chap 1

1. INTRODUCTION TO
MARKETING

2. Introduction To Marketing by;
W.J Stanton
Principles Of Marketing by;
Philip Kotler
Introduction To Marketing by;
Faisal Rashid Ghouri
Principles Of Marketing by;
Armstrong and Philip Kotler

3. Basic definition:
“Marketing consists of all those activities, which
direct the flow of ideas, goods and services
from producer to a consumer”.
Marketing is a process which starts with the
customer and ends at customer.
Marketing means to “RUN”/ manage the
market

4. M=market
A= awareness
R= retailing
K= knowledge
E= education
T= training
I= information
N= niche
G= geography

5. Origin of marketing
Most of the nations are interested in economic growth
• One of the tool regarding this is MARKETING
• Those countries have developed well, that has effective marketing
system.
• ORIGIN
• Origin of marketing is originated from “Adam Smiths system of
free enter prize”
• Laissez- faire (French phrase)
• “to let people do as they choose”
• (less government interaction , with generation of wealth
and assets)
This is an ideal concept……… USA , European countries always tried
to achieve it.
every body is free to produce what ever they like .

6. SOCIAL SYSTEM OF KARL MARX (1818 – 1883 )
He challenged free enterprise economy and argued that wealth will
remain in few hands . (Exploitation of community) he favored the
development of society.
DISCUSSION
Free enterprize vs state controlled system (communist states of
authoritarian rule).
• Eastern Europe soviet union was towards Marxism ( state control)
• Western Europe USA towards free enterprise
• So two blocks were formed , which have a friction until the fall of
USSR in 1989 – 90 ( which is a strong supporter of Marxism )

7.  COLD WAR uptil 1990
 Result = Infect no system can exist in their ideal form . Best system is mixed economy .
Evolution of marketing or HISTORICAL ERA’s
 Historical grouping of time Before it barter trade was popular
1. Agriculture era (land production)
Different techniques were introduced
Land was considered as an effective tool for generation wealth and mark
for prosperous nations.
2. Industrial Era (revolution ) 1970 Great Britain , USA
Three characteristics of revolution
 Machines in place of labor
 Work is shifted from homes to factories .
 Efficiency and output were felt important .
RESULT Growth of industries First tool than machines . Advancement took place

8. 3 PRODUCTION ERA
 Manufacturers were interested in increasing output by assuming that customer will buy
what ever is present in the market .
 Thinking was successful , in that era where market demand was more.
 Production in a bulk was considered a key to success.
Raw material from third world country started flowing towards these nations, so the
“revolution in the sense has started” .
 Manufacturers aim was to produce more at lower cost and marketer aim was to fill the
demand .
 This continued uptil 1st
world war in which the only production was of arms and it was
modified to build products. After that in (1929 – 39) there was great depression.
 Immediately after the war world was facing major economic crises.
 2nd
great depression is of world war 2, After which government of every nation take notice of
across border movement (caravans come and go)
 Great depression change the concepts after which people have the output but don’t know

9. 4 SALES ERA (1950)
 Production was no problem so the customers has preference and choice among all the
goods present.
 Manufacturers were worried about the sales , for this reason they adopted promotional
tools like; (ADV, low pricing)
 They tried to sell what ever they have produced in the past, by promotional activities
also they invented new selling techniques.
 But the problem arose when the customer was not satisfied after buying the goods due
to the aggressive selling by a manufacturers.
 ( Pakistan stands here) that is why concept of marketing look strange to us.

10. 5 MARKETING ERA
 After the war , demand for the goods increased , so production began to
increase but due to lot of companies customer has more choices .
 Awareness in the customer increases with the passage of time. And they
were having more choices as well. So companies offered;
Customers satisfaction
After sale service
Friendly discounts
Quality etc:

11.  so this perception of the customer change the concept of the manufacturers they start
believing in customer needs and wants, and extra benefits and satisfaction.
Production under “Marketing stage” is made in view of customers demand .
Then the product is produced and launched .
Manufacturers words “ instead of choosing from what you have to offer, the new
consumer tells you what he wants , you figure out how to supply it”.
( Pakistan is in the selling – Marketing era)

12. 6-SOCIAL MARKETING ERA
 Marxism ( state controlled under some rule and regulations)
 Consumers are not judged as individual but they are considered as social markets, member
of the community for the first time.
 Example
 Polythene bags
 Ozone depletion
 Nuclear dumping
 Pollution.
7-INFORMATION ERA
8-COMMUNICATION ERA
9- AUTOMATION ERA

13. • “Marketing is many things. It is essential to the survival of most organization, it is
fast paced and dynamic; it is highly visible; it is rewarding to its successful
practioners and frustrating to the less fortunate and sometimes it is
controversial. But one thing you can be sure of, it is never dull!
Welcome to the place where an organization meets the public where its ideas, planning
and execution are given the ultimate test of the market acceptance or rejection”
• (Philip Kotler)
• NATURE AND SCOPE OF MARKETING
• Every time we buy goods or services marketing is involve
• Barter trade, or other transactions of goods marketing is involve
• When we vote or denote charity
• Make our C-V marketing is involve
• Interview
• Communication between two or more parties
• Presentation
• (Essence of marketing is transaction or exchange)

14. CONDITIONS FOR MARKETING EXCHANGE
Two or more people or organization
Willingness of both parties (win-win situation)
each party must get some value in exchange
communication
directly
or through third party
through agreement
verbally
Marketing Terminologies
Decision Makers
Consumers ultimate users of the product
Purchasers who carries out the transaction
Influencers who effects the decision of the others
Marketer build marketing plans to facilitate the exchange
win-win situation, make the transaction to actually
happen
Product anything offered for attention, acquisition, use or
consumption to the market is a product

15. DIFFERENCE BETWEEN NEEDS AND WANTS
• NEEDS
Can be viewed in a strict physiological sense (food-clothing-shelter)
WANT
Everything else is a want
NECCESSITY
Without which you will suffer for the time being. (in rain-you need umbrella)
PRODUCT
Goods-service-idea-person-place
UTILITY
Capability of a product to satisfy human wants is utility

16. • Form Utility TYPES OF UTILITY
Physical or chemical changes that makes a product more valuable. (furniture is
made from wood; form utility is created).
• Place Utility
Product is shifted from one place to another for easy access of the customer.
• Time Utility
Product is made available when needed.
• Information Utility
by advertizing that the product exist with its features, so that customer gets curios
about it. BLACK IS COMING!!!!
• Image Utility
emotional or psychological association because of value of product (image,
prestige, status, brand loyalty, good will)
Possession Utility
It is created when customer buys the product and take the ownership of it.

17. DEFINITION 1
 W.J Stanton and Charles Futrell
“Marketing is a total system of business activities designed to plan,
price, promote, and distribute wants satisfying products, services and
ideas to target market in order to achieve organizational objectives”
 Total business activity and it should be consumer oriented
 Customers need and wants should be satisfied
 Proper planning, pricing, promotion is necessary for exchange
 Products may be tangible or in-tangible(physical or non physical.
 This implies that marketing starts with the generation of an idea and continues
until customer is satisfied
 Organizational objectives (profit)

18. DEFINITION 2
W.J Stanton and Charles Futrell
“ marketing consists of all activities designed to generate and
facilitate any exchange intended to satisfy human needs and
wants”
Key Points
Exchange
two or more people or organization
both gets some value
both get involved because of satisfaction
broader definition not only limited to business but all activities
related to satisfaction (NGO’s social work)
Voluntary exchange which will give satisfaction
tangible and intangible products exchange of ideas is a
marketing activity.

19. DEFINITION 3
Cundiff and still
“Marketing is a managerial process by which products
are matched with market”
 Key Points
Product must matched with markets
Supply and demand should be fulfilled (equilibrium)
According to the demand in the market products are manufactured
and supplied

20. DEFINITION 4
Marketing staff of OHIO university
“Marketing is the process in a society by which demand structure for
economic goods and services are anticipated or enlarged and then
satisfied through the conception, promotion, exchange and physical
distribution of such goods and services”.
• Key points
Product should be developed in light of customers perception
Definition gives the concept of social welfare
Demand should be fulfilled but under the consideration of social
well being.

21. DEFINITION 5
AMA American Marketing Association
 “Marketing consists of all those activities which direct the flow of ideas, good and services from
product to the consumer”
Key Points
All activities involve delivering the product to ultimate consumer is marketing
This process leads firms to profit and success
Business activities are involved i.e; adv, personal selling, distribution, planning etc.

22. CompetentCompetent
LikableLikable
Customer-
Oriented
Customer-
Oriented
DependableDependable
HonestHonest

23. Salesperson
An individual acting for a company by
performing one or more of the following
activities:
 Prospecting,
 Communicating,
 Serving, and
 Information gathering.

24. The customers come to the
salespeople.
–Mostly involves retail-store selling.
–Most salespeople fall into this category.
 The salespeople go to the customers.
–Usually represent producers or wholesaling
middlemen and sell to business users.
–Some outside selling is relying more on
telemarketing.

25. DIFFERENCE BETWEEN SELLING AND MARKETING
SELLING MARKETING
1- Internally Focused Externally focused
2 – Emphasis is on a product Emphasis is on customer
and production
3 – First make a product and see customer demand makes a
then figure out how to sell product accordingly and deliver it ,
where there is demand.
4 – Volume oriented activity as all profit oriented activity and
the efforts are made to produce desire fulfillment and profit of a
more with cost of production low company also.
5 – Short term activity is planning (strategic planning) is long term as
is limited . Will be changed and improve
accordingly to people perception.
6 – Manufacturers sellers are given buyers, customer are given priority
priority
7- Business activity no socialism in social and economic activity.
It.
8 – Profit is a goal “customer satisfaction” is a goal.

26. Marketing concept
There are many manufacturers in this world producing in a bulk.
But only those succeed who satisfy the demand of the customer.
So the aim of every business should be the “satisfaction of the customer”.
Sam Walton, founder of ‘Walmart’ says
“There is only one boss: The Customer”
Selling concept
Holds that , if customer left alone will not buy at their own . The co’ s must
adopt aggressive selling effort.
Social Market concept
Satisfaction of the consumer will be in the socitial well being

27. Philosophy of marketing concept
1- Customer orientation Policies
2- Integrated marketing approach
3- need satisfaction aim.
4- Achievement of organizational goal.
Customer orientated policies
In this regard quality, standard and prices of the product must be according to the
demand of the customer.
Customer requirements must be fulfilled to justify the firms social and economic
existence.
So in the light of this concept every department of a company and every employee
should be focused on contributing the satisfaction of customer.
Integrated marketing approach (co-ordination)
This means that marketing is a job of every employee and it creates sense of
motivation with in a company .
Customers needs and firms response for the achievement of organizational
objectives.
Pooling of abilities of every employee or contribution of every employee.

28. Customer satisfaction
satisfaction of the customer is top priority in return co’ s will earn good will.
Organizational goals
is to;
earn profit
benefit more and more people
it can only be achieved if customer is satisfied
Key terminologies
Relationship marketing
Mass Customization
“Developing, producing, and delivering affordable products
with enough variety and uniqueness that nearly every
potential customer can have exactly what he or she wants”