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Basic Marketing
Chapter 2
Section 2.1 – The Marketing Concept
The Marketing Concept
• Businesses must satisfy customers’ needs
and wants in order to make a profit.
• Competition forces businesses to
embrace this idea.
– They must have the right goods and services
at the right time, at the right price, and at the
right place for purchase.
Customers vs.
• Part of fulfilling a person’s needs is determining
if they are a customer or a consumer.
– Customer are the ones who buy a
product (good or service).
– Consumers are those people who
actually use the product.
• Ex: You parents buy you new shoes, but you are the one
who wears them. You are the consumer and your parents
are the customer.
• Note: Make sure to keep in mind that for certain businesses
a person is not the customer, but rather other businesses
are. Nike sells primarily to department stores not to
individual consumers.
What is a Market?
• All customers who share common needs and
wants, and who have the ability and willingness
to buy the product, are considered a market.
– Market can also be a companies percentage of total
sales in their industry. Ex: Nike sales 48% of all cross
trainers in the U.S.
• So how do we determine what customers share
common needs and have the ability to
Target Marketing
• Focusing all marketing decisions on a very
specific group of people you want to reach.
– The more information you have on this group the
easier it is to make marketing decisions
• Businesses will frequently create what they call
a customer profile, which is a breakdown of the
characteristics of the target market. (age,
income, ethnic background, geography)
The Marketing Mix
• The Marketing Mix is comprised of 4 strategies. These
strategies should be carefully planned and considered
before selling your product.
• Also know as the Four P’s
Product Strategies
Place Strategies
Promotion Strategies
Price Strategies
• It’s important that your product (good/service) fits the
target market you’ve selected.
Product Strategies
• Includes what product to make, how to
package it, what brand name to use and
what image to project.
– Ex: As CEO of Widgets Inc. I decided there is
a need for extra large widgets, I decide the
best name for them would be Ginormous
Widegets, and they should come in packs of
Place Strategies
• Determine how and where a product will
be distributed.
– Ex: As CEO of Widget Inc. I decide to have
warehouses in 3 major U.S. cities and to
operate M-Sa 9-6pm. I am also providing
shipping to most areas in the U.S. only.
Price Strategies
• Price strategies should reflect what
customers are willing and able to pay.
– Ex: Through research I found that most companies
need around 10-12 widgets at a time. The packages
of 14 Widget Inc. sells fulfill that need. I also have
determined that a price of $239.99 per pack allows
me to cover my cost and make a reasonable profit.
Promotion Strategies
• Deals with how potential customers will be told about
the new product, what the message will be, when and
where it will be delivered, and with what inducements to
–Ex: Widget Inc. spends a great deal of money
advertising in business journals, employing salespeople,
creating informational documents, and creating and
dispersing radio/TV advertisements. They also send out
press releases, take time to give interviews, and
support a little league team in each city they have a
Bringing it all Together
The Marketing Concept
Marketing Research
Marketing Segmentation