OVERVIEW OF MARKETING

Topic 1-overview of marketing

 1. Definition of marketing
2. Explain five marketing management philosophies
Product Concept
Production Concept
Marketing Concept
Selling Concept
Societal Marketing Concept
3. Discuss core marketing concept
Define needs, wants and demand
Define offering
Define value and satisfaction
Define marketers and market
Define exchange, transaction and relationships
4. Discuss ethics in marketing
5. Discuss social responsibility

Topic 1-OVERVIEW OF MARKETING 2

❑According to Kotler, 13th Edition

‘Marketing is a social and

managerial process by which
individuals and groups obtain what
they want and need through
creating, offering and exchanging
products of value with others’
Marketing is a process by which companies
create value for customers and build strong
customer relationships to capture value from
customers in return , making consumer satisfied

Topic 1-overview of marketing 3

▪ According to The American Marketing Association (Marketing
Management, 14th Edition
▪ Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.

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▪ A marketing philosophy is a foundational idea that becomes a
part of all of the work that a marketing department accomplishes
for a company or organization.
▪ What kind of philosophy that can carry out to achieve desired
exchanges with our target markets?

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 5 MARKETING MANAGEMENT PHILOSOPHIES

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 1. PRODUCTION CONCEPT

▪ This concept is the oldest of the concepts in business.

▪ It holds that consumers will prefer products that are widely
available and inexpensive.
▪ Managers focusing on this concept concentrate on
achieving high production efficiency, low costs, and mass
distribution.
▪ They assume that consumers are primarily interested in
product availability and low prices.
▪ This orientation makes sense in developing countries,
where consumers are more interested in obtaining the
product than in its features.

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 2.PRODUCT CONCEPT

▪ The underlying assumption: good products sell themselves

▪ This orientation holds that consumers will favor those products
that offer the most quality, performance, or innovative features.
▪ Managers focusing on this concept concentrate on making
superior products and improving them over time.
▪ They assume that buyers admire well-made products and can
appraise quality and performance

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 3.SELLING CONCEPT

▪ The idea that consumers will not buy enough

of the firm’s products, unless it undertakes a
large scale selling and promotion effort
▪ undertake an aggressive selling and
promotion effort.
▪ Must be good on tracking down prospects
and selling them on product benefits
▪ Aim to sell what they make rather than make
what market wants
▪ Focuses on creating sales transactions rather
that build long-term, profitable relationships
with customers.

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 4.MARKETING CONCEPT

▪ It takes an outside-in perspective

▪ Starts with well-defined market, focuses on customer needs,
coordinates all the marketing activities affecting customers and
makes profits by creating long-term customer relationships
based on customer value and satisfaction.
▪ Companies produce what customer want, thereby satisfying
customers and making profit.
▪ organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfaction better
than competitors do

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 5.SOCIETAL MARKETING CONCEPT

▪ the idea that a company should make good marketing

decisions by considering consumers’ wants, the
company’s requirements, consumers’ long-term interests,
and society’s long-run interests
▪ The social marketing concept holds that the organization's task
is to determine the needs, wants, and interests of a target
market and to deliver the desired satisfactions more effectively
and efficiently than competitors in a way that preserves or
enhances the consumer's and the society's well-being.

Topic 1-overview of marketing 13

As a first step, marketers need to understand customer needs and wants and
the marketplace within which they operate.

Needs, Wants &

Offering
Demands

Exchange,
Value, & Satisfaction Transaction &
Relationship

Marketers & Market

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 1. Definition
Needs States of felt deprivation

•Physical – food, clothing, warmth, safety

Example •Social – belonging, affection
•Individual – knowledge and self-expression

Wants Definition
The form of human needs take as
shapes by culture and individual personality

Demands Human wants that are backed

Definition
by buying power

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 2. Offering Some combination of Products, , services,
information, or experiences offered to a market
to satisfy needs and wants

Anything that can be offered to a market for

attention, acquisition, use or consumption that
might satisfy a want or need.

Any activity or benefits that one party can

offer to another that is essentially intangible and
does not result in the ownership of anything

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 3.

Value Definition Expectations of customers towards

something

Example
In terms of level of satisfaction,
product quality, worth of money

A feeling when benefits of the product or

Satisfaction Definition service meet the customer’s expectation

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 4.

Market Definition The set of actual and potential

buyers a product or service

Consumer market Government market

Reseller market

International market
Business market

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 A person whose duties include the
Marketers
Definition identification of the goods and
services desired by a set of
consumers, as well as the
marketing of those goods and
services on behalf of a company

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 5.
Exchange Definition The act of obtaining a desired object
from someone by offering something
in return

Transaction Definition A trade values between 2 parties

Example money, barter system

Actions taken to build and maintain desirable

Relationship Definition connection with target audiences involving
a product, service, idea or other object.
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 Exchange

Transaction

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1.4 DISCUSS ETHICS IN MARKETING

DEFINE MARKETING ETHICS

EXPLAIN THE ROLE OF ETHICS IN

MARKETING
 DEFINE MARKETING ETHICS

▪ Marketing ethics is an area of

application that involves moral
principles behind operation
and regulation of marketing.
Therefore it is a process
through which companies
generate customer interest in
products/services, create value
for stakeholders and build
strong customer relationships.
 EXPLAIN THE ROLE OF ETHICS
IN MARKETING

~MARKETERS SHOULD BE TRANSPARENT ABOUT WHO

THEY PAY TO ENDORSE THEIR PRODUCTS

~CONSUMERS SHOULD BE TREATED FAIRLY BASED ON

THE NATURE OF THE PRODUCT AND THE NATURE OF THE
CONSUMER (e.g. MARKETING TO CHILDREN)

~THE PRIVACY OF THE CONSUMER SHOULD NEVER BE

COMPROMISED
EXPLAIN THE ROLE OF ETHICS IN
MARKETING

~MARKETERS MUST COMPLY WITH REGULATIONS

AND STANDARDS ESTABLISHED BY GOVERMENTAL
AND PROFESSIONAL ORGANIZATIONS

~ETHICS SHOULD BE DISCUSSED OPENLY AND

HONESTLY DURING ALL MARKETING DECISIONS
1.5 DISCUSS SOCIAL RESPONSIBILITY
EXPLAIN THE ROLE OF
DEFINE SOCIAL
SOCIAL RESPONSIBILITY
RESPONSIBILITY
IN MARKETING
 DEFINE SOCIAL RESPONSIBILITY

The obligation of an
organization is
management towards
the welfare and interests
of the society in which it
operates
EXPLAIN THE ROLE OF SOCIAL RESPONSIBILITY IN
MARKETING
Safety
Any product or service that could be hazardous to the health
conditions of people, animals or the environment should have clear
advisories and warnings.

Honesty
Ensuring a product satisfies a need it promises to, or aids in providing a
lifestyle it advertises. Advertising should be transparent about possible
side effects and not puff up results, so clients come to respect the
honesty of your advertising.
EXPLAIN THE ROLE OF SOCIAL RESPONSIBILITY
IN MARKETING
Transparency
Any techniques to manipulate and hide facts and information
customers need could harm a company.

Ethical Pricing
Gathering data about your target market will give you
information on how much they are willing to pay for your
product. The rest of the pricing strategy, in a simplified
manner, should be based on overhead costs and supply and
demand.
EXPLAIN THE ROLE OF SOCIAL RESPONSIBILITY IN
MARKETING

Respecting Customer Privacy

When customers trust enough to allow you access to their
information, selling it to lead companies or obtaining
prospective customers’ information without permission is
unethical and breaks trust.