CHAPTER 5

MBK00103
Introduction To Marketing
Wan Marjan Binti Wan Adullah
 WHAT IS MARKETING?

“Marketing as the process of

planning and executing the
conception, pricing, promotion and
distribution of ideas, goods and
services to create exchanges that
satisfy individual and organization
objectives.”
(Dann and Dann, 2004)
“The science and art of exploring, creating and delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and
quantifies the size of the identified market and the profit potential. It pinpoints which segments
the company is capable of serving best and it designs and promotes the appropriate products
and services.”
(Dr. Philip Kotler)
Dann and dann, 2004 – the definitions of marketing established a series of elements,
which are as follows:
✓ Marketing is a process
✓ Marketing requires planning
✓ Marketing is involved from design to delivery
✓ Marketing create exchanges
✓ Marketing satisfies individual and organizational objectives.
 Markets

Exchange,
transactions Needs,
and wants and
relationships demand
Core
marketing
concept

Values
Products
satisfaction
and services
and quality
 Needs, Wants and Demands

❑ Human needs are states of felt deprivation. Includes basic physical needs.
Examples?

❑ “Wants” are the form of human needs. Shaped by culture and individual personality.
Examples?

❑ When “wants” is backed by the power, it becomes demands.

Examples?
Points to ponder….
▪ What is your needs as a student
▪ Is your asset and your lifestyle are according to your “wants” or “needs”.?
▪ Are your “demands” backed up y your own buying power?
 Products and services

❑ A product is anything that can be offered of a market to satisfy a need or want.

❑ Products way include services.
❑ Products also include other entities such as experiences, persons. Places,
organizations, information and ideas.
❑ Thus, product is not only physical goods or services.
 Value satisfaction and quality

❑ Consumers make buying choices based on their perceptions of the value that various
products and services deliver.
❑ Customers value : the difference between the values of the customer GAINS from
owning or using the products, and the COST of obtaining the products.
❑ The one that gives them the greatest delivered value.
❑ Customers satisfaction : depends on a product’s PERCEIVED performance in
delivering value relative to a buyer’s expectations.
(Performance = expectations)

❑ Quality : the totality of features and characteristics of a product or service that bear
on it is ability to satisfy customers need.
(Performance > Expectations )
 Exchange, Transactions and Relationships
❑ Exchange : the act of obtaining a desired object from someone by offering something in
return.
❑ Transactions : trade valued between two parties.
Barter – products VS products.
Classic – money VS products

❑ Relationships ; beyond creating short term transactions, marketers need to build long-
term relationships with valued customers, distributors, dealers and suppliers.

Markets
❑ A market is the set actual and potential buyers of a products.
❑ Size of the market depend on the number of people who exhibit the need, have resources
to engage in exchange and are willing to make an exchange.
Examples?
Marketing Concept
 The
production
concept

The social
The
marketing
product
concept
concept
Marketing
Concepts

The The
marketing selling
concept concept
The production concept
• Favors products that AVAILABLE and highly AFFORDABLE
• Focus on improving production and distribution efficiency

The product concept

• The product concept holds that consumers favor products that offer most quality,
performance and features.
• Can lead to “marketing myopia” – sell product and services, without much focusing on
the customer demands/needs.
The selling concept
• This concept holds that the consumers will not buy enough of the organization’s
product unless it undertakes a large SELLING and PROMOTION effort.

The marketing concept

• Achieving organizational GOALS depend on determining the NEEDS & WANTS of
target markets and delivering the desired satisfactions more effectively and
efficiently than competitors.
 Society
- human
welfare

Consumers
Societal
- Want
satisfaction
marketing
concept

Company
- profits
 The Selling Concept

Profits
Existing Selling &
Factory trough
products Promotion
- Starting point volumes
-focus - Means
- Ends
 The Marketing concept

Profit trough
Customer Integrate
Market customer
needs marketing
satisfaction
Marketing mix – The 7ps of
marketing
• Marketing mix represents a blending of decisions in few areas for the satisfaction of
the needs of customers.
• E.J. McCarthy had formerly given four elements of Marketing Mix. These include:
(1) Product, (2) Price, (3) Promotion, and (4) Place or Physical Distribution. These
elements are popularly called the “four Ps of Marketing Mix”.
• As marketing became a more sophisticated discipline, one more element was added to
these 4 Ps- People.
• Later on two more Ps were added, especially for the service sector, viz., Process and
Physical evidence. .
• These elements are interrelated because decisions in one area usually affect actions
in the others. The blend or mixture of these elements are often referred to as
Marketing Mix. It basically concentrates on the target consumers.
 PLACE
- Retails
PRODUCT
- Whosale
- Design, technology
- Local –Export
- Useability PRICE
- Internet
- Solves pains - Cost-plus
- Value - Loss leader
- Quality - More
- Brand
Warranty

TARGET
PHYSICAL PROMOTION
EVIDENCE MARKET
- Advertising
- User stories - Recommendations
- Recommendations - Gifts
- Office promises - Special offers

PEOPLE
PROCESS
- Founders
- Service delivery
- Employees
- Complaints
- Culture
Response time
- Customer service
• Product: It involves planning, developing and producing the right type of products and
services to be offered by the firm to the customers. It deals with the product range, design,
durability, branding, packaging, color and other features.
• Price: A product is only worth what a customer is willing to pay for it. The marketing
manager must determine the price in such a way that it covers the cost of production and
distribution of the product and a reasonable margin of profit. Other variables influencing
price are the price fixed by competitors, government regulation etc. It is the only element of
marketing mix that generates revenue- everything else represents a cost.
• Promotion: It deals with informing the customers about the firm’s product and
persuading them to purchase the same through personal selling, advertising, publicity and
sales promotion.
• Place or Physical distribution: It is concerned with making the product/service
available to the customers at the right place, at the right time and in the right quantity.
The place where the customers buy a product and the means of distributing the product to
that place must be appropriate and convenient to the customers.
• People: It generally refers to the employees of the business organization who deal with the
customers.
THANK YOU