CHAPTER 2: BASIC
MARKETING
CONCEPTS
Intro to Marketing
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
A. SALES VS. MARKETING ORIENTATION
BUSINESS USED TO BE SALES ORIENTED IN
WHICH LITTLE CONCERN WAS GIVEN TO
CUSTOMER WANTS.
COMPANIES NOW FOCUS ON MARKETING
ORIENTATION WHICH BRINGS LONG TERM
CUSTOMER SATISFACTION.
EX: WARRANTIES, GUARANTEES, 100%
SATISFACTION
100% Gurantee
 WHO OFFERS WARRANTIES
 Manufacturer
 Retailer/Wholesales
 Extended Warranties
 Third Parties
B. CUSTOMER VS.
CONSUMER
CUSTOMERS BUY
CONSUMERS USE
II. WHAT IS A MARKET?
 TO BE SUCCESSFUL, A BUSINESS MUST
IDENTIFY A GROUP OF POTENTIAL
CUSTOMERS THAT IT WOULD LIKE TO REACH
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
A. CONSUMER MARKETA POTENTIAL CUSTOMER WHO WILL BUY A
PRODUCT FOR PERSONAL, HOUSEHOLD USE.
EX. TOILET PAPER, TOOTHPASTE, FOOD,
CLEANING SUPPLIES
B. INDUSTRIAL MARKET-
ALL POTENTIAL CUSTOMERS WHO
WILL BUY A PRODUCT FOR BUSINESS USE.
EX. GFS, COCA-COLA, XEROX
III. MARKETING MIX
 INCLUDES FOUR BASIC MARKETING
STRATEGIES, ALSO CALLED THE 4 P’S
 PRICE
 PRODUCT
 PROMOTION
 PLACE

(PG. 22 FIGURE 2-2)
A. PRODUCT DECISION
WHAT TO MAKE

WHEN TO MAKE IT

HOW MANY TO MAKE

BRAND NAME
B. PRICE DECISIONWHAT PEOPLE ARE WILLING AND ABLE TO PAY.
 AFFORDABLE
 COMPETITIVE
 PREMIUM
C. PROMOTION DECISIONALL DECISIONS ON EDUCATING POTENTIAL
CUSTOMERS ABOUT THEIR PRODUCT. ALL
FORMS OF MEDIA.
 PRINT
 ONLINE
 OUTDOOR
 TELEVISION
 RADIO
D. PLACE DECISIONHOW A PRODUCT WILL BE DISTRIBUTED; DIRECT
OR INDIRECT.
IV. MARKETING
APPROACHES
 THERE ARE TWO APPROACHES THAT CAN BE
USED TO MARKET A PRODUCT:
A. MASS MARKETING-
ONE MARKETING PLAN TO TARGET
ALL CUSTOMER
EX: CHEWING GUM, MILK
B. MARKET SEGMENTATION-
IDENTIFYING TARGET MARKETS AND
DEVELOPING PRODUCTS THAT APPEAL TO
THEM.
CUSTOMERS ARE MARKETED IN 4 WAYS:
1. DEMOGRAPHICSDESCRIBES A POPULATION IN TERMS OF
PERSONAL CHARACTERISTICS
EX:
AGE,
GENDER,
INCOME,
EDUCATION,
OCCUPATION, ETHNIC
BACKGROUND
2. PSYCHOGRAPHICSSTUDIES OF CONSUMERS BASED ON SOCIAL AND
PSYCHOLOGICAL BEHAVIOR.
TRENDS:
 BEING HEALTHY
 EXCERISE
 TIME
 CONVENIENCE
3. GEOGRAPHICSSEGMENTATION BASED ON WHERE PEOPLE LIVE.
LOCAL/NATIONAL/INTERNATIONAL
CITY/SUBURB/RURAL
CITY/COUNTY/STATE/REGION/TERRITORY
4. PRODUCT BENEFITSSTUDYING A CONSUMERS NEEDS AND WANTS
EX. WATER VS RED BULL