Introduction to Marketing

What is Marketing?
Social

definition 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

What is Marketing?
Management

definition It is 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 goals.

Needs and Wants

Needs

are basic human requirements Wants are needs directed to specific ob ects!services that might satisfy the need

Product
A

product is any offering catered to satisfy needs and wants" A brand is when the product is from a #nown source"

Demand
$his

is the wants for specific products bac#ed by an ability to pay"

Target Market
%ery

rarely does a product cater to the entire mar#et" Most products are designed to cater to a group of customers who specifically want such a product" $his group of customers is the target market which is a slice of the total mar#et" We say it is the market segment.

Value and Satisfaction

%alue

& 'enefits!(osts 'enefits & )unctional 'enefits * +motional benefits (osts & Monetary costs * $ime * +nergy * ,sychic costs

Exchange
-et

something .product !service/ by offering something in return" +g" #ind .barter/ or money .value / +xchange is a value creating process because it leaves both parties better off .win 0 win situation/

Transaction and Transfer

A

transaction is an exchange between two things of value on agreed conditions and a time and place of agreement" A transfer is a one way exchange without receiving anything in return"

Relationshi Marketing
'uilding

long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business

Marketing Net!ork
A

mar#eting networ# is the relationships built with its sta#eholders" +ffective relationships ma#e up an effective and strong networ#"

Marketing "hannels
Mar#eting

channels are used to reach the target segment" (ommunication channels eg" Advertising, telephone enquiry system 1istribution channels 0 trade, direct sales

Su
$he

l# "hain

supply chain represents a value delivery chain 0 from procurement of raw materials to final delivery of product to consumer"

"om etition
,otential

and rival substitutes and offerings a buyer might consider" (ompetition can be viewed in various perspectives 0 brand, industry, form, generic

Marketing En$ironment
(ompetition (ustomers -ovt" ,roduct Import $rends $echnology ,olitics

tariffs

policies Suppliers $rade

Marketing Mix
It

is the tools that an organi2ation employs to pursue its mar#eting ob ectives in the target mar#et ,roduct, ,rice, ,lace, ,romotion 3 (4s 0 (ustomer solution, (ost, (onvenience, (ommunication

"once ts under !hich firms conduct marketing acti$ities

,roduction

concept ,roduct (oncept Selling (oncept Mar#eting (oncept Societal mar#eting (oncept

"ustomer needs
Stated

needs 5eal needs 6nstated needs 1elight needs Secret Needs

"om an# Res onses and %d&ustments

5eengineering 7utsourcing + ,artner

0 (ommerce 'ench mar#ing Alliances

0 supplies Mar#et centered -lobal!local 1ecentrali2ation