2. Course:
Principles
of
Marketing
Course Outline
Introduction to Marketing
Marketing Functions, Roles and Strategy
Evaluating opportunities in the changing
marketing environment
Customer Characteristics
Market Segmentation
Mr. Abdirizak, Principles of Marketing
3. Course:
Principles
of
Marketing
Introduction to Marketing
• Marketing is the management process responsible for identifying,
anticipating and satisfying customer requirements profitably. Marketing
deals with customers creating customer value and satisfaction are the
heart of modern marketing thinking and practice. Traditional view of the
marketing asserts that the customer will accept whatever product the
seller presents to them. In this way the main concern of the producer is
to produce without considering the choice or the behavior of the
customer. The modern concept may be viewed from the customer’s point
of view. Marketing is centered around the customer.
• Marketing performs all those functions which are necessary to pass on
goods from producer to the consumers in process to satisfy their needs.
Thus, the prime objective of modern marketing is the satisfaction of
customer’s needs. Therefore, marketing functions are not limited to the
functions of buying and selling but they include all functions necessary to
satisfy the customer such as financing, storage, risk bearing and after sale
series.
Mr. Abdirizak, Principles of Marketing
4. Course:
Principles
of
Marketing
Meaning of Market
• Market is a centre around which marketing activities revolve. A
market, in general, may be described as a place where goods
and services are offered for sale, buyers and sellers meet and
the title to goods is transferred. In olden days, buying and
selling of goods was done by coming together in periodical fares
held at specific places and on specific dates. Sellers put their
commodities in these periodical fares for sales and buyers also
used to go there to purchase the commodities according to
their needs.
• 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
Mr. Abdirizak, Principles of Marketing
5. Course:
Principles
of
Marketing
Definitions of Marketing
• According to American Management Association (AMA),
“Marketing is the performance of business activities that direct
the flow of goods and services through producers or users”.
• “Marketing is analyzing organizing, planning and controlling of
the firms customer impinging resources, policies, activities with
a view to satisfy the needs and wants of chosen customer
groups at a profit”. - Philip Kotler
Mr. Abdirizak, Principles of Marketing
6. Course:
Principles
of
Marketing
Concept of marketing
• The marketing concept is about matching a company’s capabilities
with customer wants. This matching process takes place in what is
called the marketing environment.
The components of marketing concept are as under:
• i) Satisfaction of Customers: In the modern era, the customer is the
focus of the organization. The organization should aim at producing
those goods and services, which will lead to satisfaction of
customers.
• ii) Integrated marketing: The functions of production, finance and
marketing should be integrated to satisfy the needs and
expectations of customers.
• iii) Profitable sales volume: Marketing is successful only when it is
capable of maximizing profitable sales and achieves long-run
customer satisfaction.
Mr. Abdirizak, Principles of Marketing
7. Course:
Principles
of
Marketing
Scope of Marketing
• (i) Employment opportunities: It creates employment opportunities because
sales and marketing is a people oriented activity.
• (ii) Increases national income: It increases the Per capita and national income.
• (iii) Improves the standard of living: It improves the standard of living of the
people.
• (iv) Satisfies the needs: It satisfies the needs of the people by providing the
goods to the customers.
• (v) Improves transport: It improves transport and communications.
• (vi) Establishes a better relationship: It establishes a better relationship
between the buyer and the seller.
• (vii) Economic stability: It achieves economic stability.
• viii) Location: It makes goods available to all geographic locations.
• xiii) Reduces the cost per unit: Mass production reduces the cost per
unit of the product.
Mr. Abdirizak, Principles of Marketing
8. Course:
Principles
of
Marketing
Modern Concept of Marketing
• Philip Kotler expresses the same idea in other words “The market
concept is customer orientation backed by integrated marketing aimed at
generating customer satisfaction as the key to satisfy organizational
goals”. The marketing concept holds that the key to achieve it’s
organizational goals consistsof the company being more effective than
competitors in creating, delivering and communicating customer value to
it’s chosen target markets. The Marketing concept has been expressed as
follow:
• (i) “Meeting Needs Profitability”.
• (ii) “Find Wants and Fill Them”.
• (iii) “Love the customer, not the Product”.
• (iv) “You are the Boss”.
• (v) “Partners for Profit”.
Mr. Abdirizak, Principles of Marketing
9. Course:
Principles
of
Marketing
Needs, Wants, Demand, Value, Satisfaction and
Prospects
• A need is a desire or wish that is physiological, psychological, security, esteem and
actualization. A want is something wanting a deficiency. A want in marketing
terminology means need plus ability to pay.
• Demands: When needs arise, wants crop up, there comes demand. Demand is a
situation where the person is willing to buy a product and has the ability to pay
for it. That demand is expression of need supported by his purchasing power.
• Value as seen from the angle of customer, is the capacity of a product or service
from which consumer derives a certain level of satisfaction. A value is judged by
the level of satisfaction.
• Satisfaction is a state of mind and cannot be measured as it cannot be quantified.
• Marketer: A marketer is an individual or an institution who is engaged in making
available the goods; he has his own portfolio the range of products he can offer to
the interested buyers. Marketer creates only place, time ownership and
awareness utility.
• Prospects: Counter part of market and marketing is prospects.
Mr. Abdirizak, Principles of Marketing
10. Course:
Principles
of
Marketing
Importance of a Marketing
• i) Delivery of Standard of Living: The main objective of marketing is to
provide goods and services to the people in the society to satisfy their
needs and wants at a reasonable price.
• Provides Employment: (whole sale, retail, transport,
communication)
• Decreases in Distribution Cost and increase national income
(because of the increase in demand and supply)
• Helpful in Business Planning and decision making:
• Helpful in Increasing Profits & Communication between firm
and the community
Mr. Abdirizak, Principles of Marketing
