BUSINESS MANAGEMENT AND
ENTREPRENEURSHIP
PROGRAMME : BAM 1
MODULE CODE : BUS-MKT-121
Introduction to Marketing
Dominic Mzumara
WHAT IS MARKETING?
Marketing is engaging customers and managing profitable customer
relationships.
‘Selling and advertising part of the Marketing Mix,’ Peter Drucker
Marketing is about satisfying customer needs.
The two fold goal of marketing is to
1. Attract new customers by promising superior value and to keep
2. Grow current customers by delivering value and satisfaction.
For example, Nike leaves its competitors in the dust by delivering on its
promise to inspire and help everyday athletes to “Just do it.”
Amazon dominants the online market place by creating a world-class online
buying experience that helps customers to “find and discover anything they
might want to buy online.”
WHAT IS MARKETING?
Marketing is the process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers in return.
The Marketing Process
(1) needs, wants, and demands; (2) market offerings (products, services, and experiences);
(3) value and satisfaction; (4) exchanges and relationships; and (5) markets.
Understanding the Marketplace and Customer Needs
Customer Needs : Human needs are states of felt deprivation (Abraham Maslow Hierarchy of
needs)
Wants : Wants are the form human needs take as they are shaped by culture and individual
personality.
Between Msima and a fries from KFC, which one is a need and which one is a want?
Demands : When backed by buying power, wants become demands.
Market Offerings—Products, Services, and Experiences
Consumers’ needs and wants are fulfilled through market offerings—some combination of
products, services, information, or experiences, persons, places, organizations, information,
and ideas.
Marketing myopia : The mistake of paying more attention to the specific products being
offered than to the benefits and experiences produced by these products.
Customer Value and Satisfaction Consumers
They is a broad array of products and services that might satisfy a given need
Customers form expectations about the value and satisfaction that various market offerings
will deliver and buy accordingly
Satisfied customers buy again and tell others about their good experiences.
Marketers must be careful to set the right level of expectations.
If they set expectations too low, they may satisfy those who buy but fail to attract enough
buyers. If they set expectations too high, buyers will be disappointed.
EXCHANGES AND RELATIONSHIPS
Exchange is the act of obtaining a Marketing consists of actions taken
desired object from someone by to create, maintain, and grow
offering something in return. desirable exchange relationships
with target audiences involving a
product, service, idea, or other
Political candidate = Votes object.
Church = Membership
Markets
Audience = idea acceptance
A market is the set of actual and potential
buyers of a product or service.
Marketing means managing markets to bring
about profitable customer relationships.
A Place where you search, identify and fulfill
needs of customers.
MORDEN MARKETING SYSTEM
Designing a Customer Value–Driven Marketing Strategy and
Plan
Marketing management MUST design a customer value–driven marketing strategy ONCE
consumers and the marketplace are fully understood.
Marketing management = the art and science of choosing target markets and building
profitable relationships with them.
TWO QUESTIONS TO ASK AND ANSWER
1. What customers will we serve (what’s our target market)?
Divide the market into segments of customers (market segmentation) and selecting which
segments it will go after (target marketing)
2. How can we serve these customers best (what’s our value proposition)?
- How the firm will differentiate and position itself in the marketplace.
- A brand’s value proposition is the set of benefits or values it promises to deliver to consumers
to satisfy their needs.
Marketing Management Orientations or Business
Orientations
Marketing management wants to design strategies that will engage target customers and
build profitable relationships with them.
But what philosophy should guide these marketing strategies?
There are five alternative concepts or Business Orientations under which organizations
design and carry out their marketing strategies:
1. The Production Concept = Holds that consumers will favor products that are available and
highly affordable.
Therefore, management should focus on improving production and distribution efficiency. This
concept is one of the oldest orientations that guides sellers.
2. The Product Concept. Holds that consumers will favor products that offer the most in
quality, performance, and innovative features.
Under this concept, marketing strategy focuses on making continuous product improvements.
Marketing Management Orientations or Business
Orientations
3. The Selling Concept. Holds that consumers will not buy enough of the firm’s products unless
it undertakes a large-scale selling and promotion effort.
The selling concept is typically practiced with unsought goods—those that buyers do not
normally think of buying, such as life insurance or blood donations.
4. The Marketing Concept. Holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better than
competitors do.
5. The Societal Marketing Concept. Questions whether the pure marketing concept overlooks
possible conflicts between consumer short run wants and consumer long-run welfare.
Is a firm that satisfies the immediate needs and wants of target markets always doing what’s
best for its consumers in the long run?
Holds that marketing strategy should deliver value to customers in a way that maintains or
improves both the consumer’s and society’s well-being.
It calls for sustainable marketing, socially and environmentally responsible marketing that
meets the present needs of consumers and businesses while also preserving or enhancing the
ability of future generations to meet their needs.
