This document provides an overview of marketing concepts and definitions. It discusses how marketing involves planning and executing the conception, pricing, promotion, and distribution of goods to create value for customers and organizations. Key concepts covered include the marketing mix of product, price, place, and promotion. The document also examines different marketing orientations such as production, product, selling, and the marketing concept.

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Unit 1

2. Introduction :-Definition
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Marketing is the process of planning and
executing the conception,
pricing , promotion and distribution of goods to
create exchanges that will satisfy individual and
organizational objectives.

3. Continue….
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Marketing is a social and managerial process by
which individuals and groups obtain what they
need and want through creating and exchanging
products and value with others.
Kotler
The activity, set of institutions, and processess for
creating and exchanging offerings that have value
for customers, partners, clients and society at
large.
McDaniels, Lamb, & Hair

4. Why study marketing?
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Important
to society
Important to
business
Good career
opportunities
• marketing research
• advertising
• retail buying
•Hospitals
•Universities, etc.
• contribute to firm’s
objectives: survival,
profits, growth
•Setting the price
•Develop
distribution strategy,
etc.
• ensure the
availability of foods,
cloths, and shelter to
cater population
size.

5. Key Concepts
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Needs are a state of felt deprivation
Wants are the form taken by human needs as they
are shaped by culture and personality
Demands are human wants backed by purchasing
power
Products is anything that is offered to the market for
sale or consumption

6. Key Concepts
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Customer satisfaction is the degree to which the
product’s perceived performance matches the
customers’ expectation
Exchange is the act of obtaining an object from
someone by offering something in exchange
Markets are made up of the actual and potential
buyers of a product

7. Marketing Activities
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Identifying customer needs
Designing goods and services that meet those needs
Communicating information about these
goods/services to prospective buyers
Making these goods/services available at times and
places that meet customer’s needs

8. Marketing Activities
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Pricing goods or services to reflect costs, competition
and customers’ ability to buy
Providing for the necessary service and follow up to
ensure customer satisfaction after the purchase

9. marketing management orientations..
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a) Production concept
 This concept assumes that customers will want to buy
products or services that are easily available and
affordable. Therefore management focuses on
production efficiency and distribution. This concept is
useful when demand for a product exceeds the supply.
 Can lead to ‘marketing myopia’

10. marketing management orientations…cont’
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b) Product concept.
 This concept holds that consumers will favor
products that offer the most quality and
innovative features.
 Such companies therefore concentrate on making
continuous product improvements.
 The risk here is that managers get trapped in the
‘better mousetrap’ fallacy and lose sight of the
long term goals of the firm and the needs of the
customers.

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COLOUR PENCIL OFFERED BY
FABER CASTELL:- NON-TOXIC
SAFE FOR CHIDREN

12. 1.1.3 marketing management orientations…
cont’
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c) Selling concept.
 Refer to the firms who assumes that consumers will
not buy the firm’s products unless it undertakes
aggressive selling.
 The consequences are hard selling techniques. Most
firms practice this concept when they have over
capacity.
 High risk ~ focused on creating transaction rather
than building long term relationship.
 Eg: unsought product : insurance – track down
prospect and sell them on product benefit.

13. marketing management orientations…cont’
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d) Marketing concept.
 The marketing concept holds that achieving
organizational goals depends on determining the
needs and wants of target markets. It takes an
outside-in approach.
 It recognizes the customer as the most important
and aims at complete customer satisfaction. The
marketing concept requires and integrated
marketing effort.
 Customer-driving marketing

14. Selling conceptsSelling concepts Marketing conceptsMarketing concepts
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 Inward, on the organization’s
need.
 Selling goods and services
 Everybody
 Profit through maximum sales
volume
 Goal can be achieve through
intensive promotion
 Outwards, on the wants and
reference of customers
 Satisfying customer need & wants
by delivering superior value
 Specific groups and people
 Profit through customer
satisfaction
 Through coordinated marketing
and inter-functional activities.
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Differences between selling & marketing concepts:

15. marketing management orientations…cont’
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e) Societal Marketing Concept
 Concern for public – depleting ozone layer, pollution,
health concern.
 Deliver superior value to customers in a way that
maintains or improves the customer’s and the society’s
well being
 Eg:- STAR: offers STAR Scholarship and organize STAR
education fair.
 Eg:- FABER CASTELL

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• The World's native forests are a 'celebration' to the diversity of life
and colour.
• Forestry plantations help preserve and maintain native forests by
providing an alternative and renewable resource for our future
generations.
• In Brazil, Faber-Castell manages 10.000 hectares of pine plantations
as a source of raw material for over 1.5 billion pencils annually.
• Tree nurseries produce over 1 million seedlings per year and
generate 20 m3 of wood every hour (= 1 truck). The Faber-Castell
forests and factories have been certified by the Forest Stewardship
Council (FSC) as environmentally responsible, socially beneficial
and economically sustainable.
• The FSC is a committe of the world's most powerful forestry experts,
including organizations such as Greenpeace and WWF.

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Aerial view of part of
Faber-Castell's pine plantations
Tree nursery in Brazil

18. Marketing Philosophies
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Adopting of the marketing concept can be
triggered by any one of the following:
 Poor sales performance.
 Low company growth.
 Increased competition.
 Higher consumer demand expectation.
 More legislation.

19. 1.2 Marketing Mix
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a. Product.
 Includes decisions on quality, features, design,
packaging of the product.
b. Price.
 Includes discount methods, adjustments to
prices and payment terms.
c. Promotion.
 Advertising, personal selling, sales promotion
and publicity.

20. Marketing mix…cont’
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d. Place (distribution).
 To have the proper quantities at the right time and
place. Distribution involves:
o transportation,
o ware-housing,
o inventory control and;
o selection of marketing channels and distribution
network.

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24. Marketing Functions
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Exchange function
 Buying and selling
Physical distribution functions
 Transporting and storing
Facilitating functions
 Standardization and grading
 Financing
 Risk taking
 Marketing information

25. Goals of Marketing System
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Maximize consumption.
 Marketing stimulates consumption.
Maximize choice.
 Maximize product variety and consumer choice.
Maximize life quality.
 Quality of life includes the quality, quantity, availability
and cost of goods, the quality of physical environment.