Download The Marketing Concept - Nutley Public Schools

The Marketing Concept
Marketing Concept
• About half of every consumer dollar spent pays
for marketing costs.
• Satisfying customer needs is the most important
aspect of marketing.
• Marketing Concept
▫ keeping the focus on satisfying the customer’s
needs for a product or service
Marketing Concept
• Give an example of a store that successfully
implements the marketing concept and a store
that needs improvement.
Customer Focus
• Productivity
▫ Rate at which companies produce goods or
services in relation to the amount of materials and
number of employees utilized
Breakeven Point
• The minimum attendance and sales required to
cover all of the expenses of organizing,
promoting, and running an event.
• Revenues earned beyond the breakeven point
are the profits.
Successful Marketing Strategy
• Identify customer
• Needs
• Location
• Provide products perceived as superior
• Maintain successful customer relationships
• Offer the appropriate marketing mix
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Product
Price
Place
Promotion
Opportunity Cost
• The value of the next best alternative that you
forgo when making a choice.
• The value is measured in terms of the benefits
that you are giving up.
• Choosing to go to a concert vs. a football game
because you can only afford to go to one, the
opportunity cost would be the football game.
Understand Buyer Behavior
• Economic Market
• All of the consumers who will purchase a
product or service
• Two major goals of marketing:
• 1. Determine what consumers want.
• 2. How much are they willing to pay?
Consumer Spending Habits
• Benefits derived
• The value people believe they receive from a
product or service
• Comparative advantage
• The capability to produce products or services
more efficiently and economically than the
competition
Consumer Wants and Needs
• Abraham Maslow’s Hierarchy of Needs
• Identifies five human areas of needs
• Most basic needs must be satisfied first to
progress to higher-level needs
Maslow’s Hierarchy of Needs
• Physiological Needs
These include the most basic needs that are vital
to survival, such as the need for water, air, food,
and sleep.
• Maslow believed that these needs are the most
basic and instinctive needs in the hierarchy
because all needs become secondary until these
physiological needs are met.
Maslow’s Hierarchy of Needs
• Security Needs
These include needs for safety and security.
Security needs are important for survival, but
they are not as demanding as the physiological
needs.
• Examples of security needs include a desire
for steady employment, health care, safe
neighborhoods, and shelter from the
environment.
Maslow’s Hierarchy of Needs
• Social Needs
These include needs for belonging, love, and
affection. Maslow described these needs as less
basic than physiological and security needs.
• Relationships such as friendships, romantic
attachments, and families help fulfill this need
for companionship and acceptance, as does
involvement in social, community, or religious
groups.
Maslow’s Hierarchy of Needs
• Esteem Needs
After the first three needs have been satisfied,
esteem needs becomes increasingly important.
• These include the need for things that reflect on
self-esteem, personal worth, social recognition,
and accomplishment.
Maslow’s Hierarchy of Needs
• Self-actualizing Needs
This is the highest level of Maslow’s hierarchy of
needs.
• Self-actualizing people are self-aware, concerned
with personal growth, less concerned with the
opinions of others, and interested fulfilling their
potential.
Maslow's hierarchy Business examples
Esteem needs
Fancy job title,
recognition of
achievements
Self-actualization
Opportunities for
creativity and
personal growth,
promotion
Social needs
Good team atmosphere,
friendly supervision
Safety needs
Safe working conditions, job security
Physiological needs
Salary, decent working environment
Buying Motives
• Emotional purchases
• Spending with little thought during emotional
times
• Rational purchases
• Define wants and needs
• Assess priorities and budget
• Conduct research
• Compare alternatives
• Make a well thought out purchase
Buying Motives
• Patronage purchases
• Based on loyalty to a particular brand or product
Consumer Decision Making Process
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Recognize a need or a want
Conduct product research
Evaluate choices
Decide what to purchase
Evaluate the product after the purchase
Information Needed for Marketing
Decisions
• Information about consumers that is important
to consider include:
• Demographics
• Shopping behaviors
• How consumers spend money
• Product and brand preferences
• Frequency of purchases
Business Environment Impacts
Consumer Spending
• Economic uncertainty reduces consumer
spending
• Marketplace competition provides consumers
with choices
• Technological advances have impacted how
consumers research and buy products
Determine The Target Market
• Target Market is a specific group of consumers
you want to reach
• Market Segment is a group of consumers
within a larger market who share one or more
characteristics
▫ Millions of people enjoy college basketball, but a
smaller group specifically enjoys University of
Kentucky basketball
Market Segmentation
• Geographic Segmentation divides markets
into physical locations – Eastern, Northern,
Southern and Western regions of the U.S.
• Demographic Segmentation focuses on
information that can be measured – age,
income, profession, gender, marital status, etc.
• Psychographics Segmentation focuses on
characteristics that cannot be measured –
values, interest, attitudes, lifestyle choices, etc.
Market Segmentation
• Behavioral-based segmentation focuses on
a customer’s attitude toward products and
services.
• Two categories:
▫ Product usage – what products you use and how
often
▫ Product benefits – the positive experiences or
associations people derive from using a product or
service
Market Share
• Market share is the percentage of total sales of
a product or service that a company expects to
capture in relation to its competitors.
Outstanding Services Equal Success
• Business success depends on excellent customer
service.
• Customer relationships should continue after
the sale of goods and services.
Track Record for Great Customer
Service
• Customer service gap
• The difference between customer expectations
and the services actually received
• Customers are likely to tell at least 10 people
about their poor customer service experiences.
Effective Customer Service Principles
• Demonstrate a values-based culture that is
rooted in high performance and excellent
customer service.
• Follow the “FAST” (Focus, Action, Search,
Tenacity) strategy.
• Passion results in energy.
• Demonstrate pride in every sale.
• Remember the value of long-term positive
relationships.