Chapter 1 (introduction)


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Chapter 1 (introduction)

  1. 1. Fundamental of Marketing MKT243 Chapter 1 IntroductionDHD2010 MKT243 Fundamental of Marketing 1
  2. 2. 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 orientationDHD2010 MKT243 2 Fundamental of Marketing
  3. 3. What is Marketing?• Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return (Kotler. P & Armstong. G, 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. (McDaniel, Lamb, Hair, 2008)DHD2010 MKT243 3 Fundamental of Marketing
  4. 4. Understanding the Marketplace and Customer Needs Core Concepts• Customer needs, wants, and demands• Market offerings• Value and satisfaction• Exchanges and relationships• MarketsDHD2010 MKT243 4 Fundamental of Marketing
  5. 5. Understanding the Marketplace and Customer Needs Customer Needs, Wants, and DemandsDHD2010 MKT243 5 Fundamental of Marketing
  6. 6. Understanding the Marketplace and Customer Needs Exchange is the act of obtaining a desired object from someone by offering something in returnDHD2010 MKT243 6 Fundamental of Marketing
  7. 7. Rules of exchange • Five conditions must be satisfied for an exchange to take place: 1. There must be at least two parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party. • Exchange may not take place even if all of these conditions exist, but these conditions are necessary for exchange to be possible.DHD2010 MKT243 7 Fundamental of Marketing
  8. 8. Understanding the Marketplace and Customer Needs Markets are the set of actual and potential buyers of a productDHD2010 MKT243 8 Fundamental of Marketing
  9. 9. What is the Marketing Management?Marketing management is the art and science of choosing target markets and building profitable relationships with them – What customers will we serve? – How can we best serve these customers?DHD2010 MKT243 9 Fundamental of Marketing
  10. 10. Marketing Management Orientations/ PhilosophiesDHD2010 MKT243 10 Fundamental of Marketing
  11. 11. Marketing Management Orientations• Production concept is the idea that consumers will favor products that are available or highly affordable• 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.DHD2010 MKT243 11 Fundamental of Marketing
  12. 12. Cont…• Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effortDHD2010 MKT243 12 Fundamental of Marketing
  13. 13. Cont… • 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 doDHD2010 MKT243 13 Fundamental of Marketing
  14. 14. Cont… •Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long- run interestsDHD2010 MKT243 14 Fundamental of Marketing
  15. 15. Differences between sales and market orientation • The Organization’s Focus • Customer value • Customer Satisfaction • Building relationships • The firm’s business • Those to whom the product is directed • The firm’s primary goal • Tools the organization uses to achieve its goalsDHD2010 MKT243 15 Fundamental of Marketing
  16. 16. The Marketing ProcessDHD2010 MKT243 16 Fundamental of Marketing
  17. 17. Trends in Marketing Major DevelopmentsDHD2010 MKT243 17 Fundamental of Marketing