CHAPTER 1:

OVERVIEW OF
MARKETING

LEARNING OUTCOMES
1.0 Explain marketing
1.1.1 Define marketing
1.1.2 Outline the five steps in marketing process
1.2 Identify the marketplace and customer needs
1.2.1 Identify the five core customer and marketplace concepts
Customer needs, wants and demands
Market offerings - products, services and experiences
Customer value and satisfaction
Exchanges and relationships
Markets
1.3 Identify a customer-driven marketing strategy
1.3.1 Discuss marketing concepts
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept
1.4 Explain the major trends and forces that are changing the marketing landscape
1.4.1Explain the digital age
1.4.2 Describe rapid globalization
1.4.3 Discuss the call for more ethics and social responsibility
1.4.4 Identify the growth of not-for-profit marketing

What Is Marketing?
According to Kotler and Armstrong
(2010)

Marketing is the process by

which companies create
value for customers and
build strong customer
relationships to capture
value from customers in
return.

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What Is Marketing Process?

1. Identify needs of market
2. Develop market-oriented marketing

strategy
3. Develop marketing mix (4Ps) strategy
4. Develop relationships with customers
and partners
5. Gain value from customers

1-4

Identify needs of market

Develop relationships with

customers and partners

Develop market-oriented
marketing strategy

Develop marketing mix

(4Ps) strategy

Gain value from customers

1-5

Customer and Marketplace

Concepts
Customer Needs, Wants, Demands

Customer
and
Marketplace
Concepts

Market OfferingProducts, Services and Experience

Customer Value
and Satisfaction
Exchanges and Relationship

Markets

Customer and Marketplace

Concepts
Needs

Definition

Example

Wants

Definition

Demands

Definition

A requirement for something

necessary in a persons life
Physical food, clothing, warmth,
safety
Social belonging, affection
Individual knowledge and self-expression

The form of human needs take as

shapes by culture and individual personality

Human wants that are backed

by buying power

Customer and Marketplace

Concepts

Customer and Marketplace

Concepts
Market Offering

Some combination of products, services ,

information, or experiences offered to a market
to satisfy needs and wants

Anything that can be offered to a market for

attention, acquisition, use or consumption that
might satisfy a want or need.
Benefits of the product offering to
the consumers rather than just the
product itself

Customer and Marketplace

Concepts
Value

Definition

Example

Satisfaction

Definition

Quality

Definition

The difference between the benefit one

gains from a product and the costs
incurred in

In terms of level of satisfaction,

product quality, worth of money

A feeling when benefits of the product or

service meet the customers expectation

Freedom from defect

Customer and Marketplace

Concepts
Exchange

Definition

The act of obtaining a desired object

from someone by offering something
in return

Transaction

Definition

A trade values between 2 parties

Example

Relationship

Definition

money, barter system

Actions taken to build and maintain desirable

connection with target audiences involving
a product, service, idea or other object.

Customer and Marketplace

Concepts
Exchange

Transaction

Customer and Marketplace

Concepts
Market

Definition

Consumer

The set of actual and potential

buyers a product or service

International

Reseller
Government

Business

Customer and Marketplace

Concepts
Marketing

Definition

Managing markets to bring profitable

exchange relationship by creating value
and satisfying needs and wants

Marketing Concepts
Marketing concepts describe marketing management orientations of a
company. It is a philosophy used by a company on how to conduct its
marketing activities. Besides that, these philosophies are believed by
marketers to be able to create a profitable business.

Marketing Concepts
Production Concept
Definition

The idea that consumers will favor

products that are available or
highly affordable

4. Marketing Concepts
Product Concept

Definition

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

Selling Concept
Definition

Starting point

Focus

Means

Ends

Factory

Existing
product

Selling &
Promotion

Profits through
sales volume

Marketing Concepts
Marketing Concept
Definition

Starting point
Market

Focus
Customer
needs

the marketing management

philosophy that holds that achieving
organizational goals depends on
knowing the needs and wants of
target markets and delivering the
desired satisfaction better
than competitors do
Means
Integrated
marketing

Ends
Profits through
customer
satisfaction

Marketing Concepts
Societal Marketing Concept

Definition

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

Marketing Concepts
Societal Marketing Concept

Challenges in Marketing / The New Marketing Landscape

The New Digital Age

Globalization
Ethics and Social Responsibility
The Growth for Not-for-profit marketing

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Challenges in Marketing / The New Marketing Landscape

The New Digital Age

Recent technology has had a major impact

on the ways marketers connect with and bring
value to their customers
Market research
Learning about and tracking customers
Create new customized products
Distribution
Communication
Video conferencing
Online data services
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Challenges in Marketing / The New Marketing Landscape

The New Digital Age

Internetcreates marketplaces
and Marketspaces
Information
Entertainment
Communication

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Challenges in Marketing / The New Marketing Landscape

Rapid Globalization
The world is smaller
Think globally, act locally

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Challenges in Marketing / The New Marketing Landscape

The Call for More Ethics and Social

Responsibility
Marketers are being called upon to take
greater
responsibility for the social and
environmental
impact of their actions in a global
economy.
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Challenges in Marketing / The New Marketing Landscape

The Call for More Ethics and Social

Responsibility
Social marketing campaigns encourage
energy
conservation and concern for the
environment or
discourage smoking, excessive drinking,
and drug
use.
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Challenges in Marketing / The New Marketing Landscape

The Growth for Not-for-Profit

Marketing
Colleges
Hospitals
Museums
Zoos
Orchestras
Religious groups

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