Defining Marketing

Marketing is a societal process by

which individuals and groups obtain
what they need and want through
creating, offering, and freely
exchanging products and services of
value with others.
- Philip Kotler (p. 7)

©2000 Prentice Hall

 Core Concepts of Marketing
Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants, and Demands
Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction
Exchange
Exchange and
and Transactions
Transactions
Relationships
Relationships and
and Networks
Networks
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment
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 Simple Marketing System

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
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 Structure of Flows
Resources Resources
Money Resource Money
markets
Services, Taxes,
money goods
Services, Taxes
money
Manufacturer Government Consumer
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets Goods, services
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 Company Orientations
Towards the Marketplace
Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive

Consumers favor products that

Product
Product Concept
Concept offer the most quality,
performance,
or innovative features
Consumers will buy products only if
Selling
Selling Concept
Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing
Marketing Concept
Concept markets & delivering value
better than competitors
©2000 Prentice Hall
 Customer Delivered Value
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

©2000 Prentice Hall
 ©2000 Prentice Hall
Customers
Front-line people
Middle Management
Top
Management
Traditional Organization Chart
 Evolving Views of Marketing’s
Role

Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing

a. Marketing as an b. Marketing as a more

equal function important function
©2000 Prentice Hall
 Evolving Views of Marketing’s
Role
Production on
cti

Fi
du

na
ro

nc
P

e
Marketing Customer
re
Hu ur

ce M

ur an
s
so

n ar

ce
ma ces

a ke

so m
n
Fi

re Hu
tin
n

c. Marketing as the d. The customer as the

major function controlling factor
©2000 Prentice Hall
 Evolving Views of Marketing’s
Role
Production

Marketing

Customer

e. The customer as the controlling

function and marketing as the
integrative function
©2000 Prentice Hall
 Review

 Course Organization
 Tasks of Marketing
 Major Concepts & Tools of Marketing
 Marketplace Orientations
 Marketing’s Responses to New
Challenges

©2000 Prentice Hall