marketing concepts
What is the marketing concept?
A business philosophy that focuses on meeting consumer needs and wants while achieving business goals.
What is the difference between a need and a want?
A need is essential for survival, while a want is a specific way to satisfy that need.
How is profit calculated?
Profit = Revenue – Expenses
Who is a consumer?
The person who uses the product or service.
What is a good?
A physical item that satisfies a need or want (e.g., smartphone).
Why is it important for businesses to prioritize customers in decisions?
Prioritizing customers helps ensure loyalty, repeat business, and long-term success
Give an example of a need and a corresponding want.
“A consumer needs hydration (need) and chooses bottled flavored water (want).”
Give an example of profit resulting from meeting customer needs.
A bakery creates custom cakes to meet customer preferences, increasing sales and profit.
Who is a customer?
The person who buys the product or service (may or may not be the consumer).
What is a service?
An activity or task that satisfies a need or want (e.g., tech support).
Give an example of a business applying the marketing concept.
“A coffee shop offering dairy-free milk options shows they understand and meet customer needs.”
Why is meeting customer needs important?
It ensures repeat business and customer loyalty.
What is customer satisfaction?
A measure of how well a product or service meets expectations.
Give an example showing the difference between consumer and customer.
“A parent buys lunch for their child. The parent is the customer, the child is the consumer.”
What is an exchange in marketing?
Giving something of value (like money) to receive something else (like a product or service).
What does the flow diagram Customer Needs → Business Action → Satisfaction & Profit show?
It shows how meeting customer needs leads to satisfaction and profit.
How do wants influence product design?
Businesses design products to appeal to specific customer preferences, not just basic needs.
Why is customer satisfaction important for a business?
Satisfied customers are more likely to return and recommend the business, increasing revenue.
Why is understanding the difference important for businesses?
It helps businesses target marketing effectively to the right audience.
Give an example of an exchange.
A customer pays $5 for coffee. The coffee satisfies the customer, and the business earns revenue.
How does the marketing concept help a business succeed?
By focusing on the customer, creating relevant products, and ensuring satisfaction, a business can earn profit and grow.
True or False: Businesses only need to focus on wants, not needs.
False – Businesses must satisfy both needs and wants to succeed.
How do profit and customer satisfaction connect?
Meeting customer needs increases satisfaction, which leads to repeat sales and higher profit.
How can businesses use this knowledge to improve products?
By understanding who actually uses the product, businesses can adapt offerings to satisfy consumers.
How do products, exchange, and profit connect?
Products and services satisfy customers, exchanges generate revenue, and revenue minus expenses leads to profit.