Unit 1: INTRODUCTION TO MARKETING
OBJECTIVES
▪ Understand and being able to use marketing basic terms correctly
▪ Understand the marketing process
▪ Understand the marketing management orientation
▪ Being aware of the modern marketing landscape
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Core concepts
▪ What is marketing?
▪ Market basic definitions
▪ Marketing strategy and the marketing plan
▪ The marketing mix
▪ The Changing Marketing Landscape
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MARKETING?
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Marketing is:
▪ Managing profitable customer relationship
▪ The process by which companies:
▪ create value for customers
▪ build strong customer relationships
in order to capture value from customers in return (Kotler & Amstrong, 2013)
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Basic definitions
▪ Customer needs, wants, and demands
▪ Market offerings
▪ Customer Value, Costs and Satisfaction
▪ Exchanges and Relationships
▪ Markets
▪ Marketing process
▪ Marketing management
▪ Marketing management orientations
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NEEDS
▪ States of felt deprivation
▪ Physical needs: food, clothing, warmth and safety
▪ Social needs: belonging and affection
▪ Individual needs: knowledge and self expression
▪ Marketers did not create these needs, they are
basic part of the human.
▪ Help the company: Identify the industry, the type of
products that they want to market
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WANTS
▪ Is human needs but are shaped by personal
preferences/ culture/ religion …
▪ People have unlimited wants but limited resources
▪ Help the company:
– Decide the features, characteristics of the
products/ services
– Competitive on the market
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DEMANDS
▪ Human wants that are backed by buying power
▪ Willing to buy
▪ Ability to pay
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MARKETING OFFERINGS
▪ Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want
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EXCHANGE
The act of obtaining a desired object from
someone by offering something in return
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MARKET
The set of all actual and potential buyers of a
product or service
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MARKETING MANAGEMENT
Marketing management is the art and science of
choosing target markets and building profitable
relationships with them
– What customers will we serve?
– How can we best serve these customers?
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MARKETING MANAGEMENT ORIENTATIONS
Production Product Selling Marketing Societal
concept concept concept concept marketing
concept
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PRODUCTION CONCEPT
The idea that consumers will favor products
that are available and highly affordable and
that the organization should therefore focus on
improving production and distribution
efficiency
Problem: Too much focus on operation
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PRODUCT CONCEPT
Consumers will favor products that offer the
most quality, performance and features and
that the organization should therefore devote
its energy to making continuous product
improvements.
Problem: “marketing myopia”
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SELLING CONCEPT
The idea that consumers will not buy enough
of the firm’s products unless it undertakes a
large-scale selling and promotion effort
Problem: Too much focus only on transactional
relationship
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MARKETING CONCEPT
A philosophy that holds that achieving
organizational goals depends on knowing the
needs and wants of target markets and
delivering the desired satisfactions better
than competitors do.
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SOCIETAL MARKETING CONCEPT
The idea that a company’s marketing decisions
should consider consumer’s wants, the
company’s requirements, consumers’ long-run
interests, and society’s long-run interests
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Preparing an Integrated Marketing Plan and Program
The marketing mix: set of tools (4Ps or 8Ps) the firm
uses to implement its marketing strategy. It includes
product, price, promotion, and place.
Integrated marketing program: comprehensive plan
that communicates and delivers the intended value to
chosen customers.
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Preparing an Integrated Marketing Plan and Program
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Building
customer relationships
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Customer perceived value: The customer’s
valuation of the difference between all the benefits &
all the costs of a market offering relative to those of
competing offers. Importantly, customers often do not
judge values and costs “accurately” or “objectively.”
They act on perceived value.
Customer satisfactions: depends on the
product’s perceived performance relative to a buyer’s
expectations.
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Capturing Value from Customers
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THE CHANGING MARKETING LANDSCAPE
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NOT-FOR-PROFIT MARKETING
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NOT-FOR-PROFIT MARKETING
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LET’S FALL IN LOVE WITH MARKETING!