Topic - 1 - New - Introduction To Marketing Theory

MARKETING CONCEPTS IN BUSINESS
OPERATIONS
BY
NZIKU, Dismas (Mr)
CONTENTS
i. Introduction
ii. What is marketing?
iii.Marketing versus Selling
iv. The Implications of Adopting Marketing
Philosophy and Principles
v. What is marketed?
vi. Marketing Orientations towards the
Marketplace
November 18, 2023 By Dismas Nziku 0757059625 2

LEARNING OUTCOMES
After you have read this topic you should be able to:
i. Define marketing and examine the evolving shift from
traditional to wider definitions of marketing.
ii. Distinguish between marketing and selling, and
identify the broad categories of things that can be
marketed.
iii. Explain the five marketing orientations towards the
marketplace, and explain the implication of adopting
marketing principles and concepts in organizations.
iv. Discuss reasons why business and marketing are
changing.
1. INTRODUCTION
 If, someone’s profession is marketing, this would
raise mixed conclusions about what his/her job is.
 To some, it would imply that he/she was engaged in
one of those fashionable and exciting careers;
 To others it would mean he/she was a salesperson
or advertising agent;
 Yet to others, it would mean he/she was one of
those people who specialize in the cynical
exploitation of consumers using a variety of means
of persuasion such as sales promotion, personal
selling and advertising.
 In actuality marketing is not always
fashionable and rarely does it involve
persuading consumers to buy what they do
not actually want.
 This topic explores the meaning, core
concepts, scope, and dealings of marketing.
 It also traces current shifts in marketing
management, reasons why business and
marketing are changing, and marketing
management tasks that need to be
undertaken to stay and survive in today’s
marketplace.
2. What is marketing?
 Marketing has been defined in several ways. This does
not mean to say that no one can agree on what
marketing is; rather a lot of expert people have done
their best to define marketing in what they consider to
be the clearest form.
 However, like most social science disciplines marketing
has undergone substantial evolutions and so have
been its definition and basic concepts.
 A cross-section of traditional and recent definitions,
which have appeared over the past thirty years or so,
is examined in this section.

Traditional Definitions of Marketing
i. Marketing is a human activity directed at satisfying
needs and wants through exchange processes. (Phillip
Kotler. 1980).
ii. Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods and services to create exchange and satisfy
individual and organizational objectives. (American
Marketing Association, 1985).
iii. The term marketing describes those thoughts, words and
deeds which by design or by chance, have a role to play
in the joint satisfaction of customer needs and corporate
objectives (G. Harman – Baker, 1992).
iv. Marketing is a total system of business activities designed to
plan, price, promote, and distribute want – satisfying
products to target markets to
achieve organizational objectives (Stanton, et… al, 1994).
v. Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating and exchanging products and value with
other (Phillip Kotler & Gary Armstrong, 1996).
vi. Marketing is the management process responsible for
identifying, anticipating and satisfying customer requirements
efficiently and profitably. (The Chartered Institute of
Marketing, U.K., 2001)
vii. 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 (Kotler, 2006).
Wider definitions of marketing
 Marketing is to establish, maintain and
enhance relationships with customers and
other partners, at a profit, so that the
objectives of the parties involved are met. This
is achieved by mutual exchange and fulfillment
of promises. (Gronroos, 1997).

 Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders
(American Marketing Association, 2004).

 Marketing management is the art and science
of choosing target markets and getting,
keeping, and growing customers through
creating, delivering, and communicating
superior customer value. (Kotler and Keller,
2007).

The common roles of the Marketing
 Marketing is a human activity
 Marketing is a management process
 Marketing aims at satisfying customers’
needs and wants
 Marketing identifies and anticipates
customer requirements (i.e. needs and
wants) before producing products
 Marketing is about giving customers what
they want
 Marketing fulfils customer
requirements profitably
 Marketing involves an exchange
process
 Marketing involves the conception,
pricing, promotion and distribution of
ideas, goods, and services.

3. MARKETING VERSUS SELLING
 Many people confuse ‘marketing’ with
‘selling’. Selling is only one aspect of
marketing.
 It is part of the promotion strategy, which in
itself is only part of the firm’s marketing mix
(product, price, place (distribution),
promotion, etc.).
 The marketing mix itself is part of the
marketing plan.
 In the financial services industry, selling is
used to communicate the features and
benefits of the service to the potential
customer.**
 Selling will lead the consumer through the
buying process and finally make the sale.

 Selling involves persuading customers to buy
existing products, while marketing starts by
identifying customers’ needs and wants and
then developing services to meet those needs
and wants effectively and profitably.
 Marketing starts long before selling
(e.g. by way of research and product
development) and goes beyond the act of
selling (e.g. offering after sales services) to
make sure customers are satisfied.

Common Differences between selling and
Marketing
S/N SELLING MARKETING
1 Emphasis is on the product Emphasis is on the customer

2 Company first makes the Company first determine customer
product and then figures out wants and then figures out to make it
how to sell it
3 Management is sales volume Management is profit oriented
oriented
4 Profit through sales volume Profit through customer satisfaction
5 Planning is short run-oriented Planning is long-run oriented regarding
regarding today products and new products, tomorrow’s markets and
markets future growth
6 Let the buyer be aware Let the seller be aware
7 Product first then customer Customer first then product
4. THE IMPLICATIONS OF ADOPTING MARKETING
PHILOSOPHY AND PRINCIPLES
 Many business organizations today, recognize the role of

marketing as the major means of remaining in business.
 They are increasingly giving the customer a central place
in their operations because they realize that there is an
ever-increasing shift from a seller’s dominated market to a
buyer’s dominated market.
 Increasing choice and variety as a result of widening
competition has given buyers the ability to switch,
bargaining powers and the powers to dictate, through
consumer organizations, over various aspects of business
operations.
 Thus, business organizations that have
adopted marketing need to understand
the implications of the principles that
underlie the practice of marketing.
 These include but not limited to
the following:-

1. Marketing is concerned with satisfying a
customer in a way that will enable
the organization to achieve its objectives,
including profitability growth, image,
quality of service, etc. Profitability is often
the main objective of most
business organizations.
2. Marketing requires that the entire system
of business activities should be customer -
driven, i.e. customers’ needs and wants
should be recognized and satisfied.
3. Marketing and selling are not synonymous. Selling is
only one aspect of the marketing process–the exchange
part of it – whereas marketing itself is broader than
selling Marketing starts by a defined target market with
defined needs and wants, develops need or want –
satisfying products, and does not end until the
customers’ needs and wants are completely satisfied,
which may be after the exchange (i.e. selling) is made.
4. Marketing is not simply the task of selling goods which
are produced or services which are offered. It is the
means of trying to ensure before
hand (e.g. through research) that the goods produced
or services offered conform to what potential
customers will buy.

5. Marketing should be viewed as a technique which aims to
improve the efficiency and effectiveness of business
performance. Certainly, it will increase costs but successful
marketing will also provide the means to increase sales and
profits for the organization. Efficiency means doing things
right while effectiveness means doing the right things.
Marketing aims to do the right things in the right way and
profitably.
6. The products that are produced should match the needs of
the organization's customers, in terms of the features offered,
their availability and their price. This does not, in any way,
mean the organization should establish consumer needs and
supply products that precisely match those needs. It will be
too costly to achieve such an objective since consumer needs
are highly variable and frequently change thus the company
would have to incur unnecessary diversity of products which
will cause the organization not to operate profitably.
7. A marketing-oriented organization should avoid
‘marketing myopia’, that is, the tendency to become
blind of the broader picture of the business by giving
too much concentration on the products they
supply. For example, a bank might assume that
banking is its business when in reality; it is in the
financial services business. A
marketing organization should envision the broader
picture of the market in terms of its present and
future needs.
Note:
Marketing myopia, may lead to short-term success
but not to long-term profitability and growth.
5. What is marketed?
 According to experts marketing people are
involved in marketing 10 types of products
or entities: goods, services, experiences,
events, persons, places,
properties, organizations, information, and
ideas.

1. Goods: These are tangible or physical products that
organizations offer to the marketplace, e.g. cars,
refrigerators, television sets, computers, machines, etc
2. Services: Services are intangible products. They are
activities or performances that require marketing even
though they do not result in the ownership of anything.
Banking and insurance services are financial services
that fall under this category of market offers. Services
also include the work of airlines, hotels, car rental
firms, barbers and beauticians, maintenance and repair
people, as well as the work of professionals, including
accountants, lawyers, engineers, doctors, software
programmers, and management consultants.

3. Experiences: Firms can create, stage and marketing
experiences, a concept known as experiential
marketing. They can market the experience of
enjoying a meal before a band in live concert,
visiting a fairy kingdom, pirate ship, haunted house
or slave market. They can also market
customized experiences such as climbing Mount
Kilimanjaro in Tanzania, the snowcapped
and highest mountain in Africa.
4. Events: This involves the marketing of time-based
events such as major trade shows an artistic
performances. World sporting events such as the
Olympics or World Cup, etc, are
also market aggressively to organizations and fans.
5. Persons: The marketing of celebrities, or celebrity
marketing, is a big business today. Most major film
and football stars, artists, musicians have an agent, a
personal manager, or ties to a public relations agency
for the purpose of promoting their activities.
6. Place: Places including cities, towns, regions, and
countries have been known to compete actively to
attract tourists, factories, company headquarters, and
new investments. They achieve this through the work
of place marketers who may include tour operators,
economic development specialists, real estate agents,
commercial banks, local business associations, and
advertising and public relations agencies.

7. Properties: Properties refer to intangible rights
of ownership of either real property (real estate)
or financial property (stocks and bonds).
Properties are bought and sold, and this requires
marketing. Real property, such as residential or
commercial property are marketed by real estate
agents while financial property are marketed to
institutional and individual investors by
investment companies and banks.
8. Organizations: Organizations engage in active
marketing to build a strong, favorable, and
unique image or corporate identity in the mind
of their target publics.
9. Information: Information can be produced and
marketed as a product. This is essentially what schools
and universities produce and distribute at a price to
parents, students, and the society. Encyclopedias,
magazines and most nonfiction books market
information. Even organizations that sell physical
products attempt to add value through the use of
information.
10. Ideas: Every market offering includes a basic idea and
products and services are platforms for delivering
some idea or benefit. Social marketers are busy
promoting such ideas as “Imagine a World of HIV-free
Generation”, “Friends Don’t Let Friends Drive Drunk”,
and “Your health is in your Hands”.
MARKETING PHILOSOPHY
11/18/2023
A marketing philosophy is an idea of
assisting companies to market their
Facilitator: Mr. Dismas Nziku

products, satisfy customers’ needs &
wants, and achieve the business marketing
goals.
 It guides companies on how to build
marketing strategies and implement them
in the field.
30
CATEGORIES
11/18/2023
 Thereare different marketing philosophies
or concepts that have evolved. The

evolution of marketing concepts is seen
along with the civilization of our human
beings
31
 The marketing concepts which evolved at
the beginning of human civilization are
11/18/2023
called traditional marketing concepts and
which evolved with modernization are

called modern marketing concepts.
 The main marketing philosophies that
evolved till now are:
32
THE MAIN MARKETING
PHILOSOPHIES
11/18/2023
1. Production Concept
2. Product Concept

3. Selling Concept
4. Marketing Concept
5. Societal Marketing Concept
6. Holistic Marketing
33
PRODUCTION CONCEPT
11/18/2023
 The production concept of marketing assumes that
consumers are price sensitive and they buy products that
are widely available at lower costs.

 The basic idea of the production concept is to ensure
mass production, reduce per-unit cost, and make
products easily available everywhere which ultimately
leads to more sales.
 The philosophy of production concept perfectly
matches Say’s Law of Market “Supply Creates
Its Own Demand itself”.
34
 What this concept argues is that if possible make
products available as you can to wider locations
11/18/2023
which ultimately increase sales.
 The production concept is the first marketing
concept or philosophy which came into existence in

the early 1930s.
 It tries to bring efficiency to production, achieve
economies of scale, promote mass distribution, and
think price is a key marketing variable.
35
 This concept is fit when the demand is
higher than supply, labor cost is low, and
11/18/2023
resources are easily available.
 But it won’t work well when the supply is

higher than demand, competition is high,
and people search for quality products.
36
11/18/2023 Facilitator: Mr. Dismas Nziku
37
PRODUCTION CONCEPT
PROS OF PRODUCTION
CONCEPT:
11/18/2023
i. It ensures the availability of products.
ii. Fit for price-sensitive customers.

iii. Helps to achieve economies of scale.
iv. May generate employment for local
people.
v. Increases the sales and profit of the
business.
38
CONS OF PRODUCTION
CONCEPT:
11/18/2023
i. Fails in a competitive environment.
ii. Low-quality products.

iii. Ignores customers’ needs, wants, and
preferences.
iv. Not so applicable today.
39
PRODUCT CONCEPT
11/18/2023
 The product concept assumes that people purchase the
product which is qualitative.

 What the product concept tells us is that people even
ignore the price when they see quality products.
 The main idea of the product concept is that companies
must manufacture quality products that have innovative
features and give the best performance.
 It strongly argues two things first, the product should be
qualitative, and continuous improvement is necessary
40
41
PRODUCT CONCEPT
 The product concept is essential to gain a competitive
position and advantage.
11/18/2023
 Almost the same time 1930s, it evolved when the production
concept’s low-priced products did not get enough attention

from customers and reach the desired sales levels.
 The idea of producing quality products evolved.
 Even though the product concept is an improved version of

the production concept it still has not considered the needs
and wants of customers.
 The following are some pros and cons of this product
marketing philosophy:
42
PROS OF PRODUCT CONCEPT:
11/18/2023
i. It ensures quality products.
ii. Best for quality-sensitive people.

iii. Helps to gain prestige, position, and
status.
iv. High-income people prefer quality
products.
v. Helps to gain a competitive position.
vi. Develops curiosity in people
43
CONS OF PRODUCT CONCEPT:
11/18/2023
 It neglects customers’ needs, wants, and
preferences.

 Seller’s choice products.
 Low-income and price-conscious people do not

prefer it.
 Example. One of the best examples of the
product concept is Apple i.e. iPhone. People buy
it even if it is costly because of its quality and
prestige benefits.
44
SELLING CONCEPT
11/18/2023
 The selling concept believes that people generally do not
buy the products they need to be influenced to buy the
products. It assumes aggressive selling and heavy

promotions are the keys to influencing people and
making their purchases.
 This marketing philosophy came due to the failure of the
above philosophies (product and production) in the sense
that both concepts had made the availability of products
and quality. Only making quality products and
availability of products did get the expected results.
45
46
SELLING CONCEPT
SELLING CONCEPT
11/18/2023
 Then the concept was raised that marketers should visit
the customers, present the benefits of their products, and
influence them to buy. It came into existence between the

1930s and 1950s except for the time of WWII.
 It did well with two marketing concepts but it has still
ignored the customer’s needs and wants. The products
were produced by sellers’ choice, with no consideration
for people’s choice.
 And a funny thing about what the selling concept believe
is that, even if people have no intention to buy if you
persuade them, they will buy, and if they get disappointed,
later they will forget, even if they do not tell anyone of 47
their bad experience. What do you think about it?
PROS OF SELLING CONCEPT:
11/18/2023
i. May increase sales volume and profits.
ii. Right for products like insurance,

expensive cars, expensive clothes, etc.
iii. Increases the market coverage of the
business.
iv. Free up the stock.
48
CONS OF SELLING CONCEPT:
11/18/2023
i. The selling concept has ignored the customer’s
consideration.

ii. It only focuses on short-term goals achievement.
iii. It does not value repeat business.
iv. Wrong assumption people will forget in long run.

 Example. The selling of an insurance policy is the
right example of this selling concept. The seller or
insurance agent is continually involved in
persuading people to buy the insurance policies.
And, even if people do not have the intention to do
49
so they are influenced and purchase.
MARKETING CONCEPT
11/18/2023
 The marketing concept believes companies’ success
relies on customer satisfaction. It explains companies
should first consult consumers about their needs and

preferences and based on their choices should produce
products.
 In fact, the marketing concept is customer-centric
marketing philosophy. It gives priority to customers’
needs and wants and aims to serve what they want and
generates better customer value and satisfaction. This
concept is fit in the competitive markets to confront the
competition and achieve a better market position.
50
 With the failure of the above three (production,
product, and selling) marketing philosophies to
11/18/2023
meet customers’ satisfaction and stand in
competitive markets the marketing concept

evolved. Its existence is seen since the late 1950s.
 The above three marketing concepts were based on
selling products that the company, seller, or
marketer wants but the marketing concept
produces products that customers want. Thus, it is
very relevant in confronting competition
successfully and achieving long-term success.
51
52
FUNCTIONING OF MARKETING
CONCEPT
PROS OF MARKETING
CONCEPT
11/18/2023
i. The marketing concept helps to achieve
customer satisfaction.

ii. Increases repetitive buying.
iii. Ensures long-term success.
iv. Increases market share.
v. Helps to build a good public image.
53
CONS OF MARKETING
CONCEPT
11/18/2023
i. Visiting customers, identifying their needs and
wants, and producing their desired products

may result in a costly process.
ii. Skilled and quality marketers are required.
iii. It is time-consuming also.
 Example. Take the example of the Lamborghini car
company which first takes orders from customers and
delivers them products as per their choices.
54
SOCIETAL MARKETING
CONCEPT
11/18/2023
 The societal marketing concept holds that companies
should think about the long-term interest of customers
and society as a whole while delivering and satisfying

customers’ needs and wants. It is a socially responsible
marketing philosophy.
 What societal marketing tells us is that while making
products and marketing decisions a company must
consider the customer’s interests, their satisfaction, and
the welfare of society and the surrounding
environment. It states companies operate in society,
they get resources from the environment, and they
should repay them 55
 In fact, the societal marketing concept is
11/18/2023
marketing concept + society; it is the addition of
society’s welfare to the marketing concept.

 According to it, a company must balance the
company’s profit goal, customers’ interest, and
well being of society.
56
57
SOCIETAL MARKETING
CONCEPT
58
 It is one of the new through in marketing management
11/18/2023
philosophies.
 During the 1972s it came into existence due to the
ignorance of the marketing concept of society’s well-

being in the process of satisfying customers and the
movement of consumerism and environmentalism
59
PROS OF SOCIETAL MARKETING CONCEPT:
11/18/2023
i. Helps to achieve customer satisfaction.
ii. Societal marketing helps in achieving

society’s welfare.
iii. Supports in gaining a competitive
position.
iv. Ensures good public image.
v. Increases customer retention.
60
CONS OF SOCIETAL MARKETING CONCEPT:
11/18/2023
i. It might be costly.
ii. There might be difficult to convince

employees and society about environmentally
marketing strategies.
iii. The implementation may take a long tour.
 Example. Take an example of The Body Shop a
cosmetic company that has been producing
products only by using ingredients from natural
resources which have no harmful effect on
human and society’s well-being 61
HOLISTIC MARKETING
CONCEPT
11/18/2023
 Holistic marketing is the latest addition to
marketing management philosophies. It is the

combination of marketing and societal
marketing concepts.
 The holistic marketing concept holds the belief that an
organization is a system of different interconnected
units and for effective marketing results, all units
should have a shared purpose to achieve as effectively
as possible.
62
 It compares an organization with a human body.
 What holistic marketing tells us is that for the human
11/18/2023
body to perform well every body part should work
properly, and for the organization to succeed every
component (i.e. all employees, departments, business

units, marketing strategies) should work properly yet
collectively
63
 Holistic marketing emphasizes proper
11/18/2023
integration and coordination of all marketing
efforts to achieve common marketing goals.

 Its idea upholds this interconnectedness and
holds that the greatest outcomes require a
wide-ranging, comprehensive viewpoint.
64
65
HOLISTIC MARKETING CONCEPT
PROS OF HOLISTIC
MARKETING:
11/18/2023
i. Holistic marketing is effective in this present
time.

ii. Brings coordination.
iii. Helps in achieving a competitive advantage.
iv. Better customer satisfaction.
v. Goods brand value and public image.
vi. Helps to achieve long-term success
66
CONS OF HOLISTIC MARKETING
CONCEPT:
11/18/2023
i. As holistic marketing is a comprehensive
marketing strategy it is difficult to implement

properly.
ii. It might also cost more.
iii. Managing people and bringing coordination
among diverse people is a challenging task.
67
EXAMPLE.
11/18/2023
 Take an example of Coca-Cola‘s product Real
Magic which is a very human-supporting and

environmentally product. The whole Coca-Cola
company is properly adopting the holistic
marketing concept.
 Each concept has its means, focus, and ends. They all
have an impact on companies marketing activities and
performance.You should choose the marketing
philosophy that best fits your marketing goals and the
capacity of your business to successfully implement it
and achieve the desired goals. Great start ahead! 68
What are Services?
 Kotler has defined a service as “any act or
performance that one party can offer to
another that is essentially intangible and does
not result in the ownership of anything. Its
production may or may not be tied to a
physical product”.
 For example maintenance services are
attached to a product (a car, building,
plant, etc) whereas financial services are not
linked to any physical product.
CHARACTERISTICS OF SERVICES
 Effective marketing and selling involves the
stimulation of the human senses of sight,
taste, touch, smell and sound.
 While tangible products can easily stimulate
human senses, services cannot because of
their unique characteristics that distinguish
them from tangible products.
 The common features of services are as
following;
1. Intangibility
 Intangibility refers to the lack of substance.
Unlike physical products, a service has no
material or physical being and as such it
cannot be seen, touched, felt, tasted,
displayed, or in any way experienced by the
senses.

2. Perishability
 Services are innately and highly perishable.
They cannot be stored. You cannot have a
production run and store services against
future demand.

3. Inseparability
 Services are mainly represented by people:
they cannot be separated from the person of
the provider, whose personal characteristics
and perceptions are “on show” to the
consumer and form an important part of
consumer perception.

4. Heterogeneity
 Services are heterogeneous (or variable) and
cannot be standardized in any way unlike
tangible products.
 Bank branches may sell the same services
but the standard of service is not uniform
from branch to branch.

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MARKETING CONCEPTS IN BUSINESS

November 18, 2023 By Dismas Nziku 0757059625 2

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1 Emphasis is on the product Emphasis is on the customer

 Many business organizations today, recognize the role of

November 18, 2023 By Dismas Nziku 0757059625 19

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November 18, 2023 By Dismas Nziku 0757059625 24

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November 18, 2023 By Dismas Nziku 0757059625 27

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

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 Even though the product concept is an improved version of

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

 Low-income and price-conscious people do not

Facilitator: Mr. Dismas Nziku

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Facilitator: Mr. Dismas Nziku

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iv. Wrong assumption people will forget in long run.

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Facilitator: Mr. Dismas Nziku

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Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

Facilitator: Mr. Dismas Nziku

November 18, 2023 By Dismas Nziku 0757059625 71

November 18, 2023 By Dismas Nziku 0757059625 72

November 18, 2023 By Dismas Nziku 0757059625 73

November 18, 2023 By Dismas Nziku 0757059625 74

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