Chapter 3: The Marketing Concept

Unit 1: Marketing Basics

Learning Goals

Explain the three elements of the marketing concept

Describe the benefits of the marketing concept to business and customers

Identify the seven functions of marketing Give an example of each marketing function

and describe how it supports the marketing concept

Day 1 Response Journal

Describe a time when you were a very satisfied customer.

Be sure to outline the business name and explain what they did to make you feel

“satisfied”.

***Save as Sept 21 in your Response Journal folder***

The Marketing Concept

There are millions of businesses out there and many of them sell similar products

These businesses compete with each other for customers

The businesses that get the most customers are typically the most successful

So what helps a business get more customers?

Utility

Businesses usually get more customers when they; Learn about their customers Make their products useful

In business, usefulness is called _________ E.g. a bank staying open on weekends is a form of

utility E.g. offering products in a convenient location, such as

a corner store, is a another example of utility The process of adding utility is often called adding

value

Utility

The Marketing Concept

The marketing concept is an approach to business

When a business focuses on the customer, the business is said to be following the marketing concept

There are 3 elements to the marketing concept; Customer Satisfaction Total Company Approach Profit

The Marketing Concept

_______________________ is the positive feeling that customers get when their expectations are met or exceeded

Customer Satisfaction

The Marketing Concept

Businesses that follow the marketing concept;Provide goods and services that meet or exceed customers’ expectations

Creating Customer Satisfaction

Encourage all four functions of business to work together to provide customer satisfaction

Following the Total Company Approach

Balance satisfying customers with making sales

Generating a Profit

The Functions of Marketing

The role of marketing is to help the whole company focus on its customers

The marketing function specializes in learning about customer needs and wants

Marketing itself consists of hundreds of activities

There are a variety of ways to organize these activities

The Functions of Marketing

The activities of marketing can be organized into seven different marketing functions;

Channel Management Marketing-Information Management

(MIM) Market Planning Pricing Product/Service Management Promotion Selling

The Functions of Marketing

Channel ManagementHandles activities involved in getting products from producers to customers

Activities include; Transporting goods, storing goods, finding sources for products, making sure products get where they are needed on time, transferring ownership of products, etc.

The Functions of Marketing

Marketing-Information Management (MIM)Also called _________________________Means to gather, analyze, and distribute information about markets, competition, and customersOne of the main ways businesses learn what the customer wants

Example activities include; Developing surveys, analyzing research results, meeting with customers, etc.

Marketing Research

The Functions of Marketing

Market PlanningUsed to determine the target market and the strategies used to attract the selected audience

Activities include; Identifying the target market, segmenting the market, determining marketing strategies based on the target market, conducting market analyses, developing a marketing plan, etc.

The Functions of Marketing

PricingHandles activities involved in setting the price for a productPricing also involves researching and analyzing the prices that competitors charge

The Functions of Marketing

Product/Service Management

Activities include; Developing new productsModifying existing productsDeciding which products to carry in a store

The Functions of Marketing

PromotionNon-personal communication with customers, that is designed to influence them to purchase the product

Activities include; AdvertisingPublic RelationsSales PromotionsPublicity

The Functions of Marketing

SellingPersonal communication with customers

Activities may include; Helping customers in the storeMaking sales presentationsAnswer customer questions on the phoneDemonstrating how the product works, etc.

Day 1 Assigned Work

Students please complete the following; Read the TD Canada Trust Profile on page 34 and answer the 2 questionsThinking Question #1 on page 35Application Question #1 on page 35

*** Save As Ch 3 Day 1 in your Unit 1 folder***