MGT301

Principles of
Marketing
Lecture-1
 Today’s Topics

 Introduction-an overview of marketing

 Road map
Introduction of Marketing
 Music to a Marketer’s Ears

 “They’re the best.”

 “I always eat there.”
 “I only fly with that airline.”
 “I buy my electronics at that store.”
 “I will prefer to go in that school.”
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 Definition

 Marketing: The process of

creating consumer value in
the form of goods,
services, or ideas that can
improve the consumer’s
life.
 What is marketing ?
 More than selling and advertising
 Identifying and satisfying customers needs
 Range of activities (marketing mix - 4P’s)
 What is Marketing?

Learning to make what you can sell vs.

selling what you can make.

Identifying and satisfying customer needs

and wants.
 Peter Drucker

 Goal of all organizations is to

gain and retain customers
 Innovation and marketing are the only two
ways to achieve the goal
 “The rest only adds cost”
 The AMA managerial definition:
 “Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational objectives.”
 Marketing Involves having the Right Product
available in the Right Place at the Right Time
and making sure that the customer is Aware of
the Product.
Marketing
Product Price

Customers

Place Promotion
 Simple Marketing System

Communication

Product/Service
Producer/Seller Consumer
Money

Feedback
Marketing’s 4 P’s

 Product
 Price
 Place
 Promotion
Marketing’s 4 P’s (+2)
 People
 Product
 Price
 Place
 Promotion
 Profits
 Marketing

 It assumes that it will proceed in accordance

with ethical practices.
 Identifies the 4 marketing variables -
product, price, promotion, and distribution.
 States that the public, the customer, and the
client determine the marketing program.
 Emphasizes creating and maintaining
relationships.
 Finally applies for both non-profit
organizations and profit-oriented businesses.
 Marketing Includes...
 Personal selling
 Advertising
 Making products available in stores
 Maintaining inventories
 etc
 What Can Be Marketed?
 Goods  Places
 Services  Properties
 Experiences  Organizations
 Events  Information
 Persons  Ideas
How Does an Organization
Create a Customer?
 Identifying customer needs
 Designing goods and services that meet those
needs
 Communicating information about those goods
and services to prospective buyers
 Making the goods or services available at
times and places that meet customers’ needs
 Pricing goods and services to reflect costs,
competition, and customers’ ability to buy
 Providing for the necessary service and follow-
up to ensure customer satisfaction after the
purchase
How is Marketing Done?
 Marketers Develop and
Implement a Marketing Plan
Based on the Following
Information:
Organization’s
Organization’s Strengths
Strengths
and
and Weaknesses
Weaknesses

Opportunities
Opportunities and
and Threats
Threats to
to the
the
Organization
Organization in
in the
the Marketplace
Marketplace

Organization’s
Organization’s Overall
Overall Objectives
Objectives
 Peter F. Drucker Said:

 If we want to know what a business is, we

have to start with its purpose. And its
purpose must lie outside the business itself.
In fact, it must lie in society since a business
enterprise is an organ of society. There is one
valid definition of business purpose: to create
a customer.
Reasons for Studying
Marketing
 Careers
Costs About 25 to 33% of the
work force hold
About 50% of total
product costs are marketing positions.
marketing costs

Why Study
Marketing ?

Contributions to Contributions to
Individual Society
Organizations Marketing decisions
Critical to the success affect the lives of
individual
of a firm
 Why Study Marketing?
 Plays an important role in society
 Vital to business
 Offers outstanding career opportunities
 Affects your life every day
Marketing is Everywhere in Your
Life
What do Marketers Think About?
 Ex: Open a Book shop On Campus
 Is there a need?
 Who is my target market?
 What is my product?
 How can I produce and deliver a “product” better
than my competitors?
 How will I promote my product?
 How can I insure customer loyalty?
 Marketing is....

getting the right products to the right people at

the right price and at the right place and time with
the right promotion
Marketing is a social and managerial process by
which individuals and groups obtain what they
need and want through creating, offering and
exchanging products of value with others.

Kotler 1994
 Process by which individuals and groups obtain
what they need and want through creating and
exchanging products and value with others.
 More simply:
Marketing is the delivery of
customer satisfaction at a profit.
Simple Questions, Hard Answers

 Who are our customers?

 What important & unique benefits do we

provide?

 Are these benefits sustainable?

 r e
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COURSE STRUCTURE

 Readings
 Lectures
 Assignments
 Project
 Exam
 Recommended Books

 Principles of Marketing by Philip Kotler and

Gary Armstrong
 Fundamentals of Marketing by Stanton, Etzel
and Walker
 Marketing by Joel R. Evans and Barry Berman
Summary
 Simple Marketing System

Communicatio
n
Product/Service
Producer/Seller Consumer
Money

Feedback
 Next….
 Understanding Marketing and Marketing
Process

 Core Marketing Concepts

 MGT301
Principles of
Marketing
Lecture-1