An Overview

of Marketing
CHAPTER 1
LEARNING OUTCOMES

1.1 Overview of marketing

1.2 Elements of marketing mix (4P’s)

1.3 Marketing management philosophies

1.4 External marketing environment

 LO 1 : Overview of marketing

Definition of Marketing
The American Marketing Association’s definition of marketing focuses on the second facet.

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.

Marketing involves more than just activities performed by a group of people in a defined
area or department.
 The term marketing mix refers to a unique blend of product,
place (distribution), promotion, and pricing strategies
(often referred to as the four Ps) designed to produce
mutually satisfying exchanges with a target market.
LO 2 :Elements of
marketing mix
(4P’s)
The Four Ps
1. Product
2. Price
3. Place
4. Promotion
Product
• Everything, both favorable and
unfavorable , that a person receives in an
exchange
• The product includes not only the physical
unit but also its package, warranty, after-
sale service, brand name, company image,
value, and many other factors. Products
can be tangible goods such as computers,
ideas like those offered by a consultant, or
services such as medical care.
Price
• That which is given up in an
exchange to acquire a good or
service.
• Price is what a buyer must give up
to obtain a product. It is often the
most flexible of the four marketing
mix elements—the quickest
element to change.
Place
• Place, or distribution, strategies are
concerned with making products
available when and where customers
want them.
Promotion
• Communication by marketers that informs,
persuades, and reminds potential buyers of a
product in order to influence an opinion or
elicit a response

• Promotion includes advertising, public

relations, sales promotion, and personal
selling. Promotion’s role in the marketing mix
is to bring about mutually satisfying
exchanges with target markets by informing,
educating, persuading, and reminding them of
the benefits of an organization or a product.
LO 3 :Marketing management philosophies

Orientation Focus is on…

Production internal capabilities of the firm

Sales aggressive sales techniques and belief

that high sales result in high profits

satisfying customer needs and wants

Market while meeting objectives

satisfying customer needs and

Societal wants while enhancing individual and
societal well-being
Production Orientation Societal marketing orientation
A production orientation is a philosophy that extends the marketing concept by acknowledging
focuses on the internal capabilities of the that some products that customers want may not
firm rather than on the desires and needs of really be in their best interests or the best
the marketplace. interests of society as a whole.

A sales orientation
is based on the ideas that people
will buy more goods and services if
aggressive sales techniques are
used and that high sales result in
high profits.

Market orientation
A philosophy that assumes that a sale
does not depend on an aggressive
sales force but rather on a customer’s
decision to purchase a product.
LO 4 : External marketing environment

• External environment/factors (outside the firm) where firms

work and compete, it is that things are constantly changing.

• If the organization doesn’t understand or fails to react to the

changing world around it, it will soon be a follower rather
than a leader. In the worst case scenario, the firm might
disappears.
LO 4 : External marketing environment
External Environment
Internal (uncontrollable) Social
(within the Factors
organization)
Demographics
Marketing mix

Economic
Product Factors
Distribution
Promotion
Price
Competition
Target Market
Political &
Legal
Factors
Technology
Environmental
Scanning
Political and Legal Factors
• Business needs government regulation to protect innovators
of new technology, the interests of society in general, one
business from another, and consumers. In turn, government
needs business because the marketplace generates taxes.

• Federal Legislation - Federal laws that affect marketing. For

example: Malaysia government.
• State Laws - Legislation that affects marketing varies state by
state. For example: Sarawak state government.
• Regulatory Agencies - Agencies directly and actively involved
in marketing affairs. For example KPDNK
Political
and Legal
Factors

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Economic Factors
• Marketing managers must understand and react to the
economic environment.

• The three economic areas of greatest concern to most

marketers are consumers’ incomes (purchasing power),
inflation, and recession.
Economic
Factors
Social Factors

• Values, Attitudes &

Lifestyles
• The Changing Role of
Families and Working
Women
• There Is Never Enough
Time
Social Factors

Social Factors Influence:

Products purchased
Prices paid for products
Effectiveness of promotions
How, where, and when people pur
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Technological • Research

Factors • Global innovation

Technological
Factors
Demographic Factors
Demography - The study of people’s vital statistics, such as their
age, race, ethnicity, and location.

The Cohorts
• Tweens : Ages 9–14
• Teens : Ages 13–19 Gen Z ???
• Gen Y : Born between 1979–1994
• Gen X : Born between 1965–1978
• Baby Boomers : Born between 1946–1964
Competitive
Factors
• Competition for Market
Share and Profits
• Global Competition
 What is your answer?

_______________the study of human populations—

size, density, location, age, gender, race, occupation,
and other statistics.
When the economy is good, income distribution
increase, spending
increase the company can mark up price.

TRUE or FALSE?
 a. new product concepts and improvements

b. selling
The term
marketing refers c. advertising and promotion activities
to: d. a philosophy that stresses customer
satisfaction

e. planning sales campaigns

 a. Companies that protect the environment by using
all-natural materials in their products are showing a
societal marketing orientation.

b. Marketers cannot deliver all benefits sought by

customers because these benefits may not be in
Which of the following statements the long-term best interests of the customers.
about the societal orientation is true?
c. The societal marketing concept is an important
refinement of the market concept.

d. Organizations have both a social and economic

justification for their existence.

e. All of these statements about the societal

orientation are true.
 a. internal environmental
mix

The _____ is the unique blend of b. marketing mix

product, distribution, promotion, and
pricing strategies designed to
produce mutually satisfying c. product mix
exchanges with a target market.

d. product line

e. market portfolio
 TUTORIAL 1
Choose any product/service in the marketplace and
elaborate on its:
1. 4Ps Strategy
2. Marketing Philosophy

To be presented in class & submit PPT in GC