Introduction to Marketing

•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 &
organizational goals.
• Marketing is providing the right product, in
the right place, at the right time, at the right
price to the right customer.
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What Can Be Marketed?

 Goods  Places

 Services  Properties

 Experiences  Organizations

 Events  Information

 Persons  Ideas

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 Core Marketing Concepts

 Exchange involves obtaining a desired product

from someone by offering something in return.

 Itis a process in which two parties are trying to

arrive at mutually agreeable terms.

 When an agreement is reached, we say that

Transaction has taken place.
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Core Marketing Concepts (Cont.)
 Target Markets & Segmentation

 Differences in needs, behavior,

demographics or psychographics are used
to identify Segments.

 Thesegment served by the firm is called the

Target Market.

 Themarket offering is customized to the 41

needs of the target market.

Core Marketing Concepts (Cont.)
 Shopping can take place in a:
 Marketplace (physical entity - Food World)

 Marketspace (virtual entity – Amazon.com)

• Metamarkets refer to complementary goods

and services that are related in the minds of
consumers but are spread across a diverse
set of industries.
• Marketers seek responses from prospects.
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Core Marketing Concepts (Cont.)
 Needs describe basic human requirements such
as food, air, water, clothing, shelter, recreation,
education, and entertainment.

 Needs become wants when they are directed to

specific objects that might satisfy the need.
Demands are wants for specific products backed
by an ability to pay.

 A Product/Service is any offering that can satisfy a

need or want, while a brand is a specific offering
from a known source. 61
Core Marketing Concept: Value
•Value = Benefits/Costs.
 Marketers can enhance the value of an
offering to the customer by:
 Raising benefits.

 Reducing costs.

 Raising benefits while lowering costs.

 Raising benefits by more than the

increase in costs.
 Lowering benefits by less than the
reduction in costs. 71
Core Marketing Concepts (Cont.)
 Relationship marketing aims to build long-term
mutually satisfying relations with key parties,
which ultimately results in marketing network
between the company and its supporting
stakeholders.
• Marketing Channels:
*Communication Channels
*Distribution Channels
*Selling Channels
 A supply chain stretches from raw materials to
components to final products that are carried
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to final buyers.
Core Marketing Concept:
Competition
 Competition includes all the actual and
potential rival offerings and substitutes that a
buyer might consider.
 Four levels of competition can be
distinguished by the level of product
substitutability:
 Brand competition

 Industry competition

 Form competition

 Generic competition 91
 Core Marketing Concept:
Marketing Environment
 TaskEnvironment includes immediate parties
involved in producing, distributing and
promoting.
 Thefollowing are the 6 components in
Broad Environment:
 Demographics
 Economics
 Natural environment
 Technological environment
 Political-legal environment
 Social-cultural environment 101
 Marketing Mix – The 4 Ps

•Marketing Mix is the set of marketing tools

that the firms use to pursue their marketing
objectives in the target market.
 Marketing mix decisions include:
 Product: provides customer solution.

 Price: represents the customer’s cost.

 Place: customer convenience is key.

 Promotion: communicates with

customer. 111
 Marketing Mix – The 4 Ps

•Marketing Mix is the set of marketing tools

that the firms use to pursue their marketing
objectives in the target market.
 Marketing mix decisions include:
 Product: provides customer solution.

 Price: represents the customer’s cost.

 Place: customer convenience is key.

 Promotion: communicates with

customer. 121
 4 types of utilities:
 Form Utility: Created when raw material
is converted into a finished product.
 Time Utility: By providing the products to
the customers when they want it.
 Place Utility: It is provided when product
is made available to customers at the
locations preferred by them.
 Possession Utility: When the buyer can
use the product as he wishes.
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 Company Orientations
 The orientation or philosophy of the firm
typically guides marketing efforts. Several
competing orientations exist:
 Production concept

 Product concept

 Selling concept

 Marketing concept

 Societal marketing concept

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 The Marketing Concept
 Achieving organizational goals requires that
company be more effective than competitors
in creating, delivering, and communicating
customer value.
•Four pillars of the marketing concept:

•Target market
•Customer needs
•Integrated marketing
•Profitability
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Marketing Trends in the 21st
Century:
 Relationship Marketing  Customer database

 Customer Lifetime Value  Integrated Marketing

Communication
 Customer Share: Cross
Selling  Channels as partners

 Target Marketing  Employee Marketer

 Customization 161