1. INTRODUCTION TO PRINCIPLES OF MARKETING

2. Definitions of marketing
‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ The Chartered Institute of Marketing

3. ‘The right product, in the right place, at the right time, and at the right price’ Adcock et al

4. ‘Marketing is the human activity directed at satisfying human needs and wants through an exchange process’ Kotler 1980

5. ‘Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others’ Kotler 1991

6. Marketing
It 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.

7. Five competing concepts
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal marketing Concept

8. Production Concept
It holds that consumers will favor those products that are widely available and low in cost.
Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution coverage.

9. Product Concept
It holds that consumers will favor those products that offer the most quality, performance, and features.
Managers in these product- oriented organizations focus their energy on making good products and improving them over time.

10. Selling Concept
It holds that consumers, if left alone, will ordinarily not buy enough of the organization’s products. The organization must therefore undertake an aggressive selling and promotion effort.

11. Marketing Concept
It holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

12. Societal Marketing Concept
It holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiency than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.

13. Four Pillars of Marketing Concept
Market Focus/ Target Market
Customer Orientation
Coordinated marketing
Profitability.

14. Market Focus/Target Market
No company can operate in every market and satisfy every need. Nor can it even do a good job within a broad market.

15. Customer Orientation
It requires the company to carefully define customer needs from the customer point of view, not from its point of view. Every product involves trade-offs, and management cannot know what these are without talking to and researching customers.

16. Coordinated Marketing
First, various marketing functions – sales force, advertising, marketing research, etc. – must be coordinated among themselves.
Second, marketing must be well coordinated with the other departments in the company.

17. Profitability
The major goal of private firms is profit, for nonprofit, it is surviving and attracting enough funds to perform their work.
A company makes money by satisfying customer needs.

18. Comparison of Selling and Marketing Concepts
Factory Products Selling and Profits through Promoting Sales volume
Market Customer Coordinated Profits through
Needs Marketing Customer
Satisfaction
SELLING CONCEPT
MARKETING CONCEPT
Starting Point Focus Means Ends

19. Marketing Management in the 21st Century
OLD PRACTICES
Was using tactics
Built sales through advertising
RECENT CHANGES
Now focused on Marketing strategies
Now build brands through a coordinated integrated marketing strategy that involves all points of contact between the company and the public

20. OLD PRACTICES RECENT CHANGES Now look at Customer’s lifetime value
Focused on short-term profitable transactions
Company was the unit of analysis
Was organized by product units
Segmented on geographic or demographic variables
Now look at Customer’s lifetime value
Now the whole value chain is the unit of analysis, meeting the end customers’ needs
Now organized by customer segment
Segmented in depth using all relevant variables, especially behavioural variables like usage rate, loyalty or benefit

21. Focused on capturing new customers
OLD PRACTICES
RECENT CHANGES
Focused on capturing new customers
Performance is measured by financial metrics
Focused on satisfying stockholders
Marketing department does the marketing
Gives emphasis on keeping existing customers
Performance is now measured by financial, strategic, and marketing metrics
Satisfy stakeholders
Everyone in the company does some marketing

22. Was individual and hierarchal work structures
OLD PRACTICES
RECENT CHANGES
Was individual and hierarchal work structures
Developing and implementing a marketing plan took years
Now Cross functional teams
Now it takes months (or weeks)

23. Marketing in the 21st Century
Network Marketing
E-Commerce
Marketing

24. Marketing Essentials Section 2.1 The Marketing Concept
n Chapter 2 Basic Marketing Concepts
Section 2.1 The Marketing Concept

25. The Marketing Concept SECTION 2.1 What You'll Learn
The difference between customers and consumers
What a market is and how it can be described
The four Ps of the marketing mix

26. The Marketing Concept SECTION 2.1 Why It's Important
In order to participate in the world of marketing, you'll want to understand how businesses focus on the needs and wants of their customers in order to improve their products, remain competitive, and increase sales.

27. The Marketing Concept SECTION 2.1 Key Terms marketing concept customer
consumer
market
target marketing
customer profile
marketing mix

28. The Marketing Concept SECTION 2.1 The Basic Concept
The marketing concept states that businesses must satisfy customers' needs and wants in order to make a profit.

29. The Marketing Concept SECTION 2.1 Customers vs. Consumers
Customers buy a product.
Consumers use the product.
Example: Parents who buy video games from retailers are customers. The kids who play the video games are the consumers.

30. The Marketing Concept SECTION 2.1 What is a Market?
A market is all potential customers who share common needs and wants and who have the ability and willingness to buy the product.

31. SECTION 2.1
The Marketing Concept
U.S. Game Console Market
A market can be described as the people who are potential customers of a product, as well as by the classification of a product in a category. Would you be considered part of the market for game consoles? Why or why not? What other markets are you part of?

32. The Marketing Concept SECTION 2.1 The Marketing Mix
The marketing mix comprises four basic marketing strategies known as the four Ps:
Product
Place
Price
Promotion
Slide 1 of 3

33. The Marketing Concept SECTION 2.1 The Marketing Mix
Product strategies include what product to make, how to package it, what brand name to use, and what image to project.
Place strategies deal with how and where a product will be distributed.
Slide 2 of 3

34. The Marketing Concept SECTION 2.1 The Marketing Mix
Price strategies should reflect what customers are willing and able to pay.
Promotion strategies deal with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy.
Slide 3 of 3

35. The Marketing Concept SECTION 2.1 Target Marketing
Target marketing is focusing all marketing mix decisions on the specific group of people you want to reach.

36. Reviewing Key Terms and Concepts
ASSESSMENT
2.1
Reviewing Key Terms and Concepts
1. What does the marketing concept state?
2. Who are the customers of Sony Electronics and Hershey Chocolates? Who are their consumers?
3. What is a market?
4. What is target marketing?
5. What are the four Ps of the marketing mix?

37. ASSESSMENT Thinking Critically 2.1
Many women's magazines like Glamour and Elle publish advertisement for men's cologne. Explain the rationale for this practice.

38. Graphic Organizer 2.1 The Marketing Mix The Marketing Concept
Consumers
Marketing Research
Marketing Segmentation
Product
Price
Place
Promotion

39. Marketing Essentials
End of Section 2.1

40. “… give the customers what they need/want seems so obvious”
Marketing Concept
“..The Marketing Concept means that an organization aims ALL its efforts at satisfying its customers...”
“… give the customers what they need/want seems so obvious”

41. the Marketing Concept
All of the people in the company aim all efforts to satisfy the customer.
1. Customer satisfaction
2. A total company effort
3. Profit (not just Sales) as an objective