Preview

 Discuss what is marketing and core concepts of

marketing and review some possible definitions
 See the evolution of marketing thought and discuss
various orientations toward marketplace
 Focus on modern marketing concept, identify four
pillars of modern marketing
 Describe 4Ps of marketing, as elements of total
marketing mix
 Discuss modern marketing concept comparing it
with selling concept and extending it with
relationship marketing concept
 What is Marketing…??

 Selling?
 Advertising?
 Promotions?
 Making products available in stores?
 Maintaining inventories?

 All of the above, plus much more!

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What is Marketing?
 No single correct definition or approach
 Common subject matters:
 The ability to satisfy customers,
 The identification of favorable marketing opportunities,
 The need to create an edge over competitors,
 The capacity to make profits to enable a viable future for
the organization,
 The use of resources to maximize a business’ market
position,
 The aim to increase market share mainly in target
markets
Marketing = ?
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
 American Marketing Association

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 Marketing = ?
Marketing management is the art and
science of choosing target markets and
getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value.

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 Marketing Process
Capture
value from
Create value for customers and customers
build customer relationships in return

Capture
Capture
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valuefrom
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customer marketing delivers andcreate
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needs&wants
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value delight quality
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Core Concepts of Marketing

Needs, wants,
and demands

Markets Products
and services

Exchange,
Value and
transactions,
satisfaction
and relationships
Core Concepts of Marketing
 Need
 Needs, wants, and  Basic human requirements
demands  State of felt deprivation
 Marketing offers:  Example: Need food
including products,  Wants
services and experiences  Needs directed to specific
objects
 Value and satisfaction  The form of needs as
 Exchange, transactions shaped by culture and the
individual
and relationships  Example: Want a Big Mac
 Markets  Demands
 Wants which are backed by
buying power
Core Concepts of Marketing

 Need – food ( is a must )

 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

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Core Concepts of Marketing

 Needs, wants, and  Marketing offering

demands  Combination of
 Marketing offers: products, services,
information or
including products, experiences that satisfy
services and experiences a need or want
 Value and satisfaction  Offer may include
services, activities,
 Exchange, transactions
people, places,
and relationships information or ideas
 Markets
Core Concepts of Marketing
Products
Anything that can be Offered to a Market to Satisfy a Need or Want

Experiences
Experiences Persons
Persons Places
Places

Organizations
Organizations Information
Information Ideas
Ideas

Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything
Market Offerings - examples

 Marketing places :
Creating positive
attitudes or
maintaining attitudes
& behavior toward
particular places
Core Concepts of Marketing
 Value
 Needs, wants, and  Customers form
demands expectations regarding
 Marketing offers: value
including products,  Marketers must deliver
services and experiences value to consumers
 Value and satisfaction
 Satisfaction
 A satisfied customer will buy
 Exchange, transactions again and tell others about
and relationships their good experience
 Markets
 Core Concepts of Marketing

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
Core Concepts of Marketing
 Exchange
 The act of obtaining a
 Needs, wants, and desired object from someone
demands by offering something in
 Marketing offers: return
including products,  Transaction
services and experiences  Trade of values between two
 Value and satisfaction or more parties
 One exchange is not the goal,
 Exchange, transactions relationships with several exchanges
and relationships are the goal
 Markets  Relationships are built through
delivering value and satisfaction
 Marketing network ğ consists
of the company and all its
supporting stakeholders
Core Concepts of Marketing
 Needs, wants, and  Market
demands  Set of actual and
 Marketing offers: potential buyers of a
including products, product
services and experiences
 Marketers seek buyers
that are profitable
 Value and satisfaction
 Exchange, transactions
and relationships
 Markets
Simple Marketing System
Communication

Products/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
Which of the following is the feature of
the marketing?

(a) Needs and wants

(b) Creating a market offering
(c) Customer value
(d) All of the above
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Company Orientations Towards the
Marketplace- Management Philosophy
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
Production Concept
 Consumers will favor those products that are
widely available and low in cost.
 Managers concentrate on achieving high
production efficiency and wide distribution.

 The assumption is valid at least in 2 situations :

 The demand for a product exceeds supply (suppliers will
concentrate on finding ways to increase production)
 The product’s cost is high and has to be decreased to
expand the market.
Product Concept
 Consumers will favor those products that offer
the most quality, performance or innovative
features.
 Managers in product-oriented organizations
concentrate on making superior products and
improving them over time.
 The assumption ğ the customers will admire
well-made products and can evaluate product
quality and performance
 This concept may lead to marketing myopia
Selling Concept
 Agressive selling and promotion
 Assumptions are;
 Consumers must be convinced of buying company
products
 Company is powerful in generating effective selling and
promotion to stimulate more buying
 This concept is mostly used by firms which have
overcapacity.
 The aim is “to sell what they make” rather than
“make what the market wants.”
 Short-term profits are more important (customer
dissatisfaction may occur)
Marketing Concept
 Key to achieving organizational goals consists
of being more effective than competitors in
creating, delivering and communicating
customer value to target markets.

 4 pillars of modern marketing :

1. Target market
2. Customer needs
3. Integrated marketing
4. Profitability through customer satisfaction
_________ concept is based on those companies who believe in
this philosophy that quality of goods or services of good
standard can easily attract customers.

(a) Marketing concept
(b) Production concept
(c) Product concept
(d) Selling concept
Marketing and Sales Concepts Contrasted
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

Marketing Concept (cont.)
1) Target market ğ homogenous group of customers
to whom the company wishes to appeal
2) Customer needs
 Consumers may not be fully conscious of their needs
 It may not be easy to articulate these needs
 They may use words that require some interpretation
 Customer-oriented thinking ğ to define customer needs from
the customer’s point of view
 Sales revenue ğ New customers + Repeat customers
 “Customer Retention” vs. “Customer Attraction”
 Customer satisfaction is a function of the product perceived
performance and buyer’s expectations
Marketing Concept (cont.)
3) Integrated Marketing
1. Various marketing functions must work together for
customer satisfaction (coordination of 4Ps; marketing
mix elements)
 Marketing Mix ğ controllable variables the company puts
together to satisfy its target market(s).
Product: Product variety, quality, design, features, brand name,
packaging, sizes, services, warranties, returns
Price: List price, discounts, allowances, payment period, credit
terms
Promotion: Sales promotion, advertising, sales force, public
relations, direct marketing
Place: Channels, coverage, assortments, locations, inventory,
transport
Marketing Concept - The 4 P’s
 Marketing Concept - The 4 P’s ğ The 4 Cs

Marketing
Mix

Product Place

Convenience
Customer
Solution Price
Promotion

Customer
Cost Communication
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Identify the elements of marketing mix:-

(a) Product
(b) Price
(c) Promotion
(d) All of the above
Marketing Concept (cont.)

Integrated Marketing (cont.)

2. Marketing must be well coordinated with other
departments in the company;
all departments have to work together to satisfy
customers’ needs and wants

4) Profitability through customer satisfaction

 To achieve profits as a result of creating superior
customer value
 Customers
Front-line people
Middle Management
Top
Management
Organization Chart
Modern Marketing Concept Traditional
Modern Marketing Concept Customer-
Oriented Organization Chart

Customers

Front-line people

Middle management

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