DPM10013 PRINCIPLES

OF MARKETING
PN. NIK ZURAINI
019-9640981
nik.zuraini@psas.edu.my
 TOPIC 1 : OVERVIEW OF MARKETING
COURSE LEARNING OUTCOME
CLO Explain concepts and terminologies in the
marketing field
1.0 Overview of Marketing

1.1 Explain marketing

1.1.1 Define marketing

1.2 Discuss the marketing management philosophies

1.2.1 Explain the five marketing management philosophies
a. Production concept
b. Product concept
c. Selling concept
d. Marketing concept
e. Societal marketing concept
TOPIC OUTLINE :

1.3 Discuss core marketing concept

1.3.1 Define needs, wants and demand
1.3.2 Define offering
1.3.3 Define value and satisfaction
1.3.4 Define marketers and market
1.3.5 Define exchange, transaction and relationships

1.4 Discuss ethics in marketing

1.4.1 Define marketing ethics
1.4.2 Explain the role of ethics in marketing

1.5 Discuss social responsibility

1.5.1 Define social responsibility
1.5.2 Explain the role of social responsibility in marketing
1.1.1 Define marketing
What is marketing?
Kotler and Armstrong – “ the process
by which companies create value for
customers and build strong customer
relationship in order
to capture value
from customer in
return”
• The process of building profitable
customer relationships by creating value
for customers and capturing value in
return
1.2.1 Explain the five marketing
management philosophies

a. Production concept
b. Product concept
c. Selling concept
d. Marketing concept
e. Societal marketing concept
Evolution of marketing philosophies
Production concept
•Production Concept is a concept where goods are produced without
taking into consideration the choices or tastes of your customers.
•It is one of the earliest marketing concepts where goods were just
produced on the belief that they will be sold because consumers
need them.

•Usefull when the demand

for the product is greater
than the supply
Product concept
The product concept proposes that
consumers will prefer products that have
better quality, performance and features as
opposed to a normal product.
Assumption : good product sells
themselves, does not require heavy
marketing expenditure
Selling concept
The selling concept believes that the
consumers will not buy enough of the
organization's products unless they are
persuaded to do so through selling effort
Sales and promotion (very important)
Good for unsought products
Marketing concept

•The marketing concept is the philosophy

that urges organization to focus on their
customers’ needs.
•Analyzing their needs and making such
decisions that satisfy those needs in a better
way than competitors.
Societal marketing concept
•Marketers must not only determine the
needs and wants of its customer but must
also deliver the desired satisfaction
effectively in a way that will preserve the
society’s well-being
Differences between Sales and Marketing
concept
 Core Marketing Concept
1.3.1 Define needs, wants and
Need
– State of felt deprivation
– Physical needs – food, clothing, warmth, safety.
– Social needs – belonging and affection
– Individual needs – knowledge and self-expression
Wants
– the form human needs take as shaped by culture and individual
personality.
– Example: An American needs food but wants burger; a Malaysian
needs food but wants rice, etc.
– Wants are shaped by one’s society.
Demands
– Wants which are backed by buying power
– Given their wants and resources, people demand products with benefits
that add up to the most value and satisfaction.
1.3.2 Define offering
– Combination of products, services, information or experiences that
satisfy a need or want
– Offer may include services, activities, people, places, information or
ideas
Products
– anything that can be offered to a market for attention, acquisition, use or
consumption.
– EG: cars, clothing, house, food, etc (physical products / tangible products)
Services
– intangible and do not result in the ownership of anything.
– EG: airline, banking, hotel, etc
Experiences
– combination of services and products.
– EG: Disney World, Harley-Davidson, Formula One .
As a conclusion:
Market offerings also include other entities – persons, places, organizations,
information, and ideas.
1.3.3 Define value and satisfaction
Consumers make buying choices based on their perception
of the value of the products and services.

•Customer Value:
the difference between the values the customer gains from owning and
using a product and the costs of obtaining the product.

•Customer Satisfaction:
the extent to which a product’s perceived performance matches a
buyer’s expectations.
• 1.3.4 Define marketers and market

Markets
– Set of actual and potential buyers of a product
– Marketers seek buyers that are profitable
– People/entity with needs and wants to satisfy and
they have a money to purchase

Types of market :
• Consumer market
• Business market
• Government market
• International market
1.3.5 Define exchange, transaction and
relationships
•Exchange
– The act of obtaining a desired object from someone by offering
something in return
•Transactions
– a trade between two parties that involves at least two things of
value, agreed-upon conditions, a time of agreement, and a place
of agreement.
– EG: pay RM1500 and received a television set.
•Relationship
Transaction is a one-time exchange between two parties
However if the two parties involved in repeated transaction,
relationship may be built up
Relationship - the process of creating, maintaining, and enhancing
long-term relationships with customers, distributors, dealers
(stakeholders).
1.4.1 Define marketing ethics
•Marketing ethics addresses principle and standards the define
acceptable conduct in the market place.

•Ethics is the set of moral principles or values that guides behavior.

There is a general recognition that many, if not most, business
decisions involve some ethical judgment.

•Marketing usually occurs in context of organization and unethical

activities usually develop from the pressure to meet performance
objectives
•Some obvious ethical issues in marketing involve clear cut attempts to
deceive or take advantage of a situation
1.4.2 Explain the role of ethics in marketing
1. When a company charges fair prices, offer, quality
products, provides after sales service and pay regular taxes
to Government, it creates good image in the mind of people.
2. It helps the company to increase sales.
3. The morale of the employee is high as the company enjoys
a good reputation in the market.
4. Business ethics is required to check malpractices and offer
protection to consumers.
5. To develop the confidence of consumers regarding price,
weight, quality.
6. To protect the interests of all the stakeholders i.e.
employees, dealers, suppliers and shareholders.
1.5.1 Define social responsibility
•Social responsibility is an ethical framework and suggests
that an entity, be it an organization or individual, has an
obligation to act for the benefit of society at large. Social
responsibility is a duty every individual has to perform so as
to maintain a balance between the economy and the
ecosystems.

•Social responsibility in business, also known as corporate

social responsibility(CSR), pertains to people and
organizations behaving and conducting business ethically
and with sensitivity towards social, cultural, economic,
and environmental issues.
1.5.2 Explain the role of social responsibility
in marketing
•Engaging Customers.
• Building relationships with customers is the
cornerstone of a successful company and having
a social responsibility policy can impact the buying
decisions of customers.
•In short, building a positive relationship with
customers and their communities can lead to
increased sales and rising profits.