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Unit 1: Marketing Basics
Chapter 3:
The Marketing Concept
Learning Goals
 Explain the three elements of the marketing
concept
 Describe the benefits of the marketing
concept to business and customers
 Identify the seven functions of marketing
 Give an example of each marketing function
and describe how it supports the marketing
concept
Day 1 Response Journal
Describe a time when you were a very
satisfied customer.
Be sure to outline the business name and
explain what they did to make you feel
“satisfied”.
***Save as Sept 21 in your Response
Journal folder***
The Marketing Concept
 There are millions of businesses out there
and many of them sell similar products
 These businesses compete with each other
for customers
 The businesses that get the most customers
are typically the most successful
 So what helps a business get more
customers?
Utility
 Businesses usually get more customers when they;
 Learn about their customers
 Make their products useful
 In business, usefulness is called _________
Utility
 E.g. a bank staying open on weekends is a form of
utility
 E.g. offering products in a convenient location, such as
a corner store, is a another example of utility
 The process of adding utility is often called adding
value
The Marketing Concept
 The marketing concept is an approach to
business
 When a business focuses on the customer,
the business is said to be following the
marketing concept
There are 3 elements to the marketing
concept;
 Customer Satisfaction
 Total Company Approach
 Profit
The Marketing Concept
 _______________________
Customer Satisfaction is the positive
feeling that customers get when their
expectations are met or exceeded
The Marketing Concept
Businesses that follow the marketing concept;
 Provide goods and services that meet or
exceed customers’ expectations
 Creating Customer Satisfaction
 Encourage all four functions of business to
work together to provide customer
satisfaction
 Following the Total Company Approach
 Balance satisfying customers with making
sales
 Generating a Profit
The Functions of Marketing
 The role of marketing is to help the whole
company focus on its customers
 The marketing function specializes in
learning about customer needs and wants
 Marketing itself consists of hundreds of
activities
 There are a variety of ways to organize
these activities
The Functions of Marketing
The activities of marketing can be organized
into seven different marketing functions;
 Channel Management
 Marketing-Information Management
(MIM)
 Market Planning
 Pricing
 Product/Service Management
 Promotion
 Selling
The Functions of Marketing
Channel Management
 Handles activities involved in getting
products from producers to customers
Activities include;
 Transporting goods, storing goods, finding
sources for products, making sure products
get where they are needed on time,
transferring ownership of products, etc.
The Functions of Marketing
Marketing-Information Management (MIM)
 Also called _________________________
Marketing Research
 Means to gather, analyze, and distribute
information about markets, competition, and
customers
 One of the main ways businesses learn what
the customer wants
Example activities include;
 Developing surveys, analyzing research
results, meeting with customers, etc.
The Functions of Marketing
Market Planning
 Used to determine the target market and
the strategies used to attract the selected
audience
Activities include;
 Identifying the target market, segmenting the
market, determining marketing strategies
based on the target market, conducting
market analyses, developing a marketing
plan, etc.
The Functions of Marketing
Pricing
 Handles activities involved in setting the
price for a product
 Pricing also involves researching and
analyzing the prices that competitors charge
The Functions of Marketing
Product/Service Management
Activities include;
 Developing new products
 Modifying existing products
 Deciding which products to carry in a store
The Functions of Marketing
Promotion
 Non-personal communication with
customers, that is designed to influence
them to purchase the product
Activities include;
 Advertising
 Public Relations
 Sales Promotions
 Publicity
The Functions of Marketing
Selling
 Personal communication with customers
Activities may include;
 Helping customers in the store
 Making sales presentations
 Answer customer questions on the phone
 Demonstrating how the product works, etc.
Day 1 Assigned Work
Students please complete the following;
 Read the TD Canada Trust Profile on page
34 and answer the 2 questions
 Thinking Question #1 on page 35
 Application Question #1 on page 35
*** Save As Ch 3 Day 1 in your Unit 1
folder***