The Marketing Concept · The Marketing Concept The idea that a business should: (1) strive to satisfy customer needs and wants while (2) generating a profit for the business. To what

The Marketing Concept & The Marketing Mix

INTRODUCTION TO BUSINESS & MARKETING

Explain the marketing concept.TASK #51

Key Terms

◦Product- includes both goods & services that have monetary value

◦Consumer- person who uses goods or services

◦Customer- person who buys goods or services from a business

What is Marketing?

◦Process of developing, promoting and distributing products to satisfy the needs and wants of consumers

Purpose of Marketing

◦Help connect businesses with their customers

◦Marketers always trying to convert consumers into customers

The Marketing Concept

◦The idea that a business should:

(1) strive to satisfy customer needs and wants while

(2) generating a profit for the business.

To what extent does quality of experience impact a customer’s overall

satisfaction with a purchase?CONSIDER THIS…

If the goal of marketing was to make a profit, it wouldn’t matter how we treated the customer. If the goal of marketing was to satisfy wants and needs, we wouldn’t always make a profit.

The Target Market

◦Group of people identified as the most likely to become customers

◦These are the people a business wants to reach with their goods or services

The Marketing Mix

◦Known as the Four P’s

◦ Includes tools used to influence

potential customers in a target market

◦Used to develop a marketing plan

Describe the elements of the marketing mix.

TASK #57

Think About It!

◦What ingredients do you need in order to make a batch of brownies?

◦What happens if you forget to add the egg(s) to the recipe?

The Marketing Mix

◦Without the right mix of marketing strategies, a product is unlikely to succeed in the marketplace!

Four of the Five P’s

Product Price

Place Promotion

Product

◦Refers to tangible, physical characteristics or features of a product

◦Examples

◦Brand name

◦Quality

◦Packaging

◦Accessories or services

Price

◦Refers to the exchange for a product; should reflect what customers are willing & able to pay (demand)

◦Examples

◦Low-price strategy

◦Seasonal pricing

◦Bundling

Place

◦Refers to where and how the product reaches the customer; also known as distribution

◦Examples

◦Specific stores

◦Online sales

◦Transportation & processing

Promotion

◦Refers to the communication of information

◦Examples

◦Advertising

◦Personal selling

◦Sales promotions

◦Publicity

Don’t forget the target market!

◦Because of the importance of the customer, some marketers are now adding a fifth “P” to the mix…

The Five P’s

Product Price

Place Promotion

People

People

◦A well-defined target market includes specific characteristics of the likely customer.

◦Examples

◦Teenagers and young adults

◦College graduates

◦Health-conscious women

◦Parents of young children

PRODUCT✓ Yoplait Go-Gurt✓ Low-fat yogurt snack✓ Portable – in a tube!✓ Many flavors✓ 2.25 oz. size✓ Made to freeze – easy storage

PRICE✓ About $0.30 per serving✓ Costco $10.00 per box of 32

PLACE✓Costco✓Harris Teeter✓Wegmans✓ Safeway✓Giant

PROMOTION✓ TV commercials

(children’s networks, day time TV)✓Magazine advertisements

(children’s magazines, mom magazines)

PEOPLEParents of School-Age

Children

Marketing Mix Assignment

◦Choose a product and create an

eye-catching display

representing the 5 P’s

◦Have fun and be creative!

Examples