Fundamentals of

Marketing
Dr. Md Abdul Momen
 Story 1
Marketing in a Changing World: Creating Customer Value and Satisfaction

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 What is Marketing?

●What is not merely?

●❖Selling & Advertising
●❖Telling & Selling
●❖Fishing
●❖Hunting

●What is?
●❖Sensing & Responding
●❖Gardening
●❖Meeting needs profitably

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What is Marketing?

Process by which individuals and groups obtain what they need and want through creating
and exchanging products and value with others.
Simply put: Marketing is the delivery of customer satisfaction at a profit.

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Marketing Defined…

Defination of Marketing (Philiph Kotler):

Marketing is a social and managerial process whereby individuals and groups
obtain what they need and want through creating and exchanging value to each
other...
Core Marketing Concepts
(Fig. 1-1)

Needs, wants,
and demands

Markets
Products
and services

Exchange, Value,
transactions, satisfaction,
and relationships and quality
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Core Marketing Concepts

► Needs, wants, demands

 What are Consumer’s Needs, Wants and Demands?

► Needs - state of felt deprivation for basic items such as food

and clothing and complex needs such as for belonging. i.e. I am
hungry.
► Wants - form that a human need takes as shaped by culture and
individual personality. i.e. I want a hamburger, French fries,
and a soft drink.
► Demands - human wants backed by buying power. i.e. I have
money to buy this meal.
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 How Do Consumers Choose
Among Products and
Services?
Value Gained From Owning a Product and Costs of Obtaining the
Product is Customer Value

Product’s Perceived Performance in Delivering Value Relative to Buyer’s

Expectations is Customer Satisfaction

Total Quality Management Involves Improving the Quality of Products, Services, and
Marketing Processes

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 What can be marketed?
▪ Marketers are engaged in marketing 10 types of entities:
▪Goods: Physical goods
▪Services: Work of airlines, hotels, car rental firms
▪Events: Promoting trade shows, artistic performances
▪Persons: Celebrity marketing, film star has an agent, a
manager
▪Places: Cities, regions compete to attract tourists,
headquarters
▪Properties: Intangible rights of ownership of
property/assets
▪Organizations: Work to build a strong, favorable, and
unique images in the minds of target publics
▪Information: Can be produced and marketed as product
▪Ideas: Every market offering includes a basic idea
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 Who Purchases Products and Services?

People Who Exhibit

Market – Buyers who share a
Need particular need or want that Actual Buyers
can be satisfied through
exchange or relationships.

Resources to
Exchange

Potential Buyers

Willingness to Exchange
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 Modern Marketing System (Fig. 1-3)

Suppliers

Company
Competitors
(Marketer)
Environment

Environment
Marketing
Intermediaries

End User
Market 12
 Company Orientations/Marketing
Philosophies/concepts
Production Concept

Product Concept

Selling Concept

Marketing Concept
Societal Marketing
Concept
Social Marketing Concept Social Business Concept
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 Marketing Management Philosophies

Production Concept •Consumers favor products that are

available and highly affordable.
•Improve production and distribution.

Product Concept •Consumers favor products that offer

the most quality, performance, and
innovative features.
Selling Concept •Consumers will buy products only if
the company promotes/ sells these
products.
Marketing Concept •Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
Societal Marketing Concept 14
•Focuses on needs/ wants of target
markets & delivering superior value.
 The Production Concept
This concept says that consumers will favor products that are available and highly affordable and so the
organization should focus on production and distribution efficiency.

For example: WASA & minipack shampoo of Lever Brothers

Starting point
Focus Means Ends

Earns Profit
Production & Affordability & Through Low Per
Distribution Availability Economies of
Unit Production
efficiency Scale
Cost
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 The Product Concept
This concept says that consumers will favor products that offer the most quality, performances and features and so
the organization should focus on continuous product improvement.

For example: Coca cola and McDonald's

Starting point
Focus Means Ends
Profits through
Attributes Quality & superior products
Product
&Features Performance

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 The selling concept
This concept says that consumers will not buy enough of the organization’s products unless it
undertakes a large scale selling and promotion effort.

For example: private university, political party, real estate and insurance.

Starting point
Focus Means Ends

Profits
Factory Products Selling & Through
Promotion sales
volume 17
 The Marketing concept
This concept says that the organization should determine the needs and wants of target markets and deliver the
desired satisfactions more effectively and efficiently than competitors. ( sense and respond philosophy)

For example: British Airways , “we are not satisfied until you are.”

Starting point Focus Means Ends

Profits through
Target Market Customer
Integrated Customer
Needs Marketing Satisfaction
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 The Customer Concept
This concept says that the organization should focus on individual customer’s needs and wants to achieve profitable
growth through capturing customer share,loyalty and lifetime value.

For example: Berger color bank

Starting point Focus Means Ends

One to One
Customer Profitable Growth Through
Marketing
Individual Needs & Capturing Customer
Integration &
Customer Values Share,Loyalty &Lifetime
Value Chain
Value.

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 Selling Vs. Marketing Concept

Startin
g Focus Means Ends
point
Factor Existing Selling Profits through
products and sales volume
y promotion

The selling concept

Marke Customer Integrated Profits through

needs marketing customer
t satisfaction

The marketing concept 20

Marketing Mix :

Is it the combination of four marketing Ps?

 Marketing Concept - The 4 P’s ğ The 4 Cs

Marketing
Mix

Product Place

Convenience
Customer
Solution Price Promotio
n

Customer
Cost Communication
Marketing Concept - The 4 P’s
Marketing Mix and the Customer
Four Ps
Four Cs
► Product
► Product Variety/Quality/ Design/ Features/Brand • Customer solution
Name/ Packaging/ Sizes/Services/Warranties/Returns

► Price
► List Price/Discounts/Allowances/ Payment
Period/Credit Terms • Customer cost
► Place
► Channels/Coverage/Assortments/
Locations/Inventory/Transport
• Convenience
► Promotion
► Sales Promotion/Advertising/Sales Force/Public
relations/ Direct Marketing
• Communication
Holistic marketing concept
Marketing Realities and Consumer Capabilities
 The New Marketing Realities
Network information technology
Globalization
Deregulation
Privatization
Heightened competition
Industry convergence
Consumer resistance
Retail transformation
Disintermediation
New Consumer Capabilities

► A substantial increase in buying power

► A greater variety of available goods and services.
► A great amount of information about practically anything.
► Greater ease in interacting and placing and receiving orders.
► An ability to compare notes on products and services.
► An amplified voice to influence public opinion.
I see something In You…

Let the world Know, what it is…!!!

Thank You…