Marketing: An Introduction

INTRODUCTION TO MARKETING

Marketing: An Introduction

What is a market?
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want (Philip Kotler). For instance..

Marketing: An Introduction

The Overall Themes of Marketing The Traditional Marketing Mix

Product Price Promotion Place

Marketing: An Introduction

Marketing Defined
Marketing is a process that is
Managerial Social Individual Wants, Desires Demands Products and/or Services

Marketing: An Introduction

As far as Customers are concerned there are three elements to address

Customer value: Difference between

the values that the customer gains from owning and using a product versus the costs of obtaining the product.

Customer satisfaction: The extent to

which a products perceived performance in delivering value matches a buyers expectations.

Quality: the characteristics of a product or

service that bear on its ability to satisfy stated or implied customer needs.

Marketing: An Introduction

Marketing Management Philosophies Agree or Disagree?

1. Production: consumers will favor products that are
available and highly affordable

2. Product: consumers favor products that offer the

most in quality, performance, and innovative features

3. Selling: consumers will not buy unless an

organization undertakes a large-scale selling and promotional effort

4. Marketing: determining the needs and wants of

target markets and delivering the desired satisfactions more effectively and efficiently then the competitors

5. Societal marketing: generating customer

satisfaction and long-run societal well-being are the keys to both achieving the companys goals and fulfilling its responsibilities

Marketing: An Introduction

Relationships
Relationship marketing: the process of creating,
maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

Marketing: An Introduction

Marketing Management Practice Essentially Two Types Entrepreneurial marketing:

Businesses started by individuals Creativity, drive, and perseverance are keys to success

Formulated marketing:
Professional, disciplined approach Achieving a market orientation

Marketing: An Introduction

Orientations towards marketing

Production concept (before 1930): demand > supply Selling concept (1930-1950): supply > demand Marketing concept (post-1960s): analyze consumer needs before producing and selling, market orientation, competition

Marketing: An Introduction

Marketing Concept versus Selling Concept

Starting Point Focus Means Ends

The Marketing Concept

Market Customer needs Integrated marketing Profits from satisfied customers

The Selling Concept

Factory Product

Sell and Promote it

Profits through sales volume

Figure 1.3

Marketing Management
Marketing: An Introduction What is marketing management?
Marketing management 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 (Philip Kotler)

Marketing management has the task of influencing the level, timing, and composition of demand in a way that will help the organization achieve its objectives.

Marketing: An Introduction

Common marketing problems

How can we identify and choose profitable market segments? How can differentiate our offer from our competition? How should we react to competitors? How can we satisfy our customers and build brand loyalty? How can we measure the effectiveness of an add campaign, of Public Relations, of a promotion, etc?