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Chapter 1 - Introduction to Marketing

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Izzuddin Norrahman
Izzuddin Norrahman

Chapter 1 - Introduction to Marketing: Discussing the definition of Marketing plus the importance of marketing in daily life.

Business
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Chapter 1 DATW 241 – MARKETING PRINCIPLES Prepared by: Nor Izzuddin Bin Norrahman Lecturer of Management, Banking and Islamic Finance Astin College
What is MARKETING?
Definition… • American Marketing Association – Marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. • (Dann and Dann,2004)
• Kotler and Armstrong, 2001 – Marketing as a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Points to ponder… • Is there any marketing definition trough religion? • Is it related with religion? • Is religion belief will affecting the marketing?
• (Dann and Dann,2004) - The definitions of marketing established a series of elements, which are as follows: – Marketing is a process – Marketing requires planning – Marketing is involved from design to delivery – Marketing involves ideas, goods, and services – Marketing create exchanges – Marketing satisfies individual and organizational objectives
Core Marketing Concept Needs, wants, and demands Products and services Value, satisfaction, and quality Exchange, transactions, and relationships Markets
• Needs, wants, and demands – Human needs are states of felt deprivation. Includes basic physical needs. • Examples? – ‘Wants’ are the form of human needs. Shaped by culture and individual personality. • Examples? – When ‘Wants’ is backed by the buying power, it becomes demands. • Examples?
Points to ponder… • What is your needs as a student? • Is your asset and your lifestyle are according to your ‘wants’ or ‘needs’? • Are your ‘demands’ backed up by your own buying power?
• Products and services – A product is anything that can be offered to a market to satisfy a need or want. – Products may include services. – Products also include other entities such as experiences, persons, places, organizations, information and ideas. – Thus, product is not only physical goods or services.
• Value, satisfaction, and quality – Consumers make buying choices based on their perceptions of the value that various products and services deliver. – Customers value : the difference between the values of the customer GAINS from owning or using the products, and the COSTS of obtaining the products. – The one that gives them the greatest delivered value.
– Customers satisfaction : Depends on a product’s PERCEIVED performance in delivering value relative to a buyer’s expectations. • (Performance = Expectations) – Quality : The totality of features and characteristics of a product or service that bear on its ability to satisfy customers need. • (Performance > Expectations)
• Exchange, Transactions, and Relationships – Exchange: The act of obtaining a desired object from someone by offering something in return. – Transactions: Trade value between two parties. • Barter – Products VS. Products. • Classic – Money VS. Products – Relationships: Beyond creating short term transactions, marketers need to build long-term relationships with valued customers, distributors, dealers and suppliers.
• Markets – A market is the set of actual and potential buyers of a products. – Size of the market depend on the number of people who exhibit the need, have resources to engage in exchange, and are willing to make an exchange. – Examples?
Marketing Concepts The production concept The product concept The selling concept The marketing concept The social marketing concept
• The production concept – Favors products that AVAILABLE and highly AFFORDABLE – Focus on improving production and distribution efficiency – Pros? Cons?
• The product concept – The product concept holds that consumers favor products that offer most quality, performance, and features. – Can lead to “marketing myopia”. – Pros? Cons?
• The selling concept – This concept holds that the consumers will not buy enough of the organization’s product unless it undertakes a large SELLING and PROMOTION effort. – Pros? Cons?
• The marketing concept – Achieving organizational GOALS depends on determining the NEEDS & WANTS of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
• The societal marketing concept Society •Human Welfare Consumers •Want Satisfaction Company •Profits Societal Marketing Concept
Factory • Starting point Existing Products • Focus Selling & Promotion • Means Profits trough volumes • Ends The Selling Concept
The Marketing Concept Market Customer needs Integrate marketing Profits trough customer satisfaction
The Marketing Mix
Quick Review Chapter 1
go raibh maith agat… aon cheist?

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Chapter 1 - Introduction to Marketing

  • 1. Chapter 1 DATW 241 – MARKETING PRINCIPLES Prepared by: Nor Izzuddin Bin Norrahman Lecturer of Management, Banking and Islamic Finance Astin College
  • 3. Definition… • American Marketing Association – Marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. • (Dann and Dann,2004)
  • 4. • Kotler and Armstrong, 2001 – Marketing as a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.
  • 5. Points to ponder… • Is there any marketing definition trough religion? • Is it related with religion? • Is religion belief will affecting the marketing?
  • 6. • (Dann and Dann,2004) - The definitions of marketing established a series of elements, which are as follows: – Marketing is a process – Marketing requires planning – Marketing is involved from design to delivery – Marketing involves ideas, goods, and services – Marketing create exchanges – Marketing satisfies individual and organizational objectives
  • 8. • Needs, wants, and demands – Human needs are states of felt deprivation. Includes basic physical needs. • Examples? – ‘Wants’ are the form of human needs. Shaped by culture and individual personality. • Examples? – When ‘Wants’ is backed by the buying power, it becomes demands. • Examples?
  • 9. Points to ponder… • What is your needs as a student? • Is your asset and your lifestyle are according to your ‘wants’ or ‘needs’? • Are your ‘demands’ backed up by your own buying power?
  • 10. • Products and services – A product is anything that can be offered to a market to satisfy a need or want. – Products may include services. – Products also include other entities such as experiences, persons, places, organizations, information and ideas. – Thus, product is not only physical goods or services.
  • 11. • Value, satisfaction, and quality – Consumers make buying choices based on their perceptions of the value that various products and services deliver. – Customers value : the difference between the values of the customer GAINS from owning or using the products, and the COSTS of obtaining the products. – The one that gives them the greatest delivered value.
  • 12. – Customers satisfaction : Depends on a product’s PERCEIVED performance in delivering value relative to a buyer’s expectations. • (Performance = Expectations) – Quality : The totality of features and characteristics of a product or service that bear on its ability to satisfy customers need. • (Performance > Expectations)
  • 13. • Exchange, Transactions, and Relationships – Exchange: The act of obtaining a desired object from someone by offering something in return. – Transactions: Trade value between two parties. • Barter – Products VS. Products. • Classic – Money VS. Products – Relationships: Beyond creating short term transactions, marketers need to build long-term relationships with valued customers, distributors, dealers and suppliers.
  • 14. • Markets – A market is the set of actual and potential buyers of a products. – Size of the market depend on the number of people who exhibit the need, have resources to engage in exchange, and are willing to make an exchange. – Examples?
  • 16. • The production concept – Favors products that AVAILABLE and highly AFFORDABLE – Focus on improving production and distribution efficiency – Pros? Cons?
  • 17. • The product concept – The product concept holds that consumers favor products that offer most quality, performance, and features. – Can lead to “marketing myopia”. – Pros? Cons?
  • 18. • The selling concept – This concept holds that the consumers will not buy enough of the organization’s product unless it undertakes a large SELLING and PROMOTION effort. – Pros? Cons?
  • 19. • The marketing concept – Achieving organizational GOALS depends on determining the NEEDS & WANTS of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
  • 20. • The societal marketing concept Society •Human Welfare Consumers •Want Satisfaction Company •Profits Societal Marketing Concept
  • 21. Factory • Starting point Existing Products • Focus Selling & Promotion • Means Profits trough volumes • Ends The Selling Concept
  • 25. go raibh maith agat… aon cheist?