Understanding Marketing
The future is not ahead of us. It
has already happened.
Philip Kotler
Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information
Defining Marketing
Marketing is a societal process by which
individuals and groups obtain what they need
and want through creating, offering, and freely
exchanging products and services of value with
others.
- Philip Kotler
Marketing
Is the process of planning and executing
the conception,pricing,promotion,and
distribution of ideas,goods,services to
create exchanges that satisfy individual
and organizational goals.
The Four Ps
The Four Cs
Marketing
Mix
Product Place
Conven-
Customer
Solution Price Promotion ience
Customer Communication
Cost
Customer Delivered Value
Starting
point Focus Means Ends
Existing Selling and Profits through
Factory products promotion sales volume
(a) The selling concept
Customer Integrated Profits through
Market needs marketing customer
satisfaction
(b) The marketing concept
Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers
Customer-Oriented Organization
Chart
Customers
Front-line people
Middle management
s
C
er
us
om
t
Top
om
t
us
manage-
er
C
s
ment
Core Concepts of Marketing
Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants, and Demands
Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction
Exchange
Exchange and
and Transactions
Transactions
Relationships
Relationships and
and Networks
Networks
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment
Needs, Want, and Demands
•Needs describe basic human
requirements.
•Want are shaped by one’s society.
•Demands are wants for specific
products backed by ability to pay.
•examples
Product and service
Product---Anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfying a want or
need. It includes physical objectives, services,
persons, places, organizations and ideas.
Service--- any activity or benefit that one party
can offer to another that is essentially intangible
and does not result in the ownership of anything.
marketing philosophies
The production concept
The product concept
The selling concept
The marketing concept
The societal marketing concept
Company Orientations Towards the
Marketplace
Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive
Consumers favor products that
Product
Product Concept
Concept offer the most quality, performance,
or innovative features
Consumers will buy products only if
Selling
Selling Concept
Concept the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
Marketing
Marketing Concept
Concept markets & delivering value
better than competitors
The production concept
the production concept holds that
consumers will prefers products that
are widely available and inexpensive.
The product concept
The product concept holds that consumers will
favor those products that offer the most
quality,performance,or innovative features.
The selling concept
The selling concept holds that consumers and
businesses, 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 its organizational goals consists of
the company being more effective than
competitors in creating,delivering,and
communicating customer value to its chosen
target markets
The societal marketing concept
The societal marketing concept holds that
the organization’s task is to determine the
needs, wants,and interests of target
markets and to deliver the desired
satisfaction more effectively and efficiently
than competitors in a way that preserves or
enhances the consumer’s and the society’s
well-being.