MARKETING-MKT243/260

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An Overview Of
Marketing

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What is Marketing
 Marketing has two components:
 1.The first component of

marketing is its philosophy - a

customer oriented philosophy
 2.The second component is the

set of activities in marketing:

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 Marketing planning
 Marketing research
 Product development
 Pricing and promotion
 Distribution
 Market segmentation

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 The AMA Definition of
Marketing
 Marketing is the process of
planning and executing the
conception,pricing, promotion
and distribution of ideas,
goods and services to create
exchanges that satisfy
individual and org.objectives.
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The Concept of exchange
3. Exchange is the key concept in
the definition of marketing.
4. There are five conditions of
exchange that must be satisfied
for marketing to occur :
5. 1.There must be at least two
parties.
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 2.Each party have something of
value to the other party
 3.Each party must be capable of

communicating with the other

party

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 4.Each party must be free to
accept or reject the other’s offer
 5.Each party must believe that

it is appropriate to deal with the

other party.

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 Many selling situations satisfy all
five conditions for exchange, but
unless purchase or trade takes
place, exchange does not occur.
 Marketing can occur even if

exchange does not takes place.

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Four Marketing management
philosophies
 1.Production orientation
 2.Sales orientation

 3.Market orientation

 4.Societal orientation.

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Production orientation
 Mgt focus on the internal
capabilities of the firm. e.g
“What can we do best?” “What
can engineering design?” “What
is economical and easy to
produce the product?”
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Sales orientation
 Mgt focus on aggressive /hard
selling
 States that buyers resist

purchasing nonessentials.
 Buyers will buy more goods if

aggressively persuaded to do so
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Market orientation
 States that the social and
economic justification for an
organization’s existence is the
satisfaction of customer wants
and needs while meeting
organizational objectives.
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The main pillars of the marketing
concept
 1.Target market
 2.Customer needs

 3.Integrated marketing

 4.Company

objectives/profitability

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Integrated/coordinated marketing
 Two levels of integration :
 1.Integration within the

marketing department
 2.Integration between

marketing and other business

function.
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 Integrated marketing requires
two types of activities:
 1.Internal marketing-marketing

to the co. employees

 2.External marketing-marketing

to the target market.

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Societal orientation
 Focus on customer needs,
org.objectives and society’s
long term best interests.
 E.g Environmental protection,

smoking in public places,

alcohol marketing
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2
On Line
On Line Achieving a Market Orientation
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http://www.westernunion.com

 Obtain information about customers, competitors,

and markets
 Examine the information from a total business
perspective
 Determine how to deliver superior
customer value
 Implement actions to provide value
to customers

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Definition of business
 Explain the definition of a
business from a product
orientation and market
orientation perspective

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Definition of business
 A product orientation defines a
business in terms of goods and
services
 E.g Nikon-We sell camera

 Bandai- we sell toys

 Proton- We sell cars

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Definition of business
 A market orientation defines a
business in terms of benefits.
 E.g Nikon - We preserve

memories
 Bandai - We sell children

entertainment
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The differences between sales
and market orientation.
 1.Organizational focus
 2.Business

 3.Customers

 4.Primary goal

 5.Tools for goal achievement

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Organizational focus
 Sales orientation focus inward
upon the firm’s own need.
 Market orientation focus

outward on the wants and

preferences of customers.

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Business
 A Sales orientation is in the
business of selling goods and
services
 A market orientation is in the

business of satisfying consumer

wants and needs.
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Customers
 A sales orientation directs the
firm’s output at everybody
 A market orientation directs

goods toward specific groups of

people.

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Primary Goal
 Sales orientation--is to make
profit through maximizing sales
volume
 Market orientation--is to seek

profit through customer

satisfaction.
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Tools for goal achievement
 Sales orientation -- intensive
promotion
 Market orientation--Coordinated

marketing effort.

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3
The Organization’s Focus
Key
Key Issues
Issues in
in
Developing
Developing
Competitive
Competitive
Advantage
Advantage

Create
Create Build
Build Long-
Long- Maintain
Maintain
Customer
Customer Term
Term Customer
Customer
Value
Value Relationships
Relationships Satisfaction
Satisfaction

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3

Customer Value

The ratio of benefits to

the sacrifice necessary
to obtain those benefits

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http://www.ZanesCycles.com
http://www.ZanesCycles.com

Customer Value Requirements

 Offer products that perform
 Give consumers more than they expect
 Avoid unrealistic pricing
 Give the buyer facts
 Offer organization-wide commitment in
service and after-sales support

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3
Customer Satisfaction

The feeling that a product

has met or exceeded the
customer’s expectations.

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3 Maintaining Customer
Satisfaction
On Line
On Line
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http://www.volvocars.com

 Meet or exceed customer’s expectations

 Focus on delighting customers
 Provide solutions to customer’s problems
 Cultivate relationships,
NOT one-time transactions

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3

Relationship Marketing

The name of a strategy

that entails forging
long-term partnerships
with customers, both
individuals and firms.

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3

Relationship Marketing
Who
Who are
are your
your customers
customers

What
What do
do customers
customers value
value

What
What do
do they
they want
want to
to buy
buy
Requirements
Requirements
for
for
Building
Building
Relationships
Relationships
How
How do
do they
they prefer
prefer to
to interac
intera

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3 Building Long-Term
Relationships
 Customer-oriented personnel

 Effective training programs

 Empowered employees

 Teamwork

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The marketing process

 1.Understanding the co.mission

 2.Setting marketing objectives

 3.Performing a situation analysis

(SWOT analysis)
 4.Developing a marketing

strategy
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 5.Implementing the marketing
strategy
 6.Designing performance

measures
 7.Evaluating marketing efforts

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Reasons for studying marketing
 1. Marketing plays an important
role in society
 2.Important to business

 3.Provide careers

 4.Affects your everyday life

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 SEKIAN
TERIMA KASIH

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