Defining Marketing

Marketing is a societal process by

which individuals and groups obtain
what they need and want through
creating, offering, and freely
exchanging products and services of
value with others.

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 Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
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 Simple Marketing System

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
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 Structure of Flows
Resources Resources
Money Resource Money
markets
Services, Taxes,
money goods
Services, Taxes
money
Manufacturer Government Consumer
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets Goods, services
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 The Four Ps
The Four Cs

Marketing
Mix

Product Place

Conven-
Customer
Solution Price Promotion ience

Customer Communication
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 Marketing Management

Is define as the analysis, planning,

implementation, and control of programs
designed to create, build, and maintain
beneficial exchanges with target buyers for the
purpose of achieving organizational
Objectives.

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 Company Orientations
Towards the Marketplace
Consumers prefer products that are
Production Concept widely available and inexpensive

Consumers favor products that

Product Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing Concept markets & delivering value
better than competitors
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 Customer Delivered Value
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

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 Traditional Organization Chart

Top
Management

Middle Management

Front-line people

Customers

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 Customer-Oriented
Organization Chart
Customers

Front-line people

Middle management

s
C

er
us

om
t

Top
om

t
us
er

manage-

C
s

ment

©2000 Prentice Hall

 Evolving Views of Marketing’s
Role

Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing

a. Marketing as an b. Marketing as a more

equal function important function
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 Evolving Views of Marketing’s
Role
Production on
cti

Fi
du

na
ro
P

nc
e
Marketing Customer
re
Hu ur

ce M
so

ar

ur an
n

s
ma ces

ce
n ke

so m
Fi tin

re Hu
n

c. Marketing as the d. The customer as the

major function controlling factor
©2000 Prentice Hall
 Evolving Views of Marketing’s
Role
Production

Marketing

Customer
re
Hu ur
so

e
ma ces

n c
a
n

in
F

e. The customer as the controlling

function and marketing as the
integrative function
©2000 Prentice Hall
 Purpose of Marketing
Management

1. Maximize Consumption
2. Maximize Consumer Satisfaction
3. Maximize Choice
4. Maximize life Quality

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 Reasons for the Discovery of
Marketing Management

1. Sales Decline
2. Slow Growth
3. Increasing expenditures
4. Changing consumer buying pattern
5. Increasing competition

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