To understand Basic Marketing Concepts one must first understand general marketing. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Basic Marketing Concepts you nee to know:
- Market-a collection of buyers and sellers.
- Marketspace-electronic marketplaces unbound by time or space.
- Metamarket-a cluster of closely related goods and services that center around a specific consumption activity.
- Metamediary-provides a single access point where buyers can locate and contact many different sellers in the meta market; Amazon, Expedia, and Priceline.
What is exchange?
Exchange-the process of obtaining something of value from someone by offering something in return; this usually entails obtaining products for money:
1. There must be at least two parties to the exchange.
2. Each party has something of value to offer the other party.
3. Each party must be capable of communication and delivery.
4. Each party must be free to accept or reject the exchange.
5. Each party believes it is desirable to exchange with the other party.
What is product?
Product-something that can be acquired via exchange to satisfy a need or a want.
- Goods, Services, Ideas, Information, Digital Products, People, Places, Experiences and Events, Real or Financial Property, and Organizations.
- Customers usually seek out exchanges with marketers who offer products that are high in one or more of 5 types of utility:
- Time Utility-products are available when customers want them; faster transactions.
- Place Utility-Products are available where customers want them, which is typically wherever the customer happens to be at the moment or where the product needs to be at that moment.
- Place utility-the closer the better.
- Possession Utility-the transfer of ownership or title from marketer to customer. These products are more satisfying because marketers make them easy to acquire.
- Projection utility-example with cars.
- Psychological Utility-deliver positive experiential or psychological attributes that customers find satisfying Psychological utility: sporting events.
Major Marketing Activities and Decisions
All basic marketing concepts activities’ have one thing in common: They aim to give customers a reason to buy the organization’s product.
Strategic Planning
- Strategy-outlines the organization’s game plan for success.
- Tactical planning-concerns itself with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets
- Marketing Plan-provides the outline for how the organization will combine product, pricing, distribution, and promotion decisions to create an offering that customers will find attractive. Also concerns itself with implementation, control, and refinement of these decisions
Social Responsibility and Ethics
- Social Responsibility–an organization’s obligation to maximize its positive impact on society while minimizing its negative impact.
Research and Analysis
Strategic planning depends heavily on the availability and interpretation of information. The organization must also have access to three other types of information and analysis:
1. Internal Analysis-involves the objective review of internal information pertaining to the firm’s current strategy and performance, as well as the current and future availability of resources.
2. Competitive intelligence-involves analyzing the capabilities, vulnerabilities, and intentions of competing businesses.
3. Environmental scanning or External Analysis-involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing effects
Situation analysis-the overall process of collecting and interpreting internal, competitive, and environmental information
Developing Competitive Advantage-something that the firm does better than its competitors that gives it an edge in serving customers’ needs and/or maintaining mutually satisfying relationships with important shareholders. They set the tone, or strategic focus, of the entire marketing program.
Basic Marketing Concepts