The Marketing Concept
Marketing Principles
Chapter 2.1
Definition of Marketing
Process of developing, promoting, &
distributing products to satisfy
customers’ needs & wants
Marketing’s Main Purpose
Marketing Process
Provide a bridge between producers
& consumers so exchange of goods &
services can occur
There are 7 main Marketing
Functions




Marketing-infomanagement: Collecting,
disseminating, & using
info. To make sound
business decisions
Distribution: Physical
movement & storage
Financing: How & where
funds are used in business
Selling: Personalized
communication that
influences purchasing
decisions



Product/Service
management: What
products & services will
be offered
Pricing: Decisions
dictating how much to
charge for products
Promotion: Activities that
inform & persuade
The Marketing Concept
The Basic Concept
The marketing concept states that
businesses must satisfy customers' needs
and wants in order to make a profit.
Customers are Classified into
Markets
All potential customers who have the
ability and willingness to buy
products.
Two Types of Markets
Consumer Markets – Consist of consumers
who purchase goods & services for personal
use.
 Industrial Markets – Business-to-business
markets includes all businesses that buy
products for use in their operations.

Two Types of People with Needs & Wants
Customers vs. Consumers
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.
 Many times they are the same.
U.S. Game Console Market
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.
Market Share – The percentage volume of sales a company sells in a
specific market.
Marketing Decisions Must be
Directed Towards the Target
Market
Target Market: The group(majority)
of consumers that a business will
direct it’s marketing activities
towards
Marketing Strategies
Businesses’ planning of marketing
decisions to reach markets (i.e. target
markets) that have wants and needs for
their products.
Marketing Mix(Four P’s): Four
Main Marketing Decisions
Product (P/S Planning)
 Place (Distribution)
 Price
 Promotion

* Most important decisions in determining
marketing strategies because each deals directly
with consumers.
The Marketing Mix—The Four Ps
Product
Decisions
Involves determining what goods & services will
be created or provided to satisfy consumer
needs & wants.
Price
Decisions
Involves all activities for determining a value for
exchange between the customer and the seller.
Place
Decisions
Involves determining where & how goods &
services are made available to the customer.
Promotion
Decisions
Involves informing & persuading the consumer
about goods & services available.
All marketing mix decisions should be
directed towards the target market
 PRODUCT

PLACE

PRICE

PROMOTION
*The 4P’s are all interrelated with each other