The marketing concept and the history of marketing philosophies.

2. The philosophy that firms should analyze the
needs of their customers and then make
decisions to satisfy those needs, better than
the competition.
Most firms have adopted this philosophy

3. The Production Concept
 Industrial Revolution til the early 1920’s
 A firm should focus on those products that it
could produce most efficiently and that the
creation of a supply of low-cost products would in
and of itself create the demand for the products.
 Worked well because most of the products were
those of basic necessity.

4. The Sales Concept
 Early 1930’s
 Companies not only would produce the products,
but also would try to convince customers to buy
them through advertising and personal selling.
 Paid little attention to whether or not the
consumer really needed it or not.

5. The Marketing Concept
 After World War II
 Variety of products increased
 Customers could afford to be selective and buy
only products that met their changing needs.
Key Questions:
 What do customers want?
 Can we develop it while they still want it?
 How can we keep our customers satisfied?

6. Marketing Concept involves:
 Focusing on customer needs before developing
the product
 Aligning all functions of the company to focus on
those needs
 Realizing a profit by successfully satisfying
customer needs over the long term

7. Identify needs
of customers
Develop and
market products
or services
Operate a
business
profitably

8. Identify the Market
 Description of the prospective customers a
business wants to serve and the location of those
customers.

9. Develop a Marketing Mix
 The blending of the four P’s
The Four Marketing Elements
1. Product
2. Place (Distribution)
3. Price
4. Promotion

10. What do
people want
and need?

11. How do I get
it to the
customers?

12. How much are
people willing
to pay for it?

13. How do I get
people to buy
it?