fundamentals of marketing lesson 2: marketing concept
TRANSCRIPT
Fundamentals of Marketing
LESSON 2:
Marketing Concept
Lesson ObjectivesUpon 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 ReadingOlympia College (ebrary)
Hundekar, S.G. Appannaiah, H.R. Reddy., 2010. Principles of Marketing. Mumbai, India: Global Media
Read UNIT I: Marketing and Core Concepts.
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ReferencesKotler, P., Armstrong, G., Cunningham, P., 2008.
Principles of Marketing. Canada. Pearson Education