Chapter # 1:

INTRODUCTION TO
MARKETING

By: Muhammad Sohail Rashid

MARKETING
Marketing is a process by which companies
create value for customers and build strong
customer relationships to capture value from
customers in return.
 Create value for customers
 Building profitable relationship with customer
 NEEDS ,WANTS AND DEMANDS
 Needs are basic human
requirements people need
food ,water, air, clothing and
shelter.
 Marketing do not create the
needs.
 But they influence the demand
by making the product
qualitative, quantitative,
affordable and attractive.
 Need:

 State of felt deprivation

including physical, social, and
individual needs
 Physiological: food, shelter,
clothing, and safety etc.

 Social: relationship, respect,

care and affection

 Individual: recognition, prestige

and feeling of
achievement/success.
 Want:

 Wants are desires for specific

satisfiers of needs.
 Needs become wants they are
directed to specific objects that
might satisfy their needs.
 Human needs are unlimited. So, to
satisfy unlimited needs a person
desire for different products and
services.
 Want:

 Wants depend on the culture,

social class, and individual
personality.
 A marketer can influence human
wants by providing a variety of
need-satisfying objects.
 Demand:

 Demands are human wants backed by ability

and willingness to buy.
 The person wants only those goods which
provide them maximum satisfaction.
 Marketers can also influence demand by offering
products at different price and quality.
 Types of demand;
 Primary demand refers to the demand of the
products and services that can satisfy basic
customer need. i.e. cold drink
 Consumers are less conscious about brand
selection.
 Secondary demand refers to the demand
of goods and services which produced by
special or certain brand.
 The special demand is more specific and
includes demand for a specific organization’
or band’ product.
 The marketers use brand differentiation
features such as brand name, quality, price,
packaging and promotion to convince the
consumers that their brand is different from
competitor's brand.
 A producer should provide information
about the availability of product, use of
the product, change in product or
service, etc. to the customers for
creating demand.
 The important methods of creating
demand are as follows:
• Personal selling
• Advertisement
• Sales promotion
• Personal selling:
• Personal selling is the oral
communication with the potential
customer for the purpose of selling
goods.
• It is a direct method in which
seller or sales representative
negotiates directly with
customers, presents information
to them, and motivates them to
buy products.
• Advertisement:
• Advertisement is a non-personal
communication process where
the customers are given
information about new goods and
services to provoke curiosity in
them for buying products. ( TV,
radio, newspaper, magazine and
media).
• Sales promotion:
• Sales promotion is the demand
stimulating activity besides
personal selling and
advertisement. Sales promotion
activities are display and
decoration of products, exhibition,
free distribution of sample, gifts
program etc. This will help to
increase sales volume.
PRODUCTS

 “A product is anything that

can be offered to satisfy a
need or want”.

 It has two types

 Tangible Product i.e. car
 Intangible Product i.e.
doctor services
 MARKETS
 An area in which commercial
dealings are conducted.
 OR Consists of all the potential buyer
and seller, who might be willing and
able to engage in exchange to satisfy
their need or want.
 Market-place is physical, as when
one goes for shopping in a physical
store.
 Market-space is digital, as when one
goes shopping on the internet.
 ROLE OF MARKETING
 Lifeblood and the backbone of any organization.
 Marketing conceives the product, prices it, distributes it
among all the logistically feasible areas and promotes
through unique ways.
 Marketing helps the organizations to deal with changing
trends and demands by formulating the most effective
strategies.
 ROLE OF MARKETING
 Conducts research, creates short, mid and long-term
plans and develops feasibility studies on whether a
certain venture would become a click in the market.
 The most essential and vital element of any
organization since it is the one that produces profit and
customers - and retains them for the firm.
 ADVANTAGES OF MARKETING
 Developing products that satisfy
needs, including products that
enhance society’s quality of life.

 Creating a competitive
environment that helps lower
product prices.

 Developing product distribution

systems that offer access to
products to a large number of
customers and many geographic
regions.
 ADVANTAGES OF MARKETING
 Building demand for organization’ products which
provides revenues and help in business growth.

 Marketing helps the organization to portray their

products in a effective way, to positively change
the customer behaviour.
FIVE BASIC MARKETING
CONCEPTS

Societal
Marketing
Marketing
Concept Concept

Selling Marketi
Concept ng

Product Production
Concept Concept
 The Production Concept
 Consumers will favor those products that
are widely available and low in cost.
 Therefore increase production and cut
down costs.
 i.e. Q Mobile and Sam’s Burger

 The Product Concept

 Consumers will favor those products that

offer the most quality, performance, or
innovative features.
 Therefore, improve quality, performance
and features.
 This would lead to increased sales and
profits.
 i.e. Apple I-phone, Royal Tag, Adidas,
Domino’s, Maria.B, Tommy Helfiger, & BMW
 The Selling Concept
 Consumers , if left alone , will not buy
enough of company’s products.
 Therefore, promote sales aggressively.

 And, build profit through quick

turnover.
 The Marketing Concept

 The key to achieving organizational

goals consist in determining the needs
and wants of target markets and
delivering the desired satisfactions
more effectively and efficiently than
competitors.
 And build profit through customer
satisfaction and loyalty.
 The Societal Marketing Concept
 The societal marketing concept is a marketing
concept that holds that a company should make
marketing decisions not only by considering
consumers' wants, the company's requirements, but
also society's long-term interests. i.e. Nestle laptop
donation, Shaukat khanam cancer hospital, & hair
laptops for CM laptop Scheme etc.
REASONS FOR STUDYING MARKETING
 Marketing is part of all of our lives and
touches us in some way every day. To be
successful each company that deals with
customers on a daily basis must be focus on
customer interest. The best way to achieve
this objective is to develop a sound marketing
function within the organization.
 Major reason to study marketing is:

 Marketing plays an important role in society

 It is Vital to business

 Marketing offers outstanding career

opportunities
 Marketing effects your life every day