INTRODUCTION TO

MARKETING

SESSION 1

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INTRODUCTION TO MARKETING

 Chapter 1
 Importance and scope of marketing
 Marketing in the 21st century
 Company orientations towards market place

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Marketing Defined

 Kotler’s social definition:

“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.”

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Marketing Defined
 The AMA managerial definition:
“Marketing 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
objectives.”

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The Scope of Marketing
 Marketing: typically seen as the task
of creating, promoting, and delivering
goods and services to consumers and
businesses.

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Core Marketing Concepts

 Needs describe basic human requirements such as

food, air, water, clothing, shelter, recreation, education,
and entertainment.
 Needs become wants when they are directed to specific
objects that might satisfy the need. (Fast food)
 Demands are wants for specific products backed by an
ability to pay.

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Core Marketing Concepts
 A product is any offering that can satisfy a need or
want, while a brand is a specific offering from a
known source.
 When offerings deliver value and satisfaction to the
buyer, they are successful.

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Marketing Concepts
and Tools
 Value and Satisfaction
 Customer value triad
 Value
Value = Benefits / Costs =
(Functional benefits + Emotional
benefits) /
(Monetary costs + Time costs +
Energy costs + Psychic costs)

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Core Marketing Concepts
 Marketers can enhance the value of an offering to
the customer by:
 Raising benefits.
 Reducing costs.
 Raising benefits while lowering costs.
 Raising benefits by more than the increase in costs.
 Lowering benefits by less than the reduction in costs.

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Core Marketing Concepts

 Exchange involves obtaining a desired product from

someone by offering something in return. Five
conditions must be satisfied for exchange to occur.
 Transactions involve at least two things of value, agreed-
upon conditions, a time of agreement, and a place of
agreement.

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Two-Party Exchange Map

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 Evolution of Marketing
1. Barter stage
•In the pre-industrial revolution area. People bartered for things not produced
by them.
•No elaborate distribution systems.

2. Stage of Money economy

•No changes except money system replaced the barter system.
•Pricing became the mechanism of exchange process.

3. Stage of Industrial Revolution

•Introduced new systems of manufacturing. Sweeping changes.
•Mass production became the order of the day.
•Provided disposable incomes and generated new ideas.
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4. Stage of competition
Mass production and distribution by the industrial revolution led
the stage of competition.
Focus on how to make the products as customer’s first preferred
choice.
5. Emergence of Marketing
In 50’s and 60’s, rapid industrialisation.
More manufacturers leading to competition.
Right type of product, availability, attending to customers
complaint.

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Development of the
Marketing Concept
Production
Concept

Product Concept

Selling Concept

Marketing
Concept
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The Production Concept

 Assumes that consumers are interested

primarily in product availability at low
prices
 Marketing objectives:
 Cheap, efficient production
 Intensive distribution
 Market expansion

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The Product Concept

 Assumes that consumers will buy the

product that offers them the highest
quality, the best performance, and the
most features
 Marketing objectives:
 Quality improvement
 Addition of features
 Tendency toward Marketing Myopia

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The Selling Concept

 Assumes that consumers are unlikely to

buy a product unless they are aggressively
persuaded to do so
 Marketing objectives:
 Sell, sell, sell
 Lack of concern for customer needs and
satisfaction

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The Marketing Concept
 Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
 Marketing objectives:
 Profits through customer satisfaction

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The Marketing Concept
A consumer-oriented philosophy that
suggests that satisfaction of consumer
needs provides the focus for product
development and marketing strategy to
enable the firm to meet its own
organizational goals.

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Societal Marketing Concept

A revision of the traditional marketing concept

that suggests that marketers adhere to principles
of social responsibility in the marketing of their
goods and services; that is, they must endeavor
to satisfy the needs and wants of their target
markets in ways that preserve and enhance the
well-being of consumers and society as a whole.

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The Societal Marketing
Concept
 All companies prosper when society
prospers.
 Companies, as well as individuals, would
be better off if social responsibility was an
integral component of every marketing
decision.
 Requires all marketers adhere to
principles of social responsibility.

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The New Economy
 Substantial increase in buying power
 A greater variety of goods and services
 A greater amount of information about practically anything
 A greater ease in interacting and placing and receiving orders
 An ability to compare notes on products and services

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The New Economy
 Websites can provide companies with
powerful new information and sales
channels.
 Companies can collect fuller and richer
information about markets, customers,
prospects and competitors.
 Companies can facilitate and speed up
communications among employees.
 Companies can have 2-way communication
with customers and prospects

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The New Economy
 Companies can send ads, coupons,
samples, information to targeted
customers.
 Companies can customize offerings and
services to individual customers.
 The Internet can be used as a
communication channel for purchasing,
training, and recruiting.
 Companies can improve logistics and
operations for cost savings while improving
accuracy and service quality.

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The Scope of Marketing

 Places  Goods
 Properties  Services
 Organizations  Experiences
 Information  Events
 Ideas  Persons

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