Introduction To Markettig

Principles of Marketing

What is your initial reaction to this ad?

What is the most striking thing about this ad?

What does it tell you about Marketing? What do you think the task entail?

Introduction to Marketing

• In today’s class we will be able to Define marketing Explore some basic concepts of Marketing Examine the evolution of marketing as a

business function over the years.

What is marketing?

• Many people think of marketing as only selling and advertising.

• Today, marketing must be understood not in the old sense of making a sale

• According to management guru Peter Drucker, “The aim of marketing is to make selling unnecessary.”

• Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. (Kotler & Armstrong, 2010)

The Marketing Process

Core Marketing Concepts

Value, satisfaction,and quality

Needs, wants,and demands

Markets

CoreMarketingConcepts

CoreMarketingConcepts

Exchange, transactions,and relationships

Products and

Services

What Motivates a Consumerto Take Action?• Needs - state of felt deprivation for basic items such

as food and clothing and complex needs such as for belonging. i.e. I am thirsty

• Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola.

• Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.

What Will Satisfy Consumer’sNeeds and Wants? • Experiences

Smart marketers look beyond the attributes of the products and services they sell. By orchestrating several services and products, they create brand experiences for consumers.

• HP ad, “There is hardly anything that you own that is more personal. Your personal computer is your backup brain. It’s your life. It’s your astonishing strategy, staggering proposal, dazzling calculation. It’s your autobiography, written in a thousand daily words.”

• Products - anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want.

• Examples: Beverages, telephones, Clothes

• Services - activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything.

• Examples: banking, airlines, haircuts, and hotels.

How Do Consumers Choose Among Products and Services?• Customer Value - benefit that the customer gains

from owning and using a product compared to the cost of obtaining the product.

• Customer Satisfaction - depends on the product’s perceived performance in delivering value relative to a buyer’s expectations

How do Consumers ObtainProducts and Services?• Exchanges - act of obtaining a desired object from

someone by offering something in return.

• Transactions - trade of values between parties. Usually involves money and a response.

• Relationships - building long-term relationships with consumers, distributors, dealers, and suppliers.

Who Purchases Products and Services?

Market Market

Actual Buyers

Actual Buyers

PotentialBuyers

PotentialBuyers

Buyers who share a particular need or want that can be satisfied by a

company’s products or services.

Modern Marketing System

SuppliersSuppliers

End UserMarket

End UserMarket

MarketingIntermediaries

MarketingIntermediaries

CompetitorsCompetitors Company(Marketer)Company(Marketer)

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EmergingChallengesEmerging

Challenges

NonprofitMarketing

New Marketing

Landscape &InformationTechnology

EthicalConcerns

Social responsibility Globalization

ChangingWorld

Economy

New Marketing Challenges

Our lives are filled with things. We’re overwhelmed by possessions we own but do not treasure. Stuff we buy but

never love to be thrown away in weeks rather than passed down for

generations

Perhaps it will be different now. Perhaps now is an opportunity to reassess what really matters. After all, if everything you ever bought her disappeared overnight,

what would she truly miss