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CHAPTER 2: BASIC
MARKETING CONCEPTS
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 OREINTATION WHICH
BRINGS LONG TERM CUSTOMER
SATISFACTION.
EX: WARRANTIES, GUARANTEES, 100%
SATISFACTION
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
A. CONSUMER MARKETA 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
(PG. 22 FIGURE 2-2)
A. PRODUCT DECISION-
WHAT TO MAKE, WHEN, HOW
MANY, BRAND NAME
B. PRICE DECISION-
WHAT PEOPLE ARE WILLING AND
ABLE TO PAY.
C. PROMOTION DECISION-
ALL DECISIONS ON EDUCATION
POTENTIAL CUSTOMERS ABOUT
THEIR PRODUCT. ALL FORMS OF
MEDIA.
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 SEGMENTATIONIDENTIFYING TARGET MARKETS
AND DEVELOPING PRODUCTS THAT
APPEAL TO THEM.
CUSTOMERS ARE MARKETED IN 4
WAYS:
1. DEMOGRAPHICSDESCRIBES A POPULATION IN
TERMS OF PERSONAL
CHARACTERISTICS:
EX: AGE, GENDER, INCOME,
EDUCATION, OCCUPATION, ETHNIC
BACKGROUND
2. PSYCHOGRAPHICSSTUDIES OF CONSUMERS BASED
ON SOCIAL AND
PSYCHOLOGICAL BEHAVIOR.
TRENDS:BEING HEALTH, EXCERISE,
TIME, CONVENIENCE
3. GEOGRAPHICSSEGMENTATION BASED ON
WHERE PEOPLE LIVE.
LOCAL VS. NATIONAL VS. INTERNATIONAL
4. PRODUCT BENEFITSSTUDYING A CONSUMERS
NEEDS AND WANTS
EX. TENNIS SHOES INDUSTRY, SHAMPOO