Marketing: An Introduction
INTRODUCTION TO
MARKETING
ASHWIN N
What is a market?
Marketing: An Introduction
“A market consists of all the potential
customers sharing a particular need or
want who might be willing and able to
engage in exchange to satisfy that need
or want” (Philip Kotler).
For instance…..
Marketing: An Introduction
The Overall Themes of Marketing
The Traditional Marketing Mix
• Product
• Price
• Promotion
• Place
Marketing Defined
Marketing: An Introduction
• Marketing is a process… that is…
• Managerial
• Social
• Individual
• Wants, Desires
• Demands – Products and/or Services
As far as Customers are concerned there
are three elements to address
Marketing: An Introduction
• Customer value: Difference between
the values that the customer gains from
owning and using a product versus the
costs of obtaining the product.
• Customer satisfaction: The extent to
which a product’s perceived performance in
delivering value matches a buyer’s
expectations.
• Quality: the characteristics of a product or
service that bear on its ability to satisfy
stated or implied customer needs.
Marketing Management Philosophies
Agree or Disagree?
Marketing: An Introduction
1. Production: consumers will favor products that are
available and highly affordable
2. Product: consumers favor products that offer the
most in quality, performance, and innovative features
3. Selling: consumers will not buy unless an
organization undertakes a large-scale selling and
promotional effort
4. Marketing: determining the needs and wants of
target markets and delivering the desired satisfactions
more effectively and efficiently then the competitors
5. Societal marketing: generating customer
satisfaction and long-run societal well-being are the
keys to both achieving the company’s goals and
fulfilling its responsibilities
Relationships
Marketing: An Introduction
• Relationship marketing: the process of creating,
maintaining, and enhancing strong, value-laden relationships
with customers and other stakeholders.
Marketing Management Practice
Essentially Two Types
Marketing: An Introduction
• Entrepreneurial marketing:
– Businesses started by individuals
– Creativity, drive, and perseverance are
keys to success
• Formulated marketing:
– Professional, disciplined approach
– Achieving a market orientation
Orientations towards marketing
Marketing: An Introduction
• Production concept (before 1930):
demand > supply
• Selling concept (1930-1950):
supply > demand
• Marketing concept (post-1960s):
analyze consumer needs before
producing and selling, market
orientation, competition…
Marketing Concept versus
Selling Concept
Marketing: An Introduction
Starting Point Focus Means Ends
The Marketing Concept
Customer Integrated Profits from
Market
needs marketing satisfied customers
The Selling Concept
Sell and Profits through
Factory Product
Promote it sales volume
Figure 1.3
Marketing Management
• What is marketing management?
Marketing: An Introduction
« Marketing management is the process of
planning and executing the conception,
pricing, promotion, and distribution of
ideas, goods, and services to create
exchanges that satisfy individual and
organizational goals » (Philip Kotler)
• Marketing management has the task of
influencing the level, timing, and
composition of demand in a way that
will help the organization achieve its
objectives.
Common marketing problems
Marketing: An Introduction
• How can we identify and choose profitable
market segments?
• How can differentiate our offer from our
competition?
• How should we react to competitors?
• How can we satisfy our customers and
build brand loyalty?
• How can we measure the effectiveness of
an add campaign, of Public Relations, of a
promotion, etc…?
