MARKETING IN A

CHANGING WORLD
Chapter One
 LEARNING OUTCOMES
• Definition of marketing
• Core Concept of Marketing
• The Marketing Process
• Marketing Management Philosophy
• Challenges in marketing
 DEFINITION

• A social and managerial process by which individuals and organizations

obtain what they need and want through creating and exchanging value
with others. (Kotler & Armstrong)
• The activity, set of institutions, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients,
partners, and society at large. (McDaniel, Lamb & Hair)
 CORE CONCEPT OF MARKETING
❑Shopping can take place in a:
❑Meta-markets refer to complementary goods and services that are related
in the minds of consumers.
✓ Marketplace (physical entity)
✓ Market space (virtual entity)
❑Marketers seek responses from prospects.
❑Needs describes basic human requirements such as food, air, water,
clothing, shelter, recreation, education, and entertainment.
❑Needs become wants when they are directed to specific objects that might
satisfy the need. (Fast food)
❑Demands are wants for specific products backed by an ability to pay.
 CONT.,

• A Product is any offering that can satisfy a need or want, while a brand is a
specific offering from a known source.
• Delivering the value and satisfaction to the buyer.
• Value = Benefits/Costs.
• Exchange involves obtaining a desired product from someone by offering
something in return.
• Transaction involves at least two things of value, agreed-upon conditions, a
time of agreement, and a place of agreement.
• Relationship marketing aims to build long-term mutually satisfying relations
with key parties, which ultimately results in marketing network between the
company and its supporting stakeholders.
 CONT.,
• As a conclusion a core concept of marketing includes;
• Needs, wants and demand.
• Market offering (product, service and experience)
• Value and satisfaction.
• Exchange, transaction and relationship.
• Market.
 THE MARKETING PROCESS

Build profitable Capture value

Understand the Design a Construct an
relationships and create from customers to
marketplace and customer-driven integrated
customer delight create profits and
customer needs marketing strategy marketing program customer equity
and wants that delivers superior
value.
 UNDERSTANDING THE MARKETPLACE
AND CUSTOMER NEEDS
• Customer needs, wants and demands.
• Market offerings: product, services, and experiences.
• Customer value and satisfaction.
• Exchanges and relationships.
• Markets.
 DESIGNING A CUSTOMER DRIVEN
MARKETING STRATEGY
• Selecting customers to serve. (Market segmentation and target marketing).
• Choosing a value proposition. (Differentiation and positioning).
• Marketing management orientation. (Production, product, selling,
marketing, and societal marketing).
 PREPARING AN INTEGRATED
MARKETING PLAN AND PROGRAM
• Developing an
integrated
marketing
program.
(4Ps/Marketing mix:
Product, Price,
Place/Distribution,
Promotion)

(https://www.google.com/search?q=4ps+marketing+mix&tbm=)
 BUILDING CUSTOMERS
RELATIONSHIPS
• Customer relationship management. Overall process of building and
maintaining profitable customer relationships by delivering superior customer
value and satisfaction.
• The changing nature of customer relationships. Targeting fewer, more
profitable customers. Relating for the long term, relating directly.
• Partner relationship management. Partners inside the company (linking with
all functional area in company) and outside the company (suppliers,
channel partners, competitors).
 12

WHAT IS:
a) NEEDS – state of felt
deprivation including physical,
social, and individual needs:
basic things an individual
require to live and survive.
Example – physiological needs
like food, clothing, shelter,
warmth and safety. Social
needs for belonging, influence
and affection an individual
needs for knowledge and self-
expression.
Copyright Kamil Ariff 2021 https://www.google.com/search?q=toast+bread&tbm
3/31/2021
 13

CONT.,
• b) Wants – form that a human need takes as
shaped by culture and individual personality. It
dictate your needs based on the common thing
one are used to. Example for breakfast most
malaysians may want nasi lemak or roti canai.

Copyright Kamil Ariff 2021 3/31/2021

(https://www.google.com/search?q=roti+canai+dan+nasi+lemak&tbm=)
 14

THIS IS DEMAND
(https://www.google.com/search?q=variety+of+food+in+malaysia&tbm) (https://www.google.com/search?q=ringgit+malaysia&sxsrf)

Wants Buying Power

+ = “DEMAND”

form that a human need takes as shaped by culture

and individual personality backed by buying power.
Copyright Kamil Ariff 2021 3/31/2021
 A VOLUNTARY EXCHANGE PROCESS

SOMETHING OF
VALUE

SELLER BUYER

Exchange process
–The provision or transfer of goods, services, or
ideas in return for something of value
(money, credit, labor, goods)
 1-16

WHAT WILL SATISFY CONSUMERS’

NEEDS AND WANTS?
Products
Anything that can be Offered to a Market to Satisfy a Need or Want

Experiences Persons Places

Organizations Activities Ideas

Services
Activity or Benefit Offered for Sale That is Essentially
Intangible and Doesn’t Result in the Ownership of Anything
 CAPTURING VALUE FROM
CUSTOMERS
• Creating customer loyalty and retention.
• Growing share of customer.
• Building customer equity. (the more loyal the firm’s profitable customers, the
higher the firm’s customer equity).
MARKETING MANAGEMENT
PHILOSOPHY/ORIENTATION
 DEVELOPMENT OF THE
MARKETING CONCEPT
Production
concept

Product
concept
Selling
concept
Marketing
concept
Societal
Marketing
concept
 THE EVOLUTION OF MARKETING
MANAGEMENT PHILOSOPHIES
1. The Production Concept - a philosophy that holds
consumers who will favor those products that are
available and highly affordable and therefore
management should concentrate on improving
production and distribution efficiency.(Kotler,1996)
This orientation is applicable when demand for a
products is greater than supply.
It also can be use when a company want to expand the
market. Also suitable for developing countries where
customers are more sensible to price than product features.
* Mass production , low prices
 PRODUCT CONCEPT
• The product concept holds that’s consumers will buy products that offer the
most quality performance and innovative features. The underlying
assumptions is that ‘ good products sell themselves’. The concentration is
to making continuous product improvements - example bigger, better or
faster product without acknowledging the consumers’ needs.
• This orientation is suitable when the market is highly competitive and there
are many similar products in the market.
• Examples: car manufactures, clothing designers, cell phones companies,
cosmetic companies all are good examples who use the product concept
constantly creates that products outshines comparable products already in
stores shelves.
 CONT.,
2. The Selling Concept – the consumer will not buy enough of
the organization’s product unless the organization
undertakes substantially selling and promotion efforts.
(Kotler,1996)
• We must aggressively promote our product by advertising, sales
promotion, personal selling in order to get more people to buy our
products.
 CONT.,
• The Marketing Concept (1950’s -1960’s)
• It is the key to achieving organizational goal is for the organization
to determine needs and wants of the market and to adapt itself to
delivering the desired satisfaction more effectively than its
competitors.
• The product the we produced must be ‘market oriented’, we must work hard
to fulfill customers needs and wants.
 CONT.,
• McDonald-served meals within 60 second
• Dominos Pizza served pizza within 15 minute
• Maybank – a bank with a smile
 CONT.,
• The Societal Marketing Concept (1960’s-
Present)
• It’s hold that the organization’s task is to
determine the needs, wants, and interest of
target markets and to deliver the desired
satisfaction more effectively and efficiently than
competitors in a way that preserves or enhances
the consumer’s and society’s well-being/long run
interests .
• The firm must avoid polluting environment, harmful
food or drug, non-biodegradable packaging,
cholesterol free, low fat milk with high calcium,
magazines, newspaper made with recycle paper,
etc.
 Society (Community Strategic
Public) & Environment

Consumers (customers &

clients): satisfaction, Societal Marketing
benefit and value. Concept
Company (Profit & Cost)
 CONT.,

• The Production Concept. Management should concentrate on improving production and

distribution efficiency.

• The Product Concept. The consumer will favor those products that offer the most quality,
performance and features. Focus on continuous product improvement.

• The Selling Concept. Organization undertakes substantial selling and promotion efforts.

• The Marketing Concept (1950’s – 1960’s). To determine the needs and wants of the target market
and to adapt itself to delivering the desired satisfaction more effectively than its competitors.

• The Societal Marketing Concept (1960’s present). To determine the needs, wants, and interest of
target markets and to deliver the desired satisfaction more effectively and efficiently than
competitors in a way that preserves or enhances the consumer’s and society’s well-being.
 MARKETING CHALLENGES IN THIS
NEW MILLENNIUM
• The changing economics environment
• The great recession, covid 19, etc. caused many buyers to rethink their spending
priorities and cut back on their buying, spend more carefully and sensibly. Marketers
will need to focus on value-for -the-money, practically and durability in their product
offerings and marketing pitches.
• The new digital age.
• Exciting new ways to learn, track customers, create products and services tailored to
individual customer/organization needs that link individuals and businesses at
anytime, anywhere and to build close relationships with customers and marketing
partners.
• New wave of communication, advertising and relationship-building tools .
• Content marketing will continue to evolve and will remain as crucial as ever for
digital marketers. Customers and prospects are always hungry for fresh content that
educates them and points them in the direction of a solution.
 CONT.,
• Rapid globalization.
• Receiving orders from all over the world at the same time the local consumer goods
produces introduce new products into emerging markets abroad.
• They also sourcing more suppliers and components abroad.

• Sustainable marketing – the call for more social responsibility

• Customers expect companies to deliver value in a socially and environmentally
responsible way.

• The growth of non-profit marketing.

• NGO, not for profit organizations, such as college, hospitals, museums, zoos and
even mosques face stiff competition for support and membership which needs of
funds and support.
 1-35

TECHNOLOGIES FOR
CONNECTING
Learn About & Create Products &
Track Customers Services Tailored to
With Databases Meet Customer Needs
Connecting Technologies in
Computers,
Telecommunications,
Information, & Transportation
Help To:
Communicate With Distribute Products
Customers in Groups More Efficiently &
Or One-on-One Effectively
 WHY STUDY MARKETING?
• Marketing play an important role in society.
• Marketing is important to business.
• Marketing offers outstanding career opportunities.
• Marketing affects your life every day.
 CONCLUSIONS
• Today’s successful companies whether large or small, for profit or non-profit,
domestic or global share a strong customer focus and a heavy commitment
to marketing.
• The goal of marketing is to build and manage profitable customer
relationships.
• Marketing seek to attract new customers by promising superior value and to
keep and grow current customers by delivering satisfaction.
 38

T.H.A.N.K Y.O.U F.O.R L.I.S.T.E.N.I.N.G

Copyright Kamil Ariff 2021 3/31/2021