PRINCIPLES OF MARKETING

In simple words:
1.Marketing is “meeting Needs Profitability”.
Main points:
• Meeting needs mean identifying needs and wants of market/ consumers.
• Profitability means that producer or seller makes a product which fulfils consumer need/want and he
earns profit for himself by doing such.
2.Marketing is’ a process of developing and distributing goods and services.”
• Goods are manufactured in the factories .
• Then distributed to the consumers in their nearby locations through retail shops,stores etc.
• Two things are important here:
• a. Assessment of consumer needs and wants before goods are developed.
• B. Consumer satisfaction assessment after they used or consumed the product.
“The determination of needs and desires of the market, so, that goods & services can be
provided to satisfy these needs and desires”
• Main Points
1. Determining needs and wants before goods & services are developed.
• Marketing Research
• Environmental Analyses
(These two above activities are performed in order to find out needs and wants)
2. Needs and wants are converted into goods & services:
Product planning and development, product service development, branding, packaging, pricing,
labeling, transporting, storing, wholesaling, retailing, advertising, personal selling, sales promotion,
insurance etc.
3. Needs and desires must be satisfied. Marketing is incomplete without customer satisfaction.
Customer satisfaction is defined how happy customers are with a company’s product, services and
capabilities. Customer satisfaction information including surveys and ratings, can help a company
determine how to best improve or changes its products and services.
Another Definition
“ The process of developing and exchanging goods and services that satisfy
customers, using the principles of pricing , promotion & distribution”
Developing is to create an offer, may be a product/ service.
Exchange is to give something to someone and receive something from that
person.
Pricing is decide the amount required as payment for something offered for sale.
Promotion is the “the publicizing of a product, service or organization”
Distribution is the process of making a product or service available for
consumer or business user who needed. This can be done by producer by using
channels or intermediaries.
Channels: Wholesalers & retailers.
Intermediaries: Middleman, Agents, Brokers & Industrials distributors.

Basic Marketing Terminologies:

Needs:
Something necessary for people to live a healthy, stable and safe life. When
needs remain unfulfilled, there is a clear adverse outcome; a dysfunction or
death. Needs can be physical such as need for food, for water and shelter or
a needs may be psychological such as need to belong a family or social
group and the need for self esteem.
Wants:
something that is desired, wished or aspired to, wants are not
essentials for basic survival and or often shaped by culture.
Demands:
When needs and wants are backed by ability to pay there have the
potential to become economic demands.

NATURE OF MARKETING
Nature of Marketing is studied by two aspects:
(A) Broad Dimension
(B) Business Dimension
A) Broad Dimension:
“ Marketing consists of all activities design to generate and facilitate any
exchange, intended to satisfy human needs and wants”
Exchange:
Exchange involves in all activities associated with receiving something from
someone by giving something in return or transfer between two or more parties of
tangible or intangible items of value.

Marketer: Customer:
Goods/ Services Exchange Process Needs & Wants

Health / Safety / Comfort / Beauty etc.

Exchange Condition:
I. At least two parties must be involved.
II. Each party must have something that interest the other party.
III. Each party must be able to communicate and deliver.
IV. Each party must be free to accept or reject any offer from the other
party.
Needs:
A need represents some fundamental requirements for
continuing our lives such as food, water or shelter.
Wants:
A want on the other hand might be a desire or wish. Wants are not essential for basic survival
and are often shaped by culture.
B) Business Dimension:
‘ Marketing is the total system of activities design to plan ,price, promote and distribute want
satisfying product, service and ideas to target market in order to achieve organizational
objectives”
Main Points:
Marketing is not only an activity, it is a chain or series of activities or it is the result of interaction
of many activities.
Plan, Price, Promotion & Distribution are key elements of Marketing Mix. They are known as 4p’s
of marketing. ( plan, price, promotion & place)
•Plan is development of a product / service.
•Price is value usually in monetary term that sellers ask for in exchange for the product, they are
offering.
 Promotion:
A variety of techniques including advertising, sales promotion, personal selling &
public relations are used to communicate with customers & potential customers.
 Product:
Tangible product that customers can evaluate by touching, seeing, tasting &
hearing. For example cell phone, computer, vehicles, aero planes etc.
 Services:
Intangible products that offer financial, legal, medical, recreation or other benefits
to the customers. For example
Banks and insurance companies offer financial benefits.
Lawyers offer legal services.
Doctors offer medical services.
Cinema or theatre offer recreational benefits.
Ideas:
An idea is a thought, belief, opinion or it may be a thought on a
particular problem to solve it. For example a chef coming up with a new
menu item. Or Careem services
Target Market:
The market that interests us the most is our target market. It is group of
customers that we have chosen to be focal point of our marketing efforts.
Organizational Objectives:
Beside other objectives a Company’s main objective is profit
maximization in long run.
 SCOPE OF MARKETING
Scope of marketing is extremely wide among the functions of marketing. Marketing
functions are:
1. Market Research
2. Product Planning & Development
3. Pricing
4. Branding
5. Packaging
6. Labeling
7. Advertising
8. Sales Force Management
8.Credit
9.Transportation
10.
Ware Housing
11.
Wholesaling
12.
Retailing
13.
Insurance etc.

Marketing Principles and knowledge can also be utilized by other professions.

It can be utilized by doctors, lawyers, economists, statisticians, city planner,
and non-profitable organizations. All these professions require customer
satisfaction. And the knowledge and principles of marketing can tell us how to
satisfy our customers.
What can be Marketed?
1) Goods:
Goods are physical items that be seen, touched, owned and
used. Examples: Food, Furniture, Cars, Clothes, Shoes, Laptop, Mobile
Phones, Books, Kitchen appliances.
2) Services:
Services are intangible meaning that they cannot be touched or
owned. Examples: Banking, Insurance, Medical & Health, Education,
Hotel, restaurants, hairdressers, legal firms, accounting services & so
on.
3) Events:
Events can be marketed. Example: Olympics, World cup, Tennis & Golf
tournaments, boxing matches, theatre, concerts & various performance shows.
4) Experiences:
By combining several goods and services a company offers an
outstanding experience for its customers.
Examples: Haunted houses, Disney Land, An Exotic Cruise, Climbing Mount
Everest.
5) People:
Each person can become their own brand and can be marketed on their
positive attributes. Examples: Professional athletes, actors & singers.
6) Places:
Towns, cities, states can be marketed to make people want to
visit them. Example: A trip to Switzerland, Murree, Australia.
7) Properties:
Properties either real property (real estate) or financial
property (stocks, bonds) are bought & sold & this require marketing.
8) Information:
Information can be produced and marketed as a product.
Examples: Magazines, Encyclopedias, Newspapers etc.
9) Organizations:
Organizations want to build strong & favorable
image in minds of their target public. Examples:
Universities Museums, Non-profitable organizations etc.
10) Ideas:
Ideas is a thought or collection of thoughts that
generate in mind. Examples: A Chef coming up with a new
menu item.