2. WHAT IS MARKETING?
• It is a social process involving the activities necessary to enable individuals and organizations
to obtain what they need and want through exchanges with others and to develop ongoing
exchange relationships.
• It is the process of creating, promoting, and presenting a product to meet the wants and
needs of consumer.
• It is the process of planning and executing, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual and organizational goals.
3. WHAT IS MARKETING MANAGEMENT?
• It is the process of analyzing, planning, implementing, coordinating, and controlling
programs involving the conception, pricing, promotions, and distribution of products,
services and ideas designed to create and maintain beneficial exchanges with target
markets for the purpose of achieving organizational objectives.
• Marketing Management has the task of influencing the level, timing, and composition of
demand in a way that will help the organization achieve its objectives.
4. MARKETING MIX
1. Product – anything that can be offered to a market for attention, acquisition use or
consumption that might satisfy a want or need.
1. Price – the amount of money charged for a product or the sum of the values the
consumers exchange for the benefits of having or using the product.
1. Place – all the company activities that make the product available to target market.
1. Promotion – activities that communicate product and its merits to target customers and
persuade them to buy.
5. BASICS OF MARKETING
• Market is a group of customers who share common wants and needs and who have the
ability to purchase a particular product.
• The Scope of Marketing:
Types of Entities:
1.Goods
2.Services
3.Experience
4.Events
5.Persons
6.Places
7.Properties
8.Organization
9.Information
10.Ideas
6. CORE MARKETING CONCEPTS
• Needs – the basic human requirements such as food, air, water, clothing and shelter.
• Wants – specific manifestation of needs.
• Demands – wants backed up with purchasing power or ability to buy.
• Exchange – the act of voluntarily providing something of value in order to acquire
something else of value.
• There are at least two parties.
• Each party has something that might be of value to other party.
• Each party is capable of communication and delivery.
• Each party is free to accept or reject the exchange offer.
• Each party believes that it is appropriate to deal with the other party.
Conditions for exchange to exist:
7. MARKETING MANAGEMENT CONCEPTS
1. Production Concept – is the idea that consumers will favor products that are available
or highly affordable.
2. Product Concept – is the idea that consumers will favor products that offer the most
quality, performance, and features.
3. Selling Concept – is the idea that consumers will not buy enough of the firm’s product
unless it undertakes a large scale selling and promotion effort.
4. Marketing Concept – is the idea that achieving organizational goals depends on knowing
the needs and wants of the target market and delivering the desired
satisfaction better than competitors do.
5. Societal Concept – is the idea that generating customer satisfaction and long-run societal
well-being are the keys to both achieving the company’s goals and fulfilling
its responsibilities.
8. MARKETING CREATES VALUE BY FACILITATING
EXCHANGE RELATIONSHIPS
1. Who Markets and Who Buys? The Parties in an Exchange
- Ultimate consumers buy goods and services for their own personal use or the use of the
others in their immediate household.
• These are called consumer goods and services.
- Organizational customers buy goods and services for resale; as production inputs; or for
use in the day-to-day operations.
• These are called industrial goods and services.
9. MARKETING CREATES VALUE BY FACILITATING
EXCHANGE RELATIONSHIPS
2. Customer Needs and Wants
– Basic physical needs are critical to our survival.
– Social and emotional needs are critical to our psychological well-being.
– Wants reflect desires or preferences for specific ways of satisfying a basic need.
– Marketers and many other social forces influence people's wants.
10. MARKETING CREATES VALUE BY FACILITATING
EXCHANGE RELATIONSHIPS
3. Products and Services—the Focus of Exchange
– Products are essentially tangible physical objects that provide a
benefits.
– Services are less tangible and, in addition to being provided by
physical objects, can be provided by people, institutions, places,
and activities.
11. MARKETING CREATES VALUE BY FACILITATING
EXCHANGE RELATIONSHIPS
4. How Exchanges Create Value
– Customers buy benefits, not products.
– Value is a function of intrinsic product features, services, and price, and it means different
things to different people.
– Lifetime customer value—the present value of a stream of revenue that can be produced
by a customer over time.
– The assets linked to a brand’s name and symbol constitute that brand’s equity.
– A brand’s value to the company depends on how much value customers think the brand
provides for them; value creation cuts both ways.
12. MARKETING CREATES VALUE BY FACILITATING
EXCHANGE RELATIONSHIPS
5. Defining a Market
– It consists of individuals and organizations who are interested and willing to buy a
particular product to obtain benefits that will satisfy a specific need or want, and who have
the resources to engage in such transaction.
– The total market for a given product category is often fragmented into several distinct
market segments.
– Each segment contains people who are relatively homogenous in their needs, their wants,
and product benefits they seek.
– Each segment seeks a different set of benefits from the same product category.
