Chapter 2 – Basic Marketing Concepts
Objectives 2.1
State the Marketing concept – to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers.
Distinguish customers from consumers – customers buy a product, consumers use it.
What constitutes value for customers – it is satisfaction gained from use of a good or service.
Terms 2.1
Marketing concept – to make a profit a business must focus all of its efforts on satisfying the needs and wants of its customers
Customers – buy a product.
Consumers – use it (product).
Value – is satisfaction gained from use of a good or service.
Objectives 2.2
What constitutes a market? – A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product.
Suggest two basic ways to identify a business’s potential customers – customers who buy the product and customers who don’t buy the product.
List ways to segment a market – geographic, demographic, psychographic and product benefit.
Explain how to construct a customer profile – use geographic, demographic and psychographic data.
Terms 2.2
Market – A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product.
Mass Marketing – Is the use of a single marketing plan to reach all consumers.
Market Segmentation – Is dividing the total market into smaller groups of people who share specific needs and characteristics.
Geographics – where people live.
Demographics – statistics that describe a population in terms of personal characteristics.
Psychographics – involves the study of consumers based on lifestyle, attitudes and values that shape it.
Customer Profile – is a remarkably complete picture of a prospective customer.
Objectives 2.3
Identify 4 P’s of marketing mix – product, place, price and promotion.
How are 4 P’s used to reach customers: Product – what to make, how to package it, what to name it, what image to project. Place – how and where to distribute it. Price – what are customers willing to pay. Promotion – what message will be told, when and where to deliver message and what inducements to buy.
Define Positioning – what you do to get into the mind of the prospect.
Terms 2.3
Target Marketing – is focusing all decisions on the specific group you want to reach.
Marketing Mix – is the collective mix of (product, price, place and promotion).
Positioning – what you do to get into the mind of the prospect.