University of Chittagong

Center for Business Administration

  Definition of Marketing

Marketing refers to activities a company undertakes to promote the buying or selling of a product
or service. Marketing includes advertising, selling, and delivering products to consumers or other
businesses. Some marketing is done by affiliates on behalf of a company.
1. According to famous writer Philip Kotler and Gray Armstrong , “Marketing is the process
by which companies create value for customers and build strong relationships in order to
capture value from customer in return.”
2. According to Pride and Ferrell, “Marketing is the process of creating, distributing,
promoting, and pricing goods, services and ideas to facilitate satisfying exchange
relationship in a dynamic environment.”
3. According to American Marketing Association (AMA), “Marketing is the process of
planning and executing the conception, pricing, promotion and distributing of ideas,
goods and services to create exchanges that satisfy individual and organizational
objectives.”

 Core Concept of Marketing

We can understand this core concepts of marketing through 5 stages.

A. Needs, wants & demands

Needs Human needs are the most basic concept underlying marketing. A human need is a state
of felt deprivation.

Humans have many complex needs.

· Basic needs, physical needs for food, clothing, warmth, and safety.

· Social needs for belonging and affection.

· Individual needs for knowledge and self-expression.

These needs are part of the basic human makeup.

Wants A human want is the form that a human need takes as shaped by culture and individual
personality. E.g. If some peoples are hungry and they want eat something, Hungry shows the
needs of the peoples which is same for everyone but the want will be different according to their
culture, taste, personality etc.

Demands are human wants that are backed by buying power.

Consumers view products as bundles of benefits and choose products that give them the best
bundle for their money.

Outstanding marketing companies go to great lengths to learn about and understand their
customer’s needs, wants, and demands. The outstanding company strives to stay close to the
customer.

B. Products and Services

A product is anything that can be offered to a market to satisfy a need or want.

A service is an activity or benefit offered for sale that is essentially intangible and does not result
in the ownership of anything.

Product/Service should be according to the needs and wants of the peoples.

C. Value, satisfaction and quality

Customer value is the difference between the values that the customer gains from owning and
using a product and the costs of obtaining the product. Customers do not often judge product
values and costs accurately or objectively--they act on perceived value.

Customer satisfaction depends on a product’s perceived performance in

Delivering value relative to a buyer’s expectations. If performance exceeds expectations, the

buyer is delighted (certainly a worthy goal of the marketing company).

The term total quality management (TQM) is an approach in which all the company’s people
are involved in constantly improving the quality of products, services, and marketing processes.
In the narrowest sense, quality can be defined as “freedom from defects.” Quality has a direct
impact on product or service performance. Quality is defined in terms of customer satisfaction.

The fundamental aim of today’s total quality movement has become total customer satisfaction.

D. Exchange, transactions & relationships

Marketing occurs when people decide to satisfy needs and wants through exchange.

Exchange is the act of obtaining a desired object from someone by offering something in return.

Exchange is only one of many ways to obtain a desired object.

Exchange is the core concept of marketing. Conditions of exchange include:

1. At least two parties must participate.

2. Each must have something of value to the other.

3. Each must want to deal with the other party.

4. Each must be free to accept or reject the other's offer

A transaction (a trade of values between two parties) is marketing’s unit of measurement. Most
involve money, a response, and action.

Transaction marketing is part of a larger idea of relationship marketing. Beyond creating short-
term transactions, marketers need to build long- term relationships with valued customers,
distributors, dealers, and suppliers. Ultimately, a company wants to build a unique company
asset called a marketing network (the company and all its supporting stakeholders). The goal of
relationship marketing is to deliver long-term value to the customer and thereby secure customer
satisfaction and retention of patronage.
E. Markets

The concepts of exchange and relationships lead to the concept of a market. A market is the set
of actual and potential buyers of a product.

1- Originally a market is a place where buyers and sellers gathered to exchange goods.

2- Marketers are keenly interested in markets to gather information about consumer’s behavior
and target them.

 Marketing Orientation with example

Marketing orientations are different philosophies that guide how organizations approach
their marketing strategies and interactions with customers. Each orientation reflects a
distinct perspective on customer needs, business goals, and market dynamics. Here are
five common marketing orientations along with examples:

1. Production Orientation:
This orientation focuses on maximizing production efficiency and reducing costs. The
belief is that customers will favor products that are widely available and affordable.
Example: Henry Ford's Model T production line in the early 20th century. Ford aimed to
produce automobiles in large quantities at lower costs, making cars accessible to the
masses.

2. Product Orientation:
In this approach, companies prioritize product quality, features, and innovation. The
belief is that superior products will attract customers.
Example: Apple is known for its product-oriented strategy. The company consistently
designs innovative, user-friendly products that set industry standards.

3. Sales Orientation:
 A sales-oriented organization emphasizes aggressive sales techniques and promotional
efforts to stimulate demand and increase sales.
Example: Door-to-door sales companies often adopt a sales orientation. They focus on
persuading customers to purchase products through direct selling and persuasive tactics.

4. Marketing Orientation:
Companies with a marketing orientation prioritize understanding and meeting customer
needs. The goal is to create products that fulfill customer demands while achieving
profitability.
Example: Amazon is a prime example of a marketing-oriented company. It continually
gathers customer data, customizes recommendations, and enhances the shopping
experience to cater to individual preferences.

5. Societal Orientation:
This orientation considers not only customer needs but also the societal well-being. It
aims to balance customer satisfaction with ethical and social responsibilities.
Example: Patagonia, an outdoor clothing company, demonstrates a societal orientation.
The company is committed to environmental sustainability and donates a percentage of
its profits to environmental causes.

 New Realities
The landscape of marketing is continually evolving due to technological advancements,
changing consumer behaviors, and emerging trends. Here are some of the new realities
shaping the field of marketing:

1. Digital Transformation: The digital revolution has fundamentally changed how

businesses connect with consumers. Online platforms, social media, and mobile apps
provide opportunities for targeted marketing, engagement, and real-time communication.
2. Data-Driven Decision Making: The availability of big data and advanced analytics
allows marketers to gain deep insights into consumer behavior, preferences, and trends.
Data-driven decision making enables more precise targeting and personalized messaging.
3. Social Media Influence: Social media platforms have transformed into powerful
marketing tools. Brands can engage directly with customers, build communities, and
leverage user-generated content to enhance brand loyalty.
4. E-commerce Evolution: E-commerce has revolutionized the way consumers shop,
enabling seamless online transactions and personalized shopping experiences. The
growth of online marketplaces and direct-to-consumer brands is reshaping retail
strategies.
5. Personalization and Customer Experience: Consumers expect personalized
experiences tailored to their preferences. Marketers are leveraging data to create
customized content, product recommendations, and targeted offers.
6. Influencer Marketing: Influencers on social media platforms have become key
players in marketing. Brands collaborate with influencers to tap into their engaged
audiences and gain authenticity and credibility.
7. Video Dominance: Video content is a preferred medium for consuming information.
Short videos, live streams, and interactive content have gained traction, offering new
avenues for engagement and storytelling.
8. Voice Search and AI Assistants: Voice-activated devices and AI-powered
assistants are changing search behaviors. Optimizing content for voice search and
providing voice-enabled experiences is becoming essential.
9. Sustainability and Ethics: Ethical and sustainable practices are increasingly
important to consumers. Brands that demonstrate social responsibility and environmental
consciousness can build stronger connections with conscious consumers.
10.Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies
provide immersive experiences that engage customers in unique ways. Brands are using
these technologies for virtual try-ons, product demonstrations, and interactive campaigns.
11.Micro-Moments: Consumers' brief interactions with digital devices throughout the
day create micro-moments, where decisions are made quickly. Brands must deliver
relevant content at these moments to capture attention.
12.Content Diversity: Different formats of content, such as podcasts, webinars, and
interactive quizzes, cater to diverse consumer preferences, enhancing engagement and
building brand identity.
13.Agile Marketing: Traditional long-term marketing plans are being replaced by agile
strategies that can quickly adapt to changing trends and consumer feedback.
14.Privacy Concerns: Increasing awareness of data privacy has led to more stringent
regulations. Marketers need to ensure compliance with regulations like GDPR and CCPA
while building trust with consumers.
 References
1. https://en.wikipedia.org/wiki/Marketing
2. American Marketing Association. (2017). Definition of Marketing. Retrieved from
https://www.ama.org/the-definition-of-marketing/
3.
4. https://article1000.com/core-marketing-concepts/
5. https://www.yourarticlelibrary.com/marketing/marketing-concepts-8-core-marketing-
concepts-with-diagram/48558
6. https://tyonote.com/5_core_concepts_of_marketing/#:~:text=So%20the%20core
%20concepts%20of,Market
7. https://digitallyeducate.com/the-core-marketing-concepts/
8. https://qsstudy.com/core-concepts-marketing/
9. Armstrong, G., & Cunningham, M. (2019). Principles of Marketing. Pearson.
10. Smith, P. R., & Zook, Z. (2019). Marketing Communications: Offline and Online
Integration, Engagement and Analytics. Kogan Page.
11. Kotler, P., Kartajaya, H., & Setiawan, I. (2017). Marketing 4.0: Moving from Traditional
to Digital. Wiley.
12. Li, C., & Bernoff, J. (2011). Groundswell: Winning in a World Transformed by Social
Technologies. Harvard Business Review Press.