Introduction to

Marketing
Lesson 1

Prof. Lea A. Aquino, MBA, DBA (C)

Marketing
• Process by which individuals and groups
obtain what they need and want through
creating and exchanging products and value
with others.

• More simply: Marketing is the delivery of

customer satisfaction at a profit.
MARKETING
• A dynamic business activity that is designed to plan and
promote the delivery of satisfying needs and wants of
the potential and present market.
• The art and science of creating products and services
and finding the market , getting and retaining them to
attain profitable operations.
• A societal process that marketers must communicate
the sustainable value of the product or service to its
target market
Core Marketing Concepts
What Motivates a Consumer to Take Action?

• Needs - state of felt deprivation for basic items such as food

and clothing and complex needs such as for belonging. i.e.
I am thirsty

• Wants - form that a human need takes as shaped by culture

and individual personality. i.e. I want a Coca-Cola.

• Demands - human wants backed by buying power. i.e. I have

money to buy a Coca-Cola.
What Will Satisfy Consumer’s Needs and
Wants?
• Products - anything that • Services - activities or
can be offered to a benefits offered for sale
market for attention, that are essentially
acquisition, use or intangible and don’t
consumption and that result in the ownership
might satisfy a need or of anything.
want. • Examples: banking,
• Examples: persons, airlines, haircuts, and
places, organizations, hotels.
activities, and ideas.
How Do Consumers Choose Among Products and
Services?
• Customer Value - benefit that the customer gains from
owning and using a product compared to the cost of
obtaining the product.

• Customer Satisfaction - depends on the product’s

perceived performance in delivering value relative to a
buyer’s expectations. It measures how your product,
service, and overall experience either falls short, meets, or
exceeds customer expectations
How do Consumers Obtain Products and Services?

• Exchanges - act of obtaining a desired object from someone by

offering something in return.

• Transactions - trade of values between parties. Usually involves

money and a response.

• Relationships - building long-term relationships with

consumers, distributors, dealers, and suppliers.
Importance of Marketing
1. Marketing is an effective way of engaging customers.
2. Marketing helps to build and maintain the company’s reputation.
3. Marketing helps to build a relationship between a business and
its customers.- CRM or Customer Relationship Management.
4. Marketing is a communication channel used to inform customers
5. Marketing helps to boosts sales.
6. Ensure you offer high-quality products and services to
complement your marketing efforts.
7. Marketing helps your business to maintain relevance
8. Marketing creates revenue options. The more satisfied
customers the more income opportunities for the firm.
9. Marketing helps the management team to make informed
decisions.
Who Purchases Products and Services?

Actual
Market - buyers Buyers
who share a
particular need
or want that can
be satisfied by a
company’s products Potential
or services. Buyers
Goals of Marketing
1. Maximize the consumption of goods
2. Maximize customer satisfaction
3. Maximize the choice of goods or services
4. Maximize the quality of life
Marketing Management Philosophies
• Consumers favor products that are
Production Concept available and highly affordable
•Improve production and distribution

•Consumers favor products that offer

Product Concept the most quality, performance, and
innovative features

•Consumers will buy products only if

Selling Concept the company promotes/ sells these
product

•Focuses on needs/ wants of target

Marketing Concept markets & delivering satisfaction
better than competitors

•Focuses on needs/ wants of target

Societal Marketing Concept markets & delivering superior value
•Society’s well-being
Modern Marketing System
Marketing & Sales Concepts Contrasted
Starting Focus Means Ends
Point
Selling Profits
Existing
Factory and through
Products
Promoting Volume

The Selling Concept

Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction

The Marketing Concept

Societal Marketing Concept
Society
(Human Welfare)

Societal
Marketing
Concept

Consumers Company
(Wants) (Profits)
New Marketing Challenges

New
Marketing
Landscape &
Information Nonprofit
Technology Marketing

Emerging
Ethical
Concerns
Challenges Globalization

Changing
global
Economy
New Marketing Challenges
1. Generating traffic and leads.
2. Providing ROI for your marketing activities. It is harder to
measure/translate the results of marketing initiatives in terms of
monetary values.
3. Securing enough budget. Securing more budget is a pressing
challenge for marketing globally
4. Managing your website.
5. Targeting content for an international audience.
6. Training a team
7. Hiring top talent.
8. Delivering an account-based marketing (ABM) strategy