2. At the end of this chapter, students will be able to:
Learning Outcomes
•Define the meaning of marketing
•Identify and explain the five basic concepts in marketing
•Define the meaning of marketing management
•Identify and explain the five types of marketing
•Discuss customer relationship management
TOPICS
3. WHAT IS MARKETING
IS IT ABOUT SALES
1.1 Definition of Marketing
TOPICS
IS IT ABOUT PROMOTION
IS IT ABOUT ADVERTISING
5. Fig. 1
Marketing is managing profitable
customer relationship
TOPICS
1.1 Definition of Marketing
6. Fig. 1
Marketing is a process of planning & executing the
conception, pricing, promotion & distribution of
ideas, goods & services to create exchanges that
satisfy the objectives of individuals & organizations’
goals.
1.1 Definition of Marketing
14. 1-2: Basic Concepts in Marketing
Value: The difference between the benefit a person gained from a
product and the costs incurred in obtaining the product.
Satisfaction: The difference between a product’s perceived performance
in delivering value relative to a buyer’s expectation before a product is
purchased.
If perceived performance <
>
=
Buyer expectations = dissatisfied buyer
If perceived performance Buyer expectations = satisfied buyer
If perceived performance Buyer expectations = delighted buyer
1.2.3. Value, Satisfaction & Quality
Basic
Concepts
15. 1-2: Basic Concepts in Marketing
The act of obtaining
a desired object
from someone by
offering something
in return.
1.2.4. Exchange, Transaction & Relationships
Basic
Concepts
16. 1-2: Basic Concepts in Marketing
Fig. 5
1.2.5. Market
A Market is the set of
actual and potential
buyers of a product.
Basic
Concepts
17. 1-3: Marketing Management
“Marketing management 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 organizational goals. ”
1.3. Marketing Management
Basic
Concepts
18. 1-4: Classification of Marketing
Click on each button for details
1.4. Philosophy of Marketing Management
PRODUCTION
PRODUCT
SELLING SOCIETAL
MARKETING
MARKETING
19. 1-4: Classification of Marketing
❖The oldest concepts in
business
❖The production concept
holds that people will
prefer products that are
available and reasonably
priced.
❖ Dominant era: 1870 to
1920s coincides with
‘industrial revolution’
in United States
1.4.1. The Production Philosophy
20. 1-4: Classification of Marketing
❖The products concept holds that consumers will
favour products that offer the most in quality,
performance, and innovative features.
❖Product quality is an important part of most
marketing strategies.
❖ Dominant era: Around the time of production
concept
1.4.2. The Product Philosophy
21. 1-4: Classification of Marketing
❖The selling concept holds that
consumers will not buy enough of the
organization’s products unless it
undertakes a large-scale selling and
promotion effort.
❖Such goods are insurance, funeral plot,
encyclopaedias, and blood donation.
❖This concept is practised with unsought
goods.
1.4.3. The Sales Philosophy
22. 1-4: Classification of Marketing
An idea that an
organization should try to
satisfy customer’s needs
through coordinated
activities that also allow it
to achieve its own goal.
Fig. 12
1.4.4. The Marketing Philosophy
23. 1-4: Classification of Marketing
The societal marketing
concept holds that the
organization’s task is to
determine the needs, wants,
and interests of target
markets and to deliver the
desired satisfactions more
effectively and efficiently
than competitors in a way
that preserves or enhances
the consumer’s and the
society’s well-being.
1.4.5. The Societal Marketing Philosophy
