Unit 1.Introduction to CoreMarketing ConceptsTOYSS9
1 Unit 1. Introduction to Core Marketing Concepts
What does the term marketing mean? Manypeople think of marketing only as sellingand advertising. And no wonder-every day weare bombarded with television commercials,newspaper ads,direct-mail offers,sales calls,andInternet pitches.However,selling and advertisingare only the tip of the marketing iceberg.Although theyare important,theyareonlytwo ofmany marketing functions and are often not themost important ones.The famous managementguru Peter Drucker explains marketing this way:"Theaim of marketing is to make sellingsuperfluous
What does the term marketing mean? ◼ Many people think of marketing only as selling and advertising. And no wonder—every day we are bombarded with television commercials, newspaper ads, direct-mail offers, sales calls, and Internet pitches. However, selling and advertising are only the tip of the marketing iceberg. Although they are important, they are only two of many marketing functions and are often not the most important ones. The famous management guru Peter Drucker explains marketing this way: “The aim of marketing is to make selling superfluous
Today,marketing must be understood notin the old sense of making a sale-"tellingand selling"-but in the new sense ofsatisfying customer needs. If the marketerdoes a good job of understandingconsumer needs,develops products thatprovidesuperior value,and prices,distributes,and promotes them effectivelythese products will sell very easily
◼ Today, marketing must be understood not in the old sense of making a sale—“telling and selling”—but in the new sense of satisfying customer needs. If the marketer does a good job of understanding consumer needs, develops products that provide superior value, and prices, distributes, and promotes them effectively, these products will sell very easily
Core Marketing ConceptsNeeds, wantsanddemandsMarketsProductsand servicesExchange,Valuetransactionssatisfactionand relationshipsand quality
4 Core Marketing Concepts Needs, wants, and demands Products and services Value, satisfaction, and quality Exchange, transactions, and relationships Markets
WhatareConsumer'sNeeds,WantsandDemands?Needs- state of felt deprivation for basic itemssuchasfood and clothingand complex needssuch as for belonging.i.e.I am hungry.Wants-form that a human need takes asshaped by culture and individual personality. i.eI want a hamburger,French fries,and a soft drinkDemands-human wants backed by buyingpower.i.e. I have money to buy this meal
What are Consumer’s Needs, Wants and Demands? ◼ Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry. ◼ Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink. ◼ Demands - human wants backed by buying power. i.e. I have money to buy this meal
WhatWillSatisfyConsumer'sNeedsandWants?ProductsAnything that can be Offered to a Market to Satisfy a Need or WantPlacesExperiencesPersonsInformationIdeasOrganizationsServicesActivities orBenefits Offered forSaleThatAre EssentiallyIntangibleand Don'tResult in theOwnership of Anything
6 Products Anything that can be Offered to a Market to Satisfy a Need or Want Experiences Persons Places Organizations Information Ideas What Will Satisfy Consumer’s Needs and Wants? Services Activities or Benefits Offered for Sale That Are Essentially Intangible and Don’t Result in the Ownership of Anything
HowDoConsumersObtainProductsandServices?(TextbookP4-5)TransactionsExchangesRelationshipsBuilding a MarketingNetworkConsistingofTheCompanyandAllItsSupportingStakeholders
7 Exchanges Transactions Relationships Building a Marketing Network Consisting of The Company and All Its Supporting Stakeholders How Do Consumers Obtain Products and Services? (Textbook P4-5)
Markets The conceptsof exchange and relationshipslead to the concept of a market.A marketisthe set of actual andpotential buyers of aproduct.These buyers share a particularneed or want that can be satisfied throughexchangerelationships.The size of amarket dependsonthe numberofpeople who exhibitthe need,haveresources to engagein exchange,and arewilling to exchange these resourcesfor whatthey want
◼ Markets ◼ The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships. ◼ The size of a market depends on the number of people who exhibit the need, have resources to engage in exchange, and are willing to exchange these resources for what they want
Originally the termmarket stood for theplace where buyers and sellers gathered toexchange their goods,such as a villagesquare. Economists use the term market torefer to a collection of buyers and sellerswho transact in a particular product class,as inthe housing market orthe grainmarket.Marketers,however,see thesellers as constituting an industry and thebuyers as constituting a market
◼ Originally the term market stood for the place where buyers and sellers gathered to exchange their goods, such as a village square. Economists use the term market to refer to a collection of buyers and sellers who transact in a particular product class, as in the housing market or the grain market. Marketers, however, see the sellers as constituting an industry and the buyers as constituting a market
MarketingOffersProducts,Services,andExperiencesCompaniesaddressneedsbyputtingforthavalue proposition, a set of benefits that theypromise to consumers to satisfy their needs.Thevalue proposition is fulfilled through a marketingoffer-some combinationofproducts,services,information,or experiences offered to a marketto satisfy a need or want.Marketing offers arenot limited to physical products. In addition totangible products,marketing offers includeservices,activities or benefits offered for salethat are essentiallyintangibleand do not resultin the ownership of anything
Marketing Offers — Products, Services, and Experiences ◼ Companies address needs by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs. The value proposition is fulfilled through a marketing offer—some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing offers are not limited to physical products. In addition to tangible products, marketing offers include services, activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything