Lecture 1

Marketing:
Concept, Orientation, Objectives and Environment

Foundation
Level

Copyright: Raja Shuja-ul-Haq (2009)

 Lecture 1 Contents

1. Definitions and Equations of Marketing

2. Marketing: How did it all start?
3. Marketing: Departmental Activity or Managerial Philosophy?
4. Four Levels of Marketing (Understanding Strategic Marketing)
5. Customer Value and Customer Satisfaction
6. Understanding Marketing Objectives
7. Macro-Environment Analysis (PESTEL)
8. Micro (Competitive) Environment Analysis (5-Forces Model)
9. Task Environment Analysis (3Cs Analysis)
10. Competitive Advantage
11. Internal Analysis (SWOT)
12. Marketing Plans
13. Technology Influences on Today’s Marketing (Pyramid Model)

Copyright: Raja Shuja-ul-Haq (2009)

 Defining Marketing

Copyright: Raja Shuja-ul-Haq (2009)

 Definitions of Marketing

“The management process responsible for anticipating

and satisfying customer requirements profitably”

“The process of defining, anticipating and creating

customer needs and of organising the company’s
assets and resources to satisfy them for the greater
profit of the customer and the firm”
- Anonymous

Copyright: Raja Shuja-ul-Haq (2009)

 MARKETING:
Anticipating
Satisfying
Customer Requirements
Profitably

Copyright: Raja Shuja-ul-Haq (2009)

 Marketing is the science and art of exploring,
creating and delivering value to satisfy the
needs of a target market at a profit …

What does Philip Kotler say?

Copyright: Raja Shuja-ul-Haq (2009)

 What do the great marketing minds
say?

“Functionally Marketing:
 Identifies unfulfilled needs and desires of the
customers
 Defines, measures and quantifies the size of the
identified market
 Pinpoints the market segments (customer groups) that
the company is capable of serving the best
 Designs and promotes the appropriate products and
services”

- Philip
Kotler

Copyright: Raja Shuja-ul-Haq (2009)

 Kotler’s Marketing Equation

R STP MM I C

R = Research
STP = Segmentation, Targeting and
Positioning
MM = Marketing Mix (4Ps)
I = Implementation Every single marketing
activity fits into this simple
C = Control equation

Copyright: Raja Shuja-ul-Haq (2009)

 What do the great marketing minds
say?

“Any business enterprise has two, and only these two

basic functions : Marketing and Innovation …
They are the entrepreneurial functions”
- Peter
Drucker

Copyright: Raja Shuja-ul-Haq (2009)

 Some of my own

“Marketing is selling a product; and keeping it sold”

“Marketing is about being best at something

important to your customers”

Copyright: Raja Shuja-ul-Haq (2009)

 What Marketing is NOT
(Some incorrect definitions I can’t resist sharing)

A sophisticated form of selling done by graduates

It is what the marketing department does

Selling, sales promotions, market research, PR, direct

mail and advertising
NOTE: The sphere of marketing extends far beyond these
activities

Copyright: Raja Shuja-ul-Haq (2009)

 Basic Thought Behind
Marketing:
(in a nutshell)

Copyright: Raja Shuja-ul-Haq (2009)

 Customer Groups
(Market
Segments)

1 2

7 3

Mass Market

6
4
5

Researching and then dividing the mass market into distinct

segments / customers groups (which have something in common
that differentiates them from other customers in the market)

Copyright: Raja Shuja-ul-Haq (2009)

 Customer Groups
(Market
Segments)

1 2

7 3

6
4
5

Since all companies have limited resources (money, time,

people, energy etc.); so a choice has to be made and one or two
customers groups (market segments) have to be selected, which
apparently seem “most profitable”
Copyright: Raja Shuja-ul-Haq (2009)
 We assume the company chooses the “largest customer group”
which is 4
The chosen customer group is referred as the “target market”

1 2

8 3

Chosen
7 Target Market
4
6

Copyright: Raja Shuja-ul-Haq (2009)

 Basic Though Behind
Marketing (in a nutshell)

Attaining a position in the minds of the customers (say the

position of being a “high quality product” or “low price
product”) and offering them a1 product,
2 at a certain price,
available at a particular place and promoted in a particular way
or in a particular media (say on TV or Magazines) …
8 3

Positioni
ng Chosen
Product 7 Target Market
Price 4
Placemen 6
tPromotio
n

Copyright: Raja Shuja-ul-Haq (2009)

 Marketing Mix

The preferences and characteristics

of the chosen target market are
reflected in every single marketing
activity …
Placemen
tChannels
Product Target Market Coverage
Product Assortment
variety Quality Locations
Design Inventory
Features Transport
Brand name
Packaging Price Promotio
List price n
Sales
Discounts promotion
Allowances Advertising
Payment Sales forces
period Credit Public
terms relations
Direct
marketing
Copyright: Raja Shuja-ul-Haq (2009)
 Marketing:
How did it all start?

Copyright: Raja Shuja-ul-Haq (2009)

 Marketing has been there
for quite some time …

Copyright: Raja Shuja-ul-Haq (2009)

Advert of
the year

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