SECTION 2.1
The Marketing Concept
Customers buy a product.
Consumers use the product.
Example: Parents who buy video games
from retailers are customers. The kids who
play the video games are the consumers.
Customers vs. Consumers

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The Marketing Concept
A market is all potential customers who share common needs and wants and who have the ability and willingness to buy the product.
What is a Market?

SECTION 2.1
The Marketing Concept
A market can be described as the people who are potential customers of a product, as well as by the classification
of a product in a category.
Would you be considered
part of the market for game consoles? Why or why not? What other markets are you
part of?
U.S. Game Console Market

SECTION 2.1
The Marketing Concept
The marketing mix comprises four basic marketing strategies known as the four Ps:
The Marketing Mix
Product
Place
Price
Promotion
Slide 1 of 3

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The Marketing Concept
Product strategies include what product to make, how to package it, what brand name to use, and what image to project.
Place strategies deal with how and where a product will be distributed.
The Marketing Mix
Slide 2 of 3

SECTION 2.1
The Marketing Concept
Price strategies should reflect what customers are willing and able to pay.
Promotion strategies deal with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy.
The Marketing Mix
Slide 3 of 3

SECTION 2.1
The Marketing Concept
Target marketing is focusing all marketing mix decisions on the specific group of people you want to reach.
Target Marketing

2.1
ASSESSMENT
Reviewing Key Terms and Concepts
1. What does the marketing concept state?
2. Who are the customers of Sony Electronics and Hershey Chocolates? Who are their consumers?
3. What is a market?
4. What is target marketing?
5. What are the four Ps of the marketing mix?

2.1
ASSESSMENT
Thinking Critically
Many women's magazines like Glamour and Elle publish advertisement for men's cologne. Explain the rationale for this practice.

2.1
Graphic Organizer
The Marketing Mix