the marketing concept · the marketing concept the idea that a business should: (1) strive to...
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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