01. introduction to marketing

Chapter | 1

Introduction to MarketingLecture 1 – February 15, 2012Rajeev Shrestha

A process by which a firm profitably translates customer needs into revenue.

It is called…

MARKETING

•Concept and importance of marketing

•Approaches to the study of marketing

•Marketing mix and its components

OVERVIEW

Marketing comes in a wide variety of flavors based on audience, media platform and business in today’s evolving and dynamic marketplace.

What is Marketing?

•Create value and get value in return

•Products can be copied but not the feelings towards them

•Relationship management rather than just selling

•Selling and advertising just tips of an iceberg

•Applicable for all – Profit seeking companies, non-profit

seeking companies

•Managing profitable customer relationships

What is Marketing?

Marketing deals with identifying and meeting human and

social needs. It is seen as the task of creating, promoting

and delivering goods and services to consumers and

businesses.

Marketing is a social and managerial process whereby

individuals and groups obtain what they need and want

through creating and exchanging products and value with

others.

And Marketing Management deals with…

Choosing target markets and getting, keeping and growing

customers through creating, delivering and communicating

superior customer value.

Marketing Process

Understanding the

Marketplace and

Customer Needs

Designing a Customer-

Driven Marketing Strategy

Preparing an Integrated Marketing Plan and Program

Capturing Value from Customers

Core Marketing Concepts – Understanding Marketplace

Needs:

is a state of felt deprivation. They are basic human needs.

Wants:

The form taken by a human need as shaped by culture and

individual personality. Objects that will satisfy ones needs.

Given a want and depending on resources, people demand

products with benefits that add up to the most value and

satisfaction.

When Wants Become Needs…

Needs are what you must have. Needs are essential. Wants

are what you would like to have. 

Wants are nice to have. But sometimes wants can become

needs.

I need a vehicle to travel around

How Wants Become Needs?

Wants can become needs. Two ways this can happen are:

• Through commercials or ads, and

• Convincing yourself a want is a need.

“Needs are not created by marketers; they are a basic part of the human makeup.”

Marketing is a “value creating” and “value delivering” process.

Market Offerings

• Products, Services, Experiences

• Marketing Myopia

More on how to understand the marketplace

• Customer Value and Satisfaction• Exchanges and Relationships• Markets

Designing a Customer-Driven Marketing Strategy

• Selecting customers to serve• Choosing a value proposition• Marketing Management Orientations

• The Production Concept• The Product Concept• The Selling Concept• The Marketing Concept – Sense and respond• The Societal Marketing Concept

Relationship Marketing

Relationship Marketing is the practice of building long term

satisfying relations with the key parties – suppliers,

distributors, customers.

Smart marketers always build up a “win-win” situation.

The ultimate outcome of RM is marketing network.

Marketing Changes and Challenges in the New Millennium

The Digital Age

Rapid Globalization

Ethics and social

responsibility

Growth of not-for-profit marketing

Next Lecture

• Marketing Mix