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Marketing Handout 01

This document provides an overview of marketing principles and concepts. It defines marketing as a social and managerial process of creating value for customers to meet their needs through exchange. The summary is: 1) Marketing involves planning products and services, setting prices, promoting and distributing them to move from producer to consumer. It impacts all business areas and society. 2) The core of marketing is creating customer value and satisfaction profitably. Sound marketing is critical to every organization's success. 3) The marketing system includes producers, products/services, consumers, communication, feedback and exchange of money. Marketers must identify customer needs and distribute products to meet them.

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116 views4 pages

Marketing Handout 01

This document provides an overview of marketing principles and concepts. It defines marketing as a social and managerial process of creating value for customers to meet their needs through exchange. The summary is: 1) Marketing involves planning products and services, setting prices, promoting and distributing them to move from producer to consumer. It impacts all business areas and society. 2) The core of marketing is creating customer value and satisfaction profitably. Sound marketing is critical to every organization's success. 3) The marketing system includes producers, products/services, consumers, communication, feedback and exchange of money. Marketers must identify customer needs and distribute products to meet them.

Uploaded by

gcuusman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Principles Of Marketing _ MGT 301

Lesson 1
PRINCIPLES OF MARKETING
Overview of Course:
This subject/course is designed to teach the basic principles of Marketing to diverse
audience/students, including those who are studying this as a supporting subject for their
bachelor degree program. This course is designed to provide you the foundations of
Marketing whether you intend to work in field of the marketing or not.
Marketing is part of all of our lives and touches us in some way every day. To be successful
each company that deals with customers on a daily basis must not only be customer-driven,
but customer-obsessed. The best way to achieve this objective is to develop a sound
marketing function within the organization. To be understandable and lively means that we
need to communicate you. We start every chapter with learning objectives. The most
important thing you will get out of this course is the basic skills required to succeed in
todays competitive environment. Marketing is defined as a social and managerial process by which,
individuals and groups obtain what they need and want through creating and exchanging products and value
with others. Marketing is a key factor to business success. The marketing function not only
deals with the production and distribution of products and services, but it also is concerned
with the ethical and social responsibility functions found in the domestic and global
environment.
Introduction of Marketing
What image comes to mind when you hear the word marketing? Some people think of
advertisements or brochures, while others think of public relations (for instance, arranging
for clients to appear on TV talk shows). The truth is, all of theseand many more things
make up the field of marketing. The Knowledge Exchange Business Encyclopedia defines
marketing as planning and executing the strategy involved in moving a good or service
from producer to consumer.
With this definition in mind, its apparent that marketing and many other business activities
are related in some ways. In simplified terms, marketers and others help move goods and
services through the creation and production process; at that point, marketers help move the
goods and services to consumers. But the connection goes even further: Marketing can have
a significant impact on all areas of the business and vice versa.
Understanding Marketing:
Marketing: It is the process of creating consumer value in the form of goods, services, or
ideas that can improve the consumers life.
Marketing is the organizational function charged with defining customer targets and the best
way to satisfy needs and wants competitively and profitably. Since consumers and business
buyers face an abundance of suppliers seeking to satisfy their everyday need, companies
and nonprofit organizations cannot survive today by simply doing a good job. They must do
an excellent job if they are to remain in the increasingly competitive global marketplace. This
is what we say that survival of the fittest. Many studies have demonstrated that the key to
profitable performance is to know and satisfy target customers with competitively superior

Principles Of Marketing _ MGT 301


offers. This process takes place today in an increasingly global, technical, and competitive
environment.

What is Marketing?
Marketing is not only restricted to
selling and advertising as is
perceived but is More than it
advertising it identifies and
satisfies customers needs. it
functions revolve around wide
variety and range of tasks and
activities mostly termed as functions
related to 4ps i.e. Product, price,
place and promotion. Marketing is:

tisin
dver

Public
relations

g Catalogu
es
Sal
es

e
Servic
erce

mm
E-co
Retai
ling

Pr om

otions
Co
u

po

What is
Marketing,
anyway?

ry
Delive
Spon
s

ns

ing
Shopp s
el
chann

orshi
a. Creating customer value and
ps
g
n
i
c
i
satisfaction are at the very
r
P
ail R
ect m
heart of modern marketing
ese
r
i
Pack
D
aging Billbo
arc
thinking and practice.
ards
h
b. A very simple definition of
marketing is that it is the delivery of customer satisfaction at a profit.
c. Sound marketing is critical to the success of every organization.

Marketing can also be defined as 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.
Simple Marketing System

Simple Marketing
System

The concept of Marketing System


brings one full circle to the concept of
marketing.
Simple marketing system comprises of
Commu nication
different actors and factors like
producer/seller,
product/service
Product/Service
something valuable to exchange in
Producer/Seller
Consumer
Money
return of product/service (money),
consumer/customer, communication
process
to
have
two
way
Feedback
communication like to provide
information about product or service
to customer or consumer and to have
feedback in same regard from the customer. Fig presents an example of a very simple
marketing system. Marketing system has following basic activities:

Principles Of Marketing _ MGT 301


1)

Sellers must search for buyers, identify their needs, design good products and
services, set prices for them, promote them, and store and deliver them.
2)
A modern marketing system includes all of the elements necessary to bring buyers
and sellers together. This might include such activities as product development,
research, communication, distribution, pricing, and service..
3)
Each of the major actors in a marketing system adds value for the next level of the
system. There is often critical interdependency among network members.
To learn more about marketing fist we should learn about some basics that are some time
termed as 4ps(Product, price, place, promotion) and some times even 6 or 7ps (Product,
price, place promotion, position, personal relations, people and profit) lets have some
definitions in this regard:

Productwhat are you selling? (It


might be a product or a service.)
Price
Product
Pricewhat is your pricing strategy?
Place or distributionhow are you
distributing your product to get it into
Customers
the marketplace?
Promotionhow are you telling
consumers in your target group about
Place
Promotion
your product?

Positioningwhat place do you want your


product to hold in the consumers mind?

Personal relationshipshow are you building relationships with your target


consumers?

People: public who can have impact on organization or can be affected by


organization.

Profits: the basic objective of organization that to have something valuable in


return of product or service mostly it is in form of money.
Marketing assumes that it will proceed in accordance with ethical actives. It Identifies the 4
marketing variables i.e. product, price, promotion, and distribution it also states that the
public, the customer, and the client determine the marketing program. Marketing mainly
emphasizes on creating and maintaining relationships and applies for both non-profit
organizations and profit-oriented businesses. Major activities that are performed in
marketing process include:
Personal selling Advertising, Making products available in stores and Maintaining
inventories. Any thing like goods, services, experiences, events, persons, places,
organizations, information and ideas can be marketed to the customers in return of
something of value.
Costs

How Does an Organization Create a About 50% of total


product costs are
Customer?
Organizations (producer/ seller) can create marketing costs
the customers by Identifying customer
needs, designing goods and services that
meet those needs than communicating
Why Study

Careers
About 25 to 33% of
the work force hold
marketing positions.

Marketing ?

Contributions to
Individual Organizations
Critical to the success

Contributions to Society
Marketing decisions affect
the lives of individual
consumers and society as

Principles Of Marketing _ MGT 301


information about those goods and services to prospective buyers Making the goods or
services available at times and places that meet customers needs Pricing goods and services
to reflect costs, competition, and customers ability to buy and finally providing for the
necessary service and follow-up to ensure customer satisfaction after the purchase
How is Marketing Done?
According to Peter F. Drucker If we want to know what a business is, we have to start with
its purpose. And its purpose must lie outside the business itself. In fact, it must lie in
society since a business enterprise is an organ of society. There is one valid definition of
business purpose: to create a customer.
Reasons for Studying Marketing:
Marketing is part of all of our lives and touches us in some way every day. To be successful
each company that deals with customers on a daily basis must not only be customer-driven,
but customer-obsessed. The best way to achieve this objective is to develop a sound
marketing function within the organization. Major reason to study marketing is:
Marketing plays an important role in society
It is Vital to business
Marketing offers outstanding career opportunities
Marketing effects your life every day
What do Marketers think about?
To have clearer concept in this regard lets consider an example of Opening a Book Shop on
campus. To do so we have to answer different questions like:
1. Is there a need? (Of having book shop)
2. What is my target market? (Who will be buying products from your book shop)
3. What is my product?(Basic items to be sold)
4. How can I produce and deliver a product better than my competitors?
5. How shall I promote my product?
6. How can I insure customer loyalty?
Mostly before starting any activity of above-mentioned type marketer performs an analysis
termed as SWOT (Strength, Weakness, Opportunity and Threat). Marketing is a process of
getting the right products to the right people at the right price and at the right place and time
with the right promotion. But this requires solution to certain simple question: like
Simple Questions, Hard Answers
1. Who are our customers? (Target Market)
2. What important & unique benefits do we provide? (Product/service)
3. Are these benefits sustainable? (Long-term competitive advantage)
These questions are apparently very simple but are very difficult to be answered theses
questions like it is really difficult to define basic characteristics to be produced in product
and services as per demands and requirements pf the customers; and then to precisely define
your target market and to have long-term competitive advantage through customer
satisfaction.

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