Marketing Concepts and Economic Basics

Marketing Concepts

• Marketing encompasses promoting and selling products/services, including research and advertising.
• Key marketing functions include creating the product, setting its price, promoting it, and making it available to consumers (the 4 Ps: Product, Price, Place, Promotion).
• The marketing process involves planning, executing, and evaluating strategies to satisfy customer needs.
• The marketing concept focuses on satisfying customer needs and wants while generating profit.
• Companies use the marketing mix (the 4 Ps) to cater to customer needs and compete.

Target Market

• The target market consists of individuals with similar characteristics, needs, or interests who a business seeks to sell to.

Economic Basics

• Gross Domestic Product (GDP) is the total value of goods and services produced in a country.
• Profit is the amount a business earns after deducting expenses from revenue.
• Revenue is the overall income generated by a company from sales.

Other Important Concepts

• Competition involves other businesses offering similar products or services.
• Supply and demand influence pricing. High demand and low supply tend to increase prices.
• Demographics segment populations by age, gender, income, and education.
• Risk management entails identifying potential risks (like competitors or market fluctuations) and creating strategies to mitigate them.
• Sports marketing can be categorized as either marketing of sports or marketing through sports (promoting other products using sports).

Consumer Decision Making Process

• Consumers recognize their need, seek information, compare options, make a purchase, and reflect on their decision.

Market Segmentation

• Dividing customers into groups based on common characteristics (e.g., age, location, income) for targeted marketing.

SWOT Analysis

• A strategic tool used to assess a company's strengths, weaknesses, opportunities, and threats.

Break-Even Analysis

• Break-even point is when company revenue equals its total costs (neither making a profit nor incurring losses).
• Break-even point (Units) = Fixed Costs / (Price per unit - Variable cost per unit).

Other Concepts in Brief

• Branding creates a unique image for a company in the consumer's mind (e.g., Nike's swoosh).
• Sponsorship occurs when a company pays to associate with a team, event, or athlete.
• Market research involves data collection and analysis to guide marketing decisions.
• Celebrity endorsements occur when famous people promote a product; this can present potential risks if the celebrity faces controversy.
• Licensing enables one company to use another company's brand or product.