Chapter 1 - Introduction to Marketing

Chapter 1DATW 241 – MARKETING PRINCIPLES

Prepared by:Nor Izzuddin Bin Norrahman

Lecturer of Management, Banking and Islamic FinanceAstin College

What is MARKETING?

Definition…

• American Marketing Association – Marketingas the process of planning and executing theconception, pricing, promotion, anddistribution of ideas, goods, and services tocreate exchanges that satisfy individual andorganizational objectives.

• (Dann and Dann,2004)

• Kotler and Armstrong, 2001 – Marketing as asocial and managerial process wherebyindividuals and groups obtain what they needand want through creating and exchangingproducts 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 objectfrom someone by offering something in return.

– Transactions: Trade value between two parties.

• Barter – Products VS. Products.

• Classic – Money VS. Products

– Relationships: Beyond creating short termtransactions, marketers need to build long-termrelationships 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 PROMOTIONeffort.

– 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

MarketCustomer

needsIntegrate

marketing

Profits trough

customer satisfaction

The Marketing Mix

Quick Review

Chapter 1

go raibh maith agat…aon cheist?