CHAPTER 1

An Overview of Marketing
LEARNING OUTCOMES

1.1 Overview of marketing

1.2 Elements of marketing mix (4P’s)
1.3 Marketing management philosophies
1.4 External marketing environment
LO 1 : Overview of marketing
Definition of Marketing
The American Marketing Association’s definition of marketing focuses
on the second facet. Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at
large.
Marketing involves more than just activities performed by a group of
people in a defined area or department.
LO 2 :Elements of marketing mix (4P’s)

The Four Ps ct Pla

u ce
1. Product rod
P
2. Price
3. Place
4. Promotion
Pr
ice tion
mo
o
Pr
LO 3 :Marketing management philosophies
Orientation Focus is on…

Production internal capabilities of the firm

Sales aggressive sales techniques and belief

that high sales result in high profits

satisfying customer needs and wants

Market while meeting objectives

satisfying customer needs and

Societal wants while enhancing individual and
societal well-being
LO 4 : External marketing environment

• External environment/factors (outside the firm) where firms

work and compete, it is that things are constantly changing.

• If the organization doesn’t understand or fails to react to the

changing world around it, it will soon be a follower rather
than a leader. In the worst case scenario, the firm might
disappears.
LO 4 : External marketing environment
External Environment
Internal (uncontrollable) Social
(within the Factors
organization) Demograp
hics
Marketing mix
Product
Economic
Distributi
Factors
on
Promotio
n
Price Competiti
on Target Market
Political &
Legal
Technolo Factors
Environmental gy
Scanning
Social Factors
• Values, Attitudes & Lifestyles
• The Changing Role of Families and Working Women
• There Is Never Enough Time
Demographic Factors
Demography - The study of people’s vital statistics, such as their
age, race, ethnicity, and location.

The Cohorts
• Tweens : Ages 9–14
• Teens : Ages 13–19
• Gen Y : Born between 1979–1994
• Gen X : Born between 1965–1978
• Baby Boomers : Born between 1946–1964
Economic Factors
• Marketing managers must understand and react to the
economic environment.

• The three economic areas of greatest concern to most

marketers are consumers’ incomes (purchasing power),
inflation, and recession.
Technological Factors
• Research
• Global innovation
Political and Legal Factors
• Federal Legislation
• State Laws
• Regulatory Agencies
Competitive Factors
• Competition for Market Share and Profits
• Global Competition