Fundamental of Marketing (MKT420)

Chapter 1 Introduction To Marketing

Topic Outline:

What Is Marketing? Understand the Marketplace and Customer Needs Rules of Exchange What is Marketing Management? Marketing Management Orientation/ Philosophies Differences between sales and market orientation

Kotler. P & Armstong. G, 2008

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

McDaniel, Lamb & Hair, 2008

Marketing is an organization function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and the stakeholder

Understanding the Marketplace and Customer Needs

Core Concepts

Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets

Customer Needs, Wants, and Demands

Needs Wants Demands

States of deprivation Physicalfood, clothing, warmth, safety Socialbelonging and affection Individualknowledge and self-expression

Form that needs take as they are shaped by culture and individual personality

Wants backed by buying power

Needs

What is Exchange?
Exchange is the act of obtaining a desired object from someone by offering something in return

High Five (H5)

Rules of exchange

Five conditions must be satisfied for an exchange to take place:

1. 2. 3. 4.

5.

There must be at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to accept or reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.

What is Market?
Markets are the set of actual and potential buyers of a product

Marketing Management Orientations/ Philosophies (PPSMS)

Production concept

Product concept

Selling concept

Marketing concept

Societal concept

Marketing Management Orientations

Production concept is the idea that consumers will favor products that are available or highly affordable

Marketing Management Orientations

Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.

Marketing Management Orientations

Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

Marketing Management Orientations

Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do.

Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests

Differences between sales and market concept

The Organizations Focus Customer value Customer Satisfaction Building relationships The firms business Those to whom the product is directed\ The firms primary goal Tools the organization uses to achieve its goals

Trends in Marketing
Major Developments

Digital age

Rapid globalization

Ethics and social responsibility

Not-for-profit marketing

END OF CHAPTER 1
ASSIGNMENT 1