Marketing and the
Marketing Concept
Marketing & the Marketing Concept
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What is Marketing?
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The process of planning, pricing, promoting,
selling, & distributing ideas, goods, and services
to create exchanges that satisfy customers.
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Ongoing
Always changing
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Must be able to keep up with the latest trends & consumer
attitudes.
What was cool in my day is not cool today
The First Laptop
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In 1981, the first laptop was created
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Osborne 1
Weighed 24 pounds
Cost $1,795
5” screen
2 Floppy Disk Drives
Cool In My Day…..Not Cool In Yours
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Clothes: Baggy & Bright
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Shoes: “Chunky” Soles
Doc Marten’s
Vans/Airwalks
Cool In My Day…..Not Cool In Yours
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Video Games:
Sega, Nintendo Gameboy & Nintendo 64
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Fun Hobbies:
Laser Tag, Paintballs, Rollerblading, Cosmic Bowling
Cool In My Day…..Not Cool In Yours
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Collectables:
Beanie Babies, Precious Moments, Coca-Cola Bears
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Phrases:
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“As If”
“Whatever….”
“I’d tell you, but then I’d have to kill you”
24/7
What was once cool for you….
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Clothes: Hoodies, camouflage, popped collars, daisy
dukes
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Shoes: Cowboy Boots, Crocs, Uggs (boots)
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Collectables: Bratz Dolls, gel bracelets
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Phrases: “That’s Hot” (Paris Hilton), OMG!
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Music:
Blink 182, Sum 41, Lit, DMX
What is cool right now, but for how
long…
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Skinny Jeans
Energy Drinks (Red Bull/Monster/Rock Star)
Ring Tones
Hybrid Cars
P2P File Sharing – (Limewire, Kaaza, Napster)
MySpace
YouTube
Tivo
Nintendo Wii
Phrase: “B.A.”
What’s on the Horizon
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Twitter/Facebook/Social Networking
Vampire Movies/TV Shows
http://www.trendhunter.com/
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Slim Chips: Calorie-Free Paper
Airbrushing tattoo’s
Glowing Swings
Marketing Bottom-line

Marketing is a process and is always changing

MySpace, Facebook, Twitter, Text Messaging
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The products, ideas, & services you develop and the
way you price, promote, and distribute them should
reflect the newest and most popular trends.

All functions of marketing must promote this effort
Ideas, Goods, & Services

Ideas: Promoting thoughts/platform
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Politicians promoting their agenda
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Goods:
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Tangible items w/ monetary value & satisfy needs
Products you can hold or touch
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Al Gore & Global Warming
John McCain & offshore oil drilling (Anwar)
Cars
Toys
Furniture
Services:
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Intangible items w/ monetary value & ability to satisfy needs
You cannot physically touch them
Usually involve a task
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Hair Cut
Medical Appointment
Amusement Park
Foundations of Marketing

There are four basic foundations of
Marketing:
1.
2.
3.
4.

Business, management, entrepreneurship
Communication & interpersonal skills
Economics
Professional Development
In order to be successful in Marketing you
must value and understand the role these four
foundations have.
Marketing & the
Marketing Concept
Marketing
Seven FUNctions of Marketing
1.
2.
3.
4.
5.
6.
7.
Distribution
Financing
Marketing Information Management
Pricing
Product/Service Management
Promotion
Selling
Seven FUNctions of Marketing
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Distribution –
How are you going to get the product to the customer?
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Moving/Transporting product
Storing
Tracking product
Financing –
How are you going to get the money to setup & run your business?
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Sell stock
Offer credit to customers
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Mastercard/Visa
JCPenny/Kohls/Best Buy
Seven FUNctions of Marketing
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Marketing Information Management:
How are you going to obtain information about customers & current trends?
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Gather information
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Customer surveys
Ask your zip code when you check out
Sign up for email
Store information
Analyze information
Pricing:
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What do you charge in order to make a profit?
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How much it costs you to produce.
What are your competitors charging.
How much are customers willing to pay.
Seven FUNctions of Marketing
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Product/Service Management:
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Product Development
Maintaining quality products
Product Improvements
Promotion:
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Inform – Socially Responsible Company
Persuade – Commercials/Advertisements
Remind
Seven FUNctions of Marketing
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Selling
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Providing customers with what they want.
The Marketing Concept is the idea that a business
should strive to satisfy customers’ needs and wants
while generating a profit for the firm.
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Customer Satisfaction is very important.
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Repeat customers are what make businesses successful!
Customer Relationship Management
If businesses don’t make money, they don’t do it!
The Importance of
Marketing
Section 1.2
Bellwork
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How does Best Buy add value to the
purchase of a computer?
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Warranty
Geek Squad
Promotional Financing
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No interest storewide all purchases totaling
$499 & up if paid in full within 18 months
Economic Benefits of Marketing

How does Marketing Benefit the Economy?
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Increases competition
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Develop New & Improved Products at Lower Prices
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I-Phone
Nintendo
Cars
Computers
All have come out with new
and improved products at
cheaper prices
Add value to your shopping experience
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Utility
Examples of Competition
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1977: First VCR was sold………………$700.00
2009: Magnavox DVD/VCR player…….$67.00
2006: Samsung Blu-Ray Disc Player……$599.99
2009: Magnavox Blu-Ray Disc Player….$129.00
1975: IBM 5100 with 64K memory………$19,975.00
2009: Gateway Computer with 4 GB……..$479.99
Economic Utilities
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Utilities are the attributes of a product or service
that make it capable of satisfying consumers’ wants
and needs.
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There are five economic utilities:
1.
2.
3.
4.
5.
Form
Place
Time
Possession
Information
The Five Economic Utilities
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Form Utility: Provided when someone produces something
tangible.
Example: zipper, spool of thread, cloth = jacket
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Place Utility: Having the product available where the
consumer wants it.
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Catalogs
Internet
Retailers
How does J Crew allow customers to purchase their product?
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Retail Stores, store website, catalogs
The Five Economic Utilities
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Possession Utility: Obtaining a good or service and
having the right to use or consume it.
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When a product goes from the business owning it to the
consumer
Usually involves the exchange of money
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Alternatives to cash: Credit Card, Debit Card, Personal Check
Lay-away plan
Time Utility: Having the product available when the
consumer wants it.
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24 Hour Gas Station
Extended hours during holiday season
The Five Economic Utilities
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Information Utility: Involves communication
with the customer.
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Salesperson explains benefits & features of a
product
Displays/Packaging
Product labels
Owners Manuals
Websites
Economic Utilities
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Complete worksheet
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Email me:
shaff1ml@yahoo.com
Name in subject line
Fundamentals of
Marketing
Section 1.3
(Most important section in book)
Fundamentals of Marketing
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Marketers realize that not every product can appeal
to everyone.
Marketers examine two key things to define their
market:
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Who is interested in a product?
Who can afford their product?
A market is made up of all people who share similar
needs and wants and who have the ability to
purchase your product.
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MUST MEET BOTH CRITERIA TO BE INCLUDED
Examples of a Market
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Luxury Suites at the new Yankees Stadium
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Prices range from $600,000 and $850,000
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Malt-O-Meal Frosted Flakes
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$1.41/box at DollarDays International
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Rich, Men, Sports Fans,
Lower Income, Kids/Single Parents
Hollister Co. Santa Monica Jacket
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$140 jacket
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Teenage Girls, Colder climate areas, Medium-High Income
Families
Consumer v. Industrial Markets
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Consumer Market: Consists of consumers who
purchase goods and services for personal use.
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Saves them money
Improves appearance
Makes life easier
Industrial Market: (Business-to-Business/b2b)
All businesses that buy products for use in their operations.
 Improve profits
 Increase Productivity
 Decrease Expenses
Market Share
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A market is also determined by the total sales in a
product category.
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Examples: Soft Drinks, Ice Cream, Video Games
A company’s market share is its percentage of the
total sales volume generated by all companies that
compete in a given market.
Example:
If 2 million of the 10 million SUV’s sold in the United States are made by Chevrolet.
Chevrolet’s Market Share would be 20% of the S.U.V. industry.
Target Market & Market Segmentation
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Market Segmentation is the process of classifying
customers by needs and wants.
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Goal is to identify the group of people who are most
likely to become customers.
This specific group is known as a Target Market
All marketing strategies are directed towards the target
market.
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Provides the focus of your marketing campaign.
Marketer’s must develop a clear target market before developing a
marketing strategy.
Consumer v. Customer
A product may have more than one target market.
Example: Low Sugar Fruity Pebbles
Identify the consumer: Children
Identify the customer: Parents
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*Most five year olds do not purchase their Fruity Pebbles
Same Product--- Different Approach
To target parents you would use commercials that advertise how
healthy they are and air them on a Saturday night.
To target children you would use commercials that focus on how fun
the cereal is, the bright colors, the cool characters and air this
commercial on Saturday mornings.
Target Market
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To develop a clear picture of their target market,
businesses create customer profile lists of
information about the target market.
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Age
Income Level
Ethnic Background
Occupation
Attitudes
Lifestyle
Geographic Residence
Understanding these
characteristics allows
you to make better
choices
The Marketing Mix
The Marketing Mix includes four basic
marketing strategies called the four P’s:
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4.
Product
Place
Price
Promotion
5.
*People
1.
2.
3.
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These are the tools that marketers use to
influence potential customers
Marketing Mix
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Each of the 4 P’s are interconnected
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Actions in one area affect decisions in another
Every decision a marketer makes revolves around
these four things:
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How to reach customers
How to satisfy customers
How to keep customers
How to achieve company’s goals
Marketing Mix
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Product: Determining what products you want to
make and sell.
Product Design & Development Includes:
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Product features
Brand name
Packaging
Service
Warranty
Product updates and new target markets extend
product life
Marketing Mix
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Place: How you get the product into the
customer’s hands.
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Need to know where your customers shop
Determines how and where your product will be
distributed
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What retail outlets to sell at
What Transportation Methods to use
What is an effective stock/inventory level to maintain
Marketing Mix

Price is what is to be exchanged for the
product.
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Should reflect what the customer is willing and
able to pay
Needs to examine competitor’s prices on
comparable products
Marketing Mix

Pricing Strategies include:
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Manufacturer’s Suggested Retail Price (MSRP)
Discounts
Credit Terms
Payment Period
Special Promotional Price
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Common with new products
Auto Industry uses employee pricing
Marketing Mix
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Promotion refers to decisions about
advertising, personal selling, sales promotion,
and publicity.
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How you decide to inform potential customers
about a product:
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The message you convey
The media selected
Special offers
Timing of promotion campaigns