Week 1.

FIB 2703

Principles of

M a r ke t i n g

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 2209 Semester 2

Lecturer: Chia Chee San

Syllabus: FIB2703

Lesson Plan:

Assignment brief:

WhatsApp group :

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FIB2703 Marketing
WhatsApp Group

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 FIB 2703 Principles of Marketing

Learning Objectives
 Explain the fundamental principles and concepts of marketing

 Analyse the marketing environment and market opportunities

 Demonstrate mental capability to comprehend the 4Ps of marketing mix

i.e. Product, Price, Place and Promotion

 Explain Market Segmentation and Positioning

 Explain Internet and online marketing

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 What is Marketing?

Marketing is a process by which companies create value &

satisfaction for customers and build strong customer
relationships to capture value from customers in return.

Attract Keep & Grow

NEW CUSTOMERS EXISTING CUSTOMERS
by promising by delivering
Superior Values Satisfaction

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Class activity
Why study marketing?

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 The Marketing Process

Step 1 Step 2 Step 3 Step 4 Step 5

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Step 1

Understanding the Marketplace and

Customer Needs and Wants

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Step 1: Understanding the Marketplace and Customer Needs and
Wants
Customer Needs, Wants, and Demands

* States of felt deprivation

Needs * Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

Wants • the human needs as shaped by culture and

individual personality

Demands • human wants that are backed by buying power

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 Understanding the Marketplace

Market offerings are some combination of products, services, information, or

experiences offered to a market to satisfy a need or want.

The concept of “product” is not limited limited to physical objects and can
include experiences,
persons, places, organizations, information and ideas.

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Understanding the Marketplace and Customer Needs and
Wants
Customer Value and Satisfaction V s . E x p e c t
a t i on s

Customer Value and Satisfaction

Marketers
• Set the right level of expectations
• Not too high or low
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Step 1: Understanding the Marketplace and Customer Needs and
Wants
Exchange is the act of obtaining a desired object from
someone by offering something in return.

- Marketing actions try to create, maintain, and grow

desirable exchange relationships.

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Step 2: Designing a Customer-Driven Marketing Strategy

FIVE MARKETING MANAGEMENT ORIENTATIONS

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Step 2 : Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations

Production Product Selling Marketing Societal

concept concept concept concept concept

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Designing a Customer -
Driven Marketing Strategy
Societal The company’
marketing
marketing: should s consider
consumers’
decisions wants, the
requirements, company’
interests,
consumers’ s long-
and society’s long-run interests.
run
Notes:
 It shows companies balance three
considerations
should in setting their
marketing strategies.

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 Class Activity
Discussion Question:

What companies can you identify with Societal Marketing

practices?

What do these companies do that ties to the societal marketing

concept?

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Step 3: Construct an Integrated Marketing Program that Delivers Superior Value
– THE FOUR
Ps

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Step 3 Construct an Integrated Marketing
Program that Delivers Superior Value - The 4 Ps

The marketing mix: set of Integrated marketing

tools (four Ps) the firm uses to program: a comprehensive
implement its marketing plan that communicates and
strategy. It includes product, delivers the intended value to
price, promotion, and place. chosen customers.

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Step 3 - Marketing Mix Activities

The marketing mix principles

are controllable variables
which have to be carefully
managed and must meet
the needs of the defined
target group.

All elements of the mix are

linked and must support
each other.

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Step 4: Build Profitable Relationships & Create Customer Delight
– PERCEIVED VALUE VS.
SATISFACTION

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Step 4: Build Profitable
Relationships and Create Customer
Delight

Customer Relationship Management (C R M)

◦ The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction.
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Step 5: Capturing Value from Customers in Return
- Creating Customer Loyalty and Retention
- Customer lifetime value is the value of the entire stream of
purchases that the customer would make over a lifetime of
patronage.

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The Changing Marketing Landscape – Political, Economic,
Social, Cultural, Technology, Legal, and Natural.

Technology

Digital and Social Media Marketing involves using

digital marketing tools such as web sites, social
media, mobile ads and apps, online videos, and
blogs that engage consumers anywhere, at any
time, via their digital & mobile devices.

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The Changing Marketing Landscape - Technology

Digital Age
People are connected continuously to people
and information worldwide
Marketers have great new tools to
communicate with customers
Internet & mobile communication devices
creates environment for online marketing

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 ?
Questions?
!
Review.
OK?

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 Week 1.2

The Marketing Environment

Micro ( Local / Task) & Macro (Global)

Environment

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Learning  Explain the importance of environmental information
in gaining insights about the marketplace
Objective
s Describe the environmental forces that affect the
company’s ability to serve its customers.
 Analyse the Micro/local and the Macro/global-
environment
 Explain the marketing responses to the changing
marketing environment

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A Company’s Marketing Environment
The marketing environment includes the actors and
factors outside marketing that affect marketing
management's ability to build and maintain
successful relationships with target customers.

The marketing environments consists of:

Micro-environment Macro-environment

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 A Company’s Marketing Environment
Microenvironment (Tasks)
consists of the actors close to the
company that affect its ability to
serve its customers—the
company, suppliers, marketing
intermediaries, customer
markets, competitors, and
publics.
Macroenvironment (Global)
consists of the larger societal
forces that affect the
microenvironment—
demographic, economic, natural,
technological, political, and
cultural forces.
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Global Environment
The components of the global environment can be broadly categorized into general
environment and task environment.
General environment
During decision-making processes, businesses can use the PESTEL analysis to analyze
the general environment of a business using the following six parameters:

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 Micro-environment actors & Macro-environment
forces that affect marketing management’s ability
to develop & maintain successful relationships
with its target customers.

◦ These actors & forces offer both opportunities

Marketin & threats (e.g. 5G technologies)
◦ These actors & forces are changing at a very
g rapid pace (e.g. the government, economy, &
Internet)
Environmen ◦ Companies must use its marketing research
t and intelligence to monitor these changes, then
revise and adapt strategies to meet new
challenges & opportunities in the market place
(e.g. Pfizer, Huawei, AirAsia)

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The Microenvironment

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 The Microenvironment (The Company)

 In designing marketing plans, marketing management takes other company

groups into account.
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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Class activity
Discussion:

How can a marketing firm ensure the effectiveness and

integration of the various company departments?

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The Microenvironment (Marketing
Intermediaries)
• Marketing intermediaries are firms
that help the company to promote,
sell, and distribute its goods to final
buyers.

• Types of Marketing Intermediaries:

• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
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The Microenvironment
(Suppliers)
• Provide the resources to produce goods and services
• Treat as partners to provide customer value
• Important link in the “value delivery system”

Supplies from Suppliers

◦ Raw materials
◦ Semi-ready industrial goods
◦ Ready-made products

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 The Microenvironment (Suppliers)
Case examples:
1. Leica has done well over the years in mobile imaging partnerships. It has previously
collaborated with Sharp, Huawei and Panasonic.
2. In late 2020, Vivo joined forces with Zeiss, while Oppo have handsets jointly
developed with Hasselblad.
3. Corning Glass - Samsung smartphone.
Samsung Galaxy S20 Screen Test Gorilla Glass 6.mp4

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 The Microenvironment (Competitors)

Those who serve a target market with similar products and

services

Firms must gain strategic advantage by positioning their

offerings strongly against competitors’ offerings in the minds of
consumers. Cheaper (Price)

To succeed, the company must provide greater customer value

Faster (Speed)
and satisfaction than its competitors.

Better (Quality)

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 The Microenvironment
(Customers)
 Consumer markets
 Business markets
 Reseller markets
 International markets

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The Macroenvironment (Demographic)
• Demography is the study of human populations -
size, density, location, age, gender, race,
occupation, and other statistics.

• Demographic environment involves people, and

people make up markets.

• Demographic trends include changing age and

family structures, geographic population shifts,
educational characteristics, and population
diversity.

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 The Macroenvironment

(Economic)
The economic environment consists of economic factors that affect consumer
purchasing power and spending patterns.

 For example, few years ago, Malaysian consumers spent freely, fueled by
income growth, a boom in the stock market, rapid increases in housing values,
and other economic good fortunes.

 However, the free spending and high expectations of those days were dashed by
Covid-19 and the MCO.

 Consumers have now adopted a back-to-basics lifestyles and spending

patterns

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 The Macroenvironment (Natural)
The natural environment is the macro & physical environment
and the natural resources that are needed as inputs by
marketers or that are affected by marketing activities.
Environmental sustainability involves developing strategies and
practices that create a world economy that the planet can
support indefinitely.
Trends in the Natural Environment
 Growing shortages of raw materials
 Increased pollution
 Developing strategies that support
environmental
sustainability
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The Macroenvironment (Technological)
• Most dramatic force in changing the
marketplace
• New products opportunities
• Concern for the safety of new products

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 The Macroenvironment (Political &
Legal)
 Legislation regulating business is intended to protect
 companies from each other
 consumers from unfair business practices
 the interests of society against unrestrained
business behavior
 Increased emphasis on ethics
 Socially responsible behavior

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 Political & Legal Environment

Includes Laws, Government Agencies, Etc. that Influence &

Limit Organizations/Individuals in a Given Society

Increased
Changing Emphasis
Increasing Government on Ethics &
Legislation Agency Socially
Enforcement Responsible
Actions

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 Core beliefs and values are Secondary beliefs and
The cultural environment
persistent and are passed on are more open to change
values
consists of institutions and
from parents to children and and include people’s views of
other forces that affect a
are reinforced by schools, themselves, others,
society’s basic values,
churches, businesses, and organizations, society,
perceptions, and behaviors.
government. nature, and the universe.

Working, getting married, Married young, Leaving

looking after family, home vs. Staying home, hair
being honest, etc. length, etc.

The Microenvironment (Social & Cultural)

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Responding to the Marketing Environment

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Questions?
Review

* Mid term Exam

( 7/2 - 10/2 )
( covers week 1 - 3 )
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Tutorial:
Discuss the responses of Malaysian marketers to the
changing: -
1. political environment
2. economic environment

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