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What is Marketing ?

Chapter 09
?
Marketing is a societal process by which individuals and


groups obtain what they need and want through creating,
Understanding
e s
offering, and freely exchanging products and services of

l
= sa
value with others.
Marketing Process – Philip Kotler (p. 7) –

and Consumer Behavior
ting
Process of planning and executing the conception,

a rke
pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and

M organizational objectives
– Griffin, 2002 –

Presented by: Anna Riana Putriya Presented by: Anna Riana Putriya

Company Orientations towards the Marketplace Marketing: Providing Value & Satisfaction

Consumers prefer products that are  Value and Benefits
Production
ProductionConcept
Concept widely available and inexpensive
 Value is the relative comparison of a
Product
Consumers favor products that products benefits versus its costs
ProductConcept
Concept offer the most quality, performance,
or innovative features
 Benefits include the functions of the product
Consumers will buy products only if and the emotional satisfactions associated
Selling
SellingConcept
Concept the company aggressively with owning, experiencing or possessing it
promotes/sells these products

Focuses on needs/ wants of target Value = Benefits
Marketing
MarketingConcept
Concept markets & delivering value Costs
better than competitors

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Benefit VS Cost Marketing: Providing Value & Satisfaction

Value and Utility
Utility is the ability of a product to satisfy a human
Alternative 1 want or need. Four kinds:
 Time Utility
 Place Utility
 Ownership Utility
 Form Utility

Alternative 2

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Marketing: Goods, Services and Ideas The Marketing Environment
• Consumer goods are products
External environment is the outside factors that influence
purchased by consumers for personal marketing programs by posing opportunities and threats.
use

• Industrial goods are products used by
companies to produce other products

• Services are intangible products that
can be purchased

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Competitive Environment

a. Substitute products differ from those of competitors
but can fill the same need c. International competition matches domestic
products against foreign products

b. Brand competition occurs between similar
products

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The Four Ps and The Four Cs What is a Product ?

A product is a good, service or idea designed
Marketing to fill a consumer need or want.
Mix

Place
Product

Convenience
Customer
Solution Price Promotion

Customer
Communication
Cost
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PENDUKUNG
Barang Jasa
Product differentiation is the creation of a product
Meja Mobil feature or product image that differs enough from
Sepatu Arloji mahal competing products to attract consumers
Barang Gula Mainframe Computer
Minyak tanah
UTAMA
Airline Konsultasi
Jasa Software Edukasi
Telepon Baby-
Baby-sitting
Hotel
How do they differentiate themselves ?

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What is Pricing ? What is Promotion ?
Pricing is selecting the best price at which to sell a
product. Promotion is the techniques for communicating
 Prices must support a variety of costs information about products. Four promotional tools:
 Prices must be competitive
a. Advertising
- Low- and high-price strategies can be effective in different
situations b. Personal Selling
c. Sales Promotions
d. Public Relations

Presented by: Anna Riana Putriya Presented by: Anna Riana Putriya

What is Distribution or Place ? What is Market Segmentation ?

Distribution is part of the marketing mix concerned
with getting products from producers to consumers. Market segmentation is the process of dividing a
Decisions about warehousing, inventory control and market into categories of customer types
transportation options
Decisions about channels

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Identifying Market Segments Demographic Variables

1. Geographic variables are geographical units

2. Demographic variables are characteristics of
populations

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What is Target Market ?

3. Psychographic variables are consumer Target markets are groups of people with similar
characteristics such as lifestyles, opinions, wants and needs
interests and attitudes

4. Behavioral variables are consumer
characteristics based on the use of a
product, benefits sought from it, reasons
for its purchase and brand loyalty

Toothpaste w/
-Whiteners
-Fluoride
-etc.

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Market Research & the Marketing Process What is Consumer Behavior ?

Study of the decision process by which people
buy and consumer products

Study of consumer needs
and wants and the ways
in which sellers can best
meet them

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Brand Loyalty Consumer Buying Behavior

Pattern of regular consumer
purchasing based on
satisfaction with a product

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Organizational Markets The International Marketing Mix
 International Products
Some products can be sold
a. Industrial market includes businesses that buy
abroad with few changes
goods to be converted into other products or used
during production  International Pricing
Marketers must consider the higher costs of
b. Reseller market consists of intermediaries that buy transporting and selling products abroad
and resell finished goods  International Distribution
c. Government and institutional market consists of Delays in starting new distribution networks can be
nongovernmental buyers of goods and services costly
 International Promotion
A good ad campaign is a good campaign just
about everywhere

Presented by: Anna Riana Putriya Presented by: Anna Riana Putriya

Small Business and the Marketing Mix 
Small-Business Products --> Small firms should
understand consumer wants before creating new
products or services 

Small-Business Pricing -- > Small firms should set prices
by assessing costs 

Small-Business Distribution -- > Small firms should
select a facility location aimed at attracting and
retaining customers 

Small-Business Promotion -- > Small firms should plan
promotional expenses as part of start-up costs

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