Chapter 01

1
OVERVIEW OF MARKETING
Learning Outcomes
After studying this chapter, you should be able to:
Describe the basic marketing terms and concepts

Describe the relationship between marketing and society
Describe the marketing environment that affects a firm’s
marketing activities
Describe macroenvironment and microenvironment
factors and their effects
Principles of Marketing Third Edition All Rights Reserved

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Chapter Overview

Definition of Marketing
 The management process responsible for identifying,

anticipating, and satisfying customer requirement
profitably (CIM, 2007).
 Activity, set of institutions and processes for creating
communication, delivering, and exchanging offerings
that have value for customers, clients, partners and
society at large (AMA, 2007).
 The process by which companies create value for
customers and build strong customer relationships in
order to capture value from customers in return (Kotler
& Armstrong, 2016)
Basic Concepts of Marketing
 A process and activity which meets customers’

requirements or satisfies their needs by providing value
to them in exchange for value to the companies.

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Marketing Process

Development of Marketing
Orientation

Orientation (cont.)
Assumption People buy a product that is well

made and reasonably priced
Firm’s focus Internal capabilities of the firm
Firm’s action Producing and distributing more
efficiently

Orientation (cont.)
Assumption Consumers buy products that

offer the highest quality
performance and features
Firm’s focus Product features
Firm’s action Make bigger, better, or faster
product

Orientation (cont.)
Assumption Consumers will not

buy unless the firm
has taken
considerable
promotion and selling
efforts
Firm’s focus Sales management
Firm’s action Sales people to

persuade consumers to
buy what have been
produced

Orientation (cont.)
Assumption Consumer’s
needs had to be
taken into
account for their
purchases and
satisfaction
Firm’s focus Satisfying
customers’ needs
Firm’s action Organisation-wide

coordinated
efforts to meet
needs of
customers

Orientation (cont.)
Assumption Fulfilling short-term needs may

not be good for the long term
interests of the consumer or the
society
Firm’s focus Preserving and enhancing the
wellbeing of consumers and the
society
Firm’s action Fulfill the needs and wants of
consumers and deliver the desired
satisfaction effectively and
efficiently in a way that will
preserve and enhance the
society’s well-being

Orientation (cont.)
Assumption Everything matters with marketing –

the consumers, employees, other
companies, competitors, as well as
the society
Firm’s focus Coordinated marketing efforts by all
departments of the organization for
fulfilling the consumers needs and the
wellbeing of the society
Firm’s action Relationship marketing
Integrated marketing
Internal marketing
Performance marketing

Orientation (cont.)

Marketing Environment

Marketing Environment (cont.)

Microenvironment

Microenvironment (cont.)

Macroenvironment

Macroenvironment (cont.)

Macroenvironment (cont.)
Responding to the Marketing Environment Changes


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1

After studying this chapter, you should be able to:

Describe the basic marketing terms and concepts

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

 The management process responsible for identifying,

 A process and activity which meets customers’

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Assumption People buy a product that is well

Principles of Marketing Third Edition All Rights Reserved

Assumption Consumers buy products that

Principles of Marketing Third Edition All Rights Reserved

Assumption Consumers will not

Firm’s action Sales people to

Principles of Marketing Third Edition All Rights Reserved

Firm’s action Organisation-wide

Principles of Marketing Third Edition All Rights Reserved

Assumption Fulfilling short-term needs may

Principles of Marketing Third Edition All Rights Reserved

Assumption Everything matters with marketing –

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Principles of Marketing Third Edition All Rights Reserved

Responding to the Marketing Environment Changes

Principles of Marketing Third Edition All Rights Reserved

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