The Marketing Concept
1. How does the marketing concept change
the focus of the marketing campaign?
2. Why are marketers concerned with the
productivity rate and break even point for
3. Why are marketers trying to provide a
variety of different options to customer’s
as part of their marketing campaign?
About half of every dollar you spend
pays for marketing costs.
Marketing costs include product
development, packaging, advertising,
and sales expenses.
Most important aspect of marketing
includes satisfying customer needs.
A business that keeps the focus of
satisfying customer needs.
Customers’ needs should be the
primary focus during the planning,
production, distribution, and promotion
of a product or service.
Maintaining a successful customer
relationship is key.
A customer that receives special attention
will not stray.
Price, quality, service, and the amount of
pleasure gained are factors that influence
Satisfying customer needs is the most
important aspect of marketing.
Consumers have more money to spend
on sports and entertainment
Improved events and merchandise
The rate at which companies produce
goods or services in relation to the amount
of materials and number of employees
Successful marketing strategies identify
customer needs and then develop and
market products viewed as superior by
The minimum attendance and sales
required to cover all of the expenses of
organizing, promoting, and running the
Families are spending money to attend
their children’s sporting events.
Restaurants, motels, hotels, and service
stations all have vested interest in these
Different Type of Competition
Not just Regal 10 v. Carmike Cinemas
Movie Theaters v. Video/DVD Rentals v.
Pay- Per- View v. Drive- In Theaters
The value of the next best alternative that you
forgo when making a choice.
Measured as the benefits that you are giving
You wish to attend two different concerts, but can
only afford one. When you attend concert 1, the
opportunity cost is concert 2.
What are some examples you have
1. Businesses that follow the marketing
A. Will face little competition
B. Will always be profitable
C. Will focus on satisfying customer needs
D. Will experience high productivity
Which of the following has led to growth in the
sports and entertainment industry?
A. A higher standard of living and increased
discretionary income among average consumers
B. Rising gasoline prices combined with period of
decreasing productivity in the U.S. Economy
C. Less competition among sports and
D. None of the above
Identifying Customer’s Needs
1. How do marketers identify consumers
within the economic market?
2. How do different types of purchases
affect how marketers create a marketing
3. How do marketers gather information
regarding their customers that is needed
to make marketing decisions?
– All consumers who will purchase a
product or service
What Must Marketing Do?
– Determine what consumers want
– Determine how much consumers are
willing to pay
– How to achieve these goals
– Understand the actions of consumers
including spending habits and buying
– Refers to the value people believe they
receive from a product or service.
– Watching a good game
– Showing your pride by wearing the team
– The capability to produce products or
services more efficiently and
economically than the competition.
– Apparel companies who are able to
produce their service at a lower price are
able to pass along that price to their
• Emotional Purchases
– When consumers spend with little thought
during emotional highs or lows.
• Rational Purchases
– When consumers recognize needs and
wants, assess their priorities and budget,
conduct research, compare alternatives,
and then make purchases based on
Buying Motives Con’t
Based on loyalty to a particular brand or
A businesses own customer records, sales
records, production records, and operation records
Information used by businesses obtained through
government records, trade and professional
organizations, business publications, commercial
data, and information services
Types of Data
Obtained for the first time and specifically
for the particular problem or issue being
Data that has been collected for some
other purpose but is now found useful in
the current study.
1. The peak of Maslow’s hierarchy of
needs pyramid represents
A. Physiological Needs
B. Self-Actualization Needs
C. Self-Esteem Needs
D. Rational Purchases
Primary data may be collected through?
A. Surveys and observation
B. Government reports
C. Business publications
D. Both B and C
1. Why is it important for marketers to
identify members of their target market?
2. How does identifying market segments
allow for subtle changes within the
3. Compare and contrast the different types
of market segmentation and identify how
each type of segmentation affects the
– A specific group of consumers you want
– To promote and sell products and
services, a company must know the
needs and wants of its target market.
– A group of consumers within a larger
market who share one or more
– People who like basketball – Market
– People who like Celtics – Market Segments
– Divides markets into physical locations,
such as Eastern, Northern, Southern,
and Western regions of the United
States or of a particular state.
– Commonly used in:
– Travel and Tourism
Focuses on information that can be
measured, such as age, income,
profession, gender, education, marital
status, and size of household.
Focuses on characters that cannot be
physically measured, such as values,
interests, and lifestyle choices.
Focuses on a customer’s attitude
toward products and services.
Reflects what products you use and how often.
Based on the benefits derived from products or
The percentage of total sales of a
product or service that a company
expects to capture in relation to its
A. Categorize market segments by age, gender,
race, income, and educational level.
B. Refer to the frequency of use of a product.
C. Refer to interests, values, and emotional
D. Consider different parts of a country where
market segments live.
A. Is the total number of people in a particular age
B. Refers to customers in a particular part of the
C. Is a group of consumers within a larger market
who share one or more characteristics
D. Is the percentage of total sales of a product or
service that a company expects to capture in
relation to the competition
1. How do businesses create outstanding
customer service to please their target
2. How should marketers work with
businesses to ensure a customer service
culture amongst their company?
3. Compare and contrast elements of good
and bad customer service and their
affects on a marketing campaigns.
Customer Service Gap
– The difference between customer
expectations and the service that is
Bad Examples of Customer Service
Chatting on the phone while customers
are waiting to be served.
Dismissing a customer by whining “It’s not
Yelling a customer who fails to
understand company policies
Transferring customers from department
Principles to Good Customer
1. Demonstrate a value – based culture
that is rooted in high performance and
excellent customer service
- Value – Based Culture
- Going beyond expectations
- Providing top value
- Keeping promises
More Principles to Good
2. Follow the FAST strategy.
Focus, Action, Search Tenacity
3. Passion results in energy.
4. Demonstrate pride in every sale.
5. Remember the value of long-term
1. The customer service gap
A. Is the first step toward quality customer
B. Is not a major factor for businesses to
C. Indicates unmet customer service
D. Must be established and maintained for
2. Which element would not be part of a
A. Going beyond expectations.
B. Explaining to customers that their problem
is out of your department.
C. Providing top value.
D. Keeping Promises.
1. When one company can produce
goods more efficiently than the
A. Has a financial disadvantage.
B. Has a comparative advantage.
C. Will not have a high market share.
D. Cannot compete effectively in the
2. An example of a specific market
segment would be
A. Females between the ages of 14 and 18.
B. The entire population of a country where
the business is located.
C. All women worldwide.
D. None of the above
3. Which of the following is an example of
A. Observation of consumer behavior
B. Government census figures.
C. Telephone surveys from customers.
D. All of the above.