Download LESSON 2 Marketing Concept

Fundamentals of Marketing
LESSON 2:
Marketing Concept
Lesson Objectives
Upon completing the lesson, students will be able
to:
1.Describe the cost and functions of marketing
2.Explain the marketing concept
Functions of Marketing
• Purchasing
– Obtaining goods
and services for
use in the
operation of a
business or for
resale.
Functions of Marketing
• Pricing
– The determination
of an exchange
price at which the
buyer and seller
perceive optimum
value for a good
or service.
Functions of Marketing
• Product Planning
– The process of
creating a product
in response to
market
opportunities.
Functions of Marketing
• Marketing Information
Management
– Gathering, recording,
analyzing and
disseminating
information to aid in
making marketing
decisions.
Functions of Marketing
• Promotion
– Communicates information about
products, services, images or ideas to
customers or clients to influence their
purchase behavior.
Functions of Marketing
• Financing
– Determining the need for
and availability of financial
resources to aid in
marketing activities.
Functions of Marketing
• Distribution
– The physical
movement or the
transfer of
ownership of a
good or service
form the producer
to the consumer.
Marketing Concept
• To succeed in business, managers must
base their decisions on the needs and
desires of consumers.
• Businesses must give consumers what
they want.
Elements of the Marketing Concept
Customer Orientation
• Businesses must determine how they can
produce items people want and how can
they do that more effectively.
• Base decision-making about products on
customer’s needs and wants.
Elements of the Marketing
Concept
Company Commitment
• An organization that applies the marketing
concept must focus all of its efforts on
satisfying customer needs.
• The marketing concept must become a
part of the entire organization.
Elements of the Marketing
Concept
Company Goals
• A company should achieve its goals by
giving customers what they want.
• Companies exist by achieving their long
term goals- not by making quick sales and
not achieving customer needs and wants.
Why is Marketing Important?
• Increased production capacity.
• Increased buying power of consumers.
• Need for coordinating production and
consumption.
Why is Marketing Important?
• One-third of all workers are in marketing
jobs.
• Majority of businesses in the US are
marketing-type businesses.
• Fifty cents of every sales dollar goes to
cover the costs of marketing.
Without Marketing. . .
• Increased personal contact with
businesses.
• Less variety in products.
• Fewer product improvements.
• Fewer products developed.
• Increased stock shortages or overages.
Further Reading
Olympia College (ebrary)
Hundekar, S.G. Appannaiah, H.R. Reddy.,
2010. Principles of Marketing. Mumbai,
India: Global Media
Read UNIT I: Marketing and Core Concepts.
References
Kotler, P., Armstrong, G., Cunningham, P., 2008.
Principles of Marketing. Canada. Pearson
Education
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