The document discusses key concepts in marketing including defining marketing, its scope and importance for companies. It covers different philosophies guiding marketing efforts like production, product and selling concepts versus the marketing concept of customer orientation. It also discusses fundamental concepts like customer needs, wants and demands, marketing mix, competition and the marketing environment. Finally, it outlines trends in marketing management like organizing by customer segments and focusing on customer lifetime value over individual transactions.

1. Part I : Understanding
Marketing
Defining Marketing Today

2. The Importance of Marketing
• Financial success often depends on marketing
ability due to sufficient demand for products and
services so the companies can make a profit
• Newly empowered customers and new
competitors make the companies rethink their
business models : Change or Die
• Therefore, the right decisions on new products,
prices, promotion mix budget, and sales force
from short term sales to long term relationship
(satisfy their stockholders)

3. The Scope of Marketing
• Marketing is typically seen as the task of creating,
promoting, and delivering goods and services to
stakeholders
• Exchange, which is the core concept of marketing, is the
process of obtaining a desired product from someone by
offering something in return
• To make successful exchanges, marketers analyze what
each party expects from the transaction
• When an agreement is reached, we say that a
transaction takes place. A transaction is the agreement
to trade the values between two or more party
• What is marketed? (10 types of entities): goods,
services, experiences, events, persons, places,
properties, organizations, information, and ideas.

4. Company Orientation toward the
marketplace (i)
• What philosophy should guide a company’s
marketing efforts? Six competing concepts:
a. The Production Concept: consumers will prefer
products that are widely available and
inexpensive. Thus, mass production and mass
distribution are a must
b. The Product Concept: consumer will favor
those products that offer the most quality,
performance or innovative features
c. The Selling Concept: the organization must
undertake an aggressive selling and promotion
efforts

5. Company Orientation toward the
marketplace (ii)
d. The Marketing Concept: company being more
effective than competitors in creating, delivering,
and communicating superior customer value
(customer orientation)
• The job is not to find the right customers for your
products, but the right products for your
customers. That is by understanding and
meeting customers’ expressed needs
• The result is all functions must work together
and must “think customer” so that company can
respond, serve, and satisfy the customers

6. Contrast Between the Sales Concept and
Marketing Concept
Starting Focus Means Ends
Point
Sales Factory Products Selling & Profits through
Concept Promoting sales volume
Marketing Target Customer Integrated Profits through
Concept market needs Marketing customer
satisfaction

7. Company Orientation toward the
marketplace (iii)
e.The Holistic Marketing Concept is based on the
development, design, and implementation of
marketing programs, process, and activities that
recognizes integrated perspective for companies
to operate and compete in a new marketing
environment.
Four components of Holistic marketing are:
relationship marketing, integrated marketing,
internal marketing, and social responsibility
marketing

8. Holistic Marketing Dimension
Products &
Senior Other Services
Marketing
Management Department
Depatment Communications Channels
Internal Integrated
Marketing Marketing
Holistic Marketing
Socially Relationship
Responsible Marketing
Marketing
Ethics Community Customers Channel Partners
Environment Legal

9. Fundamental Marketing Concepts (i)
• Needs (basic human requirements), Wants (specific
object that might satisfy the need) and Demands
(specific products backed by ability to pay)
• Target markets, positioning and segmentation
• Offering (a set of benefits) and Brand (product
association and identity)
• Value (reflects perceived benefits and costs to
customers) and Satisfaction (product performances
versus his expectations)
• Marketing Channels: Communication Channel ex.
Internet; Distribution Channel ex. Wholesaler; Service
Channel ex. Banks, Insurance or other specialists job

10. Fundamental Marketing Concepts (ii)
• Supply chain: longer channel from raw material to final
products that are carried to final buyers. It represents the
value delivery system starts from procurement, research and
development, production, and marketing channels bringing
products to customers.
• Competition: as rivals offering and substitute that a buyer
might consider.
• Marketing environment: consists of task environment (such as
company with integrated marketing, suppliers, distributors,
target customers, and competitors) and broad environment
(such as political, technological, cultural and demographics
environment)
• The Marketing environment will influence the Company
Marketing Strategy: determine initially the target customer,
offering marketing mix 4, supported by Marketing information
system, in order to interact with task environment in the scope
of broad environment

11. Marketing Management Trends
• Marketers are fundamentally rethinking their
philosophies, concepts,and tools:
a. From organizing by product units to organizing
by customer segment
b. From emphasizing tangible assets to
emphasizing intangible assets, ex brand,
customer base, relationship marketing
c. From focusing on profitable transaction to
focusing on customer lifetime value (customer
retention)

12. Marketing Management Task
• Capturing marketing insights: marketers
need marketing information system to
monitor task environment and broad
environment
• Communicating value: about the brand
they sell
• Creating long term growth by initiating
new product development and global
opportunities and challenges