basic introduction to marketing concepts

1. Principles of Marketing
Kokab Manzoor
kokabmanzoor2012@gmail.com
www.facebook.com/kokabmanzoor19
www.youtube.com/kokabmanzoor

2. Course
• Introduction to marketing
• Environmental scanning
• Consumer behavior
• Product development
• Price determination
• Pricing strategies
• Promotion
• Distribution
1-2

3. Principles of Marketing
Chapter # 1
The Field of Marketing
Prepared by
Kokab Manzoor

4. SOME BASIC CONCEPTS
1 Need
• Needs are basic and necessary requirements of
human beings, without fulfillment of which life
will not be possible.
• For example food, shelter, clothing

5. SOME BASIC CONCEPTS
2. Wants
• Those needs which are not basic in nature, but if
we get them life becomes full of comforts
A human need which is shaped
by culture and individual.
i.e. I want a Coca Cola.
I want kebab.

6. SOME BASIC CONCEPTS
3 Demand
Demand is the willingness to pay and
ability to pay for the satisfaction of needs
and wants.

7. 1-7
This is Demand
“Demand”
Buying PowerWant

8. SOME BASIC CONCEPTS
4 Product
• A product may be a good, service, place or an
idea. So all tangible and intangible attributes
which can satisfy human wants are product.

9. SOME BASIC CONCEPTS
5 Market
Market means, “The people or organizations
with needs to satisfy, money to spend and
willingness to spend money”.
• A market is the set of actual and potential
buyers of a product.

10. 1-10
Market - The set
of actual
and potential
buyers of a product.
Actual
Buyers
Potential
Buyers
What is a Market?

11. Definition of Marketing
Marketing is a total system of business
activities designed to plan product, price,
promote, and place (distribute) want-satisfying
product to target markets in order to achieve
organizational objectives.
1-11

12. • “Marketing is the process by which
companies create value for customers
and build strong customer relationships
in order to capture value from
customers in return”
1-12
Definition of Marketing

13. Marketing Process
Understand
the
marketplace
and customer
needs and
wants
Design
customer-
driven
marketing
strategy
Construct an
integrated
marketing
program that
delivers
superior value
Build
profitable
relationships
and create
customer
delight
Capture value
from
customers to
create profits
and customer
equity
Create value for customers
and build customer
relationships
Capture value from
customers in return
By creating value for customers,
marketers capture value from
customers in return.

14. WHY MARKETING….?
• In order to fulfill the needs and wants, the buyers
have a lot of options to purchase a particular
product.
• For example. if you want to purchase a sim card
you can go for Ufone, Jazz, Zong, Telenor etc.
• So to convince and remind the customers to start
using or to keep using their product the
organizations perform the “marketing function.

15. 1-15
Marketing Mix
The “Four P’s”
(Distribution)
roduct
ricing
romotion
lace

16. 1-16
Marketing Mix
The “Four P’s”
• The Marketing Mix
The strategy (Planning) of designing the
combination of products where and when it is
distributed, how it is promoted and at what
price.
Product
Pricing
Place
Promotion
Target
Market

17. 1-17
Market Segmentation & Target
Marketing
Market Segmentation
Dividing a market into
customer categories
Target Marketing
Selecting a category of
customers with similar wants
and needs who are likely to
respond to the same products

18. 1-18
Segmentation and Target Marketing
Market Segmentation:
Divide the market into
segments of customers
Target Marketing:
Select the segment to
cultivate
#1 #2

19. Five Organizational Concepts
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Societal Marketing Concept
It is also known as history of marketing.

20. 1 Production Concept
• The idea that consumers will favor products that
are available & highly affordable.
• The organization should therefore focus on
improving production & distribution.
• In short, it was all about to produce more and
earn more.

21. 2 Product Concept
• The idea that consumers will buy such products that
offer the most quality, performance, & features.
• So companies focus is on continuous product
improvements..
• In short, the idea says, earn more by providing
quality products with unique features at lower cost.

22. 3 Selling Concept
• The idea that consumers will not buy enough
of the firms products unless it undertakes a
large scale selling & promotion effort.
• It focuses on creating sales-transactions rather
than long term profitable relationships.

23. 4 Marketing Concept
• The idea focusing to know the needs & wants of
target markets & delivering the desired
satisfactions better than competitors.
• This concept is about understanding customer
needs and providing right products for customers.

24. 5 Societal Marketing Concept
• Holds that marketing strategy should deliver value to
customers in a way that maintains or improves both
consumers & the societies well-being.
Societal
marketing
concept
Society
(Human Welfare)
Consumers
(Want Satisfaction)
Company
(Profits)

25. Customer Relationship Management
• CRM is the process of building &
maintaining profitable customer
relationships by delivering superior
customer value & satisfaction.

26. 1-26
Value and Satisfaction
Expectation Performance
810
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
Expectation Performance
108

27. 1-27
Selling is only the
tip of the
Marketing iceberg
Peter Drucker

28. Kokab Manzoor
kokabmanzoor2012@gmail.com
www.facebook.com/kokabmanzoor19
www.youtube.com/kokabmanzoor