Selling Concept

The marketing concept has been adopted by many of the most successful business firms. Sonic firms, such as Ford Motor Company and Apple Computer; have gone through minor or major reorganizations in the process.  Because the marketing concept is essentially a business philosophy, anyone can say, “T believe in it.” But to make it work, management must fully adopt and then implement it. To implement the marketing concept, a firm must first obtain information about its present and potential customers. The firm must determine not The firm must then use this information to pinpoint the specific needs and potential customers toward which it will direct its marketing activities and resources. (Obviously, no firm can expect to satisfy all needs. And not every individual or firm can be considered a potential customer for every product manufactured or sold by a firm.) Next, the firm must mobilize its marketing resources to (1) provide a product that will satisfy its customers; (2) price th...

Marketing concept a business philosophy that involves the entire organization in the process oF satisfying custormers needs while achieving hie organizalion’s goals.

  In the 1920s, production began to catch up with demand. Now producers had to direct their efforts toward selling goods rather than just producing goods that consumers readily bought. This new sales orientation was characterized by increased advertising, enlarged sales forces, and, occasionally, high-pressure selling techniques. Manufacturers produced the goods they expected consumers to want, and marketing consisted primarily of promoting products through personal selling and advertising, taking orders, and delivering goods. During the 1 950s, howevei; business people started to realize that even enormous advertising expenditures and the most thoroughly proven sales techniques were not enough. Something else was needed if products were to sell as well as expected. it was then that business managers recognized that they were not primarily producers or sellers hut rather were in the business of satisFying customers’ wants. As a top executive at Whirlpool states, “The key to a wh...

 Satisfying customers’ needs is a major component of the marketing concept. Through its Customer One program, Chrysler makes every customer’s satisfaction a number one priority.

From the start of the Industrial Revolution until the early twentieth century, business effort was directed mainly toward the production of goods. Consurner demand for manufactured products was so great that manufacturers could almost hank on selling everything they produced. Business had a strong production orientation, in which emphasis was placed on increased output and production efficiency. Marketing was limited to taking orders arid distributing finished goods.

The process that leads any business to success seems simple. First, the firm must talk to its potential customers to assess their needs for its goods or services. Then the Firm must develop a good or service to satisfy those needs. Fìnall; the firm must continue to seek ways to provide customer satisfaction. This process is an application of the mai-keting concept, or marketing orientation. As simpic as it seems, American business has been slow to accept it.

form utility utility created by converting production inputs into finished products place utility utility created by making a product. available at a location where customers wish to purchase it time utility utility created by making a product available when custotntTS wish to  purchase it. possession utility utility  created by Lranslcrriflg title (or ownership) ol a product to the buyer

Possession utility is created by transferring title (or ownership) of a product to thc buyer; For a product as simple as a pair of shoes, ownership is usually transferred by means of a sales slip or receipt. For such products as automobiles and homes, the transfer of title is a more complex process. Along with the title to its product, the seller transfcrs the right, to usc that product to satisfy a need (see Figure 1). Place, time, and possession utility have real value in terms of both money and convenience. This value is created and added Lo goods and services through a wide variety of marketi rig activities—from research indicating what customers want to product warranties ensuring (hat customers get what they pay for. Overall, these marketing activities account for about baLl of every dollar spent by consumers. When they are part of an integrated marketing program that delivers maximum utility to the custornei; most of us would agree [hat they are worth the cost.

Marketing the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Exchange Functions: All companies such as manufacturers, wholesalers, and retailers buy and sell to market their merchandise. 1. Buying includes such functions as obtaining raw materials to make products, knowing how much merchandise to keep on hand, and selecting suppliers. 2. Selling creates possession utility by transferring the title of a product from seller to customer. Physical Distribution Functions: These functions involve the flow of goods from producers to Customers. Transportation and storage provide time utility and place utility, and require careful management of inventory. 3. Transporting involves selecting a mode of transport that provides an acceptable delivery schedule at an acceptable price. 4. Storing goods is often necessary to sell them at the best selling time. Facilitating Functions: These functions help the other functions take place. 5. Financing helps at all stages of marketing. To buy raw materials, manufacturers often borrow from banks or receive credit f...

As defined in Chapter 8, utility is the ability of a good or service to satisfy a human need. A lunch at a Pizza Hut, an overnight stay at a Holiday Inn, and a Mercedes 420 SET4 all satisfy human needs. Thus, each possesses utility. There are four kinds oF utility. Form utility is creawd by convening producGon inputs into finished products. Marketing eflorts may indirectly influence form utility bccause the data gathered as part of marketing research are frequently used to deter mine the size1 shapc, and features vi a product.The three kinds of utility that are directly created by marketing are place, time, and possession utility. Place utility  is created by making a product availaNe at a location where customers wish to purchase iL.,A pair of shoes is given place utility when it is shipped Irorn a factory to a department store. Time utility is created by making a product available when customers wish to purchase ¡L For exampic, Halloween costumes might be manulactured in A...