CHAPTER 1

OVERVIEW OF
MARKETING
LEARNING OBJECTIVES
i. Understand marketing
ii. Identify the marketplace and customer
needs
iii. Identify a customer-driven marketing
strategy
iv. Understand the major trends and forces
that are changing the marketing
landscape
WHAT IS MARKETING??
Broadly defined MARKETING as a.

social and managerial process by which

individuals and organizations obtain what
they need and want through creating and
exchanging value with others
Simplified definition is

The process by which companies create value for

customers and build strong customer relationships in
order to capture value from customers in return
5 STEPS IN MARKETING
PROCESS

Create value for customers and Capture value

build customer relationship from customers
in return
MARKETPLACE AND
CUSTOMER NEEDS

Markets

Exchanges &
relationships

Needs, wants & Value &

demands satisfaction

Offerings

Customer and marketplace concepts

Needs, wants & demands
Needs states of felt deprivation

Wants the form of human needs take as

shaped by culture and individual personality

Demands human wants that are backed

by buying power
Offerings
Market offering some combination of
products, services, information or
experiences offered to a market to satisfy a
need or want

Marketing myopia the mistake of paying

more attention to the specific products a
company offers than to the benefits and
experiences produced by these products
Value & Satisfaction
Value Customers estimate of the products
overall capacity to satisfy their needs

Also the differences between the values the

customer gains from owning and using a
product and the costs of obtaining the product

Satisfaction the extent to which a products

perceived performance matches a buyers
expectation
Exchanges & Relationships
Exchanges the act of obtaining a desired
object from someone by offering something
in return

Relationships the tie between a customer

and its product or the producer of the
product
Markets
Market the set of all actual and potential
buyers of a product or service
CUSTOMER DRIVEN
MARKETING STRATEGY

Societal
marketing
concept

Selling Marketing
concept concept

Product
concept

Production
concept
Production Concept
Thephilosophy that consumers will favour
products that are available and highly
affordable and that management should
therefore focus on improving production
and distribution efficiency.
Product Concept
Thephilosophy that consumers will favour
products that offer the most quality,
performance, and innovative features.
Selling Concept
Theidea that consumers will not buy
enough of the organizations products
unless the organization undertakes a large
scale selling and promotion effort.
Marketing Concept
Themarketing management philosophy
that holds that achieving organizational
goals depends on determining the needs
and wants of target markets and
delivering the desired satisfactions more
effectively and efficiently than
competitors do.
Societal Marketing Concept
The idea that the organization should
determine the needs, wants, and interests
of target markets and deliver the desired
satisfactions more effectively and
efficiently than competitors in a way that
maintains or improves the consumers and
societys well being.
THE MAJOR TRENDS AND
FORCES THAT ARE CHANGING
THE MARKETING LANDSCAPE
The digital age

Rapid
globalization

More ethics &

social
responsibility

The grow of
non-for-profit
marketing