: 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  Primary Target Market
 iPhone  Samsung
 30-40 Years Old
 18-24 Years Old
 Income (Middle)
 Income (Middle/High)
 Male
 College Degree
 Secondary Target Market
 Secondary Target Market
 24-35 Years Old
 Income (Low/Middle)
 Gamers
 Teenagers  Female
 Education (Basic)
 A. CONSUMER MARKET-

A 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 DECISION-

WHAT PEOPLE ARE WILLING AND ABLE TO PAY.

 AFFORDABLE
 COMPETITIVE
 PREMIUM
 C. PROMOTION DECISION-
ALL DECISIONS ON EDUCATING POTENTIAL
CUSTOMERS ABOUT THEIR PRODUCT. ALL FORMS
OF MEDIA.
 PRINT
 ONLINE
 OUTDOOR
 TELEVISION
 RADIO
 D. PLACE DECISION-

HOW 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. DEMOGRAPHICS-
DESCRIBES A POPULATION IN TERMS OF PERSONAL
CHARACTERISTICS
EX:
AGE,
GENDER,
INCOME,
EDUCATION,
OCCUPATION, ETHNIC
BACKGROUND
2. PSYCHOGRAPHICS-
STUDIES OF CONSUMERS BASED ON SOCIAL AND
PSYCHOLOGICAL BEHAVIOR.
TRENDS:
 BEING HEALTHY
 EXCERISE
 TIME
 CONVENIENCE
3. GEOGRAPHICS-

SEGMENTATION BASED ON WHERE PEOPLE LIVE.

LOCAL/NATIONAL/INTERNATIONAL

CITY/SUBURB/RURAL

CITY/COUNTY/STATE/REGION/TERRITORY
4. PRODUCT BENEFITS-

STUDYING A CONSUMERS NEEDS AND WANTS

EX. WATER VS RED BULL