Prof.

Magdalena Platis
Marketing
I. Introduction to marketing - concept, functions, evolution. Enterprise market - content,
size, dynamics
1. Concept of Marketing
2. Marketing Functions
3. Marketing evolution
4. Customer Relationship Marketing
5. Enterprise and market
1. Concept of marketing

- What is marketing about? Please identify few marketing related activities…

- Marketing is an economic science that puts the customer at the center
- Important concepts: client, exchange, consumer, demand, economic needs, product
Client
- it designates any individual or group of individuals who benefits from a good or service and
is a party in an exchange relationship. It can be buyer, consumer, user, applicant, patient,
contractor, distributor, agent, retailer, wholesaler, sponsor, listener, passenger, tourist,
voter, student etc.
Exchange relationship
• consists in the relationship that arises between a potential buyer and a potential seller when the
following conditions are met:
• each party has something of value for the other party;
• each participant in the exchange relationship has the freedom to accept or reject the transaction;
• there is the possibility of communication between the two parties.
Economic needs
- are objectively necessary requirements for the development of the human personality.
Marketing interprets human needs in a more flexible way than the economy. Thus, we can
identify:
• expressed needs, when the client turns his needs into demand for a certain good or
service;
• real needs, which aim at the needs pursued by the consumer to be satisfied in a hidden,
undeclared way;
• unexpressed needs, which include the needs pursued by the consumer implicitly, ie his
expectations regarding the purchased product;
 • satisfaction needs, in the form of the needs of some facilities, granted by the bidder on
the occasion of the product sale;
• secret needs, which aim to include the requirements of individuals to gain a certain
social appreciation, to be included in a certain group.
Ph. Kotler exemplifies for these needs:
• a cheap car as a product designed to meet the expressed need;
• a car with low maintenance costs as a product that satisfies a real need;
• quality services offered by the seller to satisfy an unexpressed need;
• a car with which you receive free of charge and a tourist map to meet the need for
satisfaction;
• an appreciation in the form of a person with the discernment of value for a secret need.
Demand
- it generally expresses the quantities of goods that are demanded at a given time, on the
market, at different prices. In terms of marketing, it acquires new meanings, namely:
• negative demand, which manifests itself when most consumers do not accept the product;
• absent demand, which stands out in the form of indifference to the product;
• latent demand, in the form of a still unmet need;
• declining demand, if sales are declining;
• fluctuating demand, when it is influenced by seasonal factors;
• complete request, which is expressed by companies satisfied with the activity carried out;
• overcrowding, when the demand exceeds the satisfaction capacity of the bidders;
• demand for contraindicated products.
 https://www.google.com/search?q=demandconcept&tbm=isch&ved=2ahUKEwjj2Zvro-nuAhXQ04UKHc-jA2QQ2-
cCegQIABAA&oq=demandconcept&gs_lcp=CgNpbWcQAzIGCAAQBxAeMgYIABAHEB4yBggAEAcQHjIGCAAQBxAeMgYIABAH
EB4yBggAEAcQHjIGCAAQBxAeMgYIABAHEB4yBggAEAcQHjIGCAAQBxAeOgQIABATOggIABAHEB4QE1D-
UVixWGCMXGgAcAB4AIABa4gBzQSSAQM1LjGYAQCgAQGqAQtnd3Mtd2l6LWltZ8ABAQ&sclient=img&ei=jwopYKPWKdCnlw
TPx46gBg&bih=610&biw=1280#imgrc=InqLkfTL61C3cM

Marketing
• is a (company level) science that approaches the market and the behavior of economic
agents in a new perspective, translates into a set of practical activities at the heart of
consumer needs and uses a set of economic tools through which supply adapts to
demand.
• by capitalizing on the content aspects of economic variables in practical activity is a
neofactor of production that takes the form of tools to adapt the offer to the market. It
generates changes in the system of organization and management of the company's
activity.
https://www.google.com/search?q=marketing+concept&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiR9K6umunuAhVxxoUKHTvhB
74Q_AUoAXoECAUQAw&biw=1280&bih=610#imgrc=IeQ1llo_mSrWZM

2. Marketing functions
Marketing fulfills several functions. The marketing functions aim at a set of activities carried
out by a complex economic agent, which performs multiple actions besides the basic ones in
order to approach the client, and to enhance its results. Specifically, the marketing functions
aim at the following activities:
• purchase, through which the enterprise supplies itself with the necessary production
factors;
• transport, which involves the movement of raw materials and goods;
• storage, in the form of keeping resources or raw materials in order to avoid disturbances in
the production or marketing process;
• financing, which aims at the financial resources necessary for production, transport,
storage, etc .;
 • market research, by analyzing the opportunities it offers to capitalize on production;
• insurance, against the occurrence of risks;
• sales, by identifying market share and promoting sales.

https://www.google.com/search?q=marketing+functions&tbm=isch&source=iu&ictx=1&fir=sMRARjxtNOn5BM%252CovMikzuJy71xV
M%252C_&vet=1&usg=AI4_-
kRkFZQEeMm7Nil_mf1JNZENf0EKWA&sa=X&ved=2ahUKEwi73cqkounuAhVF6RoKHcUzD2gQ9QF6BAgqEAE#imgrc=gkZ6JTXc
TAqAtM

Therefore, marketing fulfills the following functions:

1. understanding the market requirements;
2. dynamic connection of the enterprise to the social economic environment;
3. meeting market requirements at a higher level – client satisfaction;
4. obtaining maximum efficiency - profit.

Important! Utility – place, time and mixed (both) – according to the product availability.

3. Marketing evolution
A. Evolution – of theories
B. Evolution of practices

A. Evolution of marketing theories

 https://www.google.com/search?q=marketing+stages&tbm=isch&ved=2ahUKEwixz7ryyvjuAhWF0YUKHX2GAFQQ2-
cCegQIABAA&oq=marketing+stages&gs_lcp=CgNpbWcQAzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIICAAQBRAeEBMyCAgAEAUQHhATMg
gIABAFEB4QEzIICAAQBRAeEBMyCAgAEAUQHhATMggIABAFEB4QEzoCCAA6BAgAEB5Qoj9YxUVg90doAHAAeACAAXCIAa8EkgEDNS4x
mAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=xxAxYPHPOIWjlwT9jIKgBQ&bih=610&biw=1280#imgrc=Cn0kbb-Ut6snLM

https://www.google.com/search?q=production+versus+product+orientation&tbm=isch&ved=2ahUKEwjHw97Zy_juAhVG3RoKHebGAQ0Q2-
cCegQIABAA&oq=production+versus+product+orientation&gs_lcp=CgNpbWcQAzoCCAA6BAgAEBM6BggAEB4QEzoICAAQBRAeEBM6BAgAEB4
6BggAEAUQHjoGCAAQCBAeUMK4CFiO8Qhgl_MIaAFwAHgAgAGVAYgB8ROSAQQyNS4zmAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=i
mg&ei=oBExYMfzH8a6a-aNh2g&bih=610&biw=1280#imgrc=Q39SLXZrRGAiWM
 https://www.google.com/search?q=production+orientation+theory&tbm=isch&ved=2ahUKEwjq6aLnwPjuAhUFuKQKHY5yCiYQ2-
cCegQIABAA&oq=production+orientation+theory&gs_lcp=CgNpbWcQAzoICAAQsQMQgwE6BQgAELEDOgIIADoECAAQQzoECAAQHjoECAAQE
zoGCAAQHhATOggIABAFEB4QEzoICAAQCBAeEBNQqouyAVilsrIBYP-
0sgFoAHAAeACAAbEBiAHQEpIBBDI4LjGYAQCgAQGqAQtnd3Mtd2l6LWltZ8ABAQ&sclient=img&ei=NAYxYOr_BoXwkgWO5amwAg&bih=610
&biw=1280#imgrc=_vpeOcBzC51qLM

https://www.google.com/search?q=production+orientation+theory&tbm=isch&ved=2ahUKEwjq6aLnwPjuAhUFuKQKHY5yCiYQ2-
cCegQIABAA&oq=production+orientation+theory&gs_lcp=CgNpbWcQAzoICAAQsQMQgwE6BQgAELEDOgIIADoECAAQQzoECAAQHjoECAAQE
zoGCAAQHhATOggIABAFEB4QEzoICAAQCBAeEBNQqouyAVilsrIBYP-
0sgFoAHAAeACAAbEBiAHQEpIBBDI4LjGYAQCgAQGqAQtnd3Mtd2l6LWltZ8ABAQ&sclient=img&ei=NAYxYOr_BoXwkgWO5amwAg&bih=610
&biw=1280#imgrc=CxRPDCIbuOvf6M

https://www.google.com/search?q=production+versus+product+orientation&tbm=isch&ved=2ahUKEwjHw97Zy_juAhVG3RoKHebGAQ0Q2-
cCegQIABAA&oq=production+versus+product+orientation&gs_lcp=CgNpbWcQAzoCCAA6BAgAEBM6BggAEB4QEzoICAAQBRAeEBM6BAgAEB4
6BggAEAUQHjoGCAAQCBAeUMK4CFiO8Qhgl_MIaAFwAHgAgAGVAYgB8ROSAQQyNS4zmAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=i
mg&ei=oBExYMfzH8a6a-aNh2g&bih=610&biw=1280#imgrc=ERQCQ5d8WZXcvM
 https://www.google.com/search?q=sales+versus+marketing+orientation&tbm=isch&ved=2ahUKEwjlvcCfzPjuAhUXO-wKHcIRAAwQ2-
cCegQIABAA&oq=sales+versus+marketing+orientation&gs_lcp=CgNpbWcQAzoECAAQQzoFCAAQsQM6AggAOggIABCxAxCDAToECAAQEzoGC
AAQHhATOggIABAFEB4QEzoICAAQCBAeEBM6BAgAEB46BggAEAgQHlDe9QlYqrMKYMG1CmgAcAB4AIABmwGIAcYYkgEEMzAuNJgBAK
ABAaoBC2d3cy13aXotaW1nwAEB&sclient=img&ei=MhIxYOXcMpf2sAfCo4Bg&bih=610&biw=1280#imgrc=0o0H_86Jkq-IVM

https://www.google.com/search?q=societal+marketing&tbm=isch&ved=2ahUKEwjSl7XxzPjuAhXPkKQKHS7RCA8Q2-
cCegQIABAA&oq=societal+marketing&gs_lcp=CgNpbWcQAzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECA
AQEzIECAAQEzIECAAQEzoFCAAQsQM6AggAOggIABCxAxCDAToECAAQQzoHCAAQsQMQQzoECAAQHlCUqgVYqcYFYIHIBWgAcAB4AIA
BZ4gB-gySAQQxNC40mAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=3hIxYNKwJc-hkgWuoqN4&bih=610&biw=1280

https://www.google.com/search?q=societal+marketing&tbm=isch&ved=2ahUKEwjSl7XxzPjuAhXPkKQKHS7RCA8Q2-
cCegQIABAA&oq=societal+marketing&gs_lcp=CgNpbWcQAzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECA
AQEzIECAAQEzIECAAQEzoFCAAQsQM6AggAOggIABCxAxCDAToECAAQQzoHCAAQsQMQQzoECAAQHlCUqgVYqcYFYIHIBWgAcAB4AIA
BZ4gB-gySAQQxNC40mAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=3hIxYNKwJc-
hkgWuoqN4&bih=610&biw=1280#imgrc=evuF_SDK-38lsM&imgdii=49k4NNTNQelPyM
 B. Evolution of marketing practices
https://www.businessmanagementideas.com/marketing/evolution-of-marketing/21286

- Evolution of Marketing = Evolution Process and Stages involved in the Marketing Evolution
- From the earliest time when people satisfied their needs, wants and demands by exploiting
natural resources (termed as resource utilization stage) to modern times, the concept of
marketing has travelled through several stages.
- Top 3 Stages
• Production Concept/Production-Orientation Stage:
- consumers will favour products that are of superior quality, have innovative features
and give good performance. Therefore, organizations should devote their energies to
making continuous product improvements through strenuous R&D efforts.
• Selling Concept/Sales-Orientation Stage:
- consumers will buy enough of the organization’s products only if they are cajoled
through large-scale selling and promotion efforts, because consumers have the
opportunity to choose from many alternatives. Thus, this sells-orientation stage was
characterized by a heavy reliance on promotional activities to sell the product the firm
wanted to make.
• Marketing Concept/Marketing-Orientation Stage:
- companies identify what customers want and tailor all of the activities of the firm to
satisfy those needs as efficiently and effectively as possible. Hence, the marketing
concept holds that achieving organizational goals depends on determining the needs and
wants of the target markets and delivering the desired satisfaction more effectively and
efficiently than their competitors.
Important!!!

Marketing Myopia:
The product concept can also lead to a situation called “Marketing Myopia” a term coined by Theodore
Levitt. According to Levitt, customers buy a solution to their problem rather than a product. Thus, a
buyer of a car wants a solution for his transportation problem, which can be solved by a motorcycle also.
So the marketer has to see the buyer’s need rather than the product he sells. It is a need the marketer is
attempting to meet by selling a car, whether it be personal transportation, status symbol or time saving.
 https://www.google.com/search?q=marketing+myopia&tbm=isch&ved=2ahUKEwjt7q6dzfjuAhUJl6QKHXvPCC8Q2-
cCegQIABAA&oq=marketing+myopia&gs_lcp=CgNpbWcQAzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIECAAQEzI
ECAAQEzIECAAQEzIECAAQEzIECAAQEzoECAAQQzoCCAA6CAgAELEDEIMBOgUIABCxAzoECAAQHlDPigdYl6IHYL6kB2g
AcAB4AIABjQGIAb8LkgEEMTUuMZgBAKABAaoBC2d3cy13aXotaW1nwAEB&sclient=img&ei=OhMxYO3pL4mukgX7nqP4Ag&bi
h=610&biw=1280#imgrc=4-KQ_K3cohx93M

4. Customer Relationship Marketing

https://www.google.com/search?q=customer+relationship+marketing&tbm=isch&ved=2ahUKEwiWnd_WzfjuAhVBP-wKHTp6C-QQ2-
cCegQIABAA&oq=customer+relationship+marketing&gs_lcp=CgNpbWcQAzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIICAAQBRAeEBMyCAgA
EAUQHhATMggIABAFEB4QEzIICAAQBRAeEBMyCAgAEAUQHhATMggIABAIEB4QEzoFCAAQsQM6CAgAELEDEIMBOgIIADoECAAQQzoEC
AAQHjoGCAAQHhATUM-
aCVj5ywlgzs4JaABwAHgAgAGWAYgBzhWSAQQzMC4xmAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=sxMxYNb3BsH-
sAe69K2gDg&bih=610&biw=1280#imgrc=oWNM9PlO3t3LBM
 https://www.google.com/search?q=customer+relationship+marketing&tbm=isch&ved=2ahUKEwiWnd_WzfjuAhVBP-wKHTp6C-QQ2-
cCegQIABAA&oq=customer+relationship+marketing&gs_lcp=CgNpbWcQAzIECAAQEzIECAAQEzIECAAQEzIECAAQEzIICAAQBRAeEBMyCAgA
EAUQHhATMggIABAFEB4QEzIICAAQBRAeEBMyCAgAEAUQHhATMggIABAIEB4QEzoFCAAQsQM6CAgAELEDEIMBOgIIADoECAAQQzoEC
AAQHjoGCAAQHhATUM-
aCVj5ywlgzs4JaABwAHgAgAGWAYgBzhWSAQQzMC4xmAEAoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=sxMxYNb3BsH-
sAe69K2gDg&bih=610&biw=1280#imgrc=nF7Wgv3gHaKrnM

https://www.google.com/search?q=clasical+versus+CRM+marketing&tbm=isch&ved=2ahUKEwjQiaeizvjuAhUEsxoKHfZsCjMQ2-
cCegQIABAA&oq=clasical+versus+CRM+marketing&gs_lcp=CgNpbWcQAzoECAAQQzoFCAAQsQM6CAgAELEDEIMBOgIIADoECAAQHjoECAA
QEzoGCAAQCBAeUO_5CVjargpgsLEKaABwAHgAgAFviAHvE5IBBDI1LjSYAQCgAQGqAQtnd3Mtd2l6LWltZ8ABAQ&sclient=img&ei=URQxYJC
dI4TmavbZqZgD&bih=610&biw=1280#imgrc=4blYYiv1iRQaOM

Important !!! Societal marketing (social responsibility, sustainability) IS DIFFERENT FROM

Social marketing (behavioral change – publics, partnerships, policy, purse strings)

https://www.business2community.com/digital-marketing/what-is-social-marketing-with-7-stellar-examples-02236451

Social marketing is marketing designed to create social change, not to directly benefit a brand. Using
traditional marketing techniques, it raises awareness of a given problem or cause, and aims to convince
an audience to change their behaviors.
So, instead of selling a product, social marketing “sells” a behavior or lifestyle that benefits society, in
order to create the desired change. This benefit to the public good is always the primary focus. And
instead of showing how a product is better than competing products, social marketing “competes”
against undesirable thoughts, behaviors, or actions.
Social marketing is commonly used for causes like:
Health and safety, including:

• Anti-smoking
• Anti-drug
• Promoting exercise and healthy eating
• Safe driving
• Railroad station safety
Environmental causes, including:

• Anti-deforestation
• Anti-littering
• Endangered species awareness
Social activism, including:
 • Illuminating struggles that people of color, people with disabilities, etc. face, then inspiring
people to fight against mechanisms that create inequality
• Anti-bullying
• Fighting gender stereotypes

5. Enterprise and market

Company – systemic organization, process based and structural one.
Market – Demand, supply, price, competition
Market mechanisms – business relationship on short and long terms
Market dimensions – size, structure, capacity etc.
Resources:
• Video on Societal marketing
• https://www.youtube.com/watch?v=aOCDfP43068
• https://www.youtube.com/watch?v=iHl3fxApH3o
• Video on Social marketing
• https://www.youtube.com/watch?v=Bx_DnXenbHU

Subjects to reflect on for the next week:

1. Provide some examples on how marketing functions can be observed in practice.
2. Explain different customer relationship in different economic sectors.

Questions and answers?

Good luck!