The Marketing Concept
Marketing Concept 2.1
Businesses become successful by following
the “Marketing Concept”.
Must satisfy consumers’ want/needs
Have the right good & services
At the right time
At the right place
At the right price
Not always an easy task!
Customers vs. Consumers
Customers buy products
Consumers actually use the products
Can you think of any examples where the
customer is not the consumer?
Bought by a parent for a child
Who do businesses need to
Customer or Consumer?
What is a Market?
All potential customers who share
common needs and wants,
and who have the ability and willingness to
buy the product, are considered a Market.
A Market is also described by its total sales in
product category by competing companies in
categories . . . examples
Soft drink market
Game console market
Game Console Market
Sony PlayStation 43%
2% Nintendo 64 26%
Focuses all marketing decisions on a very
specific group of people who you want to
The more information you have on your
target market, the easier it is to make the
How . . . Develop a Customer Profile
What is a Customer Profile?
Who am I ?
It includes information about
. . .
Four Strategies . . . The 4 P’s
Businesses need to make decisions on these
Market Segmentation 2.2
This is a way of analyzing a market by
specific characteristics in order to create a
Businesses want to identify a very specific group of
people for a target market.
. . . Market Segmentation Con’t.
Business segment (divide) a market by
using four methods.
Statistics that describe a population in terms of
It includes characteristics like . . .
People are classified by “Generation”
Baby Boom Generation is?
• Born between 1946-1964
• Born between 1965-1976
• Born 1977-2001
This seems obvious, but
when a company expands
or targets the use of their
products to the opposite
gender . . . They can
They measure income in two different ways.
• Money left after taking out taxes.
• Money left after paying for basic living
Food, Shelter, Clothing . . .
Ethnicity (Ethnic Background)
The U.S. population is more diverse. To reach
different ethnic groups businesses need to
Social and psychological characteristics
• (How people spend their time and
Where people live in a Market
4. Product Benefits
To satisfy customers needs/wants
Types of athletic shoe
Types of shampoo
Types of soda
The four areas are . . .
4. Product Benefits