MGT301

Principles of Marketing
Lecture-1
 Today’s Topics

 Introduction-an overview of marketing

 Road map
Introduction of Marketing
 Music to a Marketer’s Ears

 “They’re the best.”

 “I always eat there.”
 “I only fly with that airline.”
 “I buy my electronics at that store.”
 “I will prefer to go in that school.”
 What is
Marketing,
anyway?
 Definition

 Marketing: The process of creating

consumer value in the form of goods,
services, or ideas that can improve
the consumer’s life.
 What is marketing ?
 More than selling and advertising
 Identifying and satisfying customers needs
 Range of activities (marketing mix - 4P’s)
 What is Marketing?

Learning to make what you can sell vs. selling what you can
make.

Identifying and satisfying customer needs and wants.

 Peter Drucker

 Goal of all organizations is to

gain and retain customers
 Innovation and marketing are the only two ways to achieve
the goal
 “The rest only adds cost”
 The AMA managerial definition:
 “Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and
organizational objectives.”
 Marketing Involves having the Right Product available in the Right
Place at the Right Time and making sure that the customer is
Aware of the Product.
Marketing
Product Price

Customers

Place Promotion
 Simple Marketing System

Communication

Product/Service
Producer/Seller Consumer
Money

Feedback
Marketing’s 4 P’s

 Product
 Price
 Place
 Promotion
 Marketing’s 4 P’s (+2)

 People
 Product
 Price
 Place
 Promotion
 Profits
 Marketing

 It assumes that it will proceed in accordance with ethical

practices.
 Identifies the 4 marketing variables - product, price,
promotion, and distribution.
 States that the public, the customer, and the client
determine the marketing program.
 Emphasizes creating and maintaining relationships.
 Finally applies for both non-profit organizations and profit-
oriented businesses.
 Marketing Includes...

 Personal selling
 Advertising
 Making products available in stores
 Maintaining inventories
 etc
 What Can Be Marketed?

 Goods  Places

 Services  Properties

 Experiences  Organizations

 Events  Information

 Persons  Ideas
How Does an Organization Create a
Customer?
 Identifying customer needs
 Designing goods and services that meet those needs
 Communicating information about those goods and services to
prospective buyers
 Making the goods or services available at times and places that
meet customers’ needs
 Pricing goods and services to reflect costs, competition, and
customers’ ability to buy
 Providing for the necessary service and follow-up to ensure
customer satisfaction after the purchase
How is Marketing Done?
 Marketers Develop and Implement a
Marketing Plan Based on the Following
Information:

Organization’s Strengths
and Weaknesses

Opportunities and Threats to the

Organization in the Marketplace

Organization’s Overall Objectives

 Peter F. Drucker Said:

 If we want to know what a business is, we have to start with its

purpose. And its purpose must lie outside the business itself.
In fact, it must lie in society since a business enterprise is an
organ of society. There is one valid definition of business
purpose: to create a customer.
Reasons for Studying Marketing
 Careers
Costs About 25 to 33% of the work
force hold
About 50% of total product
costs are marketing costs marketing positions.

Why Study
Marketing ?

Contributions to Contributions to Society

Individual Organizations Marketing decisions affect the
Critical to the success lives of individual

of a firm consumers and society as

a whole
 Why Study Marketing?
 Plays an important role in society
 Vital to business
 Offers outstanding career opportunities
 Affects your life every day
Marketing is Everywhere in Your Life
What do Marketers Think About?
 Ex: Open a Book shop On Campus
 Is there a need?
 Who is my target market?
 What is my product?
 How can I produce and deliver a “product” better than my
competitors?
 How will I promote my product?
 How can I insure customer loyalty?
 Marketing is....

getting the right products to the right people at the right price and
at the right place and time with the right promotion
Marketing is a social and managerial process by which individuals
and groups obtain what they need and want through creating,
offering and exchanging products of value with others.

Kotler 1994
 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.
 Simple Questions, Hard Answers

 Who are our customers?

 What important & unique benefits do we provide?

 Are these benefits sustainable?

COURSE STRUCTURE

 Readings
 Lectures
 Assignments
 Project
 Exam
 Recommended Books

 Principles of Marketing by Philip Kotler and Gary Armstrong

 Fundamentals of Marketing by Stanton, Etzel and Walker
 Marketing by Joel R. Evans and Barry Berman
Summary
 Simple Marketing System

Communication

Product/Service
Producer/Seller Consumer
Money

Feedback
 Next….
 Understanding Marketing and Marketing
Process

 Core Marketing Concepts

 MGT301
Principles of Marketing
Lecture-1