MARKETING

14th edition

Chapter # 1
The
Field of
Marketing
SOME BASIC CONCEPTS
1 NEED
• Needs are basic and necessary
requirements of human beings, without
fulfillment of which life will not be possible.
• For example food, shelter, clothing
 SOME BASIC CONCEPTS
• 2. Wants
• Those needs which are not basic in nature,
but if we get them life becomes full of comforts

A human need which is shaped

by culture and individual.
i.e. I want a Coca Cola.
I want kebab.
SOME BASIC CONCEPTS
• Demand
• Demand is the willingness to pay and ability
to pay for the satisfaction of needs and
wants.
This is Demand

Want Buying Power

“Demand” 1-5
SOME BASIC CONCEPTS
• Product
• A product may be a good, service, place or
an idea. So all tangible and intangible
attributes which can satisfy human wants
are product.
SOME BASIC CONCEPTS
• Market
Market means, “The people or
organizations with needs to satisfy, money
to spend and willingness to spend money”.

• A market is the set of actual and potential

buyers of a product.
What is a Market?

Actual
Actual
Buyers
Buyers
Market--The
Market The set
set
of
of actual
actual
and
and potential
potential
buyers
buyers of
of aa product.
product. Potential
Potential
Buyers
Buyers

1-8
WHAT IS EXCHANGE?
• The process of paying money or other
valuables and getting goods and service in
return is known as “exchange”.
CONDITIONS OF EXCHANGE:
1 Two or more than two persons or
organizations should be involved, and they
must have some need for exchange.

2 It always occur voluntarily

3 Each party or person may have something

of value for other person or party
CONDITIONS OF EXCHANGE:
4 They must communicate with each
other, buyers go to the market in order
to purchase products or hire services.
What is Marketing?

Marketing is a total system of

business activities designed to plan product
price, promote, and place (distribute)
want-satisfying product to target markets
in order to achieve oganizational objectives.

1-12
WHY MARKETING….?
• In order to fulfill the needs and wants, the
buyers have a lot of options to purchase a
particular product.
• For example. if you want to purchase a sim
card you can go for Roshan, Etisalat and
MTN, etc similarly if you want to purchase
burger, you can have it from KFC, AFC or
any other restaurant in Kabul city.
Cont`d
but the problem is that every organization
want you to purchase their products.
• So to convince and remind the customers
to start using or to keep using a particular
product the organizations have to perform
the “marketing function” which is aimed at
bringing a “matching effect” in between
wants and products.
Marketing Mix
The “Four P’s”

roduct
ricing

lace
(Distribution)
romotion 1-15
Marketing Mix
The “Four P’s”
• The Marketing Mix
The strategy of designing the combination
of products where and when it is
distributed, how it is promoted and at
what price.
Product
Pricing Target
Place Market
Promotion

1-16
The Four P`s
The Four C`s

Marketing
Mix

Product Place
Place

Customer Conven-
Solution Price
Price Promotion ience
Promotion

Customer Communication
Cost 1-17
Market Segmentation &
Target Marketing
Market Segmentation
Dividing a market into
customer categories

Target Marketing
Selecting a category of
customers with similar wants
and needs who are likely to
respond to the same products
1-18
Segmentation and Target Marketing
#1 #2

Market Segmentation:
Divide the market into
segments of customers

Target Marketing:
Select the segment to
cultivate

1-19
Value and Satisfaction

Expectation Performance Expectation Performance

8 10 10 8

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

1-20
The Marketing Concept

MARKETING CONCEPT

Customer
orientation + Coordinated
Customer Organizational
+ marketing
satisfaction success
Organization’s activities
performance +
objectives

1-21
Societal Marketing Concept

Society
Society
(Human
(Human Welfare
Welfare))

Societal
Societal
Marketing
Marketing
Concept
Concept
Consumers
Consumers Company
Company
(Wants)
(Wants) (Profits)
(Profits)
1-22
IMPORTANCE OF MARKETING
• Marketing is playing a very important role in
today`s business world, and its importance
is increasing day by day,
IMPORTANCE OF MARKETING
• AT GLOBAL LEVEL:
• Marketing provides services in promoting
multinational business all around the world
to international customers in international
markets.
• Coca Cola operates all over the world, and
the marketers are providing services for
them in the entire world.
 IMPORTANCE OF MARKETING
• At Domestic Level

• Marketing is providing valuable services at

domestic level by promoting locally
produced products, to local customers in
local markets, thus is trying to bring
matching effect in needs and wants of local
customers.
IMPORTANCE OF MARKETING
• At Organizational Level:

• Through marketing activities we always try

to attract more and more customers and try
to satisfy them up to the last possible limit
of satisfaction. so more satisfied customers
means more profit, and more chances for
surviving in long run in the markets.
IMPORTANCE OF MARKETING
• At Personal Level:
Services of Marketers are also valuable at
personal level as well.
For example if you want to take admission in
any university abroad, or you are searching job
so you can visit the website or ad etc. You do
not need to go there and spend more time and
money. Similarly, you can also make online
purchasing or students can find required data
on internet.
 Selling is only the
tip of the Marketing
iceberg
Peter Drucker

1-28