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What is 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.



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.

DEMAND - 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 can be offered to a market for
attention, acquisition (buying), use or consumption and that
might satisfy a need or want.

E.g. – usually a tangible item
SERVICES - activities or benefits offered for sale that are
essentially intangible and don't result in the ownership of
anything.

E.g. - banking, airlines, haircuts and hotels.

How do Consumers Obtain
Products and Services?


•Exchanges - act of obtaining a desired object from
someone by offering something in return.


•Transaction - trade of values between parties. Usually
involves money and a response.


•Relationship - building long-term relationships with
consumers, distributors, dealers, and suppliers.



Core Marketing Concepts



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.

Who Purchases Products and Services?



Marketing & Sales Concepts Contrasted



DIFFERENCES BETWEEN
MARKETING & SELLING.
MARKETING is the process of determining
customer wants and then developing a
product to satisfy that need and still yield a
satisfactory profit. It is externally focused.
SELLING is producing a product and then trying to
persuade customers to purchase it – in effect,
trying to alter consumer demand. It is
internally focused.
New Marketing Challenges




Marketing Environment
• Economic – changes in discretionary
income (what is left after spending for
basic needs)
• Social - demographic
• Competitive
• Political and Legal
• Technological
Chapter 1-5
According to the American Marketing Association,
marketing is the process of planning and executing
the conception, pricing, promotion, and distribution
of goods and services to create exchanges that satisfy
people’s needs and wants and company goals.
Marketing Defined
Chapter 1-3
Marketing Mix
• Traditional (the 4P’s of Marketing)
PRICE – value placed by a firm on its products and
services
PRODUCT – unique combination of products
(tangible) & services (intangible) offered by a firm to
its consumers
PLACE – manner in which the products & services
are being delivered to consumers
PROMOTION – methods used to communicate with
your market
Competitive Environment
1) PRODUCT-FORM competition – exists among
companies that make the same class of products &
services to the same customers at a similar price
level (e.g. Jollibee & McDonalds)

2) Category – exists among companies that make
the same kind of products (e.g. McDonalds & KFC)

3. GENERAL – exists among companies that
offer the same basic service that fulfills the
basic consumer needs (e.g. McDonalds with all
restaurants; PAL with all forms of transpo. Including ferry;
resorts with amusement parks & malls)

4. BUDGET COMPETITION - exists among
all companies that compete for consumer’s
disposable income (e.g. communication vs.
entertainment)


Competitive Environmentv
(cont)