Marketing Concept Summary

Summary Definition of Marketing Marketing is not manipulating consumers to get them to buy products they do not want and it is not just selling and advertising. Marketing is a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas. Marketing facilitates the exchange, the act of giving up one thing in return for something else. The central focus of marketing is to satisfy needs. Example) People is willing to exchange their “something of value-money or credit-for soft drinks, football tickets, or new shoes because you consider those product more valuable or more important than holding on to your cash or credit potential. Functions of Marketing Marketing includes many varied and interrelated activities; buying, selling transporting, storing, grading, financing, marketing research, and risk taking. (Example) Fresh oranges are only available for a few months annually, but consumers demand juice throughout the entire year.
Seller must arrange for cold storage of orange juice concentrate so that they can maintain a steady supply all of the time. Creating Value with Marketing Marketing creates value, which is an important element of managing long-term customer relationships and implementing the marketing concept. Value is a customer’s subjective assessment of benefits relative to costs in determining the worth of a product. (Customer Value = Customer Benefits – Customer Costs)
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The Marketing concept
The marketing concept is the idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its goals. If a company does not implement the marketing concept by providing products that consumers need and want while achieving its own objectives, it will not survive. (Example) McDonald’s faces increasing pressure to provide more healthful fast-food choices. To keep pace with the customers’ needs, it has eliminated supersized fries and soft drinks and put nutritional information on its food packaging. It also switched to trans-fat-free cooking oils.
Although customer satisfaction is the goal of the marketing concept, a business must also achieve its own objectives, such as boosting productivity, reducing costs, or achieving a percentage of a specific market. If it does not, it will not survive. (Example) Dell sold computer for $50 and give customers a lifetime guarantee, which would be great for customers but not so great for Dell. To implement the marketing concept, a firm must have good information about what consumers want, adopt a consumer orientation, and coordinate its efforts through the entire organization. Developing a Marketing Strategy
A marketing strategy is a plan of action for creating a marketing mix (product, price, distribution, promotion) for a specific target market (a specific group of consumers on whose needs and wants a company focuses its marketing efforts). Some firms use a total-market approach, designating everyone as the target market. Most firms divide the total market into segments of people who have relatively similar product needs. A company using a concentration approach develops one marketing stratagem for a single market segment, whereas a multi-segment approach aims marketing efforts at wo or more segments, developing a different marketing stratagem for each. (Example of a total-market approach) Salt, sugar, and many agricultural products (Example of market segmentation) Woman, Hipic, and minority population Key Points and Terms Marketing A group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas. Exchange The act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas) Value
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product. (Customer Value = Customer Benefits – Customer Costs) Marketing Concept The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals. Marketing Orientation An approach requiring organizations to gather information about customer needs, share that information throughout the firm, and use that information to help build long-term relationships with customers.
Marketing Strategy A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers. Market A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas. Target Market A specific group of consumes on whose needs and wants a company focuses its marketing efforts. Total-Market Approach An approach whereby a form tries to appeal to everyone and assumes that all buyers have similar needs. Market Segmentation
A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs. Market Segment A collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires. Concentration Approach A market segmentation approach whereby a company develops one marketing strategy for a single market segment. Multi-segment Approach A market segmentation approach whereby the marketer aims its efforts at two or more segments, developing a marketing strategy for each.