Introduction to Marketing

Entrance to a

New World

The BIG Question

WHAT IS

MARKETING?
2

Marketing is
z
z
z
z
z
z
z

Advertising
Selling
Creating Needs
Manipulating People
Telling Lies in a Convincing Way
Not for the Defence Industry
Not Scientific

The Role of Marketing

BEAUTY, COMFORT, SAFETY, STATUS etc

EXCHANGE
PROCESS

CASH, DEBT, TIME, EFFORT, VOTES etc

(Bovee et al, 1995)

Definition (at last)

A social and managerial process whereby

individuals and groups obtain what they
need and want through creating and
exchanging products and value with
others
(Kotler and Armstrong, 2001)

More Definitions!

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 goals
(American Marketing Association, 1985)

Basic Concepts 1/2

z Needs

z Wants

z Demands
7

(Kotler and Armstrong, 2001)

Basic Concepts 2/2

Customer Value (difference between gains and

costs)

Customer Satisfaction (match between

perceived performance and expectations)

z
z

Relationship Marketing (with customers)

Network Marketing (with all stakeholders)

The Evolution of Marketing

The Production Concept
The Product Concept

The Sales Concept

The Marketing Concept

The Production Concept

Customers will buy whatever they find
available and affordable
z Management Focus is on improving production
and distribution efficiency
CONDITIONS
z Demand > Supply
z Monopoly
z High Cost
z

10

The Product Philosophy

z
z

Customers will buy the best product in terms of

quality, performance and features
Management Focus is on continuous product
improvement

SIDE EFFECTS
z Marketing Myopia (i.e. Trains, Boats, Cinema)
11

The Selling Concept

The Customer will NOT buy unless the
organization undertakes a large-scale selling
and promotion effort
CONDITIONS
z Supply > Demand
z Overcapacity
z Unsought Product
SERIOUS SIDE EFFECT
z Dissatisfied Customer
z

12

The Marketing Concept

The Customer will buy a product that satisfy
his/her individual needs and wants better than
other ones
CONDITIONS
z Supply > Demand
z Intensive Competition
z Consumer Diversity
IMPORTANT DEVELOPMENT
z Societal Marketing Concept Long term
Welfare
z

13

Marketing Concept vs
Selling Concept 1/2
Selling Concept
Starting Point Factory

Market

Focus

Existing Products

Customer Needs

Means

Selling Promoting
Profit through
Sales Volume

Integrated Marketing

Ends

14

Marketing Concept

Profits through
Customer Satisfaction

Marketing Concept vs
Selling Concept 1/2
SELLING CONCEPT- INSIDE OUT

COMPANY

MARKET

MARKETING CONCEPT- OUTSIDE IN

15

The TWO-FOLD
Character of Marketing

THE MARKETING PHILOSOPHY

THE MARKETING FUNCTION

16

The Marketing Philosophy

WHAT IS
THE CUSTOMER
FOR OUR COMPANY?

17

The Marketing Function

z
z
z
z
z
z

18

Strategic Level
Marketing Research
Segmentation
Targeting
Positioning
THE 4 Ps

The 4 Ps
z Product Services, Ideas
z Price
z Place Distribution
z Promotion Communication

19

Marketing in a Changing World

z
z

Connecting Technologies Internet

Connection with Customers (more selectively, for
life, directly)

Connection with Marketing Partners (in other

departments, with suppliers and distributors,
through strategic alliances)

Connection with the World Around Us (globally,

with values and responsibilities, broadened
connections)

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(Kotler and Armstrong, 2001)