The document provides an overview of key marketing concepts including: 1) It defines marketing as the activity of satisfying human needs and wants through exchange processes. Needs, wants, demands, products, values, satisfaction and quality are discussed. 2) Exchange, transactions, and relationship marketing are explained as the acts of obtaining desired objects through offering something in return based on agreed conditions and locations. 3) The main actors in a marketing system are identified as suppliers, competitors, companies/marketers, marketing intermediaries, and end user markets. 4) Strategic business concepts like the production, product, selling, and marketing concepts are outlined in how organizations should approach customers. A holistic marketing concept of "

1. DBA, (Marketing), MBA (Marketing 1st Class) , BBA ,CPM( Asia-
Pacific), Dip M SL, MSLIM,MOPA

2. 2
Markets
The set of all actual and potential buyers of
a product or service
A simple marketing system
Industry
(a collection
of sellers)
Market (a
collection of
buyers)
Communication
Products / Services
Money
Information

3. The Industrial Revolution
 The Industrial Revolution was a period
from 1750 to 1850 where changes in
agriculture, manufacturing, mining,
transportation, and technology had a
profound effect on the social, economic
and cultural conditions of the times. It
began in the United Kingdom, then
subsequently spread throughout
Western Europe, North America, Japan,
and eventually the rest of the world.

4.  The Industrial Revolution marks a major
turning point in history; almost every
aspect of daily life was influenced in
some way. Most notably, average
income and population began to exhibit
unprecedented sustained growth. In the
two centuries following 1800, the world's
average per capita income increased
over tenfold, while the world's population
increased over sixfold.

5.  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. (Approved October 2007)
American Marketing Association.

7.  ‘Marketing is the human activity
directed at satisfying human needs
and wants through an exchange
process’
Kotler 1980

8. 8
To explain marketing definition, we
examine the following important terms
 Needs, wants, and demands
 Products and services
 Value, satisfaction and quality
 Exchange, transactions, and relationships
 Markets

9. 9
Needs, Wants, and Demands
Needs:
 The most basic concept underlying marketing is that of human needs.
 Human needs are states of felt deprivation.
 Human have many complex needs:
 Physical needs for food, clothing, warmth, and safety
 Social needs or belonging and affection
 Individual needs for knowledge and self – expression
Wants:
 Want are the form taken by human needs as they are shaped by culture and
individual personality.
 People have almost unlimited wants but limited resources.
 They want to choose products that provide the most value and satisfaction
for their money.
Demands:
 When backed by buying power, wants become demands.
 Consumers view products as bundles of benefits and choose products that
give them the best bundle for their money.

10. 10
Products and Services
Product:
 Anything that can be offered to a market to satisfy
a need or want.
 The concept of product is not limited to physical
objects – anything capable of satisfying a need
can be called a product.
Services:
 In addition to tangible goods, products also include
services, which are activities or benefits offered for
sale that are essentially intangible and do not
result in the ownership of anything.

11. 11
Values, Satisfaction, and Quality
Values:
 Customer value is the difference between the values the customer gains
from owning and using a product and the costs of obtaining the products.
 Customers often do not judge product value and costs accurately or
objectively. They act on perceived value.
Satisfaction:
 Customer satisfaction depends on a product’s perceived performance in
delivering value relative to a buyer’s expectation.
 If the product’s performance falls short of the customer’s expectations, the
buyer is dissatisfied.
Quality:
 Customer satisfaction is closely linked to quality.
 Quality has a direct impact on product performance.
 Quality can be defined as “freedom from defects”.
 TQM programs designed to constantly improve the quality of products,
services, and marketing processes.

12. 12
Exchange, Transactions, and
Relationships
Exchange :
 The act of obtaining a desired object from
someone by offering something in return
Transaction :
 A trade between two parties that involves at least
two things of value, agreed – upon conditions a
time of agreement, and a place of agreement.
Relationship marketing :
 The process of creating, maintaining, and
enhancing strong, value – laden relationships with
customers and other stakeholders

13. 13
Suppliers
Competitors
Company
(marketer)
Marketing
intermediaries End user market
Main actors and forces in a modern
marketing system

14. Strategic Business Concepts
 The Production Concept
 The production concept holds that
consumers will favour products that are
available and highly affordable, and that
management should therefore focus on
improving production and distribution
efficiency. This concept is one of the
oldest philosophies that guides sellers.

15. The Product Concept
 The product concept, holds that
 Consumers will favour products that
offer the most quality, performance and
 Innovative features, and that an
organization should thus devote energy
to
 Making continuous product
improvements.

16. The Selling Concept
 Many organizations follow the selling
concept, which holds that consumers will
not buy enough of the organization's
products unless it undertakes a large-scale
selling and promotion effort

17. The Marketing Concept
 The marketing concept holds that achieving
organizational goals depends on determining
the needs and wants of target markets and
delivering the desired satisfactions more
effectively and efficiently than competitors
do. Surprisingly, this concept is a relatively
recent business philosophy.

19. Holistic Marketing Concept
“Everything matters in marketing”