FIGURE 1-1

The Core Concepts of Marketing

Need, Wants, Products Value, cost, Exchange, Market Marketing and
And demands and transactions, and marketers
satisfaction relationships
  Resources Resources
Resource
 Money Markets Money

 Taxes Services,
 goods money

 Services, money Taxes

Manufacturer Government Consumer
markets Taxes, goods market Services markets

 Services, Taxes,
 money goods

 Money Money
Middleman
 Goods and services Goods and services
markets

 Marketing Management
 Marketing (management) is the process of
planning and executing the conception,
pricing, promotion, and distribution of goods,
services, and ideas to create exchanges with
target groups that satisfy customer and
organizational objectives.
 Company Orientations
Toward the Marketplace

The Production Concept

 The Production concept holds that

consumers will favor those products that are
widely available and low in cost. Managers
of production efficiency and wide distribution
coverage.
 The Product Concept

 The Product Concept holds that consumers

will favor those products that offer the most
quality, performance, or innovative features.
Manager in these product oriented
organizations focus their energy on making
superior products and improving them over
time.
 The Selling Concept
 The Selling Concept holds that consumers, if
left alone, will ordinarily not buy enough of
the organization’s products. The organization
must therefore undertake an aggressive
selling and promotion effort.
 The Marketing Concept
 The Marketing Concept holds that the key to
achieving organizational goals consist in
determining the needs and wants of target
markets and delivering the desired
satisfactions more effectively and efficiently
than competitors
FIGURE 1-6

The Selling and Marketing Concepts

Contrasted
StartingPoint Focus Means Ends

 Factory Products Selling and Profits through

promoting sales volume

(a) The Selling Concept

 Target Customer Coordinated Profit through

 Market needs marketing customer
satisfaction

(b) The marketing concept

 FIGURE 1-7

 The “Correct” View of the Chart

Company Organization
 CUSTOMERS

FRONT-LINE PEOPLE

MIDDLE
MANAGEMENT

Top
Manageme
nt