LEARNING OUTCOMES

After this chapter, you should be able to:

1 Describe the basic marketing Terms and Concepts
2 Describe the relationship between marketing and
society
3 Describe the marketing environment that affects firms
marketing activities
4 Describe macro-environment, micro-environment and
their effects

What Is Marketing? Definition
the management process responsible for identifying,
anticipating, and satisfying customer requirement
profitably (CIM2007)
as the activity set of institutions and processes for
creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partner
and society at large (AMA, 2007)
as the process by which companies create value for
customers and build strong customer relationships in
order to capture value from customers in return (Kotler
and Armstrong, 2010)
Basic Concepts Of Marketing
Needs is a requirement for something
necessary in a persons life.

Wants- - peoples needs that are molded by
culture and individual personality.

Demands created only when buying power
supports a persons want.

Answers to these 3 = offerings (products
tangibles (Goods) and intangibles (Services,
Ideas)
Basic concepts of Marketing
cont.
Value values is the difference between the
benefit one gains from a product and the
costs incurred in obtaining the product.
Customer purchase by their perceptions.

Satisfaction is the difference between a
products perceived performance in
delivering value relative to a buyers
expectation before a product is purchased.
Basic Concepts Of Marketing
Cont.
Exchange - The idea that people give up
something to receive something they would
rather have
At least two parties present
Something of value the other wants
Ability to communicate offer
Freedom to accept or reject
Desire to deal with other party
Transaction
Relationship occurs when repeated transactions
happened


Basic concepts of Marketing
cont
Market set of potential buyers
Consumer Market
Business Market
Government Market
Reseller Market
International Market


Marketing orientations
Production Concepts/Philosophy

Product Concepts/Philosophy

Selling Concepts/Philosophy

Marketing Concepts/Philosophy

Societal Marketing Concepts/Philosophy

Holistic Marketing Concepts/Philosophy
Production Concept
Focus on the efficiency of internal
operations. Better and cheaper
products

A philosophy that focuses on the
internal capabilities of the organisation,
rather than on the desires and needs of
the marketplace

Product Concept
Hold that consumers will buy products
that offer the most quality performance
and features.
good products sell themselves
Sales Concepts
Focuses on selling existing products
and using aggressive techniques for
overcoming customer resistance

The idea that people will buy more
goods and services if aggressive sales
techniques are used and that high
sales result in high profits.

The Marketing Concept
The idea that the social and economic
justification for an organisations
existence is the satisfaction of
customer wants and needs, while
meeting organisational objectives
Inter-functional coordination of all the
organisations activities is required

Societal Marketing Concept
Focuses on meeting the needs, wants
and objectives of customers and
organisations and meeting individuals
and societys long-term best interests
Q > Why have many firms shifted to this
marketing philosophy?
Holistic marketing orientation
Focuses on relationships with existing
suppliers and customers

Recognises the value of the repeat
sale rather than on making a sale that
meets the needs and wants of the
marketplace

The marketing process
Marketing process activities
Environmental scanning: Gathering, analysing
and interpreting information about the
environment

Developing a marketing strategy: Understanding
the organisations mission and the role
marketing plays in fulfilling this mission
Marketing process activities
(cont.)
Marketing opportunity analysis: Finding out what
benefits people want the organisation to deliver
and what they want the organisation to satisfy

Target market strategy: Deciding which wants,
and whose wants, the organisation will try to
satisfy
Marketing process activities
(cont.)
Marketing mix: Setting marketing objectives and
developing appropriate marketing activities to
satisfy the desires of selected target markets

Looking at the impact of marketing when
dealing with international and global markets
Marketing process activities
(cont.)
Understanding the organisations mission and the role
that marketing plays in fulfilling this vision
Implementing the strategy; and periodically evaluating
marketing efforts and making changes if needed

Why study marketing?
Plays an important role in society

Vital to business survival, profits
and growth

Offers career opportunities

Affects your life every day

To Be Cont.

THANK YOU